Temasek's SeaTown fractionalises private capital fund, reduces investment ticket from US$5m to US$100,000

TEMASEK-BACKED investment firm SeaTown has partnered digital wealth management platform Kristal.AI to downsize the minimum investment ticket for its private capital fund, allowing investors to participate with as low as US$100,000.

Accredited investors from the mass affluent segment will be able to access a product traditionally reserved for high-net-worth individuals and institutional investors. In the case of SeaTown's Private Capital Fund, fractionalisation shaves the investment size from its original minimum of US$5 million.

Temasek and SeaTown have committed US$1 billion to this fund, and SeaTown is targeting another US$200-300 million from external investors.

The fund is geographically diversified but retains a focus on Asia, Kristal.AI said in a media release on Wednesday (Mar 23).

Its co-founder Vivek Mohindra noted the rising demand for private equity and private market products in recent years enabled by technology.

"We're glad to see bigger funds like SeaTown responding to the market's growing demand by democratising the access to much sought-after investment products," Mohindra said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Last November, SeaTown tokenised part of a private credit fund via digital securities exchange ADDX, which helped shave the minimum investment ticket for individual accredited investors from US$5 million to US$20,000.

The private markets have attracted much attention and funding in recent years. Investment data company Preqin expects assets under management (AUM) in private capital to grow from an estimated US$8.9 trillion as at end-2021 to US$17.7 trillion in 2026, representing a compound annual growth rate (CAGR) of 14.8 per cent. Private equity takes the largest share of the pie, with its AUM expected to more than double from US$5.33 trillion to US$11.1 trillion, or a CAGR of 15.9 per cent. The fastest CAGR of 17.4 per cent, however, is expected from private debt, which will take its AUM to US$2.69 trillion by end-2026.