UOB Venture Management on Monday launched another Asia-focused impact fund and looks to collaborate with Credit Suisse again.
UOB Venture Management (UOBVM), a wholly-owned subsidiary of UOB, announced that it will be expanding its impact investing efforts with the launch of its second impact fund. Targeted at global institutional and accredited investors, the new private equity fund is the second series of UOBVM’s Asia Impact Investment Fund (AIIF II).
«Through AIIF II, we want to support more entrepreneurs and companies that are able and are committed to working with low-income communities in overcoming challenges. By providing the financing they need to develop and to build their team, business model, capabilities and solutions to scale, we can help them to do good and to do it well,» said Seah Kian Wee, Chief Executive Officer of UOBVM in a media statement.
Impact To Be Tracked
AIIF I, launched in 2015 together with Credit Suisse, has invested in nine firms across China, Indonesia, Myanmar, the Philippines, and Vietnam. UOB hopes to continue the collaboration with Credit Suisse for the second series, a UOB spokesperson said. The first impact fund had a size of $55 million but no fundraising target was disclosed for this second fund.
AIIF II will make equity investments of about US$1 million to US$15 million per investee company focused in the areas of financial inclusion, affordable housing, clean energy, water, and sanitation. The impact generated by portfolio companies will be measured and tracked regularly.
According to the World Bank, Asia Pacific is home to more than 700 million people living under $5.50 a day. In assessing potential deals for the AIIF II, UOBVM will evaluate the positive impact the companies would bring to low-income communities. It will also consider the companies’ ability to scale their business in a sustainable manner.
