Temasek's philanthropy arm sets up Asia-focused private equity fund for impact investing

The private equity fund will focus on themes such as financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.
The private equity fund will focus on themes such as financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.PHOTO: REUTERS

SINGAPORE - Temasek Trust, the philanthropic arm of investment company Temasek Holdings, has established ABC World Asia, a private equity fund dedicated to impact investing.

Headquartered in Singapore, ABC World Asia will invest in companies that demonstrate commitment towards impact, primarily in South Asia, South-east Asia and China.

In impact investing, there is an intention to generate positive, measurable social or environmental impact, alongside a compelling risk-adjusted return.

The fund will focus on themes such as financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.

Cheo Hock Kuan, chief executive officer of Temasek Trust, said: "There is scope for impact investing to help bridge the financing gap in support of the United Nations Sustainable Development Goals."

"Temasek Trust seeks to play an active role in impact investments through sustainable philanthropy, beyond our usual approach of grant-making," Ms Cheo said.

David Heng, chief executive officer of ABC World Asia, said there are "compelling" opportunities in impact investing across Asia, where the industry is still in its infancy.

"The complex social and environmental challenges in our region present the potential for investors to achieve substantial impact," said Mr Heng.

 

ABC's fund manager is supported by Temasek Trust, Temasek and Pavilion Capital.

Temasek Trust is an independent trustee of philanthropic endowments and gifts. Its purpose is to ensure sustainable funding for the long-term well-being and security of communities.