Temasek Trust, the philanthropic arm of investment company Temasek Holdings, has established a private equity fund dedicated to impact investing.
Singapore-based ABC World Asia will invest in companies that demonstrate commitment towards impact, primarily in South Asia, South-east Asia and China.
Impact investing aims to generate 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.
Temasek Trust chief executive Cheo Hock Kuan 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."
ABC World Asia chief executive David Heng said there are compelling opportunities in impact investing across Asia, where the industry is in its infancy. "The complex social and environmental challenges in our region present the potential for investors to achieve substantial impact," he added.
ABC's fund manager is supported by Temasek Trust, Temasek and Pavilion Capital.
Temasek Trust is an independent trustee of philanthropic endowments and gifts.