Temasek-backed ABC aims to raise $600m for second impact fund


SINGAPORE — Singapore-based ABC Impact (formerly ABC World Asia) is raising at least $600 million for its second impact fund, according to several sources aware of the matter. This marks a doubling in fund size for the Temasek-backed private equity firm, which last closed its debut fund at $300 million in late 2019.

DealStreetAsia understands that Singapore state investor Temasek Holdings is likely to make a smaller contribution to Fund 2, which will mean that ABC Impact will have to turn to other limited partners for fundraising.

Temasek and ABC Impact have also made co-investments together in the past, most notably in Singapore solar power operator Sunseap — an investment that both exited last year when it was sold to EDP Renewables. EDP, the world’s fourth-largest producer of renewable energy, snapped up primary and secondary shares to build a 91.4% stake in the Singapore firm.

Temasek and ABC Impact, which plowed $18.54 million each to build a stake in Sunseap across 2020 and 2021, exited with a return of roughly 2.6 times at $48.3 million each.

Temasek is one of ABC Impact’s major limited partners, along with several other Singapore government-backed investment vehicles and corporations such as Temasek Trust, Pavilion Capital, Mapletree Investments, Seatown Holdings and Sembcorp Industries.

ABC Impact invests in companies that demonstrate a commitment to sustainable development and the generation of positive social or environmental impacts.

It takes minority positions in growth-stage companies and looks across five impact themes: financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and livable cities.

According to ABC Impact’s website, it has deployed $194 million out of its $300 million Fund 1 as of September 2022. The firm lists 10 portfolio companies across China, India, Vietnam, Australia and Europe. Some names include InnovaFeed, Dami and Xiaomi, Iceotope, Vedantu, HCAH, Cropin, Chongho Bridge, Nha Khoa Kim, v2 Food and Sunseap.

ABC Impact declined to comment on this story.