ResponsAbility sets $450m hard cap for second Asia food fund

Stephanie Bilo, the firm’s chief client and investment solutions officer, told Mergermarket, AVCJ’s sister publication, that the new fund will make up to 15 investments. It will write equity cheques of USD 10m-USD 50m for significant minority positions in companies in India, Indonesia, Vietnam, and the Philippines.

Confirmation of the hard cap comes three months after ResponsAbility announced a first close of USD 173m. The fund has already been in the market for more than two years – it launched no later than November 2020 – but ResponsAbility believes its USD 400m target is within reach. The first South and Southeast Asia fund, a 2017 vintage vehicle, closed on USD 67.5m.

Bilo said the firm is open to approaches from placement agents for support with the ongoing fundraise, expressing a keenness in attracting new LPs from Asia and the US. Bilo added that a second close would likely take place later this year while a final close is anticipated before July 2024.

M&G, a UK-headquartered investments manager, took 100% ownership of responsibility in May 2022. M&G’s insurance arm made an anchor commitment to the new fund. Several Europe-based Fund I investors – including pension funds, family offices, asset managers, and foundations – also re-upped in the first close, Bilo said.

Established in 2003, ResponsAbility has USD 4.8bn in assets under management globally across private equity and private debt. It manages 12 vehicles under three core themes: climate finance, financial inclusion, and sustainable food. Direct investments account for USD 3.9bn of overall AUM, while USD 1.7bn is deployed in Asia.

The Asia food strategy involves accessing 1.2bn predominantly young, urbanised consumers expected to join the upper middle class, reflecting increasing demand for food that’s safe, healthy, and convenient. The new fund focuses on mid and downstream companies and aims to help them improve efficiency in production and distribution.

ResponsAbility has around 60 employees in Asia and maintains offices in India and Thailand. Bilo added that a Singapore base is in the process of being set up. The five Fund I investments span four companies, most of which are based in India.

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• Topics
• South Asia
• Southeast Asia
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