ABC Impact hits $550m first close on second impact fund

A Southeast Asian sovereign wealth fund has come onboard for ABC Impact Fund II, while ABC Impact Fund I nears full deployment.

Singapore-based private equity firm ABC Impact has held a first close on $550 million for its second impact fund, ABC Impact Fund II.

The fund launched in August 2023 with a focus on sustainable solutions for resource scarcity, climate change and inequality, through investments in agriculture and other sectors.

The firm expects to hold a final close for the fund in 2024.

ABC Impact Fund II attracted interest from new investors including a Southeast Asian sovereign wealth fund alongside continued support from existing Singapore-based partners Temasek Trust (ABC Impact’s founder), Temasek, SeaTown Holdings and Mapletree Investments.

In a statement, ABC Impact CEO David Heng said the firm sought to drive change through its portfolio of “purposeful” companies.

“The robust interest in Fund II is a validation of the strategy embedded in our inaugural fund,” he said.

“With a steadfast commitment to disciplined and evidence-based impact investing, we are particularly encouraged by the enthusiasm of new investors joining our mission.”

The fund’s predecessor, ABC Impact Fund I, launched in 2019 and has $300 million in assets under management.

That fund is nearing full deployment with investment spread across 11 companies focusing on sustainable food and agriculture, climate and water solutions, health and education, and financial and digital inclusion.

The companies include French biotechnology firm Innovafeed, a developer of insect-based feed for aquaculture.

“We believe that there is a huge potential for Innovafeed’s technology and platform to be rolled out in Southeast Asia, given the tropical climate which is conducive for the black soldier fly, and the availability of palm oil waste, which is a suitable feedstock,” ABC Impact said on its website.

Another portfolio company, Indian agtech firm Cropin, provides farmers with customized advice and data using artificial intelligence.

“We invested in Cropin for its ability to improve efficiency, productivity, predictability and sustainability of crop value-chains for agribusinesses and smallholder farmers around the world,” said the firm.

ABC Impact is also an investor in Australian plant-based meat producer v2food.