Temasek has established a fund management firm to invest in large companies with market value ranging between US$1 billion and US$5 billion.
65 Equity Partners, as this new firm is called, has some $4.5 billion in funds for a start. It will focus on deal sizes ranging between US$100 million and US$200 million.
The firm will work closely with other fund managers that are similarly focused on helping local companies grow.
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They include Heliconia Capital Management, a fellow Temasek subsidiary which focuses on local consumer names; Novo Tellus Capital Partners, which has thus far invested mainly in local tech companies, as well as Tower Capital Asia, which focuses on local and Asean companies.
“65 Equity Partners complements the broader investment strategy of Temasek as a generational investor committed to delivering sustainable returns over the long term,” says Lee Theng Kiat, chairman, Temasek International.
“While Temasek has full flexibility to invest across a spectrum of opportunities, we have created 65 Equity Partners as a dedicated platform to offer tailored capital solutions, particularly for high potential businesses seeking to expand internationally,” he says.
In Temasek’s Oct 27 announcement, 65 Equity Partners will aim to work with “fundamentally sound” and well-managed businesses with clear growth strategies over the long term.
Industry sectors of interest range from consumer, industrial & business services, logistics, healthcare, and technology, and besides “strong structural tailwinds”, these companies are to be “underpinned by committed owners and management teams.”
“65 Equity Partners aims to be the partner of choice for promising companies looking to accelerate growth, reorganise their capital structure, execute M&A or provide liquidity to their shareholders,” says CEO Tan Chong Lee.
“We look forward to working hand-in-hand with businesses on their journey to realise their ambitions and growth potential,” says Tan, who is also president of Temasek International.
65 Equity Partners currently manages Local Enterprise Fund @ 65, a joint $1 billion fund with the government, as well as Anchor Fund @ 65, a $1.5 billion co-investment fund announced in September this year that will support new economy businesses and regional market leaders ahead of their public fundraising in Singapore’s public equity market.
Photo: Bloomberg
