Overview
Strong growth trajectory within the industry despite its relatively new status in certain regions
Singapore’s venture capital industry is relatively new compared to more established industries in regions such as the US and Europe. The local industry comprises over 100 venture capital firms, ranging from independent limited partnership firms, to corporate-backed companies. The venture capital industry usually funds startups in high-growth industries such as IT, biotechnology and nanotechnology. Startups whose operations involve intellectual property (IP) creation, scientific breakthroughs and similar large-scale impact businesses are favoured within the industry.
Singapore’s private equity industry is on a robust growth trajectory, backed by government initiatives to attract private investors to invest in the country’s startups. As of 2022, there are 414 private equity funds in Singapore, with these funds being constituted as limited partnerships with a fixed lifespan. While venture capitalists do not restructure or leverage buyout financing, private equity firms tend to acquire majority control of an existing or mature company from its owners.
The venture capital and private equity industries come under the BFSI (Banking, Financial Services and Insurance) industry, which comprises financial services such as locally and globally-owned asset management centres for financial instruments - these include hedge funds, real estate and insurance firms.
Venture capital industry proves crucial to Singapore’s economy
Given Singapore’s aim to transition to a knowledge-based, innovation-driven and future-ready economy, the venture capital industry is a key driver of economic growth, job creation and the commercialisation of cutting-edge technology. Despite its small geographical size and manpower challenges, the venture capital industry in Singapore is set to boost economic growth through the promotion of productivity, innovation and development.
Singapore’s venture capital industry continues to grow, backed by an increased number of venture capital deals and government support. In 2018, the industry reached a net worth of almost USD 4.2 billion, while the number of deals grew to over 220 in the same year. In 2019, in addition to the SGD 1.3 billion that had already been granted to small and medium enterprises, the Singapore government was expected to provide SGD 200 million in additional funding.
Singapore becomes leading global hub for private equity; venture capital firms supported by government initiatives
As small and medium enterprises represent 99% of companies in Singapore and do not have access to public markets, private equity funding is a vital source of financing to these organisations. In 2020, the private equity industry grew by 54% YoY (compared to a YoY growth of 14% in 2019) as investors increased their exposure to private equity in search of higher returns. MAS (Monetary Authority of Singapore) expects investors’ focus on private equity, venture capital and sustainable investments to continue into the future.
Formed in 1992, to promote the development and interests of the private equity industry, the Singapore Venture & Private Capital Association (SVCA) has contributed significantly to Singapore becoming a leading global hub for private capital fund management. The SVCA hopes to further develop the private equity industry within Singapore through proactive outreach, collaboration, engagement and expansion of its member base in order to achieve its goals.
Key Trends
Private equity industry remains volatile in the aftermath of the pandemic, but continues to attract established fund managers
The COVID-19 pandemic had adverse effects on existing and pipeline private equity investments, raising concerns among investors and private equity funds. Market volatility, as a result of the pandemic, has resulted in investors opting to preserve cash, while fund managers are likely to see lower investor participation in capital call defaults, fundraisings and early redemption requests.
On the other hand, the COVID-19 pandemic also paved the way for well-resourced fund managers to seek assets at lower valuations. Additionally, as of 2020, Singapore hosts the majority of fund managers in the Southeast Asian region, managing assets worth over USD 19 billion. Private equity funds have also been carrying out leveraged buyout privatisation transactions to acquire Singapore-listed companies that have lower price-to-earnings ratios, compared to companies in other developed markets.
Government tax incentive schemes encourage private equity investments in Singapore
The government has introduced several tax incentive schemes to improve economic activity within Singapore. Some of these are:
- Goods and Services Tax (GST) - a GST remission (originally granted until 31 December 2024) has been extended to certain approved venture capital funds from 1 April 2020 until 31 December 2025.
- Single-tier corporate tax system - where corporate income tax is paid by a resident Singapore company.
- Non-taxation of gains on disposal of equity investments - no capital gains tax on earnings from the sale of ordinary shares.
- Resident Fund Incentive Scheme (RFI Scheme) - MAS can approve a fund incorporated by a resident Singapore company, for tax exemption on specified income (usually taxable). The scheme will run until 31 December 2024.
In addition to these incentive schemes, as reported in February 2022, the Singapore government provides 70% of funding to emerging technology startups that have a minimum initial investment round of SGD 250,000.
Various sectors in private equity investment impacted differently by COVID-19; increased focus on sustainable investments by private equity and venture capital industries
In the wake of the pandemic, private equity market segments such as healthcare, telecommunications, e-commerce, fintech, data centres, transport and logistics, and cybersecurity experienced steady growth. However, segments such as oil and gas, tourism and aviation suffered amidst the pandemic.
In 2021, the Southeast Asian private equity market reached an all-time high, with the total value of private equity deals led by Singapore, recording 104 deals worth USD 12.1 billion (up from USD 6.2 billion in 2019).
Prior to the pandemic, investors focused on ensuring that fund managers invested ethically, by utilising green financing facilities to create sustainable portfolios, navigate climate change, education, healthcare and deforestation. This trend continues in the aftermath of the pandemic.
Venture capitalists are looking at investing in innovative startups in emerging markets such as digital projects and technologies that are focused on the United Nations (UN) Sustainable Development Goals (SDGs), and environmental, social and governance (ESG) targets for the industry. This focus, along with the region’s growth potential, high population, talent availability, low labour costs, and proximity to India and China, has attracted more ethical venture capital investments in the Southeast Asian region.
Key Statistics
- In 2021, the number of private equity and venture capital deals in Singapore was recorded at 303 deals, valued at USD 16.54 billion.
- In 2021, private equity and venture capital assets under management (AUM) increased by 54% to SGD 391 billion, compared to a growth of only 16% in 2019.
- In 2022, Singapore attracted more venture capital investment per capita than any other country, receiving over USD 1 billion in funding during the year.
Top Singapore MNCs in Venture Capital & Private Equity
KKR SINGAPORE PTE. LTD.
Established in 2009, KKR Singapore is part of a global multinational investment business that manages a wide range of alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and hedge funds. KKR seeks to achieve attractive investment returns for its fund owners through a prudent investing methodology, the employment of world-class people, and the pursuit of growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the cash it manages for fund investors, and its capital markets operation provides financing solutions and investment opportunities. KKR's insurance companies provide retirement, life, and reinsurance products through its Global Atlantic Financial Group.
NEUBERGER BERMAN SINGAPORE PTE. LIMITED
Neuberger Berman Singapore, incorporated in 2008, is a private, independent, employee-owned investment firm. On behalf of institutions, advisors, and individual investors worldwide, the business manages a variety of strategies, including equities, fixed income, quantitative and multi-asset class, private equity, real estate, and hedge funds. The organization has been named first or second in the Pensions & Investments Best Places to Work in the Money Management survey for the past eight years. Neuberger Berman was selected a Leader by the PRI in 2020. It serves private banks, sovereign wealth funds, insurance companies, and pension funds throughout the Asia-Pacific area. Neuberger Berman has offices in China, Hong Kong, Japan, Korea, Taiwan, Singapore and Australia.
SEQUOIA CAPITAL (INDIA) SINGAPORE PTE. LTD.
Incorporated in 2012, Sequoia Capital (India) Singapore is a venture capital firm focused on consumer, technology, and healthcare investments. It began as an experiment and has grown into Sequoia Southeast Asia - with a portfolio of seed, venture, and growth investments, and a hub for programmes like Surge and Spark. Sequoia Capital assists in building companies from concept through IPO and beyond. Companies funded by Sequoia Capital account for more than a quarter of the total value of the NASDAQ. Since the company’s inception, the majority of money invested has been on behalf of non-profits and colleges such as the Ford Foundation, Mayo Clinic and MIT.
CARLYLE SINGAPORE INVESTMENT ADVISORS PTE LTD
Carlyle Singapore Investment Advisory, Incorporated in 2000, is part of a global investment firm that invests private capital across three business segments: Global Private Equity, Global Credit, and Global Investment Solutions. The company is headquartered in Washington D.C. Carlyle Singapore tries to make sensible investments and create value for its investors, portfolio companies, and communities. The company works to include diversity, equity, and inclusion (DEI). Carlyle Singapore, a private equity firm, was named Asia's Best Private Equity Firm by The Asset magazine in its Triple-A Asset Asian Awards in 2009. The global Carlyle Group has offices in North America, South America, Europe, the Middle East, Africa, Asia and Australia.
CVC ASIA PACIFIC (SINGAPORE) PTE. LTD.
CVC Asia Pacific (Singapore), established in 2007, is a private equity and investment advisory firm. The firm specializes in management buyouts, acquisitions, mergers, recapitalizations, restructurings, and other corporate transactions. CVC is headquartered in the UK and serves clients all around the world. It has six complementary private equity, secondary equity, and credit strategies through which it invests on behalf of pension funds and other major institutions. CVC also focuses on retail, construction and consumer industries. In 2020, CVC won three Private Equity International Awards and two Private Debt Investor Awards.
ARDIAN INVESTMENT SINGAPORE PTE. LTD.
Incorporated in 2005, Ardian Investment Singapore is part of a multinational global investment firm which manages or advises in Europe, North America, and Asia. It manages funds through five investment competence pillars: Fund of Funds, Direct Funds, Infrastructure, Real Estate, and Private Debt. Ardian also manages or advises on behalf of governments, pension funds, insurance companies, banks, endowments, family offices, and high-net-worth individuals' assets. Ardian works with skilled entrepreneurs who manage mid-sized businesses in the major Western European economies. Ardian has around 450 workers operating across twelve locations in Paris, London, Frankfurt, Milan, Madrid, Zurich, New York, San Francisco, Beijing and Luxembourg.
TPG CAPITAL (S) PTE. LTD.
TPG Capital is an asset management business which was incorporated in 1994. The company invests in a variety of transaction structures, including partnerships with governments, families, and corporations, to establish regional platforms. TPG invests across five multi-product platforms: capital, growth, impact, real estate, and market solutions. Its distinctive strategy is based on collaboration, innovation, and inclusiveness. Connectivity to TPG's worldwide investment ecosystem drives a thematic growth-oriented investing approach in its main sectors, which include consumer, healthcare, financial services, and TMT/New Economy. TPG Capital has offices across Australia, China, India, Korea and Southeast Asia.
BLACKSTONE SINGAPORE PTE. LTD.
Repeated Company as per the Client -
EQT PARTNERS SINGAPORE PTE. LTD.
EQT Partners Singapore, established in 2009, is part of a global investment firm. The firm engages in private equity, real assets and credit, debt and equity financing, and real estate and venture capital investment services. EQT's client base is diverse, constant, and worldwide, and it includes some of the world's major institutions, such as pension funds, sovereign wealth funds, financial institutions, private wealth, endowments, and foundations. EQT had EUR 77 billion in assets under management as of June 30, 2022, spread over 36 active funds in two business segments: Private Capital and Real Assets.
WARBURG PINCUS SINGAPORE PTE. LTD.
Established in 2015, Warburg Pincus Singapore is part of the global New York-based Warburg Pincus firm that specializes and invests in a number of sectors and locations using a thesis-driven approach. Consumer, energy, financial services, healthcare, industrial and business services, real estate, and technology are among the industries in which the firm has acquired domain expertise. The company invests in firms at all phases of development, from creating startups and assisting growth in young and developing companies, to conducting complex recapitalizations or large-scale buy-outs of more mature enterprises. Warburg Pincus and Singapore-based Evolution Data Centres have created a joint venture to develop hyperscale facilities in Southeast Asia.
Top Singapore Large Local Enterprises in Venture Capital & Private Equity
SINGTEL INNOV8 VENTURES PTE. LTD.
Repeated Company as per the Client -
UOB VENTURE MANAGEMENT PRIVATE LIMITED
Incorporated in 1992, UOB Venture Management is an investment firm. The company pursues long-term capital appreciation through a diverse portfolio of private equity investments in Southeast Asia (mostly in ASEAN countries) and China. UOB Venture contributes to business plans and strategies, debt and equity raising, professional management staff recruiting, regulatory knowledge sharing, and best business practices, including corporate governance and brand equity. UOB Venture manages assets and money through various fund platforms, including ASEAN China Investment Funds, Asia Impact Investment Funds, Renminbi Funds, Global Investor Programme Funds, and Special Mandate Funds. The company has offices in Indonesia, Vietnam and China.
ANTLER INNOVATION PTE. LTD.
Antler Innovation, established in 2017, is a global early-stage VC supporting and investing firm founded by a team of seasoned entrepreneurs, investors and company builders. Antler invests in aspiring startup entrepreneurs by helping them to locate a co-founder who will connect them to a mentoring network. Antler portfolio companies operate in more than 30 areas, including artificial intelligence, robots, drones, fintech, proptech and healthtech. The company will also train their chosen entrepreneurs in product management, legal issues and customer validation. Antler has offices in the main startup hotspots, including in New York, Berlin, London and Australia.
Top Singapore SMEs in Venture Capital & Private Equity
GOLDEN GATE VENTURES FUND MANAGEMENT PTE. LTD.
Incorporated in 2011, Golden Gate Ventures Fund Management is a Southeast Asia (SEA) venture capital fund created by Silicon Valley. The firm has opened four funds, handled $250 million in AUM, and invested in more than 60 firms. The company specializes in e-commerce, payments, mobile applications and software. The company's focus is on Southeast Asia and it has made significant investments in Singapore, Indonesia, Vietnam, Malaysia, Thailand and the Philippines. In a bid to promote local entrepreneurship, Golden Gate entered into an MOU with the Vietnam National Innovation Centre (VNIC). The company has also invested in startups across the world that are moving into Southeast Asia.
MONK'S HILL VENTURES PTE. LTD.
Monk’s Hill Ventures, established in 2014, is a venture capital firm that invests in technology startups. It is globally supported by institutional investors and family offices. The firm prefers to invest in early-stage and later-stage Southeast Asian companies in the software, media, commercial services, SaaS, mobile, fintech, big data, and TMT sectors. Monk’s Hill Ventures’ network includes entrepreneurs, investors, former CEOs, engineers, academics, media, and a team of operating advisors with strong domain expertise, ranging from cybersecurity and data science, to financial services and healthcare. The company is headquartered in Singapore, with offices in Indonesia, Malaysia, Vietnam and Thailand.
JUNGLE VENTURES PTE. LTD.
Jungle Ventures was incorporated in 2012, with the intention of creating a distinct type of venture capital firm. Jungle Ventures invests in three macro themes: digital brands that serve Asia's young consumers; technology platforms that assist Asian SMEs in adopting technology; and disruptive technological ideas with global potential. Its team spans India and Southeast Asia and includes subject matter experts with corporate development, sales, marketing, operations, finance and supply chain expertise. Jungle Ventures has been among the first investors in firms such as Livspace, Reddoorz, Pomelo, Kredivo, TookiTaki, Deskera and Sociolla. The company has offices in India, Indonesia and Vietnam.
OPENSPACE VENTURES PTE. LTD.
Established in 2014, Openspace Ventures is a venture capital firm that invests in technology businesses, with a focus on consumer, healthcare, finance, enterprise and frontier technologies. The company is a multi-stage investor in Southeast Asian B2C and B2B companies. ESG considerations are an important part of Openspace's pre- and post-investment procedures. It also conducts OSV+, an Opportunity Fund that focuses on mid-stage technology opportunities in Southeast Asia, with a focus on follow-ons from existing portfolios and new scenarios relevant to Openspace technology operations and regional value-add. Openspace was conferred the Fundraise of the Year Award by the Singapore Venture Capital & Private Equity Association (SVCA).
WAVEMAKER PACIFIC PARTNERS PTE. LTD.
Wavemaker Pacific Partners is a multifaceted cross-border venture financing business. Incorporated in 2003, the company is a well-known early-stage investor in Southern California and Southeast Asia. MindBody, DigitalGlobe and StyleHaul (acquired by RTL) are among its US-based investments. The company’s Singapore-based investments include LUXOLA (bought by LVMH), ArtofClick (purchased by Xurpas), and Pie (acquired by Google). Wavemaker Pacific is committed to investing in and supporting enterprise, deep technology and sustainability solutions. The firm has offices in both Los Angeles and Singapore and has raised over $600 million in funds. In 2021, the SVCA honoured Wavemaker Pacific with the VC Dealer of the Year Award.
CRYSTAL HORSE INVESTMENTS PTE. LTD.
Incorporated in 2010 and headquartered in Singapore, Crystal Horse Investments specializes in angel investing. The company primarily works with businesses in Southeast Asia, and it is mainly active in Singapore and Malaysia. Crystal Horse invests in firms in the internet, mobile and data space, where it believes there is long-term potential and where technology can be used to scale. Crystal Horse is the official fund manager for Angel's Gate, Asia's first reality TV show, which is centred on business and entrepreneurship.
NORTHSTAR ADVISORS PTE. LTD.
Repeated Company as per the Client -
ARCHIPELAGO CAPITAL PARTNERS PTE. LTD.
Archipelago Capital Partners, which was established in 2015, is an equity investment firm. It is headquartered in Singapore. Archipelago Capital Partners actively seeks out high-potential, small to mid-market companies doing business in Southeast Asia, particularly in the consumer, healthcare, financial services, and specialist industrial sectors. Archipelago Capital assists investee companies in improving their performance in a variety of areas, including revenue growth, operational efficiency and financing structure optimization.
SISTEMA ASIA CAPITAL PTE. LTD.
Incorporated in 1993, Sistema Asia Capital is a fund management company, which is registered with the Monetary Authority of Singapore. In 2015, Sistema PJSFC financed and seeded a private equity fund. Sistema Asia invests in growing and mid-stage technology companies in India and Southeast Asia. Sistema's investment portfolio includes investments in a variety of industries, including telecommunications, retail, high technology, pharmaceuticals, healthcare, transportation, agriculture, finance, and mass media. Its initial foray into India was in 2008. Sistema also has operations in Russia, CIS, Europe and the US.
QUESTVC PTE. LTD.
Established in 2011, Quest Ventures is a venture capital firm in artificial intelligence, e-commerce and marketplaces, entertainment, finance, logistics, media, property, sports, and the Islamic digital economy. It has concentrated on an overarching digital economy strategy across Asia. In 2017, QuestVC was renamed Quest Ventures. Its portfolio includes companies such as 99.co, Carousell, Carro, Glife, Hepmil, Oddle, Shopback, VulcanPost, Xfers and Yummy Corporation. The company has also invested in Asian countries, including in Malaysia, Vietnam and Indonesia. Quest Ventures joins the DBS BusinessClass advisory council to help SMEs and startups build their systems and networks across Asia.
Top Singapore Fastest-Growing Companies in Venture Capital & Private Equity
BURDA PRINCIPAL INVESTMENTS PTE. LTD.
Incorporated in 2016, Burda Principal Investments (BPI) is part of Hubert Burda Media, which invests in fast-growing digital technology and media companies in order to deliver long-term growth equity. Burda Principal Investments is a company that is headquartered in Singapore, and it has previously invested in internet sites such as Etsy, Zooplus, HolidayCheck, and Xing AG. The company’s portfolio includes consumer internet companies from Europe, the United States, and Asia, and it has established offices in Europe and the UK - in Munich, Berlin and London.
BEENOS ASIA PTE. LTD.
Beenos Partners, incorporated in 2013, is a venture capital business. It is headquartered in Tokyo, Japan. The company invests in early-stage and mid-stage technological businesses that are involved in information technology, manufacturing, mobile, and enterprise software. The company offers a wide range of services to individuals and enterprises with brands and IP in music, anime, manga, and other sectors, such as merchandise development, the creation and operation of EC sites, marketing tools for fans, and event support solutions.
OPENSPACE VENTURES PTE. LTD.
Established in 2014, Openspace Ventures is a venture capital firm that invests in technology businesses, with a focus on consumer, healthcare, finance, enterprise and frontier technologies. The company is a multi-stage investor in Southeast Asian B2C and B2B companies. ESG considerations are an important part of Openspace's pre- and post-investment procedures. It also conducts OSV+, an Opportunity Fund that focuses on mid-stage technology opportunities in Southeast Asia, with a focus on follow-ons from existing portfolios and new scenarios relevant to Openspace technology operations and regional value-add. Openspace was conferred the Fundraise of the Year Award by the Singapore Venture Capital & Private Equity Association (SVCA).
ANTLER INNOVATION PTE. LTD.
Antler Innovation, established in 2017, is a global early-stage VC supporting and investing firm founded by a team of seasoned entrepreneurs, investors and company builders. Antler invests in aspiring startup entrepreneurs by helping them to locate a co-founder who will connect them to a mentoring network. Antler portfolio companies operate in more than 30 areas, including artificial intelligence, robots, drones, fintech, proptech and healthtech. The company will also train their chosen entrepreneurs in product management, legal issues and customer validation. Antler has offices in the main startup hotspots, including in New York, Berlin, London and Australia.
EQT PARTNERS SINGAPORE PTE. LTD.
EQT Partners Singapore, established in 2009, is part of a global investment firm. The firm engages in private equity, real assets and credit, debt and equity financing, and real estate and venture capital investment services. EQT's client base is diverse, constant, and worldwide, and it includes some of the world's major institutions, such as pension funds, sovereign wealth funds, financial institutions, private wealth, endowments, and foundations. EQT had EUR 77 billion in assets under management as of June 30, 2022, spread over 36 active funds in two business segments: Private Capital and Real Assets.
WARBURG PINCUS SINGAPORE PTE. LTD.
Established in 2015, Warburg Pincus Singapore is part of the global New York-based Warburg Pincus firm that specializes and invests in a number of sectors and locations using a thesis-driven approach. Consumer, energy, financial services, healthcare, industrial and business services, real estate, and technology are among the industries in which the firm has acquired domain expertise. The company invests in firms at all phases of development, from creating startups and assisting growth in young and developing companies, to conducting complex recapitalizations or large-scale buy-outs of more mature enterprises. Warburg Pincus and Singapore-based Evolution Data Centres have created a joint venture to develop hyperscale facilities in Southeast Asia.
KSL CAPITAL PARTNERS ASIA PTE. LTD.
Established in 2005, KSL Capital Partners Asia is committed to investing in the travel and leisure industries. KSL has raised four private equity funds and two credit funds. The company’s primary sectors include hotels and resorts, clubs, fitness, family entertainment, skiing, and resort real estate. KSL Capital Investment professionals and the Strategic Operating Team collaborate with companies to develop and implement defined business plans. KSL Capital provides loans structured to meet the demands of borrowers in diverse situations, ranging from stabilised assets to full repositionings. KSL Capital mixes global and local perspectives, and has set up offices in North America, Europe and Asia.
ARDIAN INVESTMENT SINGAPORE PTE. LTD.
Incorporated in 2005, Ardian Investment Singapore is part of a multinational global investment firm which manages or advises in Europe, North America, and Asia. It manages funds through five investment competence pillars: Fund of Funds, Direct Funds, Infrastructure, Real Estate, and Private Debt. Ardian also manages or advises on behalf of governments, pension funds, insurance companies, banks, endowments, family offices, and high-net-worth individuals' assets. Ardian works with skilled entrepreneurs who manage mid-sized businesses in the major Western European economies. Ardian has around 450 workers operating across twelve locations in Paris, London, Frankfurt, Milan, Madrid, Zurich, New York, San Francisco, Beijing and Luxembourg.
SISTEMA ASIA CAPITAL PTE. LTD.
Incorporated in 1993, Sistema Asia Capital is a fund management company, which is registered with the Monetary Authority of Singapore. In 2015, Sistema PJSFC financed and seeded a private equity fund. Sistema Asia invests in growing and mid-stage technology companies in India and Southeast Asia. Sistema's investment portfolio includes investments in a variety of industries, including telecommunications, retail, high technology, pharmaceuticals, healthcare, transportation, agriculture, finance, and mass media. Its initial foray into India was in 2008. Sistema also has operations in Russia, CIS, Europe and the US.
PLATINUM EQUITY ADVISORS INTERNATIONAL PTE. LTD.
Platinum Equity Advisory International, incorporated in 2013, is a global investment business with assets under management, teams and investors worldwide, and a global portfolio of running companies in a variety of industries. Platinum Equity specializes in mergers, acquisitions, and operations under the M&A&O strategy. The company acquires and operates businesses in industries such as manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. In addition to its core buyout expertise, Platinum Equity is involved in the credit asset class, investing in the private and public debt of underperforming, undermanaged and undervalued companies.
