Value of unlisted assets in Temasek portfolio grows four times to $210 billion

SINGAPORE – The value of unlisted assets in Temasek Holdings’ portfolio rose four times to $210 billion in the financial year ended March 31, 2022, from $53 billion a decade ago, the state investor said in its annual review on Tuesday (July 12).

In the past decade, the unlisted portfolio generated returns of more than 10 per cent per year.

Returns from this portfolio are generated after the investments are listed on an exchange or sold, as well as from the strong performance of underlying companies.

Currently, unlisted assets comprise 52 per cent of the group’s portfolio.

Singapore firms make up 36 per cent of the unlisted portfolio, other private companies and early stage firms make up 26 per cent, asset management businesses account for 20 per cent, while private equity and credit funds account for 18 per cent.

Early stage companies make up less than 10 per cent of Temasek’s unlisted portfolio.

“Our unlisted portfolio offers us liquidity in the form of steady dividends from mature companies such as Mapletree, SP Group and PSA, the distributions from the high quality portfolio of funds we have built up over the years, and the returns from when our unlisted assets are listed or sold,” Temasek said.

The internal rate of return, a measure of projected profitability of investments for unlisted assets, is 16.2 per cent over a 20-year period, far outperforming the 6.7 per cent of listed assets.

Mr Russell Tham, joint head of enterprise development group and head of strategic development at Temasek International, said the unlisted portfolio is valued based on its book value less investments.

But from a mark-to-market view, “this unlisted portfolio value will rise another 10 per cent”, he noted.

Asked about risks of unlisted entities, Temasek’s chief investment officer Rohit Sipahimalani said the unlisted portfolio might have lower risks as access to company information is “much better” and Temasek can “have a role in governance of these companies”.