Singapore’s Temasek announced the formation of a wholly-owned private credit platform.
Temasek explained that it has been investing in credit funds for more than 10 years, the announcement noted.
In 2016, Temasek assembled a credit & hybrid solutions team to buildout its direct and fund investments to “seize a broader range of opportunities in the private credit space.”
As it continues to shape a “resilient” and “forward-looking” portfolio, Temasek has set up a dedicated platform to enhance its ability to “scale its credit and hybrid solutions portfolio and capture global private credit opportunities.”
This is in addition to a Temasek asset management business, Seviora Group – which includes SeaTown Holdings International which “offers private credit solutions” across Asian markets.
The platform’s initial portfolio will amount to about “S$10 billion, consisting of direct investments and credit funds.”
This portfolio will reportedly be managed by a team of around 15 experienced credit investment professionals across offices in New York, London, and Singapore, who have been “transferred from Temasek’s Credit & Hybrid Solutions team.”
The platform will be led by CEO, Nicolas Debetencourt, who has been the Head of Credit & Hybrid Solutions at Temasek since 2016.
Last month, Google, Temasek, and Bain & Company released the e-Conomy SEA report – Profits on the Rise, Harnessing SEA’s Advantage.
The report examines the health of the digital economy “through the lens of profit.”
Key players made strides towards profitability, with “tighter commissions, targeted incentives, and new revenue streams driving a 2.5X increase in profits over the last two years.”
Since 2022, profitability has grown “2.5X from $4 billion in 2022 to $11 billion in 2024, setting the stage for long-term success.”
Overall, the report projects that in 2024, the digital economy will reach $263 billion in Gross Merchandise Value (GMV), a 15% increase over last year.
Revenues have grown 14% and are projected to reach “$89 billion in 2024.”
This suggests that the digital economy can achieve both profitability and growth in tandem, marking “a significant step towards achieving sustainable economic value.”
This report provides insights on six digital sectors and examines “the current state and future prospects of technology funding in the region.”
It also delves into the factors essential for ensuring inclusive growth. These include innovating to stay abreast with “increasing digital fluency of SEA users, enhancing digital security to keep up with the rapid pace of digital adoption, and ensuring SEA continues to grow the artificial intelligence (AI) ecosystem.”