True Light Capital, a wholly-owned unit of Singapore’s state investment firm Temasek, announced on Thursday the successful closure of its flagship fund, raising a substantial $3.3 billion. The fund, which concentrates on investments within Greater China, is now officially closed to new capital.
In a statement released by the Singapore-based asset manager, True Light Fund I revealed that it had attracted investments from a diverse pool of global investors, including sovereign wealth funds, foundations, financial institutions, and family offices.
The closure of this fund marks a pivotal milestone for True Light Capital, which can now concentrate on deploying the secured capital into strategic investment opportunities.
This achievement comes at a time when global investors have exhibited some caution towards China, influenced by the nation’s recent economic challenges and heightened tensions with the United States in areas like trade, technology, and Taiwan relations.
CEO Yeo Chee Kian expressed optimism about China’s long-term prospects, stating, “True Light is confident in China’s enduring fundamentals and outlook. We continue to identify compelling investment prospects aligned with four key long-term structural trends: digitization, increased lifespans, sustainable living, and the future of consumption.”
True Light Capital’s fund will operate alongside Temasek in pursuing investment opportunities related to Greater China. The fund’s investment strategy encompasses both direct investments in private and public equities, as well as indirect investments through private equity and venture funds.
China currently constitutes 22% of Temasek’s investment portfolio. Temasek, regarded as one of the world’s top 10 investors, manages a net portfolio value of S$382 billion ($278.61 billion) as of March 2023, according to its official website.
Despite the challenges, Temasek remains enthusiastic about the Chinese market, particularly in areas like advanced manufacturing and energy transition, as emphasized by Yibing Wu, Head of China, during the Milken Institute Asia Summit in September.
