UOB Venture Management to launch second PE fund for impact investing

It will make around US$1m-15m equity investments in each investee company.

UOB Venture Management Pte. Ltd. (UOBVM) is rolling out a new private equity fund during the second half of the year as the second series of its Asia Impact Investment Fund (AIIF II). In addition to continuing the strategy of the AIIF I which backed education, healthcare, and agriculture firms, the fund will seek investments in financial inclusion, affordable housing, clean energy, water, and sanitation.

To assess potential deals for the AIIF II, the UOBVM will evaluate the positive impact the companies would bring to low-income communities and the companies’ ability to scale their business in a sustainable manner. The fund will take minority stakes in the investee companies, making equity investments of about US$1m to US$15m in each.

Through the AIIF II, the UOBVM aims to develop and sustain responsible growth by providing financing to entrepreneurs and companies which are committed to working with low-income communities.

Previously, the efforts of the AIIF I’s has seen more than 10 million individuals benefiting from higher income or better access to affordable products and services, financing and quality. The first batch of investee companies include Indonesian edtech startup Ruangguru, Chinese agritech startup Zhejiang Lanmei Agriculture Co., and Indonesian healthtech startup Halodoc.