ADB investing $25 million in private equity fund

MANILA, Philippines — The Asian Development Bank (ADB) is investing $25 million in private equity fund Exacta Asia Investment III LP to grow middle-market companies in Southeast Asia through access to capital.

The multilateral lender signed a $25 million equity investment in the private equity fund managed by Singapore-headquartered investment firm Exacta to provide capital to companies engaged in health care, financial services, education, manufacturing, business services, and consumer sectors in Southeast Asia.

ADB director general for private sector operations Suzanne Gaboury said in a statement that the fund would invest in companies that look to provide quality products and services in the region’s underpenetrated markets, helping drive business growth.

“ADB’s investments in the private equity sphere not only mobilizes private capital but also contributes to the adoption of environmental, social, and governance best practices,” Gaboury said.

ADB is providing assistance to Exacta in adopting gender impact tools in its investment processes for all future investees and at the same time support in adopting climate-friendly measures.

This investment is the ADB’s second commitment to Exacta.

In 2018, the ADB also invested $25 million in Exacta Asia Investment II LP that provided investments for small and medium-sized enterprises in Southeast Asia, particularly those from Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

The investment was intended to help address the low private equity penetration in the region, which is considered crucial for job creation, economic growth and encouraging investments.

Exacta, which was established in 2012, has a track record of providing strategic guidance, operational expertise, and access to new technologies to its portfolio companies in the region.

It has raised approximately $670 million in committed equity capital across three funds for various companies in the region.