Temasek’s Fullerton to Tokenize Private Equity Fund on ADDX

Temasek’s subsidiary, Fullerton Fund Management, plans to list a tokenized version of a private equity fund of funds on ADDX.

The Fullerton Optimized Alpha Fund will be tokenized and listed on the Singapore Stock Exchange (SGX)-backed ADDX private market exchange, according to a press release on Wednesday. The fund is a private equity fund of funds of Fullerton Fund Management, which is a subsidiary of Singaporean public investment firm Temasek Holdings, according to the statement.

Investors accredited to ADDX can access the fund with a minimum investment of $10,000, instead of the usual $250,000 required through traditional channels, according to the release; quarterly locked-in redemptions are available to investors. The exchange’s platform automates the processes of issuance, custody and distribution of private market products, using blockchain and smart contract technology.

Fund of funds

Marc Yuendirector of business development at Fullerton, said the ADDX platform enables his company to provide broader access and a broader investor base for its funds.

The Fullerton Optimized Alpha Fund will invest in six to eight private equity and credit funds, with a focus on proven, blue-chip managers, the statement said, adding that assets will be geographically diversified across America. North, Europe and Asia as well as a range of themes. Topics will include the new economy, the Covid recovery and ESG (environment, social and governance). The fund is a closed-end fund targeting returns of 8% to 12% per annum over its seven-year lifespan, according to the statement.

Since being licensed by the Monetary Authority of Singapore (MAS) as a private market exchange in early 2020, ADDX has listed 30 transactions on the platform, according to the release. The deals have included Hamilton Lane, Investcorp, UOB, CGS-CIMB and Temasek-owned entities such as Mapletree, Azalea and SeaTown. The ADDX hosts asset classes including private equity, venture capital, private debt, real estate, hedge funds, funds exposed to cryptocurrency, and structured products, according to the statement.

The exchange, owned and operated by ICHX Tech, raised US$50 million in a Series A round in early 2021. Its investors include SGX, Temasek subsidiary Heliconia Capital and Japanese investors JIC Venture Growth Investments ( JIC-VGI) and the Development Bank of Japan (DBJ). Other shareholders include South Korean company Hanwha Asset Management, Japanese company Tokai Tokyo Financial Holdings and Thai company Kiatnakin Phatra Financial Group.

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