Singapore, 28 October 2021 – Tembusu Partners in collaboration with Eco-Business today announced the launch of the Sustainable Future Fund (SFF), an inaugural platform that will deploy purpose-driven capital into solving the most urgent sustainable development challenges across Asia.
The targeted USD 100 million fund will pursue high impact growth stage opportunities across the region that focuses on addressing the climate crisis and reducing social inequalities.
The Intergovernmental Panel on Climate Change (IPCC) report issued recently — described as “a code red for humanity” by the UN Secretary General António Guterres — warns that rising temperatures will lead to dangerous weather extremes and rising sea levels in the coming years, and Asia is particularly vulnerable to its effects.
With the COP26 UN Climate Change Conference set to take place next week in Glasgow, Scotland, Guterres has stressed that more ambition is needed with respect to climate mitigation, adaptation, and finance.
For Southeast Asia in particular, sea levels are rising faster than elsewhere, and shorelines are retreating in coastal areas where 450 million people live. At the same time, the region is also home to the world’s most rapidly developing markets with huge infrastructural needs.
A recent UNESCAP report reveals that even before the pandemic, the Asia-Pacific region was not on track to meet any of the UN Sustainable Development Goals (SDGs) by 2030. The SDGs are an investment pathway that can help the region overcome economic uncertainty and tap into a trillion-dollar opportunity for new businesses, products and services that help achieve a sustainable and equitable future.
The Sustainable Future Fund is uniquely positioned to take advantage of these opportunities and drive change in the region with its impact-driven investment strategy and proprietary framework for ESG assessment that will ensure its portfolio companies deliver not just financial returns but demonstrable impact.
It will take a broad sector approach and focus on the five high opportunity areas it has identified: energy transition, climate action, sustainable cities and circular economy, sustainable food and agriculture, and inclusion.
The Sustainable Future Fund will tap on the vast, combined networks of Tembusu Partners and Eco-Business which provide an inside track to a strong deal pipeline, and will seek family offices and investors who are aligned in values and committed to supporting this mission to create impact in Asia.
The fund is pleased to welcome its first overseas investment partner, Horizon Family Partners, who have committed to raise up to US$20 million from a number of prominent international family offices. Horizon Family Partners was created to bring together like-minded multi-generational families to deliberate innovative ideas relating to global sustainability.
In addition, the Fund is delighted to welcome family office Rumah Group and its philanthropic arm Rumah Foundation, as a limited partner. Led by established philanthropist Stanley Tan, who is co-founder of the Asia Philanthropy Circle, the Group has committed to investing S$5million and will play an active role in exploring market-based solutions for sustainable development.
The fund today also announced the international advisory board members joining its team. They include:
Georg Kell, founding executive director of the United Nations Global Compact and chairman of Arabesque;
Michael Meehan, chairman of the UK Sustainable Investment & Finance Association (UKSIF) and former CEO of the Global Reporting Initiative (GRI);
Nicholas Parker, impact entrepreneur, founder of The Cleantech Group and former chair of Corporate Knights;
and chaired by Lim Hwee Hua, Former Minister in the Office of the Prime Minister of Singapore and Second Minister for Finance and Transport
“The themes we are focusing on in this fund target founders and companies which solve some of the biggest issues of our era. Together with Eco-Business, we aim to support the scaling up of new and growing impact-driven businesses in Asia, towards building a sustainable future. We are also delighted that KPMG will be supporting the Fund by providing insights on ESG developments,” said Andy Lim, chairman of Tembusu Partners.
Mr Ong Pang Thye, Managing Partner, KPMG in Singapore said: “Investing in companies that have a clear roadmap on how to help countries and societies achieve sustainability will shift the needle for global climate change. Ultimately, lending financial support is about seeding the best insights into the ecosystem, so that deep-seated change can really happen.
“KPMG in Singapore welcomes working alongside Tembusu Partners to make sustainability a reality, as we provide insights on ESG trends that impact the near and longer-term of Asia’s future, while encouraging companies to consider ESG transformation efforts that can make that difference for environment, economy and enterprise growth”, he added.
The Sustainable Future Fund has a robust pipeline of quality deals and has already invested in an Indonesian start-up in the financial inclusion space. It is in the midst of investing into another three opportunities in the region involved in areas such as mental health, energy transition and sustainable cities.
The Fund features General Partners Andy Lim, Jessica Cheam and Brandon Courban; and a seasoned investment team comprising Jonathan Ang, Jen Loong and Venture Partners Tharani Prakash and Junice Yeo.
“This unique fund will be well-positioned to tap the growth of the ESG and impact investing space in Asia. By helping to facilitate capital into the most promising companies in the region, we will be able to further scale our sustainable development impact,” said Cheam, managing partner of the fund and founder of Eco-Business.
Lim Hwee Hua, advisory chair, added: “The urgency of the climate crisis is finally becoming the mainstream concern that it should be. The good news is that ESG and finance are becoming more closely intertwined – and there is growing evidence today to show that investors can see better, more sustainable returns through ESG investing. There is a huge opportunity here for capital to be deployed in game-changing solutions across Asia.”
For more details visit www.tembusupartners.com or email sff@tembusupartners.com
About Tembusu Partners
Tembusu Partners is a boutique private equity investment firm that invests in promising early and growth-stage companies with a view to generate sustainable returns for both investee companies and investors. Besides supporting companies through mezzanine and equity financing, it also contributes operational expertise to help them grow. Headquartered in Singapore, its primary geographical markets are within Emerging Asia – comprising China, India and Southeast Asia. For more information, please visit www.tembusupartners.com.
About Eco-Business
Established in 2009, Eco-Business is an independent media and business intelligence company dedicated to sustainable development and ESG performance. It publishes high quality, trusted news and views in multimedia formats on business and policy developments around the world with a sustainability and ESG-focused lens. Eco-Business provides research and consulting on a wide range of issues which create strategic value for our partners and clients. It owns and creates thought-leadership platforms which inform policymaking, improve business practices and foster collaboration among different sectors. Eco-Business is headquartered in Singapore, with a presence in Manila, Beijing, Kuala Lumpur, Zurich, New York, and correspondents in major cities across the world. Visit us at www.eco-business.com
It also hosts a new global sustainability innovation platform called The SDG Co (www.thesdg.co.) This tech-driven platform connects start-ups, corporates, governments and investors working on the United Nations’ Sustainable Development Goals (SDGs) and provide a global community space where people and businesses across the globe can network, learn, meet experts, partner and share innovations.