Temasek-backed, Singapore-based investment manager SeaTown Holdings has partnered with digital wealth management platform Kristal.AI to fractionalise the minimum investment quantum as it seeks to raise funds for its private capital fund.
So far, Temasek and SeaTown have committed US$1 billion ($1.36 billion) to this fund, and SeaTown is targeting US$200 million to US$300 million from external investors. The fund is geographically diversified but retains a focus on Asia.
According to a release by Kristal.AI on March 23, this is the first time that SeaTown is raising funds for its private capital fund from private investors.
In a bid to partner mass affluent investors in Singapore, the investment manager’s partnership with Kristal.AI has reduced the minimum investment from US$5 million ($6.8 million) to US$100,000.
The partnership also marks the first opportunity for private investors to gain unique access to Temasek and SeaTown’s deal flow.
With the partnership, accredited investors from the mass affluent segment can now access a premium product traditionally reserved for high net-worth individuals (HNWIs).
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“We have seen rapidly rising demand for private equity and private market products in recent years. This used to be an exclusive space for institutional investors, but now technology and platforms have enabled individual investors to participate in such deals as well,” says Vivek Mohindra, co-founder of Kristal.AI.
“By fractionalising and reducing the minimum investment, a much larger client pool can now access premium investment products, and better diversify their investment portfolios,” he adds. “We’re glad to see bigger funds like SeaTown responding to the market’s growing demand by democratising the access to much sought-after investment products.”
