Singapore-based private equity (PE) manager Azalea Investment Management has launched its first sustainability fund on March 30, the Altrium Sustainability Fund I.
The fund, which will invest in environmental, social and governance (ESG) focused opportunities, is co-seeded by the manager’s sponsor, Azalea Group, as well as Singlife with Aviva.
Each party has committed US$50 million ($67.9 million) to kick-start the fund.
The fund is a PE fund-of-funds – or a multi-manager investment – that lets institutional investors, as well as other accredited investors, build an ESG-focused investment portfolio.
According to the joint press release, the Altrium Sustainability Fund I will back funds that invest in scalable, commercial solutions that solve issues across the fund’s five core themes of climate, resource management, healthcare, education, and financial inclusion.
Azalea will also select managers to address the 17 global challenges that are mentioned in the United Nations’ sustainable development goals.
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The fund will focus primarily on buyout and growth strategies, leveraging on the strength and technical expertise of these managers to generate PE market returns.
“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,” says Margaret Lui, CEO of Azalea.
“Through ASF I, investors share our vision to drive positive impact through collaboration with multi-fund managers. We are very pleased to have like-minded investors like Singlife with Aviva join us on this journey,” she adds. “The principles of ESG are at the core of Azalea’s mandate. Since its inception in 2015, Azalea has been designing products and platforms to promote financial inclusiveness in PE, starting with the Astrea PE bonds.”
Pearlyn Phau, group CEO of Singlife with Aviva, says; “Singlife is committed to creating a long term positive impact through our sustainability agenda. As a homegrown financial services brand, we also want to contribute to Singapore’s Net Zero goal by 2050. 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 in shaping our collective future through ASF I.”
