Temasek’s SeaTown to raise funds from private investors

SeaTown Holdings, an indirect subsidiary of Singaporean public investment firm Temasek Holdings, is raising funds for its private equity fund for the first time from private investors.

The fundraising, targeting mass affluent investors in Singapore, is being done through a tie-up with digital wealth management platform Kristal.AI, which will split the minimum investment, the platform said in a press release on Wednesday.

The combination is the first chance for private investors to access Temasek and SeaTown’s deal flow, according to the statement. Temasek is one of the world’s most prolific dealmakers among his SWF and SWF-linked peers; its investments have included marquee games such as early moves to Grab, Alibaba, Airbnb, Uber and Tokopedia.

$1 billion commitment

SeaTown and Temasek have committed $1 billion to the fund, with SeaTown expecting to raise an additional $200-300 million from outside investors, the statement said. The fund will be geographically diversified, with a focus on Asia, the statement said.

For the SeaTown fund, the split means the minimum investment will be lowered to $100,000 from $5 million, according to the statement. This aims to bring the fund within reach of mass accredited investors, going beyond high net worth individuals (HNWIs) and institutional investors, Kristal.AI said.

“We have seen a rapid increase in demand for private equity and private market products in recent years. It used to be an exclusive space for institutional investors, but now technology and platforms have made it possible for individual investors to participate in such transactions as well,” Vivek Mohindraco-founder of Kristal.AI, said in the statement.

“Democratize access”

“By splitting and reducing the minimum investment, a much larger pool of clients can now access premium investment products and better diversify their investment portfolios,” Mohindra said. “We are pleased to see larger funds like SeaTown responding to growing market demand by democratizing access to highly sought after investment products.”

Kristal.AI is a digital private wealth advisory and fund management group targeting affluent clients worldwide; it offers over 200 premium funds, including private equity/venture capital and structured notes as well as preliminary public offerings (IPOs).

The platform, created in 2017, has raised a total of $15.4 million in venture capital from six investors, including the Desai Family Office, Sudhanshu SanadhyaChiratae Ventures, Amit Gupta, Shailesh Rao and WorldPeak Holdings, according to data from Crunchbase. IDG Ventures India has also been reported as an investor.

SeaTown Investments

Sanadhya is managing director of JPMorgan Chase in Singapore. Rao was previously head of India and Southeast Asia at TPG Growth and vice president of media, mobile and platforms for Asia-Pacific at Google. Gupta was a founding partner of Newquest Capital.

SeaTown focuses on alternative absolute return strategies, managing multi-asset and public credit strategies through open-end funds and private investment strategies through closed-end funds, according to the statement.

Among its investments, SeaTown holds stakes in Prime US REIT, CapitaLand Integrated Commercial Trust (CICT), Digital Core REIT, Nanofilm Technologies International, Ascendas REIT and ST Engineering.

SeaTown has previously processed transactions through the SGX-backed ADDX private market platform, which is a multi-asset exchange for funds, bonds and stocks and products representing private equity and venture capital, the private debt, real estate, hedge funds and crypto funds.

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