The Singapore state-owned investment company, which recently made the largest commitment to an impact investor so far, plans to boost its presence in this space.
«Our ambition is to be a catalyst to accelerate the growth,» Temasek's Benoit Valentin, told «Reuters» in an interview published on Friday.
Earlier this month, Temasek entered into a strategic partnership valued at $500 million with Australian-based impact investment group LeapFrog Investments, which focuses on Asia and Africa investments. Temasek committed to anchor LeapFrog's future funds, and will take a minority stake in the company and provide growth capital to support the expansion of the LeapFrog team and investment capabilities.
Inflection Point
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 such as KKR, Blackstone and TPG getting involved and setting up their own funds in this space.
New York-based nonprofit Global Impact Investing Network has estimated the size of the global impact investing market to be more than $500 billion.
«We believe impact investing is at an inflection point,» the firm's London-based head of impact investing said, noting that Temasek is looking to commit more money and is in talks other fund investors.
More Investment Planned
Temasek is currently in due diligence with two funds: one focused on India and another with a wider scope, and has others lined up for the following years, he said.
«I think that in five years from now, every single big private equity firm would have their own impact vehicle,» Valentin added.
