Taking into account the provisions for governing bodies that apply under the ‘Freedom of Information Act’ (‘Wet openbaarheid van bestuur’) and the ‘Data Protection Act’ (‘Wet bescherming persoonsgegevens’), the Fund Manager of the DGGF part ‘Financing local SMEs’ will publish its anticipated transactions.
Views
Parties can express their views on the proposed transaction to the Fund Manager by contacting dggf@pwc.com within 30 days after the publication date of the notice. After the transaction has been closed, or after it has become clear that the transaction will not take place, the Fund Manager will respond as soon as possible to these Parties concluding on the expressed views by these Parties.
Description of proposed transaction
Part of DGGF
Financing Local SMEs
Name of Intermediary Fund (IF)
AC Ventures Climate & Sustainability Fund 1 L.P.
Domicile IF
Singapore.
Name of manager of the IF
ACV Capital Pte. Ltd.
Nature of the activities of the IF
AC Ventures Climate & Sustainability Fund is a venture capital fund managed by ACV Capital, focused on accelerating decarbonization and climate resilience across Southeast Asia. The fund invests in scalable climate solutions, targeting sectors such as renewable energy, electric mobility, energy efficiency, waste management, circular economy, and climate-smart agriculture. The strategy is multi-stage VC, with a strong emphasis on gender inclusion and support for women-led enterprises.
Size of proposed investment
DGGF has approved up to USD 8 million, contributing to a total target fund size of approximately USD 50 million. The fund is anchored by an USD 8 million commitment from Australian Development Investments (ADI), with additional funding expected from public and private investors.
Intended transaction date
It is expected that DGGF will close the agreement with AC Ventures Climate & Sustainability Fund in H1 2026.
Expected financial results
A positive financial return on the investment is expected.
Expected impact
DGGF’s commitment will support tech-enabled SMEs with a primary focus on Indonesia and emerging Asia. The fund aims to reduce CO₂ emissions and promote sustainable economic growth. AC Ventures has a strong track record, with over 100 companies financed and more than 30,000 jobs created. The fund is notable for its gender-smart approach, with 40% of portfolio companies led or co-led by women, and a commitment to inclusive climate innovation.
ESG compliance
The fund demonstrates strong ESG integration throughout the investment cycle, incorporating ESG criteria during deal sourcing, due diligence, and portfolio monitoring. Although AC Ventures has established a thorough ESG due diligence process, certain principles outlined in the DGGF ESG Policy are currently not included. While AC Ventures' exclusion list largely aligns with the DGGF exclusion list, it currently does not incorporate the EDFI fossil fuel expansion criteria. AC Ventures maintains both internal and external grievance mechanisms that meet DGGF requirements. As such, AC Ventures is expected to integrate the EDFI fossil fuel expansion into its exclusion list in compliance with the DGGF ESG Policy within one month of closing, and to revise its ESG due diligence process to encompass all DGGF ESG principles within six months of closing.
Tax compliance
As a limited partnership type of entity, the fund is disregarded for tax purposes and not considered a tax resident of Singapore, nor will it be subject to corporate income tax. Rather, the investors in the fund will be taxed in their jurisdiction of residence on their respective share of the investment income. The fund invests in SMEs primarily in Indonesia and Southeast Asia, which are in principle subject to local statutory tax rates. The fund does not use artificial constructions to lower its taxation or the taxation of the SMEs it invests in. The fund requires investee companies to comply with local laws and regulations, including tax laws and regulations, and will monitor ongoing tax obligations in accordance with DGGF tax criteria. DGGF has proposed standard and specific conditions to be included in the investment agreement to continuously comply with DGGF tax criteria.