Temasek unit sets up $422m fund for Singapore companies

Capital from the International Partnership Fund will be used to finance Singapore-based companies’ foreign acquisitions.

Heliconia Capital Management, the private equity unit of Singapore’s state investment company Temasek Holdings, is setting up a S$600 million ($422 million; €400 million) fund to help Singapore-based companies expand overseas.

The International Partnership Fund (IPF) was unveiled on Monday at Singapore’s budget 2017 announcement.

Capital from the fund, which will come entirely from the Singapore government, will be co-invested alongside Singapore-based companies in opportunities where they can extend product lines, brands or value chains, gain access to markets, channels and technologies, or to partner with other Asian companies.

Qualifying companies need to be headquartered in Singapore with annual revenues not more than $800 million, finance minister Heng Swee Keat said on Monday.

Heliconia, founded in 2010, provides growth capital to small and medium enterprises in Singapore to help with their global expansion. The firm manages three funds – a direct investment fund which co-invests with other private equity investors, a mezzanine capital fund, and a fund of funds vehicle.

The firm has made investments in Credence Capital Fund II, a Singapore-based fund, providing growth stage capital and expertise to SMEs focused on advanced manufacturing, IT logistics and consumer sectors, as well as in Dymon Asia Private Equity Fund, which invests S$15 million to S$50 million across companies based in the region.

Most recently, Heliconia bought mixed martial arts promoter ONE Championship, in a deal valuing the company at $1 billion.