Singapore's Azalea launches sustainability fund-of-funds

The firm did not disclose how much it is looking to raise for Altrium Sustainability Fund I (ASF I). However, parent company Azalea Group and local financial services player Singlife with Aviva will each contribute USD 50m as seed investors.

ASF I will back PE managers – chiefly in the buyout and growth spaces – investing in companies that incorporate environment, social, and governance (ESG) factors into business decisions and are committed to creating lasting positive environmental and social impact. The core themes are climate, resource management, healthcare, education, and financial inclusion.

Part of Azalea’s remit is to break down barriers to participation in private markets, to the point of including retail investors.

It already operates conventional fund-of-funds under the Altrium brand, with a second vehicle recently closing on USD 805m. It received commitments from pension funds, foundations, insurers, family offices, and high net worth individuals (HNWIs).

Fund I – which raised USD 650m in 2019, half of that coming from accredited HNWIs – represented Azalea’s first product offering direct equity exposure to PE. In 2016, the firm assumed responsibility for the Astrea series, which are structured secondary transactions involving funds in the Temasek portfolio. The sixth iteration – a collateralized fund obligation of USD 643m – closed in 2021.

“Investing through a sustainability lens not only builds a forward-looking portfolio, it also assures enduring value, thus enhancing the likelihood of resilient returns. Through ASF I, investors share our vision to drive positive impact through collaboration with multi fund managers,” said Margaret Lui, CEO of Azalea, in a statement.

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• Topics
• Southeast Asia
• Fundraising
• Fund-of-funds
• Singapore
• Temasek Holdings
• Azalea Asset Management
• ESG
• Fundraising