Tan Shao Ming, Chief Investment Officer at ABC Impact
Asia, home to more than half of the global population, offers vast potential for impact investments, according to Tan Shao Ming, Chief Investment Officer at ABC Impact, a Singaore-based private equity firm investing in companies creating positive change in Asia.
“Since we began our work, the Asia impact investing space has grown rapidly in awareness, volume, diversity, and standards,” Ming said in an interview with e27. “More investors and companies now recognise the relevance and importance of positively impacting our society and the environment. The deal flow in Asia has also increased in both value and segments.”
Also Read: How climate tech companies in Asia measure the impact of their work
While the region is diverse in its impact needs and challenges, we have observed that impact capital can help address bottlenecks in crucial areas such as agricultural productivity, bioenergy, and healthcare, particularly in Southeast Asia. “China and India continue to hold massive potential for such outcomes in healthcare, education, and financial inclusion. Positive transformation in these segments can help uplift entire generations and communities,” he added.
Founded in 2019, ABC Impact invests in companies driving positive change by addressing the world’s most pressing challenges, such as climate change, resource scarcity, and deepening inequality. Its investment themes include financial and digital inclusion, better health and education, climate and water solutions, and sustainable food and agriculture.
Its founding investors are Temasek Trust, Temasek, Pavilion Capital, Mapletree Investments, Seatown Holdings, SP Group, and Sembcorp Industries.
Recently, the PE firm announced the first close of its second impact fund. Launched in August 2023, ABC Impact Fund II now has over US$550 million in assets under management (AUM). The final close is expected later this year.
Fund II will continue to focus on the climate & water, sustainable food & agriculture, better healthcare & education, and financial & digital inclusion themes.
“Since our inception, more sovereign investors and family offices have become increasingly interested in impact investing in Asia. With the new investors that have joined us in Fund II, we can now extend our collective influence to further the impact agenda,” Ming shared.
Also Read: Temasek, SeaTown invest in ABC Impact’s Fund II
The investment firm is also focused on catalysing climate technology for the Asia region. Last May, the firm and sustainable chemical company Indorama Ventures led a £20 (US$25) million Series B funding round in Polymateria Limited, a biotransformation technology company combating plastic pollution.
“Since our investment, we have introduced our portfolio companies to potential Asian customers. Given our access to Asia and to the impact ecosystem, we are well placed in helping innovators from around the world deploy and deliver their solutions in Asia to address the region’s pressing environmental challenges,” Ming concluded.
In 2022, the fund exited Singapore-based solar company Sunseap.
As per a study, impact investing is expected to see faster growth compared to other ESG investing approaches, with the main drivers being institutional adoption, next-generation wealth, and Asia transition progress.
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