(Reuters) – Singapore-based investment firm Temasek Holdings will invest up to A$300 million ($198.4 million) in Australian exchange-traded fund manager Betashares, the company said on Monday.
The funding is expected to fuel the expansion of Betashares’ offering in Australia and overseas, the company said in a statement.
With the investment, Temasek will hold an undisclosed minority stake in Betashares and join its staff and private equity firm TA Associates as shareholders, it added.
The Australian ETF sector’s market capitalization reached A$177.5 billion in 2023, boosted by net inflows of A$15 billion, according to the latest data from Betashares.
Betashares, one of the country’s largest ETF companies, manages more than A$38 billion in assets and serves more than a million investors in Australia, according to its website.
“The investment by Temasek will help accelerate the next phase of our journey, both organically and through acquisitions and strategic investments,” said Betashares founder and CEO Alex Vynokur.
Temasek manages assets worth S$382 billion ($282.36 billion) as of March 31, 2023, and its portfolio includes companies such as Alibaba.com (NYSE:), DBS Group (OTC:) and Tencent, among others, according to Temasek’s website.
($1 = 1.5124 Australian dollars)
($1 = 1.3529 Singapore dollars)
