6-12-2024 (SINGAPORE) Singapore’s sovereign wealth fund Temasek Holdings has unveiled a major expansion into the private credit market with the launch of a dedicated platform managing an initial portfolio valued at approximately S$10 billion (US$7.5 billion), marking a significant step into one of finance’s fastest-growing sectors.
The newly established platform, announced today, will oversee a diverse portfolio encompassing direct lending investments and credit funds. A specialised team of roughly 15 professionals, drawn from Temasek’s existing Credit & Hybrid Solutions division, will operate across three global financial hubs: New York, London, and Singapore.
Industry veteran Nicolas Debetencourt, who has helmed Temasek’s credit and hybrid solutions since 2016, will lead the new venture. The platform will maintain operational independence from Seviora Group, another Temasek-owned entity that includes SeaTown Holdings International.
This strategic move comes amid a broader industry trend that has seen major institutional investors increasingly gravitate towards private credit. The sector, now valued at approximately US$2 trillion, continues to attract significant capital despite growing concerns about potential risks associated with anticipated interest rate reductions and market saturation. Notable recent activity in the space includes BlackRock’s landmark acquisition of HPS Investment Partners, valued at approximately US$2 billion.
The new platform’s portfolio will be constructed from Temasek’s existing investments in private equity and credit funds, alongside holdings in private companies. These categories currently represent 55% of the fund’s S$202 billion in unlisted assets, according to official sources.
Temasek, whose total portfolio was valued at S$389 billion as of March-end with over half invested in private assets, positions this initiative as a strategic response to evolving market opportunities. While specific details regarding the fund’s exact exposure to private credit remain undisclosed, this move signals Temasek’s confidence in the sector’s growth potential.
The announcement follows SeaTown Holdings International’s successful fundraising of US$1.3 billion for its second private credit fund last August, which brought its total assets under management to over US$2.5 billion, further underlining the group’s expanding presence in the private credit space.
