Heritas hits $20m first close on Asia impact fund

The remaining USD 10m in the first close was provided by Tsao Family Office, ANF Family Office, Octava Foundation, Ishk Tolaram Foundation, C Plus V Foundation, and IMC Group, Heritas’ parent company. The latter was identified as a co-anchor alongside DBS.

Asia Impact First fund (AIFF) was conceived by DBS Foundation, an impact and social enterprises-focused unit of the Singaporean bank. DBS Foundation was established in 2014 with an initial USD 50m and augmented with USD 100m in February last year.

AIFF was launched last August and had initially forecast a first close before the end of 2022. Heritas CEO Wai Chiew Chik described it as among the first funds in a new investment category that prioritises impact over profit. The target IRR is 5% to 10%.

“We look forward to raising awareness and shifting consciousness within societies across Asia towards addressing the funding gaps for fast-growing social enterprises that offer innovative solutions for enhancing livelihoods of disadvantaged communities and protecting the environment,” Chik said in a statement.

AIFF aims to invest in 10-15 high-growth companies across the region. Targets must have clearly demonstrated social or environmental impact. They must also articulate viable plans to scale a double bottom line of impact and financial profitability.

Impact objectives include providing access to affordable, quality education, healthcare, nutritious food, and inclusive employment opportunities. They also extend to reducing carbon footprints, managing and recycling waste, and enhancing the sustainability of food production and supply chains.

AIFF is the third fund Heritas has launched under Singapore’s variable capital company (VCC), a flexible version of a private equity limited partnership. VCCs can be used as tax-efficient vehicles for fund management purposes and the Monetary Authority of Singapore is offering grants to encourage uptake.

The other VCC funds include Heritas Venture Fund II and Heritas Growth Fund III. Fundraising for all three appears to be ongoing.

Venture Fund II was launched in 2020 with a target of USD 30m and reportedly hit a first close of around USD 10m in 2021. Heritas Growth Fund III launched in 2021 with an anchor investment of USD 60m from IMC and Tsao Family Office.

The Tsao family established IMC in 1966 as International Maritime Containers. Its interests span shipping, logistics, engineering, resources, and investment.

Heritas was founded in 1997 as an investment arm of IMC. There are currently about USD 250m in assets under management across private equity, venture, and fund-of-funds strategies. The core sectors are healthcare, education, and technology.

“We are pleased to co-anchor Heritas’ Asia Impact First Fund for backing leading social enterprises as we further shift consciousness in business to mindfully improve livelihoods and protect the environment in a new era of impact-first investing,” Frederick Tsao, chairman of IMC, added.

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• Topics
• Southeast Asia
• Healthcare
• Technology
• Cleantech
• Fundraising
• Venture
• Singapore
• Heritas Capital
• Impact investment