ABC Impact Closes Fund II at Over USD 600 Million, Doubling Fund Size with Commitments from Asian Development Bank, Temasek Trust, Temasek, and Other Leading Institutional Investors
SINGAPORE, April 14, 2025 /PRNewswire/ -- ABC Impact, the Asia-focused impact investment firm, has successfully completed the final closing of its second fund at over USD 600 million, doubling the size of Fund I. This milestone deepens the firm's commitment to addressing Asia's critical social and environmental needs through impact-driven investments.
Broader Backing Reflects Growing Alignment
ABC Impact Fund II has drawn support from a diverse group of Limited Partners, including Temasek; Temasek Trust; the Asian Development Bank (ADB); Mapletree Investments; SeaTown Holdings; a Southeast Asia sovereign wealth fund; a U.S. family office; and ultra-high-net-worth individuals. This convergence of development finance and private capital reflects a growing recognition that impact investing can address systemic issues through market-based approaches.
Benoit Valentin, Head, Impact Investing, Temasek, said, "In a rapidly changing world, we are facing increasingly complex and far-reaching social and environmental challenges. Our partnership with ABC Impact is a core pillar of Temasek's impact investing strategy, reflecting our belief that impact investing can scale capital to address the pressing issues we are facing. By working together, we can create a more inclusive and sustainable world where every generation prospers."
"The impact investment landscape in the region remains nascent, with a significant funding gap for growth-stage companies," said Jackie Surtani, ADB's Regional Director and Head of the Singapore Office. "ADB's investment in ABC Impact Fund II reflects our commitment to catalysing impact capital across Asia and the Pacific.
By supporting innovative businesses that tackle pressing social and environmental challenges, we aim to improve lives and livelihoods throughout the region."
Reinforcing a Shared Vision for Asia
Tow Heng Tan, Chairman, ABC Impact, noted, "The successful closing of Fund II underscores the trust that leading institutional investors have placed in ABC Impact's disciplined investment strategy. By welcoming external capital from the likes of Asian Development Bank, we are deepening our commitment to shaping a more sustainable and inclusive future in Asia."
"We believe capital, when directed with intent, can help shape pragmatic, market-led responses to the most urgent challenges facing our region," said David Heng, CEO of ABC Impact. "From climate resilience to inclusive finance and healthcare access, investing in these areas is both a societal imperative and a long-term business opportunity."
Advancing Impact Across Priority Sectors
Closing amid increasing climate shocks, inequality, and economic uncertainty, ABC Impact Fund II focuses on practical solutions in areas where traditional models have struggled to deliver results. Its investment strategy centers on four priority sectors: clean energy and climate resilience, inclusive finance and digital access, healthcare and education, and sustainable food systems.
Investments to date include Aye Finance in India, which provides loans to micro and small enterprises; Tekoma Energy in Japan, a renewable energy developer specializing in solar projects; and DCDC Kidney Care, one of India's largest dialysis networks delivering affordable treatment to underserved patients.
Investing Responsively in a Diverse Region
Asia's economic and demographic momentum continues to create opportunities for innovation in impact. But the region's complexity requires an investment approach that is both grounded and adaptive.
"While policy can accelerate change, it is market demand, capital flows, and competitive forces that ultimately drive adoption and scale," said David. "The businesses we invest in are not waiting for external signals—they are actively shaping the future by addressing critical needs in ways that are both impactful and financially sound."
Fund II builds on the momentum of Fund I (2019–2024), enabling ABC Impact to expand its partnerships, extend its reach across high-impact sectors, and back commercially viable solutions with the potential for long-term impact.
Looking Ahead with Purpose
Impact investing is increasingly seen not as a trade-off, but as a strategic advantage. ABC Impact's approach is rooted in the belief that financial strength and societal benefit can—and should—advance together.
"Our progress is made possible by the trust and collaboration of our investors and partners," concluded Tow. "Together, we are demonstrating that financial success and positive impact are not just compatible—they are mutually reinforcing."
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Investor & Media Inquiries:
Jeffrey Fang
Head of Investor Relations
[email protected]
About ABC Impact
ABC Impact is a Pan-Asia impact investment firm dedicated to delivering measurable social and environmental outcomes alongside risk-adjusted financial returns through sustainable growth. With over USD 900 million in assets under management, the firm follows a disciplined, thematic strategy to invest in high-potential businesses addressing Asia's most pressing challenges.
Its portfolio spans climate and water solutions, sustainable food and agriculture, healthcare and education, and financial and digital inclusion. ABC Impact is a member of Temasek Trust Asset Management and is backed by Temasek Trust, Temasek, the Asian Development Bank, and other leading institutional investors.
As a signatory to the Principles for Responsible Investment and the Operating Principles for Impact Management, ABC Impact applies a rigorous, evidence-based impact measurement and management framework to ensure effectiveness and accountability. It is committed to mobilizing private capital for a more sustainable and inclusive Asia.
Visit www.abcimpact.com.sg for more information.
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