UOB Venture Management (UOBVM), the private equity arm of UOB and Credit Suisse, has announced that it has closed its second impact fund at over US$60 million.
The Asia Impact Investment Fund (AIIF II) received capital commitments from major institutional and accredited investors, including UOB and several unnamed global family offices and high-net-worth individuals.
The final close of the fund is expected to be completed next year, with a target of US$100 million to be raised in total, as per a press statement.
Also Read: UOB partners cloud accounting firm Xero to ease SMEs; bookkeeping woes
Geared towards making a social impact, AIIF II will look to invest in companies whose business models revolve around improving the livelihoods of underserved communities in Southeast Asia and China.
The fund will make equity investments of about US$1 million to US$15 million into private, high-growth companies in sectors such as agriculture, education, healthcare and logistics, or sectors that focus on improving the accessibility of affordable housing, sanitation, clean water and energy.
Other than its current fund, UOB also has Asia Impact Investment Fund I which invests in similar companies and had raised US$55 million in 2016. Some of its notable investments include agritech company TaniHub, healthcare company Halodoc, and gojek.
To date, the fund claims to have helped more than 15 million low-income individuals to benefit from the efforts of the AIIF I’s portfolio companies, from getting higher income to better access to financing or affordable and quality products and services.
“The success of the AIIF I and the momentum of the AIIF II to date reflect investors’ growing emphasis on sustainability. While we seek to achieve quality financial returns for our investors, we also continue to partner them in generating positive social impact by helping the vulnerable segments of the community across Southeast Asia and China. Our common goal of advancing social development through investments underpins our joint efforts to forge a sustainable future for all,” said Seah Kian Wee, CEO of UOBVM.
COVID-19 has exacerbated global poverty and is estimated to push up to 150 million more people into extreme poverty by 20215, including tens of millions in Southeast Asia.
The unprecedented global pandemic has set back the progress made to alleviate poverty, which was already affected by socioeconomic tensions and climate change.
—
Image Credit: UOB
The post UOB’s second Asia impact fund hits first close at US$60M appeared first on e27.