Singapore private equity firm UOB Venture Management (UOBVM), a subsidiary of United Overseas Bank, plans to launch its second impact fund by the end of 2019, to provide financing for companies that “do good”.
Like the first fund launched four years ago, the Asia Impact Investment Fund (AIIF) 2 will invest in the Asian education, healthcare and agriculture sectors, and seek investments in the areas of financial inclusion, affordable housing, clean energy, water and sanitation.
It will be open to institutional and accredited investors.
"The fund will take minority stakes in the investee companies, making equity investments of about US$1 million to $15 million in each," UOBVM says in a statement on June 10.
According to Managing Director and Chief Executive Officer Seah Kian Wee, impact investing is one way in which the company can help "bring about and sustain responsible growth".
"Through AIIF 2, we want to support more entrepreneurs and companies that are able and are committed to working with low-income communities in overcoming challenges,” he says in the statement. “By providing the financing they need to develop and to build their team, business model, capabilities and solutions to scale, we can help them to do good and to do it well.”
The first fund, launched in 2015, attracted $55 million of investments from institutional and accredited – mostly high-net-worth – investors, a spokesperson for United Overseas Bank tells Asia Asset Management.
Its investee companies include Ruangguru, an education technology firm in Indonesia, and Zhejiang Lanmei Agriculture Co., a blueberry seeding company in China.
UOBVM had more than S$1.7 billion ($1.25 billion) in committed capital as of May 2019.