Switzerland-based impact investor responsAbility Investments AG has marked the fourth close of its Asia-focused climate fund after securing commitments from International Finance Corporation (IFC) and other limited partners.
The firm hit the fourth close at $414 million, it said in a statement. IFC, the private-sector investment arm of the World Bank Group, has committed $50 million to the fund.
This, however, is only half of what IFC was previously considering to invest in the Swiss firm. VCCircle reported last year that IFC was planning to invest $100 million in responsAbility’s Asia Climate Fund–$85 million from its own account and $15 million from IDA20 Private Sector Window Blended Finance Facility.
IFC didn’t immediately respond to VCCircle’s queries till the time of writing this article. A spokesperson for responsAbility said the "confirmed" IFC commitment is $50 million.
The spokesperson also said that the fund has so far invested in eight companies, committing a total of more than $158 million. These are India- and Southeast Asia-focused August Energy and KIS Group; Indian companies Euler Motors, Battery Smart and Ampin Energy Transition; US-headquartered Gradiant, Singapore's CleanEdge Resources, and Vietnam's CME Solar.
ResponsAbility is seeking to raise as much as $500 million for the Asia Climate Fund to invest in renewable energy, energy efficiency, electric mobility and climate-tech segments in India and Southeast Asian markets. It is on track to achieve the target of raising $500 million by the end of this year for climate investments in Asia, it said in the statement.
It employs a blended finance approach, leveraging public capital to catalyze private-sector investment.
The fourth close comes about eight months after the firm marked the third close of the fund in January 2025 after receiving soft commitments for more than $350 million. At the time, German development bank KfW said it would invest €20 million ($20.57 million) along with a few other LPs.
The fund clocked its second close in August last year, after securing a commitment from parent M&G plc. M&G had committed $100 million to the fund, taking its total corpus by then to $200 million. Previously, the fund had raised money from KfW and Dutch development bank FMO, marking its first close in November 2023.
ResponsAbility also invests in India through other funds. It has previously backed companies such as sauces and dips brand Wingreens Farms, the now-defunct EV ride-hailing company BluSmart, and non-bank lenders such as Clix Capital, Electronica Finance, Annapurna Finance and Kinara Capital, among others.
*This article has been updated to include comments from responsAbility's spokesperson.
