SeaTown Holdings International

Activity in Asia-Pacific’s private markets has risen – so has demand for talent in the space. Our Managing Director for Private Capital, Dickson Loo, told The Business Times' Joan Ng that the attraction of capital to the #AsiaPacific region is a major talent draw. “We have seen many overseas graduates and professionals returning to their home markets in Southeast Asia due to the potential of the different markets and investors’ interest in this region,” Dickson said. #SeaTown is dedicated to in-house training to ensure our team has the right foundation, approach, philosophy, and culture. Our commitment to fostering the next generation of leaders is exemplified by the SeaTown Sustainability Scholarship with Singapore Management University offering a grant and an internship to sustainability majors. We remain steadfast in our efforts to further deepen the capabilities of the local alternative investment ecosystem from Singapore, to across the region. #SoutheastAsia #PrivateMarkets #TalentManagement

“In the Asia-Pacific market, we see private credit delivering steady mid-teens returns to investors over the longer term. This is considerably higher vis-à-vis the long term returns of public equities or bonds.”, says Eddie Ong, our Deputy CIO and Managing Director for Private Investments. Eddie recently discussed the rising appeal of Asia’s private credit market with Nishtha Asthana at AsianInvestor. #SeaTown is seeing an increasing interest in a performing Asian private credit strategy from global investors who have traditionally deployed in developed market credit strategies. “Given that Asia private credit AUM (assets under management) is less than $100 billion, we believe there is significant growth potential,” noted Eddie. On risks surrounding the asset class, he shared that “with its customized deal structures, assessment must look beyond simple leverage or debt service coverage ratios” and that “downside protection mechanisms and third-party guarantees are crucial in determining creditworthiness”. What are your thoughts on this growing market? #asiapacific #privatecredit #privatemarkets #alternatives 

Is the higher-for-longer interest rates helping or hurting private credit investments? Our Managing Director for Private Credit, Wee Yap Yeo shared his valuable insights at the recent HSBC Global Banking and Markets’ 8th Annual Asia Credit Conference. He discussed the impact of higher interest rates on the demand for private credit from different types of corporate borrowers, as well as LBO activities and the general market. Additionally, Wee Yap and his fellow panelists explored the impact on the supply of private credit in #Asia and its pricing trends. Other topics included the pros and cons of financial sponsor deals versus corporate deals, along with key considerations for investing in Asia private credit. Given the current interest rate environment, where are you deploying your capital? #privatecredit #privatedebt #alternatives #asiapacific

“Given that Asia private credit AUM is less than $100B compared to the $28T global private credit AUM, it is too early to call this a 𝓰𝓸𝓵𝓭𝓮𝓷 𝓪𝓰𝓮 for Asia private credit. However, it is fair to say that there are 𝓰𝓸𝓵𝓭𝓮𝓷 𝓸𝓹𝓹𝓸𝓻𝓽𝓾𝓷𝓲𝓽𝓲𝓮𝓼 arising.” Our Managing Director for Private Credit, Wei Hsien Chan shared this at the “GP & LP Opportunities” panel during the Asia Debt Conference, organized by SmithNovak, alongside other experts from Blauwpark Partners, CapitaLand, Preqin and First Estate Capital Management. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 👇 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐢𝐧 𝐀𝐬𝐢𝐚 The shrinkage of Asian high-yield bonds in the past two years, funding challenges of private equity funds and high-growth tech companies give rise to a huge pipeline of opportunities to be potentially filled by private lenders in Asia. In the longer-term, Asian banks still fund majority of credit in Asia, whereas banks in the US fund less than 20% of US credit. As the Basel Accords evolve, leading to higher capital charges for corporate lending, Asia still has a long way to go to catch up to the levels of the developed markets. 𝐆𝐏-𝐋𝐏 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧 In recent times, the ability of GPs to offer co-investment opportunities has shifted from being a mere “nice-to-have” to a “must-have”. GPs now need to have a robust pipeline of sizeable, attractive deals, along with the capacity to lead, control or anchor those deals to generate investment opportunities. Additionally, the ability to swiftly close and execute deals while effectively managing co-investors is another critical factor for success. 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐀𝐬𝐢𝐚 𝐚𝐧𝐝 𝐔𝐒/𝐄𝐮𝐫𝐨𝐩𝐞 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐜𝐫𝐞𝐝𝐢𝐭 The Asian market has a much broader and diverse range of legal systems and levels of economic development and growth. This gives rise to the need for a more flexible approach to deal structuring. The standard single level capital stack prevalent in the US/Europe leveraged loans may not be possible in Asian loans as the region requires more bespoke solutions and an experienced credit team to navigate these idiosyncrasies. #privatedebt #privatecredit #alternatives

SeaTown believes that successful management of sustainability issues is essential to durable long-term returns. As a supporter of TCFD, a signatory of UN PRI and a member of the IFRS Sustainability Alliance, SeaTown is committed to transparency and has launched its first full-fledged Sustainability Report. Our inaugural report sets out SeaTown’s approach to responsible investing and our uncompromising stance on robust governance and business ethics. We believe that it is our responsibility to exercise thoughtful stewardship to safeguard the long-term value of our investments. This report is a culmination of our firmwide, multi-year efforts to integrate #sustainability across our business. For our efforts, we have achieved Principles of Responsible Investment (PRI) scores of 4-5 stars across our funds and firm processes. We have also been one of the few Asian organizations to be invited on the PRI in Person Signatory Advisory Committee for the past two years. Along with our peers and stakeholders, we will work together towards a more sustainable future. #SeaTown is also a member of the Asia Investor Group on Climate Change (AIGCC). #ESG #alternatives

Our new and revamped #website is LIVE. We are proud to unveil our new brand identity in harmony with SeaTown’s next phase of growth as a trusted steward and provider of capital across private and public markets in Asia. As we celebrate our 15th anniversary, we are excited to embark on the next chapter of our journey, building off a strong history of excellence with deep roots in Asia’s history. The launch of our new brand identity is not just a symbol of our growth and evolution over the years, but a testament to our forward-looking vision and ambition as a company. It captures the essence of our resilience, adaptability, and pioneering spirit. Thank you for 15 years of trust and support! #alternatives #privatemarkets #publicmarkets #asia

Our Director for ESG Management and Thematic Research, Kenneth Ho was recently invited to the “Being Sustainable, Responsible, and Profitable” event hosted by World of Allocators, to discuss how #sustainability and #ESG issues were impacting the investment world. Together with fellow panelist, Matthew O'Sullivan, former Head of Asia Pacific Private Investments for M&G, and moderator, Shinya Deguchi, Kenneth shared his insights on various topics, including practical tips on how to evaluate sustainability performances, the extent of ESG integration in investment strategies, as well as the unique challenges and opportunities of ESG investments in the #APAC region. The panel discussion focused on three primary concerns around sustainable investing - 1️⃣ Profitability: Can investors achieve good returns with sustainable assets? 2️⃣ #Greenwashing: The challenge of maintaining credibility in sustainable investments 3️⃣ Additionality: Ensuring genuine #impact What strategies have you found most effective for integrating sustainability factors into your investment decisions? 💡

Investors are showing a preference for managers with a pan-Asia focus, as reported by Joan Ng of The Business Times. Our Deputy CIO for Private Investments, Eddie Ong shared that success in Southeast Asia requires taking a strategic approach that is tailored to the unique opportunities of the region. Given the region’s composition of “nuanced and fragmented” economies, managers need to work on building up smaller companies and developing M&A strategies that grow their size through horizontal and/or vertical integration. #SeaTown continues to have an optimistic outlook on the region and the opportunities it presents. “With the valuation gap between developed markets and Southeast Asia continuing to widen, we think, at some point, we will see the financial performance of companies in the region drive valuations to play catch-up, and a further boost could also come as China recovers and investors get excited again.”, Eddie says. What do you think of Southeast Asia’s potential and the managers operating in the region? #SoutheastAsia #privateequity #privatemarkets #alternatives

Temasek, our ultimate parent, was formed 50 years ago in 1974 as a holding company to own and manage local assets previously held by the #Singapore Government. Today, its investment portfolio has increased more than a thousand-fold over the generations, consisting of a global ecosystem and network of partners committed to ensuring resilient, sustainable returns for generations to come. Since 2009, it has been SeaTown’s pride to grow alongside this network and ethos as a trusted steward of capital, investing alongside our investors in conviction-driven strategies.

We believe that ASEAN is a compelling region, and its complexities create opportunities for astute investors. SeaTown’s heritage is rooted in the rich history of #Singapore and the region around us. As investors, we have been active in the #ASEAN region for the last 15 years, investing #privatecapital and supporting partner companies through our network. See what makes the region attractive to us, how #SeaTown adds value, as well as some recent highlights from our private capital team! • We were recently invited to share our views on ASEAN private equity at a closed-door event • We celebrated the conclusion of The Asset Triple A Awards with the UOB team for the ‘Best Leveraged Buyout in Singapore’ for our investment in Foundation Healthcare Holdings • We commemorated the closing of our strategic partnership with YYC Holdings, in support of the next stage of their growth strategy #alternatives #privateequity #privatemarkets