Singapore state-owned funding agency Temasek expects various property to be “an vital return driver for us within the years forward” as a part of its technique to diversify past conventional equities.
In its 2025 evaluation, overlaying the monetary yr to 31 March 2025, Temasek revealed that considered one of its three areas of focus inside various property is personal credit score and “hybrid options”.
Learn extra: Temasek and TPG put money into Cliffwater
“This fills the void for underserved debtors who’re, for varied causes, not coated by conventional credit score suppliers resembling banks,” Temasek stated.
“Debtors additionally discover personal credit score financing more and more interesting as it could actually provide them a extra versatile and tailor-made resolution.”
The agency highlighted Aranda Principal Methods, its personal credit score platform which was spun out from its in-house credit score portfolio workforce final yr to “higher seize alternatives” within the credit score house.
Aranda manages a $10bn (£7.3bn) greenback portfolio comprising each direct investments and funds, and which Temasek stated it expects to develop “over time”.
As a part of its allocation to options, Temasek invests in top-tier personal fairness funds, resembling EQT, KKR, and TPG, in addition to in different various methods and hedge funds, “which generate resilient returns via uncorrelated methods like closed block insurance coverage and music royalties”.
Different investments sit throughout the agency’s partnerships, funds and asset administration corporations (PFAs) section, which includes 23 per cent of its general portfolio.
Throughout the PFAs section, partnerships and funds represent greater than two-thirds, with asset administration corporations making up the remaining one-third of the section.
Temasek added that world buyers have been deploying a “important quantity of capital” into options lately.
Learn extra: Prosperous buyers double various investments allocations