Temasek Subsidiary to List Private Equity Fund on ADDX’s Digital Platform

SINGAPORE (THE BUSINESS TIMES) – Private market exchange ADDX has partnered with unit Temasek Fullerton Fund Management to list the latter’s private equity fund of funds, the Fullerton Optimized Alpha Fund, on its digital platform .

The Fullerton Optimized Alpha Fund is a closed-end fund that targets annual returns of 8-12% over its 7-year lifespan, ADDX said on Wednesday (May 11).

Thanks to the efficiencies of tokenization, individual investors accredited on ADDX will be able to access the Fullerton fund with a minimum amount of $10,000, instead of the $250,000 required through traditional non-tokenized channels.

A liquidity option in the form of quarterly locked-in redemptions is available to investors.

The fund will be invested in a portfolio of 6 to 8 private equity and private credit funds. The fund‘s underlying assets will be diversified by geography – across North America, Europe and Asia – as well as by strategy – across buyouts, growth, secondaries and private or distressed credit.

The Fullerton Optimized Alpha Fund will also focus on thematic sectors such as defensive, technology, new economy, post-Covid-19 dislocation and recovery as well as sectors aligned with environmental, social and governance (ESG) factors. ).

From a field of over 20,000 funds, Fullerton uses a rigorous and proprietary selection method that focuses on best-in-class managers with a proven track record of consistent investment strategy and performance across cycles. of the market.

Choo Oi Yee, Managing Director of ADDX, noted that private equity has outperformed private equity over 5, 10 and 25 year periods. Institutional investors such as private funds typically have 20-30% of their capital in private markets, she added.

“Adding a private equity allocation to one’s portfolio has been shown to improve overall returns while reducing volatility,” Choo said.

“By lowering the barrier to entry, the ADDX contributes to a level playing field and a level playing field for individual investors. At a time when rising inflation is a source of anxiety around the world, strategies that help investors better preserve and grow their wealth are more needed than ever.”

Mark Yuen, Director of Business Development at Fullerton, added, “The partnership between Fullerton and ADDX is unique and synergistic…Through ADDX, we can reach a broader base of investors to help them create well-diversified portfolios.” which may correspond to their long-term investment objectives. .”

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