Experts: More private funds needed in Asia

Impact investing and blended finance are gaining traction in Asia, but experts say the region must tackle structural gaps and mobilize more private capital to meet its development needs.

- By BEN ARNOLD DE VERA

During the impact investing day of the AVPN Global Conference 2025 on Wednesday, Sept. 10, multilateral and investment banks underscored both the opportunities and hurdles in advancing sustainable investments.

The global impact investing market has surpassed $1.6 trillion in assets under management (AUM), with a compounded annual growth rate (CAGR) of more than 20 percent annually, as institutional investors increasingly embed impact in their core portfolios, noted Vikas Arora, chief impact investing and blended finance officer at Singapore-based AVPN Ltd., the largest network of social investors in Asia.

Arora stressed the potential of catalytic capital to de-risk deals and attract private investments, while blended finance is seen to multiply the effect of public and philanthropic funds.

"The future of impact investing in Asia will not be built by a single actor or a single deal. It will be built by all of us working together as a connected ecosystem," Arora said.