SINGAPORE, April 9 Singapore state investor
Temasek is further opening up its private equity investments to
outside investors, as the $170 billion investment firm broadens
an investor base that may eventually include retail investors.
Temasek is launching Astrea II, a co-investment vehicle
with broadly diversified holdings in 36 private equity funds, it
said in a statement. It did not provide the size of the
portfolio. Temasek owns 38 percent of Astrea II.
Like a private equity business, Temasek invests directly in
companies and injects capital into separate vehicles run by
former managers or by bankers, such as RRJ Capital, a firm run
by former Goldman Sachs banker Richard Ong.
Temasek remains primarily a direct equity investor with
about 10 percent of its portfolio in third-party managed funds.
"Astrea II is the latest of Temasek's continuing efforts to
develop co-investment platforms where diversified portfolios of
assets can be made available to a broader base of investors,
including retail investors in the long term," Temasek said in a
Opening up to outside investors is not new for Temasek, but
bringing in retail investors will be a newer trend.
Yield-hungry investors globally are seeking co-investment
opportunities from private equity firms, as these deals allow
them to make higher profits through direct investment.
In 2006, Temasek had securitised its investments in 46
private equity funds through a special-purpose vehicle, Astrea,
Astrea bought Temasek's interests in the funds, then sold
some $810 million in equity and 15-year, floating-rate debt
securities to sophisticated investors including financial
Temasek said it has six long-term institutional co-investors
within the Astrea II portfolio including ARDIAN, formerly AXA
Private Equity, a European investment firm.
Temasek CEO Ho Ching had proposed in 2009 that Temasek may
allow outside investors such as institutions and eventually
retail investors to invest in joint projects.
($1 = 1.2532 Singapore Dollars)
(Reporting by Saeed Azhar; additional reporting by Stephen
Aldred in HONG KONG; Editing by Chris Gallagher)