Temasek’s Azalea raises over US$1 billion despite ‘challenging’ environment for private equity

[SINGAPORE] Azalea Investment Management on Monday (Aug 24) announced it has raised more than US$1 billion in new capital commitments across three private equity (PE) offerings.

These include US$526 million from the final close of the Altrium Private Equity Fund III and US$210 million from the first close of the Altrium Co-Invest Fund II. More than US$350 million comes from the launch of its first evergreen PE fund, Azalea All Access.

“We thank investors for their strong support ... despite the challenging fundraising environment,” said Chue En Yaw, chief executive and chief investment officer of Azalea. “It underscores the growing role of PE as a portfolio diversifier and complementary source of long-term returns.”

PE and venture capital fundraising remained tough in 2025, according to a December report by data platform Preqin. PE fundraising was “relatively soft”, with US$507 billion raised in the first three quarters of 2025 – about 73 per cent of the total raised in 2024.

The PE industry saw strong growth since the start of the millennium, culminating in a record-breaking 2021, noted Azalea in a 2024 blog post. This was driven by a robust fundraising environment, in which PE fund managers were successful in raising a historical high of US$1 trillion in 2021.

But the US Federal Reserve’s decision to raise interest rates in June 2022 led to a cooling-off period for investments as borrowing costs rose and investors become more cautious. The impact was felt across the PE industry, with noticeable contractions in both the number and value of PE deals, said Azalea.

New evergreen PE fund

Azalea’s first evergreen PE fund, Azalea All Access, is designed to “provide long-term capital appreciation with the option of periodic distributions”.

Through its fully paid-in investment model, investors will gain immediate access to a globally diversified portfolio of PE secondaries and co-investments managed by “high-quality managers”, said Azalea.

The fund offers a more accessible and flexible way to invest in PE, with monthly subscriptions and quarterly redemptions, it added.

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It received support from institutional investors, private banks, family offices and high-net-worth individuals across Asia, which Azalea said reflects growing demand for PE solutions that possess greater flexibility.

Altrium’s access

Azalea’s existing Altrium platform meanwhile allows accredited investors to co-invest with Azalea and “access strong performing PE fund managers globally”.

The Altrium Private Equity Fund III, which completed its final close at US$526 million in June, added the fund manager. This was underpinned by strong repeat participation from existing investors and an expanding international investor base that includes Hong Kong, Taiwan, South Korea, Malaysia and the United Kingdom.

The Altrium Co-Invest Fund II, meanwhile, seeks to provide investors with access to co-investments alongside experienced PE managers. It held its first close at US$210 million in July, supported by repeat participation from existing investors and commitments from new investors.

“Access to high-quality PE opportunities matters more than ever in today’s market,” said Pauline Phua, managing director of investment and lead of the Altrium Platform.

The funds fall under Azalea Investment Management, the management arm of Azalea Group, which is a subsidiary of Azalea Asset Management. The asset manager is in turn owned by Temasek’s Seviora Holdings.