In a strategic move, Singapore’s Temasek Holdings has announced an investment of up to A$300 million ($198.4 million) in Betashares, an Australian exchange-traded fund (ETF) manager. This capital injection, revealed on Monday, is intended to drive Betashares’ growth in both domestic and international markets.
Betashares, which is among Australia’s largest ETF companies with more than A$38 billion in assets under management, is set to leverage this investment to expand its product offering and enhance its market presence. The company currently serves over one million investors in Australia.
The exact minority stake that Temasek will acquire in Betashares has not been disclosed. However, Temasek will join the ranks of existing shareholders, including staff at Betashares and venture capital firm TA Associates.
The Australian ETF sector has seen strong growth, with market capitalization set to reach A$177.5 billion in 2023, thanks in part to A$15 billion in net inflows, Betashares reported.
Alex Vynokur, founder and CEO of Betashares, was optimistic about the potential of the partnership, stating: “Temasek’s investment will help accelerate the next phase of our journey, both organically and through acquisitions and strategic investments.”
Temasek, with a diverse portfolio that includes notable names such as NYSE:BABA (Alibaba), OTC:DBSDY (DBS Group) and Tencent, had assets under management totaling A$382 billion ($282.36 billion) as of March 31, 2023.
Exchange rates at the time of the announcement were $1 to 1.5124 Australian dollars and $1 to 1.3529 Singapore dollars.
Reuters contributed to this article.
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