Singapore’s MAS makes $5bn foray into private equity, infrastructure

The Monetary Authority of Singapore has identified the asset classes as key growth sectors.

The Monetary Authority of Singapore will commit $5 billion to Singapore-based private equity and infrastructure managers, its first foray into private markets.

The initiative is part of its private markets programme in which MAS will back managers that are committed to “deepening their existing presence or establishing their presence in Singapore”, MAS said in a statement. It complements the broader range of initiatives that Singapore is undertaking to develop its private markets and infrastructure financing ecosystem.

MAS also noted that the programme was established on the back of key investment trends such as Asian companies choosing to stay private for longer, their increasing familiarity with the private equity value proposition and Asia’s immense infrastructure needs.

It is unclear how much will be invested per asset class. Funding amounts will differ from manager to manager, depending on factors such as investment returns, developmental commitments and fund size, a source with knowledge of the matter told Private Equity International.

MAS’s investment team will select the managers, it is understood. It has also engaged external advisors to assist in the investment decision process and supplement its internal capability, the source said.

MAS is the city-state’s central bank and financial regulatory authority, in charge of more than $290 billion of foreign reserves.

Singapore had about 225 private equity, venture capital and infrastructure managers with about S$185 billion($135 billion; €118 billion) of assets under management registered and licensed with MAS as of December.

Singapore-headquartered firms include Axiom Asia Private Capital, Dymon Asia Captal and Quadria Capital.

MAS declined to comment past the press release.