SINGAPORE (June 10): UOB Venture Management (UOBVM) says it intends to roll out its second impact fund, the second series of the Asia Impact Investment Fund (AIIF II), to global institutional and accredited investors in 2H19.
Focused on Asia, the AIIF II will be a double bottom-line fund that aims to achieve both impact and financial returns. It intends to take minority stakes in investee companies, with equity investments ranging from US$1 million to US$15 million ($1.4 million to 20.5 million) each.
Continuing the strategy of the AIIF’s first series (AIIF I) to invest in Asia’s education, healthcare and agriculture sectors, the second series of the fund will also seek investments in the areas of financial inclusion, affordable housing, clean energy, water and sanitation.
In a press release on Monday, UOBVM says it intends to assess potential deals for its new fund by evaluating companies’ positive impact on low-income communities that lack infrastructure and access to facilities that meet their basic needs.
It will also consider these companies’ ability to scale their businesses in a sustainable manner before deciding to invest in them, adds the PE firm.
Subsequently, the impact generated by the fund’s portfolio companies will be measured and tracked regularly.
“Through AIIF II, we want to support more entrepreneurs and companies that are able and are committed to working with low-income communities in overcoming challenges. 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,” says Seah Kian Wee, managing director and CEO of UOBVM.
AIIF I was launched by UOBVM in 2015 to invest in growth companies in Southeast Asia and China, has invested in nine companies to date.
Investee companies for the first fund span across China, Indonesia , Myanmar, the Philippines and Vietnam, where UOBVM says the collective efforts of the portfolio companies have led to over 10 million low-income individuals benefitting from higher income, or better access to affordable products and services, financing and quality.
