Temasek platform to help Singapore businesses go global

The new entity, 65 Equity Partners, was referenced last month when Singapore unveiled several funding programs to support start-ups from growth rounds through IPO. They include a S$1.5 billion ($1.1 billion) vehicle launched by the government and Temasek that will anchor IPOs. 65 Equity Partners is the manager. It also manages a S$1 billion fund intended to develop regional champions.

Formally announcing the establishment of 65 Equity Partners, Temasek offered more insight into its remit. The entity – a wholly-owned subsidiary of Temasek – will have S$4.5 billion in funds under management and make equity or structured equity investments of $100-200 million.

The targets will be larger, proven companies with valuations of $1-5 billion, most likely in industries with strong structural tailwinds, such as consumer, industrial and business services, logistics, healthcare, and technology. Funding can take many forms – from M&A financing to cornerstone investments – but it must catalyze regional expansion or transformation strategies.

Theng Kiat Lee, chairman of Temasek International, noted that 65 Equity Partners will have the flexibility to pursue opportunities that sit outside the core focus areas of Temasek, such as take-private situations and family business restructurings. The emphasis is on offering a broad range of solutions tailored to the needs of individual companies.

65 Equity Partners is headquartered in Singapore and there are plans to set up offices in Europe and the US. It will also collaborate with Heliconia Capital Management, a Temasek-controlled platform that co-invests alongside other PE investors and runs a fund-of-funds, as well as with independent Singapore-based GPs like Tower Capital Asia and Novo Tellus Capital Partners.

65 Equity Partners is managed by a core team of investment professionals led by CEO Chong Lee Tan, who also holds the position of president of Temasek International. It is also expanding its international footprint by building its team across offices in Europe and the US, in addition to its headquarters in Singapore.

“65 Equity Partners aims to be the partner of choice for promising companies looking to accelerate growth, reorganize their capital structure, execute M&A or provide liquidity to their shareholders. We look forward to working hand-in-hand with businesses on their journey to realize their ambitions and growth potential,” Tan said in a statement.

Initiatives announced alongside the IPO anchor fund include a pre-IPO vehicle under the auspices of EDBI, a government-controlled investor. It represents the continuation of a longstanding agenda to support the start-up ecosystem, moving from seed through later stages.

The formation of 65 Equity Partners also comes as Temasek looks beyond the balance sheet for ways to finance its activities. Last year, a holding company was created for its asset management units – Azalea Investment Management, Innoven Capital, Fullerton Fund Management, and Seatown Holdings International – partly to provide more support in areas such as third-party fundraising.

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• Topics
• Southeast Asia
• Expansion
• Technology
• LPs
• Singapore
• Temasek Holdings
• Growth capital