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Singapore’s $180B SWF Bolsters Private Holdings After Poor Annual Returns

by trusted insight posted 2years ago 1732 views
Temasek Holdings, Singapore’s $180 billion (S$242 billion) sovereign wealth fund, has had a busy July. After announcing poor fiscal year portfolio performance, Temasek is privatizing one of Singapore’s public transit operators, is set to benefit from the proposed initial public offering of Godrej Agrovet Ltd., an animal feed firm, and is investing in growth-stage startups.
 
Earlier this month, the investment firm announced its first drop in net portfolio value since 2009. The fund’s value dropped to S$242 billion in the fiscal year ended March 31, 2016 from the previous year’s S$266 billion. Temasek is ranked as the sixth largest sovereign wealth fund on  Trusted Insight’s list of the 20 largest Asia-Pacific sovereign wealth funds
 
“In general, we also see a more volatile market with a more challenging environment going forward,” said Lee Theng Kiat, executive director and CEO of Temasek International, in a press release. “Meanwhile, we are quite comfortable with the resilience of our portfolio.”
 
On July 20, Temasek announced its plan to privatize SMRT, a transit company operating much of Singapore’s light rail and bus systems. The fund currently owns 54 percent of SMRT’s shares and intends to purchase the remaining stock at S$1.68 per share.
 
“Post privatization, the company can continue to enhance its rail reliability and the long-term sustainability of its operation without needing to worry about the short-term pressure for being a listed company,” said Chia Song Hwee, president and joint head of the Temasek Investment Group, in a speech with SMRT officials on July 21.  
 
Earlier this week, in an interview with Bloomberg, billionaire Adi Godrej said Godrej Agrovet may seek a public offering in the future, although a timetable and valuation were not specified.
 
Temasek owns nearly 20 percent of Godrej Agrovet, India’s largest producer of animal feed and could push the company to pursue an IPO to capitalize on the world’s fastest-growing economy, according to Bloomberg.

On July 20, Sprinklr, a New York-based social media management company, announced it raised $105 million at a $1.8 billion valuation. The funding round was led by Temasek and Singapore’s Economic Development Board.

And earlier this month, Deal Street Asia reported that Temasek and Sequoia Capital are expected to follow Accel Partners, Google Capital, Tiger Global and others into a $60 million funding round for Freshdesk, an India-based customer service platform.

View Trusted Insight’s list of the 20 largest Asia-Pacific sovereign wealth funds