Temasek plans $25B investment push in Europe
This accounts for 40% of the S$25 billion that Temasek committed in 2024 for Europe over five years. The investment fund plans to invest between $20 billion and $25 billion in the Europe, Middle East, and Africa (EMEA) region by 2030. This shows the confidence of the state-owned investor in Europe's economic potential, even in a tough global environment.
With a record net portfolio value of S$434 billion, up 11.6% from the previous year, Temasek aims to take advantage of opportunities in Europe's changing markets. According to research firm GlobalSWF, Temasek is the 11th largest fund globally among sovereign wealth funds. The state investment fund plans to leverage Europe's resilient markets and valuation differences to build wealth while managing economic uncertainties.
Nagi Hamiyeh, who leads Temasek's operations in Europe, the Middle East, and Africa, pointed out that the macroeconomic climate fuels the firm's aggressive expansion. In a media statement, he said: 'Sometimes the macro helps us go into companies that we have liked, that were not within our reach from a valuation perspective.'
Hamiyeh also pointed out that firms in Europe are lower in value than US firms, due to global trade tensions and tariffs. This makes European companies more attractive to invest in. He explained this will enable Temasek to focus on high-potential businesses that were previously too expensive to invest in.
Temasek's recent European investments include French renewable energy company Neoen and Keywords Studios, a video game technology services provider based in Ireland. These align with its main investment themes: Digitalisation, Sustainable Living, Future of Consumption, and Longer Lifespans.
Temasek is seeking out global companies and family-owned businesses with strong positions in industrials, renewable energy, financial services, and consumer goods. Hamiyeh says Temasek is focused on growth markets like France, Italy, Germany, and Scandinavia, where there are untapped opportunities in digital payments, Software as a Service (SaaS), and sustainable solutions.
Currently, Temasek has offices in London, Brussels, and Paris. These allow it to connect with various chief executives, senior management, and advisors Europe-wide. In addition to these offices, it has partnered with companies like LeapFrog Investments, Brookfield, and Global Infrastructure Partners to expand its reach.
The partnerships have also enabled it to invest in projects like luxury cruises, premium retail, and eco-friendly packaging. For instance, its 2016 investment in the luxury brand Moncler shows the potential of Europe's consumer market.
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