Ex-EQT partner wins funding for Asia ESG services platform
Tak Wai Chung, who until early last year was a Singapore-based partner at EQT, has secured funding for a pan-Asian platform that will provide software solutions to corporates that need to meet environment, social, and governance (ESG) requirements.
The platform is the product of a buy-and-build strategy executed by Xcelerate, an operating and investment platform run by Chung and Madhujeet Chimni, who previously worked at In.Corp Global, a corporate services provider owned by EQT until last year. Most recently, Chimni co-founded Blue Planet Environmental Solutions, a Singapore sustainable waste management business.
The funding comes from Altair Capital, a Southeast Asia-focused affiliate of Japan’s Polaris Capital Group, and Exacta Capital Partners, which operates through Singapore-based fund manager Mizuho Asia Partners. The co-founders and management of Xcelerate – who also participated in the round alongside select existing shareholders – retain a controlling interest in the business.
The size of the investment has not been disclosed but Xcelerate is a nascent entity, though EBITDA-positive. The buy-and-build began late last year with the acquisition of Aparajitha Corporate Services, one of India’s largest labour and industrial compliance service providers. In May, Xcelerate assumed responsibility for contracts held by ComplyIndia, another compliance services business.
The goal is to create a comprehensive package of ESG and governance risk and compliance (GRC) solutions, comprising tools, technologies, and experienced teams.
“We believe there is a strong need for a regional player offering GRC/ESG solutions. Through Aparajitha, we have built a strong presence in the labour and industrial segments in India. As we build on our technologies, solutions and teams in the APAC and other regions, we are pleased to partner with Altair Capital and Exacta Capital Partners in this journey,” Chimni said in a statement.
Parallels can be drawn with another investment Chung was involved in at EQT – Hong Kong-based Elevate. The company works with corporates, industry coalitions, governments, and non-governmental organisations, conducting assessments and audits that help ensure supply chains meet required standards on ESG compliance and sustainable sourcing.
EQT sold Elevate to LRQA, a larger peer in the assurance space, earlier this year.
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