Temasek invests $300m in Betashares

The Singapore government's Temasek Holdings will become part owner of Betashares, injecting $300 million into the exchange-traded fund (ETF) provider.

The $38 billion Betashares said it entered into a binding agreement with Temasek in a bid to accelerate its next phase of growth.

Betashares founder and chief executive Alex Vynokur said: "Looking ahead, we are focused on realising our vision by harnessing our passion for innovation and expanding our presence across more products, services, and international markets."

In 2021, US private equity firm TA Associates took about a 50% stake in Betashares for an undisclosed sum.

Betashares did not reveal the exact stake Temasek will gain if the transaction goes ahead, nor did it confirm if TA Associates sold some of its stake to make room for Temasek. Betashares only confirmed that Temasek is a minority owner.

The Singapore's government's investment firm had US$287 billion in assets under management at the end of March 2023.

Temasek reported a 5.07% return for the period, citing the challenging macro environment and detractors in the technology, healthcare, and payments space. This is well below its 10-year average of 6% and 20-year average of 9%.

Head of TA Associates Asia Pacific Edward Sippel said: "TA is a highly committed long-term investor in Betashares. We believe Betashares has a bright future as the business continues to grow and expand. We're looking forward to continuing our partnership with the Betashares management team as they leverage the company's market leading position, growing range of quality offerings and deep understanding of the industry."

Since its founding 14 years ago, Betashares has become the country's second largest ETF manager, according to Rainmaker's latest ETP Report, sitting behind Vanguard and leading BlackRock and VanEck.

In that time, it launched Betashares Direct, a retail investment platform for self-directed investors and flagged intentions to enter the superannuation industry via the acquisition of Bendigo and Adelaide Bank's super business.

"We have worked hard to expand the range of high-quality investment solutions available to investors and their financial advisers, democratised access to wealth creation opportunities for our clients, and improved the range of genuine educational content, emphasising the power of long-term investing," Vynokur said.