From Anthropic to Zegna – the A-to-Z of Temasek’s strategies to thrive in a ‘polycrisis’ world

​[SINGAPORE] State investment firm Temasek is moving to position itself at the forefront of the artificial intelligence revolution and the global consumer rebound, amid geopolitical headwinds and a rapidly shifting macroeconomic landscape.

​Demonstrating this assertive posture, it stepped up its deployment of capital significantly over the last financial year even as the total portfolio achieved a record value of S$518 billion.

In the financial year ended March 2026, Temasek added S$51 billion in new investments while divesting S$31 billion – resulting in a net investment of S$20 billion.

This represents a doubling of capital deployment compared to the preceding financial year, where Temasek invested S$52 billion while divesting S$42 billion.

The rebound is even more stark compared to the financial year ended March 2024, when it deployed just S$26 billion against S$33 billion in divestments.

This consistent, multi-year active rebalancing signals a clear intent to buy into long-term structural trends even as markets remain deeply volatile.

Over the past year, Temasek has added AI heavyweights Anthropic and OpenAI, resurgent Chinese beverage giant Luckin Coffee, and Italian luxury fashion powerhouse Ermenegildo Zegna Group to its global holdings.

These high-profile additions, among others, underscore a broader evolution within the firm, reflecting a sharpened focus on deep-tech innovation and resilient consumer brands capable of enduring global expansion.

​The investments come at a critical juncture for the investment powerhouse, amid unprecedented challenges facing institutional capital.

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​”We’re not simply in a Vuca (volatility, uncertainty, complexity and ambiguity) world, we are in a polycrisis world,” noted Temasek’s chief executive officer Dilhan Pillay.

He added: “As a long-term investor seeking to deliver sustainable returns, we have had to navigate volatility and uncertainty over the years. But the environment we are in today is the most complex that we have seen in five decades.”

​To navigate this complexity, Temasek has structurally refined its massive portfolio into three distinct pillars: Temasek Portfolio Companies (TPCs); Global Direct Investments (GDI); and Partnerships, Funds and Asset Management (PFAs).

“Under our T2030 strategy, our focus is on building a resilient and forward-looking portfolio, one that can withstand shocks and perform through cycles,” Pillay said.

“There are opportunities where demand is underpinned by long-term structural trends, and where patient capital like Temasek’s can add value.”

Now, Temasek is putting additional investment focus on three promising areas: AI, core-plus infrastructure and private credit.

It has set targets to grow its portfolio exposure to these three areas by end-March 2031.

AI-focused investments will more than double to up to 15 per cent, from the current 6 per cent, while core-plus infrastructure is targeted to increase to up to 5 per cent of Temasek’s portfolio, from 1 per cent currently. These exclude the related exposure of the Singapore-based TPCs to these sectors.

Meanwhile, Temasek is also looking to increase the proportion of private credit exposure in its portfolio to up to 5 per cent, from 2 per cent currently.

Larger tickets and deeper focus

​The inclusion of Anthropic, OpenAI, Luckin Coffee and Ermenegildo Zegna Group falls under the GDI umbrella. Within the segment, S$37 billion was invested over the past year, while S$24 billion was divested.

Rather than spreading capital thinly, the firm is concentrating its firepower.

​”There is not much change on strategy, except that it is much more focused at the moment, going deeper behind emerging as well as established market champions globally,” said Nagi Hamiyeh, president of Temasek Global Investments.

To execute this, Temasek has bolstered its ranks with talent suited for both public and private arenas. And the mandate given to the investment teams is clear.

“What we are focusing on, what we have told the teams, is to invest in larger tickets, so that we do (fewer) deals, have deeper domain knowledge, and are much more focused in a granular fashion on a handful of sectors, rather than being more horizontal,” Hamiyeh said.

​While generative AI and core-plus infrastructure remain obvious targets, the firm is exploring other distinct avenues, including defence and deterrence.

However, consumer resilience remains a major theme, heavily informing the stakes in Luckin Coffee and Ermenegildo Zegna Group.

“In every sector we invest in, we focus on fewer areas and go much deeper – with partners or having strong minorities with a seat at the table,” Hamiyeh said.

Engineering future-ready champions

​While GDI captures the global headlines, TPCs remain the stalwarts of the portfolio. The strategy here goes beyond passive holding; it is anchored in hands-on value creation.

​“What we aim to do is build a portfolio of globally competitive companies with strong roots in Singapore,” said Temasek Singapore president Png Chin Yee.

Png emphasised that the foundation of this goal is human capital. “First and foremost, it’s important that we have strong boards and strong management in our TPCs. So, one of the things that we actually do is to actively engage our companies to look for talent and to scout talent,” she said.

​Temasek works closely with the management teams on strategic business transformations, ranging from operational excellence to full-scale AI integration. A major focal point is organisational resilience and sustainability.

​“One big thing that we talk about with AI is also making sure that the workforce is ready, and the workforce is upskilled and reskilled for the new job roles that we see ahead,” Png explained.

While this active engagement is not entirely new, she noted that “the engagement certainly has intensified”.

The ecosystem multiplier

​Rounding out the portfolio is the Partnerships, Funds and Asset Management segment, driven by Temasek Partnership Solutions (TPS) and Seviora Holdings. This segment serves as the ultimate ecosystem enabler.

​The TPS mandate is to strengthen domestic assets by leveraging strategic general partner (GP) relationships, curating deal flow and building the firm’s assets under management.

By offering comprehensive capital solutions – from co-investments and secondaries to buying GP stakes – Temasek differentiates itself in a crowded market.

​A critical component of this is private credit, which Temasek aims to grow to 5 per cent of its portfolio.

“What we like about that is that it offers us a very, very attractive risk-adjusted return with significant downside protection and equity subordination,” noted Alpin Mehta, head of private equity capital solutions at TPS, highlighting the cash income that de-risks the broader portfolio.

​Meanwhile, Seviora leads the asset management charge, where the leadership looks to strengthen the strategies where they feel they have a comparative advantage, expand the platform and grow with partnerships in new markets.

“Fundamentally, we are in the business of trust,” said Seviora chief executive officer Gabriel Lim.

“When people or institutions put their money with us, it’s somebody’s savings, it’s some university’s endowment, it’s a part of a country’s national reserve… We have trust in delivering performance, returns, and also managing clients.”

Already, Seviora has been expanding its international footprint.

​”We have signed very good quality partnership MOUs (memorandums of understanding), most recently with Samsung Securities in (South) Korea,” Lim said.

Seviora also recently concluded a joint collateralised fund obligation with Churchill Asset Management, marking a significant milestone in bringing robust, international products to its clients.

“Scale is definitely an important consideration, but I would say arguably more so is performance,” Lim said. “Good performance will create or accelerate the flywheel of attracting capital.”