Singapore state investor Temasek plans to nearly triple its exposure to AI companies and more than double its allocation to private credit over the next five years, according to a report by the Financial Times.
The investment group, which manages SGD518bn ($401bn), said it would increase AI-related investments from 6% of its portfolio to 15% by 2031. Temasek said its AI strategy will focus on energy and data centres, semiconductors, cloud service providers, AI model developers, and software infrastructure.
The firm has invested in several major AI-linked businesses, including Nvidia, Amazon, Tencent and Alibaba. It also participated this year in funding rounds for OpenAI and Anthropic.
Temasek also plans to increase its private credit exposure from 2% to 5% of its portfolio by 2031. The firm said it continues to see opportunities in the asset class, which it believes can generate equity-like returns with lower risk than private equity.
The plans come as Temasek seeks to improve returns after several weaker years. The group reported total shareholder returns of 10.5% for the year to the end of March, while five-year annualised returns stood at 4.6%, below the MSCI World benchmark.
