Strategy

As part of our T2030 strategy, we aim to build a resilient and forward-looking portfolio — one that can withstand exogenous shocks and perform through market cycles, while capitalising on growth opportunities with the potential for good sustainable returns above our risk-adjusted cost of capital over the long term.

To better manage complexities in a changing world, we anchor our activities in three portfolio segments, enabling greater clarity, focus, and discipline.

Singapore-based Temasek Portfolio Companies (TPCs)

Our TPCs are core investments in Singapore-based companies in which we typically hold a shareholding interest of at least 20%. They are stalwarts of our portfolio that deliver stable and good sustainable returns over the long term. As a long-term steward, we focus on active portfolio management through driving transformation and value creation to enhance the value of our TPCs and enable them to be globally competitive while staying rooted in Singapore.

Several of these companies provide essential services and infrastructure in Singapore. For example, Singtel provides nationwide telecommunications infrastructure, SMRT Corporation provides public transport services across rail and bus networks, and SP Group owns and operates electricity and gas transmission and distribution infrastructure.

Many TPCs have also established themselves as globally competitive businesses holding leading positions in their respective industries. For instance, PSA is a leading international port operator; SATS is the world’s largest air cargo handler; and Singapore Airlines is a major global carrier.

As a whole, these companies have an aggregate revenue of about S$200 billion, and employ more than 160,000 people in Singapore and more than 240,000 outside Singapore.

We drive value creation and strong performance across our TPCs through a mix of cross-portfolio initiatives and asset-specific strategic levers:

• Effective Boards and Management: We advocate the formation of high-calibre, effective boards that are predominantly independent, driven by rigorous selection processes. As an active shareholder, where appropriate, we will seek to appoint our employees as representative directors to our TPC boards to contribute their expertise. We expect that our TPCs build strong management teams with deep bench strength, empowering them with the agency to drive outcomes. We also engage our TPCs to align compensation frameworks to performance, with full transparency and accountability.
• Operational Excellence: We engage our TPCs on key functional areas to encourage the exchange of ideas and sharing of best practices that help drive best-in-class commercial and operational excellence.
• Accelerating Artificial Intelligence (AI) Transformation: With AI redefining industries, we actively engage our TPCs to accelerate AI adoption and stay ahead of the curve. We work with our TPCs to build AI fluency across their organisations and provide them with differentiated access to specialist capabilities and frontier AI ecosystems. This includes co-developing a Workforce AI Fluency Playbook with our TPCs, which will serve as a practical guide for developing an AI-first mindset across the workforce.
• Strategic Review and Transformational Restructuring: We partner with our TPC boards and management teams as they formulate major strategic initiatives to continuously transform their businesses and re-orient their business strategies. This includes major acquisitions, transformational mergers, and complex restructurings. We are open to deploying additional growth capital, where it is commercially sound, to better position our TPCs for success in a rapidly changing global business landscape.
• Sustainability Integration: We engage our TPCs to help advance Environmental, Social, and Governance (ESG) practices, partnering with them to enhance their long-term resilience, competitiveness, and transition readiness.
• Capital Structure Optimisation: We expect our TPCs to strive for and maintain resilient balance sheets to support sustainable growth.
• Capital Markets Positioning: We encourage clear, transparent, and consistent investor communications, including the curation of active investor and analyst networks.

Seatrium: Enabling long-term value creation through active stewardship

In 2023, leading offshore and marine (O&M) engineering company Seatrium was formed through the combination of Sembcorp Marine and Keppel Offshore & Marine (KOM). This was the culmination of years of restructuring efforts supported by Temasek, a major shareholder of Sembcorp Industries and Keppel. The restructuring enabled Sembcorp Industries and Keppel to sharpen their business focus and equity story, while Seatrium emerged as a stronger O&M player positioned for long-term growth.

While Sembcorp Marine and KOM were established O&M players, the sector experienced a prolonged and severe downturn since 2015, which was exacerbated by significant disruptions during the COVID-19 pandemic.

In 2020, we supported the demerger of Sembcorp Marine, which enabled Sembcorp Industries to focus on renewable energy growth and its strategy to become a leading utilities and urban development player in Asia. Temasek became a direct shareholder of Sembcorp Marine and invested approximately S$1.1 billion through two rights issues and a mandatory general offer to strengthen the company’s balance sheet and operational resilience.

Building on the need to strengthen Sembcorp Marine and KOM’s long-term position and create long-term value for all stakeholders, we engaged the boards and management of Keppel and Sembcorp Marine to support the combination of the offshore marine businesses.

Seatrium combines the world-class engineering expertise and global operational capabilities of both Sembcorp Marine and KOM to better compete and provide solutions for the offshore, marine, and energy sectors globally. Post-merger, Seatrium has been executing its long-term strategy and has strengthened its balance sheet, delivering net profitability since 2024. At the same time, Keppel’s divestment of its offshore and marine operations supported its Vision 2030 roadmap to be an asset-light global asset manager and operator.

Collectively, the market capitalisation of Sembcorp Industries, Keppel, and Seatrium increased from about S$14 billion pre-restructuring⁵ to over S$40 billion by the end of March 2026, with an uplift of more than S$27 billion for all shareholders during this period⁶.

Read more about our TPC segment performance

Global Direct Investments (GDIs)

Our GDIs primarily comprise public and private equity investments in emerging and established market leaders. These investments are aligned to four structural trends — Digitisation, Sustainable Living, Future of Consumption, and Longer Lifespans — which are interconnected, transcend sectors and countries, and persist through economic cycles.

We have the flexibility to invest across a broad opportunity set spanning:

• Minority Positions in Quality Businesses: We invest to help companies scale and advance their business models across the capital structure — equity, convertible instruments, and structured solutions. This is where we deploy most of our direct investment capital, targeting companies with proven models, strong management, and clear paths to market leadership.
• Co-investments with General Partners (GPs): We co-invest alongside top-performing private equity managers, leveraging their operational expertise and sector knowledge. Recent examples include partnering with Brookfield to acquire Neoen, a leading renewable energy platform, and partnering with Energy Capital Partners to invest in Atlantica Sustainable Infrastructure.
• Public Markets: We have significantly enhanced our public markets capabilities in recent years to improve performance through both portfolio construction and active management, with a global team that executes specialised investment strategies.
• Early-Stage Investments: We maintain a highly selective exposure to early-stage companies (capped at 6% of our overall portfolio value) to stay ahead of technological disruption, identify future winners early, and understand emerging business models.
• Control Transactions: We selectively take control positions in a global or regional leader where we bring differentiated value, with only five such investments in the past decade. These are Element Materials Technology (a global leader in testing, inspection, and certification services across a wide range of industries), gategroup (a leading global provider of airline catering, retail-on-board, and hospitality services), GHX⁷ (a leading healthcare supply chain management firm), Manipal Health Enterprises (India’s top private hospital chain), and Rivulis (a global drip irrigation leader).

The key success drivers for our GDIs to deliver good sustainable returns over the long term are:

• Our Global Network: We leverage our strong global networks and long-standing relationships, including access to founders, management teams, and co-investors, to source high-quality investment opportunities and gather insights to inform overall portfolio positioning.
• Deep Domain and Market Expertise: Our team of about 300 investment professionals across sectors and markets possesses the domain capabilities needed to source differentiated investment opportunities, critically evaluate business models, assess investment risks, and identify value creation levers.
• Active Portfolio Management: We continuously monitor the performance, management quality, and market positioning of our portfolio companies, allowing us to track execution against plans and act early when issues arise. We proactively engage portfolio companies to identify opportunities for value creation.
• Shareholder Participation to Influence Outcomes: We seek governance rights, where relevant and appropriate, to shape strategic decisions and influence outcomes through the investment lifecycle.
• Operational Value-Add: Where appropriate, we leverage senior executives with deep operational experience in globally competitive enterprises to help our portfolio companies with their growth journeys.

gategroup: Providing patient capital to build resilience

Temasek first invested in gategroup, the world’s largest provider of airline catering, retail-on-board, and hospitality services, in June 2018 through an exchangeable bond alongside RRJ Capital. In 2019, Temasek converted its exchangeable bond and acquired a 50% direct stake in gategroup to become a co-controlling shareholder alongside RRJ Capital. The onset of COVID-19 in 2020 brought global air travel to a near standstill, significantly disrupting the company’s operations and necessitating restructuring and recapitalisation.

During the recovery years, Temasek worked closely with the company to strengthen its governance, operating performance, and financial position, and most recently on a comprehensive debt refinancing. This long-term approach enabled the company to navigate the crisis and pursue several strategic growth opportunities. With travel demand having recovered, gategroup has delivered strong performance in recent years, underscoring the value of staying power and steadfast partnership through an operationally volatile period.

Read more about our GDI segment performance

Partnerships, Funds, and Asset Management Companies (PFAs)

This segment comprises partnerships with other investors, investments in private equity funds, private credit, and impact investments, as well as our asset management companies.

Our PFAs enable Temasek to scale its capital and access a broad range of opportunities that include offering capital solutions such as private equity, private credit, and tailored financing options.

Partnerships and Funds

We are invested in a high-quality portfolio of funds diversified across geographies, sectors, and vintages. Performance is driven by the managers’ differentiated sourcing capabilities, deep value creation expertise, and strong local and sectoral relationships. These managers provide access to proprietary deal flow, leverage operational and strategic capabilities to drive portfolio company performance, and benefit from deep relationship networks and long-standing market and industry connections. In addition, they generate valuable sector and market insights and create opportunities for co-investments alongside high-quality assets.

The key success drivers for our partnerships and fund investments are:

• Disciplined Manager Selection: A higher interest rate environment, elevated valuations, and longer exit timelines reinforce the importance of backing differentiated managers with strong operational capabilities, disciplined capital deployment, and downside protection.
• Scaling Co-investments: Our partnerships with GPs provide a strong pipeline of co-investment opportunities for our GDIs, while allowing us to leverage their sector expertise and operational value-add.
• Deepening Strategic Relationships: We continue to expand long-standing relationships with top-tier private equity managers, including BlackRock, TPG, and L Catterton. These provide access to differentiated sector platforms, consumer and growth equity exposure, and proprietary deal flow.
• Strategic Collaboration: We partner with leading companies to build and scale platforms in structurally attractive sectors. This includes establishing O2 Power in India with EQT, and participating in the AI Infrastructure Partnership alongside BlackRock, Global Infrastructure Partners, Microsoft, and MGX to tap on the growing demand for digital and AI-enabled infrastructure.

BlackRock: A strategic partnership to create long-term value

Since Temasek’s US$2.5 billion (S$3.5 billion) investment in BlackRock in 2020, the relationship has grown into a broad-based strategic partnership spanning joint ventures, fund investments, and co-investment initiatives. As at 31 March 2026, Temasek holds a 3.4% stake in BlackRock, valued at approximately S$6.6 billion.

The partnership reflects a shared ambition to build long-term institutional capabilities across sectors and geographies. Key collaborations include Decarbonization Partners, a 50:50 joint venture investing in companies accelerating the transition to a lower-carbon economy, and a joint venture with BlackRock and CCB Wealth Management (a wholly-owned subsidiary of China Construction Bank) to create a wealth management platform which serves the needs of Chinese banking clients.

Temasek and BlackRock have also collaborated on new investment strategies and platforms. These include the AI Infrastructure Partnership, which focuses on data centres and energy infrastructure, and growth-stage secondaries initiatives targeting venture and private market opportunities. Across public and private markets, Temasek has committed capital to a range of BlackRock-managed strategies, including infrastructure, private credit, and systematic investing, creating opportunities for even deeper collaboration and co-investment. For example, Temasek is a partner of BlackRock subsidiary Global Infrastructure Partners’ flagship Fund V focused on core-plus infrastructure opportunities. Post 31 March 2026, we also partnered with Global Infrastructure Partners, L’IMAD, and the Abu Dhabi National Oil Company to launch an infrastructure investment partnership, focusing on opportunities across the Gulf Cooperation Council and Central Asia.

The partnership continues to be strengthened through regular senior-level engagement and a shared focus on identifying new avenues for collaboration, innovation, and long-term value creation.

Asset Management Companies (AMCs)

Our AMCs continue to be a key pillar of our PFA strategy, with distinctive capabilities across public and private markets to deliver differentiated solutions for investors globally.

(as at 31 March 2026)

Asset Management Companies (AMCs)

(Pavilion Capital has been amalgamated into Seviora Capital)

Other examples

Our main Asset Management Platform is Seviora Holdings, which comprises Azalea Investment Management, Fullerton Fund Management, InnoVen Capital, SeaTown Holdings International, and Seviora Capital⁸. With a breadth of offerings across public and private market strategies, they deliver multi-asset, multi-strategy exposure tailored to evolving investor needs across risk profiles and geographies, particularly in Asia and adjacent markets.

Together with Temasek Partnership Solutions, Seviora is undertaking a strategic review of existing AMCs and exploring growing new ones. The strategic review is focused on optimising our AMC portfolio mix, sharpening investment focus areas, and aligning resources with high-growth opportunities in Asian public and private markets. Together, we aim to build a leading Asia-based, multi-strategy asset management platform that combines local insight with global execution capabilities, delivering value for investors over the long term.

Read more about our PFA segment performance

Investment Framework

Our investment discipline is centred around intrinsic value and our risk-return framework. This framework forms the basis of our investment decisions, capital allocation, performance measurement, and incentive system.

When we invest in companies, we conduct bottom-up intrinsic fundamental valuation analysis and due diligence to determine a company’s fair value. We also stress test our assumptions to help us gauge the range of outcomes in potential future returns under different assumptions.

We compare our estimate of fair value with current market valuation to determine if an investment makes sense at the proposed price.

Risk-Adjusted Cost of Capital (RACOC)

Each investment is assigned a RACOC⁹ that takes into account the investment’s risk characteristics such as industry risk and capital structure. Investments with higher risk will have higher costs of capital. For these investments, we require higher expected returns, which in general, will be at a positive spread over the RACOC.

We assess our performance by measuring our Total Shareholder Return against our overall RACOC, which is the weighted average RACOC across all our individual investments.

Internal Carbon Price

We also apply an internal carbon price of US$65 per tonne of carbon dioxide equivalent (tCO₂e)¹⁰ to each investment to better assess the potential climate transition impact, thereby enabling a greater focus on the long-term climate resilience of our portfolio. We expect to progressively increase this to US$100 per tCO₂e by 2030.

Integrating ESG Across Our Investments

We embed an ESG framework across the entire investment lifecycle to manage material risks, support our portfolio companies’ ESG progress, and reinforce the resilience of our portfolio.

This includes pre-investment due diligence to ensure alignment with our governance and sustainability standards. Post-investment, where we have an opportunity, we engage with our portfolio companies to advance sustainability practices, including strengthening climate targets and transition plans, supporting workforce transformation, promoting safe and inclusive workplaces, and fostering good governance.

Our ESG integration priorities are tailored to the mandates of our three portfolio segments, with a focus on materiality and driving sustainability outcomes.

Early-Stage Investments

We invest in early-stage companies to keep abreast of the latest technologies and innovations, drive portfolio development efforts, and identify potential winners early.

We are cognisant of the risks and challenges these early-stage companies face and accept the binary risks that come with investing in them. However, some of these companies also have the potential to achieve significant growth over time and deliver outsized returns.

We manage our early-stage risk through appropriate sizing and diversification. We typically invest smaller amounts at the time of initial investment, with a view to increasing our stake if the company demonstrates successful business execution. In addition, we cap our exposure to this segment at 6% of our overall portfolio value as part of our risk management framework.

As at 31 March 2026, our early-stage investments account for about 4% of our total portfolio value, with about half through direct investments and the rest through venture capital funds.

This is driven primarily by our Emerging Technologies and Innovation teams. In addition, our early-stage exposure includes our venture capital platform (Vertex Holdings) and two venture debt platforms (EvolutionX Debt Capital and InnoVen Capital) that we seeded and built.

Investment Engagement and Stewardship

Amidst uncertainties in the macro environment, companies must stay agile and laser-focused on sharpening and executing their strategies to navigate a challenging world of disruption, geopolitical risk, and shifting shareholder and stakeholder expectations.

As an investor and owner seeking to achieve good sustainable returns over the long term, Temasek is committed to working constructively with our portfolio companies, their boards, and leadership, to ensure a close alignment between strategy and performance, as well as returns and rewards. Where appropriate, we seek to add value by partnering with our investee companies on innovation, growth, and transformation initiatives that strengthen long-term competitiveness.

As an engaged shareholder, we integrate stewardship into our investment approach, and proactively promote good governance, ethical business practices, and compliance with laws. Engagement and voting are key levers through which we exercise our shareholder rights to influence governance quality, reinforce accountability, and support long-term value creation.

To strengthen the consistency and effectiveness of this approach, our Investment Stewardship team provides focused expertise in engagement, voting, and governance matters, and works closely with our investment teams to ensure stewardship considerations are systematically embedded across ongoing ownership and portfolio oversight.