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Temasek's pivot to private investment heralds billion-dollar listed asset sales

Published on Mar 10, 2014 10:01 AM
 
Singapore's Temasek Holdings is shedding the skin of a sprawling sovereign investment house, cutting stakes in big publicly listed companies as it puts more money into growing private companies and private equity firms in search of better returns. -- ST FILE PHOTO: KUA CHEE SIONG 

SINGAPORE (Reuters) - Singapore's Temasek Holdings is shedding the skin of a sprawling sovereign investment house, cutting stakes in big publicly listed companies as it puts more money into growing private companies and private equity firms in search of better returns.

Under the guiding hand of chief executive Ho Ching, the wife of Singapore's prime minister, the US$170 billion (S$217 billion) state investor is morphing into a leaner form. The firm's returns have often lagged its own internal metric in recent years due to its focus on big stocks.

The evolving strategy at the world's ninth-largest sovereign fund is significant to corporate and financial professionals across the globe. Temasek deals worth $159 billion in the last 10 years have generated big bankers'fees.

New-look Temasek is already showing that it will shed more stakes and be more selective in providing money to large, listed global companies that come knocking in their hour of need, as they did before and after the 2008 financial crisis.

 
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