MAS to launch US$5 billion fund for private equity, VC investments
The Monetary Authority of Singapore (MAS) said it will allocate US$5 billion (S$6.9 billion) of its own funds as part of its investment portfolio into the private markets asset class.
The funds will be managed by “global private equity and infrastructure fund managers who are committed to deepening their existing presence or establishing a significant presence in Singapore,” said Peter Ong, MAS board member and Chairman of Enterprise Singapore, at the Singapore Fintech Festival on Tuesday (13 November).
The new programme is said to build on the success of MAS’ existing external fund manager programme for the public markets asset class, which has anchored global asset managers in Singapore and catalysed the growth of the asset management industry, Ong said.
Asia rising as investment destination
“Companies are staying private longer,” he noted. “There is now a greater recognition among Asean companies that private capital is not simply just another source of funds, but also a form of ’smart capital’ that comes with technology, business knowhow and networks useful for companies to grow and scale.”
Private equity and venture capital investments into Asia overtook Europe for the first time last year, according a recent Asia-Pacific private equity report by consultants Bain & Co. Investments into Asia grew 40 per cent last year to reach US$160 billion, comprising 28 per cent of global investments, while fundraising in Asia rose 6 per cent to US$66 billion.
Ong cited the Bain report, which noted that assets managed by more than 220 private equity and venture capital managers based in Singapore have grown at a compound annual rate of 28 per cent to reach S$190 billion over the past five years.
Around 85 per cent of their investments are in Asia – with Asean, followed by India and China, forming the top investment destinations.
4,300 tech startups in Singapore
The MAS is working to develop an ecosystem of companies and organisations that are experimenting with new ways to solve global problems. There are now 130 co-innovation incubators, venture builders and accelerators based in Singapore.
There are 4,300 tech startups in Singapore in 2017, of which 30 per cent are deep tech startups, up from 2,800 in 2006, said Ong.
The new S$5 billion programme is complementary to the “MATCH” initiative launched by MAS earlier. MATCH, which stands for Meet ASEAN’s Talents and Champions, is a curated deal-making platform that aims to connect global capital and the Asean enterprise community.
In his speech, Ong also reiterated that investors have indicated that they intend to invest up to US$12.2 billion in Asean companies over the next three years.
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