Weekly Digest: Temasek's $7.4bn credit platform; GPIF targets higher returns;

TOP NEWS OF THE WEEK

Singapore's Temasek has launched a S$10 billion ($7.4 billion) private credit platform as a wholly-owned entity, building on its existing credit operations established in 2016.

The platform, which encompasses both direct investments and credit funds, will be led by Nicolas Debetencourt, who has headed Temasek's credit division since 2016.

A team of 15 credit investment professionals will manage the portfolio, complementing the sovereign wealth fund's existing credit solutions offered through its asset management arm, Seviora Group.

Source: Temasek

The Japanese government proposes to raise the annual investment return target for Government Pension Investment Fund (GPIF) to 1.9%, up from the current 1.7%, for the next five years.

The ministry of health, labour and welfare, which oversees GPIF, said that the target is achievable under the fund’s current model portfolio, but the fund is due to review the strategy for the next five years by the end of next March.

Source: Nikkei Asia

OTHER INVESTMENT NEWS

Finnish pension giant Varma, which manages €60.9 billion ($64.35 billion) in assets, has committed €500 million ($528.65 million) to a new climate-focused ETF on the Tokyo Stock Exchange.

The ETF, custom-designed and managed by Nomura Asset Management, targets Japanese companies with science-based greenhouse gas reduction targets.

This investment, launched December 3, extends Varma's climate-sensitive ETF strategy already established in US, European, and developing markets, aiming to support both climate initiatives and generate returns from the Japanese market.

Source: Asia Asset Management

BlackRock has agreed to acquire HPS Investment Partners at $12 billion, in a bid to race into the private investment market.

HPS is a group dominating private credit based in New York. The deal, valued at $9.3 billion in stock upon closing, also includes an additional 2.9 million shares worth $3 billion to be paid out over the next five years.

The asset manager also plans to merge HPS with its existing private credit unit to form a broader private financing business aimed at insurance companies.

Source: Financial Times

AUSTRALIA

The Teachers Insurance and Annuity Association of America (TIAA) and Singapore's Temasek have committed over AU$400M as anchor investors to Nuveen's first Australian commercial real estate debt fund.

The fund targets senior and junior secured real estate loans across major Australian cities, primarily in industrial, logistics and residential sectors, with selective investments in retail, office and alternative assets.

TIAA has already backed a seed loan portfolio, with additional global investors currently conducting due diligence.

Source: Nuveen

Australian state-owned investment company, QIC has converted $2.44 billion (A$3.75 billion) of bank loans into Sustainability-Linked Loans (SLLs) for its QIC Property Fund and QIC Town Centre Fund, marking one of Australia's largest REIT SLLs in recent years.

The loans, coordinated by ANZ, CBA, and MUFG, build on QIC's previous A$300 million Climate Bond Initiative certified Green Bond issued in 2019.

The new SLLs include ambitious targets for carbon emissions reduction and will utilise the Green Building Council of Australia's new Green Star Performance Tool v2, while also pursuing Cleaning Accountability Framework certification across both funds' retail property portfolios.

Source: QIC

INDONESIA

Indonesia Investment Authority (INA), the country's sovereign wealth fund, is shifting its investment strategy to align with the new government's ambitious 8% GDP growth target for 2028-29.

According to chief investment officer Stefanus Ade Hadiwidjaja, INA will prioritise investments in food, agriculture, and critical minerals sectors under President-elect Prabowo Subianto's administration.

Source: Nikkei Asia

SINGAPORE

Singapore’s GIC and Sweden’s EQT buy majority stake in UK smart meter firm Calisen

Singapore’s sovereign wealth fund GIC and Swedish private equity company EQT are jointly acquiring a majority stake in Calisen Group, the sum of which has not been disclosed. Calisen group is a provider of smart meters, solar and battery based in the UK.

The head of GIC’s infrastructure for Europe George Kay said that smart meters play a crucial role in energy transition, by helping suppliers and grid operators reduce costs, and enable consumers monitor usage and cut down expenses.

Source: GIC

Singapore-based life insurer, Singlife has appointed European asset manager Amundi to manage 20% of its developed and emerging market public equities portfolio by mid-2025.

The portfolio will be benchmarked against MSCI Low Carbon Target Indexes as part of Singlife's Net Zero 2050 goals.

Amundi will help execute Singlife's low carbon transition strategy, while MSCI's indexes will exclude investments in controversial weapons, ESG controversies, thermal coal mining, and oil sands.

Source: Singlife

(The above briefs have been collated from press releases and third-party sources.)