Singapore state investor Temasek Holdings is a Sovereign wealth fund (SWF) that manages an investment fund on behalf of the Singapore government. Temasek Holdings has launched another unit to target deals in businesses worth between $1 billion and $5 billion to fuel growth in companies at home and abroad in a range of businesses.
Temasek International president Tan Chong Lee , who will lead the firm, known as 65 Equity Partners, said that the completely-owned asset manager plans to fund-raise from outside stock investors within three years. The fund will have S$4.5 billion ($3.3 billion) under management. It will primarily invest in established companies with provincial or worldwide aspirations and market values between approx. US$1 billion and US$5 billion. It means to give adaptable capital solutions to address a wide scope of circumstances including growth funding, M&A financing, shareholding re-associations, balance sheet optimization as well as privatizations and foundation speculations. The platform will target a deal size in the range of US$100 and US$200 million.
Significantly, 65 Equity Partners looks to partner with fundamentally strong and well-managed businesses with clear growth strategies over the long term. It will invest in industries with strong primary tailwinds, like the customer, modern and business services, logistics, healthcare, and technology, supported by committed owners and management teams.
65 Equity Partners' strategy is to give capital solutions to large local enterprises, and catalyze their development as they seek after their local extension and transformation strategies. In Singapore, it plans to collaborate with other Singapore-focused funds such as Heliconia Capital Management, Tower Capital Asia, and Novo Tellus Capital Partners and will be moved into 65 Equity Partners, Tan said, with its stakes in all four entities jointly representing about S$7.5 billion in funds under management.
Tan said those ticket sizes were a guidepost rather than a rule, with adaptability to go bigger or smaller as needed. He added that as medium-sized family businesses around the world looking to extend while holding control, they had relatively little choice but to achieve the level of funding they required - a specialty 65 Equity Partners will expect to fill.
65 Equity Partners is overseen and managed by a core team of stock investment experts led by CEO Mr. Tan Chong Lee, who also holds the position of Chairman of Temasek International. It is also expanding its international impression by building its group across workplaces in Europe and the US in addition to its headquarters in Singapore.
Temasek International chairman Lee Theng Kiat said the firm would have the option to invest in areas that sit outside the parent company's core focus, such as private-private positions and privately-run company restructurings.
65 Equity Partners right now deals with the S$1 billion Local Enterprise Fund @ 65, a collaboration with the Government of Singapore, and the S$1.5 billion Anchor Fund @ 65. The leftover $2 billion will be used as permanent capital.
About Temasek Holdings
Temasek Holdings was established in 1974 under the Singapore Companies Act, which incorporated the organization. The incorporation allowed the company to possess and manage the investing in stocks and resources that the Singapore government had recently been responsible for. By relieving the public authority from the monetary perspective of managing investments, the government's finance ministry had the option to have additional time and capabilities to focus on policy making and guideline, as it was designed to do.
The Temasek stocks portfolio was initially based on SGD 354 million from shares in companies, startups, and enterprises that were held by the Singapore government, including a bird park, a hotel, a shoemaker, a steel factory, and an airline.
Although Temasek Holdings has a general corporate structure, it has two unique features that reflect its status as a Fifth Schedule corporation in Singapore:
- The endorsement of the President of Singapore is needed to make specific moves, such as the appointment and removal of directors and key managers, including the CEO; The Board and CEO are accountable to the President. Most of the directors and key officers of Temasek Holdings are private sector-appointed independent directors. Temasek has one sole investor in the Singapore Minister for Finance.
- The financial statements of the company are audited by the Auditor General of the Government of Singapore.
The Government of Singapore is not directly involved in any stock market investment or operating decision at any level of the Company, although the Finance Minister of Singapore is the sole shareholder of the Company. The government is a shareholder as laid out by the Board of Directors, which allows Temasek to operate as the fifth scheduled company.
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