Temasek-backed Azalea launches ESG-focused private-equity fund

Green shoots. Photo by Markus Spiske on UnsplashGreen shoots. Photo by Markus Spiske on Unsplash

Azalea Investment Management, an indirect wholly owned subsidiary of Singapore’s state-owned investment company Temasek Holdings, has launched a private equity fund focused on environmental, social and governance (ESG), the manager said in a press release Wednesday. 

The fund, called Altrium Sustainability Fund I (ASF I), is co-seeded by the Azalea Group and financial services company Singlife with Aviva, with each committing US$50 million, the release, which was filed to SGX, said.

ASF I is a private-equity fund-of-funds aimed at enabling institutional and other accredited investors to build and ESG-focused portfolio, the filing said. The fund will focus on funds with managers investing in companies incorporating ESG factors into business decisions and committing to investing to create positive environmental and social impact, the filing said. 

“Private equity is uniquely positioned to be a force for good through its long-term investment horizon and innate appetite for value creation. Investing through a sustainability lens not only builds a forward-looking portfolio, it also assures enduring value, thus enhancing the likelihood of resilient returns,” Margaret Lui, CEO of Azalea, said in the statement. “Through ASF I, investors share our vision to drive positive impact.”

The targets will be funds investing in scalable commercial solutions to pressing issues across five core themes: climate, resource management, healthcare, education and financial inclusion, the filing said, pointing to the U.N. Sustainable Development Goals. Buyout and growth strategies will be used, the filing said.

Pearlyn Phau, group CEO of Singlife with Aviva, said her company wanted to contribute to Singapore’s Net Zero by 2050 goal. 

“In addition to measuring the carbon footprint of our global investment portfolio, we are actively seeking responsible investment opportunities and are pleased to work with Azalea,” she said in the statement.

Singlife has also recently seeded two sustainable funds, and will continue to pursue other ESG-focused investments, the filing said. In November 2021, Singlife said it would participate in the Monetary Authority of Singapore’s Project Greenprint, which uses real-time data in the transport and logistics sector to monitor emissions and review whether it can improve underwriting and reduce premiums, the filing said.

The Azalea Group invests in private equity funds, with a focus on developing new investment platforms and products to make private equity accessible to a broader group of investors, the filing said.

 

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