The fund will allow Temasek Trust to play an active role in impact investments through sustainable philanthropy, beyond its usual approach of grant-making.
Temasek Trust, the philanthropic arm of Singapore state sovereign fund Temasek Holdings, has announced the establishment of ABC World Asia, an Asia-focused private equity fund for impact investing, The Business Times reported on Friday.
The will invest in companies that show commitment towards impact, particularly in South Asia, Southeast Asia, and China, focusing on areas like financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.
According to its website, «ABC» refers to «active economies, beautiful societies and a clean Earth.»
«The complex social and environmental challenges in our region present the potential for investors to achieve substantial impact,» David Heng, chief executive officer of ABC World Asia, said.
ABC’s fund manager is supported by Temasek Trust, Temasek and Pavilion Capital, the publication said.
Growing Awareness
Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. The industry is still in its infancy, though it has been growing rapidly, with several significant investors getting involved and setting up their own funds in this sector.
According to Forbes, impact investors are far more proactive in their intention for positive impact as opposed to merely avoiding the negative impacts.
New York-based nonprofit Global Impact Investing Network has estimated the size of the global impact investing market to be more than $500 billion.
