The fund will look into supporting relevant startups in the Asia-Pacific, as well as companies from elsewere looking to expand into the region
[SINGAPORE] Octave Capital, formerly Heritas Capital, and Norwegian fund manager Katapult Ocean are launching a US$75 million impact fund called Asia Ocean Fund.
The fund, tapping into a nascent area in the Asia-Pacific, will focus on six areas – maritime decarbonisation, ocean restoration, biodiversity, the circular economy, sustainable aquaculture and marine biotechnology.
May Liew, chief executive officer of Octave Capital, told The Business Times: “There has been a rise (in activity) in the blue-economy space. With climate change, we see quite a number of opportunities in which the blue ocean will become more and more important.”
The fund will tap Octave’s networks and that of its backer Tsao Pao Chee, a fourth-generation family firm which owns IMC’s shipping business, to get users or customers for future portfolio companies.
The complementarity of the two sides’ area of expertise made partnering Octave a natural choice for Katapult, which focuses on companies with solutions to restore ocean health, combat climate and biodiversity loss, and ensure sustainable food and access to clean water.
Maureen Bresil, associate director for Katapult Ocean Asia, said: “Combining our strengths felt like a natural fit. Octave brings deep expertise and networks in Asia and in shipping, particularly in China, while we bring ocean-impact experience from Europe and the US.”
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The fund will look at relevant startups in the Asia-Pacific, as well as companies from elsewhere which could benefit from expanding into this region.
“We envision expanding our portfolio companies which are ready and willing to scale their impact in the region, enriching the fund’s reach and relevance,” added Bresil.
The fund will allocate a quarter of its monies to an accelerator targeting early-stage companies, to commercialise their solutions and fine-tune their business models. The remaining capital go towards investing in companies coming up through the accelerator pipeline and other firms offering solutions that fit into the Asia-Pacific.
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Octave and Katapult will jointly manage the fund on a 50-50 basis. They expect to partner with foundations, family offices and high-net-worth individuals with an interest in ocean restoration and ocean health.
Octave’s Liew said: “We have built a very strong pipeline of companies within the Asia-Pacific as well as companies in the US and Europe who are really eager to enter this market that we will be able to invest in when we have our fund ready.”
Success for Octave will go beyond financial metrics, to the impact the solution creates. Positive impact would include the reduction of greenhouse gas emissions and diverting microplastics from nature.
“We will measure success by the amplified impact created through such investments,” said Bresil.
This is the first fund Octave – a name inspired by music – has launched since its rebranding from Heritas Capital in August. The rebrand was undertaken to reflect its sharpened focus as an impact investor.
“(Octave) carries within it both structure, resonance, intention and harmony,” said Liew.
Following the brand refresh, it will go into collaboration with partners and find harmony and rhythm within the ecosystem. Octave will invest in the six key pillars of healthcare, education, food security, energy transition, nature and climate.
It expands on the areas Heritas used to invest in, namely healthcare and education.
