Published by Asia Asset Management – 29th Aug 2018
Singapore’s state-owned investment company Temasek Holdings (Temasek) is teaming up with Korean Venture Investment Corp (KVIC) to set up a fund to invest in cross-border start-ups, according to a South Korean news report.
The fund size will be at least 237.5 billion won (US$213.2 million) with state-backed KVIC holding a 40% share, Seoul-based business daily The Korea Herald says in the August 27 report, citing an unnamed fund manager from the South Korean company.
Temasek and KVIC will be limited partners in the fund which will operate for at least ten years, and the general partners have not been identified yet, the report adds.
A KVIC spokesperson declined to answer questions from Asia Asset Management (AAM), describing the subject as “too sensitive”.
Spokespersons for Temasek did not respond to requests for comment.
The news report quotes the fund manager as saying that KVIC and Temasek will create the fund within six months, and that the former’s share of investments is fixed at some 95 billion won.
Whether the fund size will be expanded from $237.5 million will depend on the amount of investment from Temasek, it says.
The reported move will be in line with Temasek’s increased exposure to South Korean assets in recent years.
The company’s allocation to assets denominated in Korean won doubled to 2% of its total investments as of March 2018 from 1% two years earlier, according to data posted on Temasek’s website.
Temasek had approximately S$308 billion ($225.99 billion) of total assets at the end of March 2018.
KVIC oversees various fund of funds, with current total assets under management of 4 trillion won.
