Fullerton Fund Management said it has raised US$100 million in the anchor close of its Fullerton Carbon Action Fund.
The fund said it eyes to invest in market leading businesses in the rapidly growing manufacturing, industrials, energy, and electric vehicles and mobility sectors.
The fund is targeting companies that have lower inherent downside risks and are well-positioned to deliver attractive financial returns over the long-term, they said in a statement.
“With the acceleration of the decarbonisation roadmap in Asia, we are at an inflexion point where the fight against climate change coincides with the emergence of very compelling growth areas in private equity,” said Jenny Sofian, Chief Executive Officer, Fullerton Fund Management.
“This strategy provides an avenue to ride the decarbonisation wave and advance the net zero agenda in the region, while capturing long-term opportunities,” he added.
Asia emits over 50% of the world’s carbon emissions and represents a US$5 trillion climate investment opportunity by 2030.
The Fund will focus on leaders in the mid-market space in Southeast Asia, India and China, providing them with strategic support alongside capital to drive the growth of its portfolio companies in areas such as new market entry, M&A and sustainability improvements.
“The need for collective action on climate change has never been greater. Carbon transition in Asia will require significant capital to drive the development and adoption of solutions that can make a substantial impact on the environment within a tangible timeframe,” said Jimmy Phoon, Chief Executive Officer, Seviora Group.
“By leveraging Fullerton’s understanding and investment expertise in the decarbonisation space, we aim to achieve positive environmental change alongside an attractive risk-return profile.”
Temsak is represented by Seviora Group, which alongside Fullerton Fund Management and Income Insurance lead investment strategies to address climate change.
