The Enterprise Development Group’s (EDG) role covers a wide spectrum; from incubation to transformation of existing platforms, and where gaps exist, building new ones focused on capturing value from future trends. EDG pursues commercial opportunities that are expected to yield returns, including those with long gestation periods.
Temasek plays an enabler role across all stages of an enterprise, from early stage investments to disruptive business models. Our direct investing activities are complemented by the Private Equity Fund Investment team, thereby extending our reach and developing our network of relationships – so necessary at the formative stage.
We also identify and develop enterprises that have the potential to be global, regional, or domestic champions and map the future business value chain by staying abreast of business trends and disruptors.
Incubation and Early Stage
In April 2015, Temasek acquired Silicon Valley Bank subsidiary, SVB India Finance, India’s leading venture debt financing entity targeting high-growth entrepreneurial companies. To catalyse the early stage Series A/B venture capital (VC) market in Singapore, Temasek invested in Singapore VC funds such as Monk’s Hill Ventures and NSI Ventures.
Providing Liquidity and Growth Capital
During the year, Heliconia Capital established a S$100 million SME Growth Mezzanine Fund, which complements its existing SME Co-Investment Fund platform. This provides Singapore-based small and medium enterprises (SMEs) mezzanine financing as an alternative to private equity. New investments during the year included Deluge, a customised fire detection and firefighting systems provider; and Star360, a distributor and retailer of sports and fashion footwear.
We strengthened Vertex Venture, which now has committed capital of US$1.2 billion. Investments will be made through its country funds in Asia, the US and Israel, and across the two primary sectors of technology and healthcare.
The combination of CitySpring Infrastructure Trust and Keppel Infrastructure Trust, announced in November 2014 and completed in May 2015, created the second largest infrastructure-focused business trust in Singapore. This combination provides investors with an exposure to a larger and more diversified portfolio, and allows the combined Trust to undertake larger transactions and access the capital markets for future growth opportunities.
Transforming Existing Businesses
In February 2015, Temasek’s subsidiaries, Singbridge Group and Surbana International Consultants Holdings, announced a merger with JTC Corporation’s subsidiaries, Ascendas and JURONG International Holdings, to form an integrated platform for sustainable urban solutions. Completed in June 2015, the platform brings together companies with complementary strengths to create an enlarged entity that can take on larger scale urbanisation projects in Asia and beyond.
Seeding New Businesses
In January 2015, Temasek announced that it was partnering the Singapore Government to rejuvenate Mandai into an integrated wildlife and nature heritage precinct in Singapore. The Mandai area is currently home to the Singapore Zoo, Night Safari and River Safari. These wildlife attractions, together with the Jurong Bird Park, are owned and operated by Wildlife Reserves Singapore, a Temasek portfolio company.
To gather ideas and explore opportunities, Temasek is actively engaging with government agencies, nature experts, leading institutions, academics and other potential partners. The proposed rejuvenation is a multi-generation endeavour that will bring together urban planning, ecology and technology expertise to build on and conserve Singapore’s nature heritage.
The new Mandai will be a haven for Singaporeans and visitors, young and old, to enjoy nature in a fun and inspiring way. Through an integrated, sustainable and inclusive approach, we are working with stakeholders to build upon Mandai’s heritage as a nature destination, to celebrate and protect our biodiversity.