Temasek buys stake in New York-based Virtu

The firm takes a minority stake in the technology firm from Silver Lake Partners as it continues to invest offshore

Singaporean sovereign wealth fund Temasek has acquired a minority stake in global trading and technology firm Virtu Financial from technology investment giant Silver Lake Partners, according to a statement from the target company. Silver Lake will also retain a minority shareholding in the business.

Terms of the deal were not disclosed, but a Temasek spokesman confirmed its investment.

Virtu, which is a global market-making firm, already has offices in New York, Austin, Singapore and Dublin, but hopes to expand its platform into new geographies.

“Temasek is an ideal partner for Virtu. We appreciate their investment and confidence in our future,” Douglas Cifu, Virtu chief executive, said in a statement.

“Temasek is a world class investor with a strong track record of investing in growth companies around the world. Their extensive knowledge and relationships in Singapore, Asia and the Far East will be particularly beneficial as we look to expand into new asset classes and geographies.”

Mike Bingle, managing partner of Silver Lake and director of Virtu, added, “Silver Lake is proud of its investment in Virtu, and we look forward to participating in the company's future growth alongside Temasek as an investment partner. Temasek has been a strong partner of Silver Lake for more than a decade. We value their insights and believe they can add significant value to Virtu as a direct investor.”

The move coincides with Temasek’s recent activities, which has seen the $177 billion investor make a number of investments in the US and Europe, while selling down some of its Asia portfolio.

In November, Temasek and RRJ Capital participated in an investment in Houston-based Cheniere Energy, in which the energy firm issued $1 billion in convertible notes to the Asian pair. In August, the firm also joined a consortium that backed Norwegian oil business Origio Exploration, making a combined investment of $525 million. Co-investors Riverstone and Barclays Natural Resource Investments committed $200 million, while Temasek invested $125 million.

However, after posting weak Asia results in its latest annual report, Temasek has made moves to offload some of its Asia-based assets. In October, listed private equity firm TIHT Investment Holdings acquired S$129 million ($103 million; €79 million) worth of assets from Temasek, which included a minority stake in each Japan’s Mitsui Life Insurance Company and SGX-listed CEI Contract Manufacturing.