The company sees the new office serving as a home base to advise Temasek on investment and partnership opportunities with growth companies in Europe and “further afield”.
The office in Europe adds to Temasek's current network of offices in Singapore, Brazil, China, India, Mexico and Vietnam.
“We see long term opportunities in a rebalancing world, with Asia brimming with vigour and confidence as it joins the global markets", Lim Boon Heng, Temasek chairman, said in a speech during the London office opening ceremony last Friday, attended by Singapore’s Prime Minister, Lee Hsien Loong.
“We also see great global companies in Europe, as well as smaller emerging champions leading the way in innovation.”
According to Heng, “some” established European players are also growing in Asia, Africa and Latin America, as well as more established markets like the US, which offers opportunities for the company to grow with them through co-investment or other forms of partnerships.
“We also see Asia companies broadening their markets to include Europe. We are therefore in an interesting space, providing a bridge between Europe and Asia, and partnering European companies, both inside and outside Europe. Our investments in Europe have grown in the recent years,” Heng added.
Some of Temasek’s current investments in Europe, or those with exposure to European markets, include companies such as Repsol (6%), Evonik Industries (4.6%), Standard Chartered (18.2%), AS Watson (24.95%), Lloyds Banking Group (<1%) and Markit Group (10%).
Temasek also said it expects to make its other new office in New York “fully operational some time later this year”.
Set up in 1974 to manage Singapore’s government assets, Temasek owns a S$215bn portfolio as of March-end with 71% of its underlying assets in Asia (including Singapore), and 25% in the mature economies of North America, Europe, Australia & New Zealand.
The company’s portfolio covers a broad spectrum of industries such as financial services, transportation, logistics and industrials, telecommunications, media and technology, life sciences, consumer and real estate, energy and resources.
Temasek makes investments focussing on four key investment themes “transforming economies, growing middle income populations, deepening comparative advantages, and emerging champions.”
As reported in February, Fullerton Fund Management, a fully owned subsidiary of Tamesek Holdings, is also establishing an office in London to service its European clients and applying for a licence from the Financial Conduct Authority.
