Temasek Forms Wholly Owned Private Credit Platform
SINGAPORE investment company Temasek announced on Friday (Dec 6) the formation of a wholly owned private credit platform, where its initial portfolio will amount to about S$10 billion, consisting of direct investments and credit funds.
Platform to be Led by Nicolas Debetencourt
The platform will be led by Nicolas Debetencourt, who has been the head of credit and hybrid solutions at Temasek since 2016. The platform will be managed by a team of around 15 credit investment professionals across offices in New York, London, and Singapore, who have been transferred from Temasek’s credit and hybrid solutions team.
Rise of Private Credit
Private credit, or lending to companies by institutions other than banks, has grown quickly as stricter regulations following the Silicon Valley Bank crisis in 2023 have made it more expensive for traditional lenders to finance riskier loans.
The asset class is set to grow to US$2.6 trillion by 2029 from US$1.5 trillion at end-2023, based on Preqin data. Reflecting that trend, the world’s largest asset manager BlackRock announced on Tuesday that it will buy private credit firm HPS Investment Partners for about US$12 billion.
Temasek has been investing in credit funds for more than 10 years. In 2016, the company assembled a credit and hybrid solutions team to build its direct and fund investments in order to seize a broader range of opportunities in the private credit space.
This is in addition to Temasek’s asset management business Seviora Group, which includes SeaTown Holdings International that offers private credit solutions in Asia.
Temasek owns a S$389 billion total portfolio as at Mar 31, and has focused on long-term investments with themes such as digitization and sustainability.
Conclusion
Temasek’s move to form a private credit platform is a strategic step in expanding its investment portfolio and seizing opportunities in the growing private credit market. With a strong team led by Nicolas Debetencourt, the platform is well-positioned to achieve success.
FAQs
Q: What is the size of Temasek’s initial portfolio?
A: The initial portfolio is about S$10 billion, consisting of direct investments and credit funds.
Q: Who will lead the private credit platform?
A: The platform will be led by Nicolas Debetencourt, head of credit and hybrid solutions at Temasek since 2016.
Q: What is the growth rate of the private credit market?
A: The asset class is set to grow to US$2.6 trillion by 2029 from US$1.5 trillion at end-2023, based on Preqin data.
Q: What is Temasek’s total portfolio size?
A: Temasek owns a S$389 billion total portfolio as at Mar 31.
Q: What are the themes of Temasek’s long-term investments?
A: Temasek has focused on long-term investments with themes such as digitization and sustainability.
