Temasek Unit Secures $3.3 Billion for Major China Investment Fund, Reports Reuters

SINGAPORE (Reuters) – True Light Capital, a wholly owned subsidiary of Singapore’s state investment firm Temasek, announced on Thursday that it has successfully raised $3.3 billion for its flagship fund focused on investments in Greater China. The fund is now closed to new capital.

In a statement, the Singapore-based asset manager revealed that True Light Fund I attracted investments from a diverse group of global investors, including sovereign wealth funds, foundations, financial institutions, and family offices.

With the closure of the fund, True Light plans to concentrate on deploying the acquired capital, even as investor interest in China has waned due to the country’s sluggish economic recovery and ongoing tensions with the United States concerning trade, technology, and Taiwan.

Yeo Chee Kian, the CEO of True Light, expressed optimism about China’s long-term fundamentals and outlook, highlighting the presence of appealing investment opportunities aligned with four significant structural trends: digitization, increased life expectancy, sustainable living, and the future of consumption.

The fund will partner with Temasek to explore investment possibilities in Greater China. It will engage both directly in private and public equity investments and indirectly through private equity and venture funds.

China accounts for 22% of Temasek’s portfolio, which is valued at approximately S$382 billion ($278.61 billion) as of March 2023, positioning the firm among the world’s top 10 investors.

According to Yibing Wu, head of China for Temasek, the firm remains enthusiastic about the Chinese market, identifying promising investment opportunities in sectors such as advanced manufacturing and energy transition, as stated during the Milken Institute Asia Summit in September.