Singapore-based private investment firm Heritas Capital, which has around 20 companies in its portfolio including digital health startup Mfine, has marked the first close of its impact-focussed fund at $20 million.
Financial services firm DBS has committed $10 million to the Asia Impact First Fund (AIFF) to become its anchor investor.
The other limited partners (LPs) who chipped in for the fund’s first close include Tsao Family Office, IMC Group, Ishk Tolaram Foundation, ANF Family Office, Pang Sze Khai (chairman of Octava Foundation and Octava Pte Ltd).
AIFF, with a target size of about $50 million and a fund life of 10 years, will be investing across 10-15 social enterprises in Asia.
The fund seeks to back those businesses that tackle challenges surrounding urban and rural livelihoods, or the environment, with an appropriate market for financial returns for investors, according to a statement.
The impact fund, with DBS Foundation acting as its knowledge partner, will aim for capital preservation or appreciation with a target internal rate of return (IRR) of 5% to 10%.
“Through AIFF, clients can have peace of mind that their money is going towards a carefully curated and stringent selection of social enterprises that will make the best of it to drive real impact, for the betterment of society,” said Lee Woon Shiu, group head of wealth planning, family office and insurance solutions at DBS Private Bank.
Established in 1997, Heritas Capital has assets under management of over $250 million. It manages private equity, venture capital and fund-of-funds investments into areas including healthcare, technology, and education, globally, with some of them including Timberland Medical Centre, Hummingbird Bioscience, Gentle Foods, among others.
Some of its previous funds include the Heritas Ventue Fund II and Heritas Venture Fund III, which had marked their first close at $10 million and $60 million, respectively, in 2021.
