Singapore state investor Temasek Holdings announced Wednesday it has formed a wholly-owned subsidiary to focus on equity and structured equity investments, starting with Singapore and building on its presence across Southeast Asia, Europe, and the United States.

With funds under management of S$4.5 billion ($3.34 billion), 65 Equity Partners will principally invest in established companies with regional or global aspirations and market values between approximately $1 billion and $5 billion.

The subsidiary, which aims to provide flexible capital solutions to address a wide range of situations including growth funding, merger and acquisition (M&A) financing, shareholding re-organizations, balance sheet optimizations as well as privatizations and cornerstone investments, will target deal sizes of between $100 and $200 million, Temasek said in a statement.

According to the statement, 65 Equity Partners seeks to partner with fundamentally sound and well-managed businesses with clear growth strategies over the long term. It will invest across industries with strong structural tailwinds, such as consumer, industrial and business services, logistics, healthcare, and technology, underpinned by committed owners and management teams.

65 Equity Partners’ strategy is to provide capital solutions to large local enterprises and catalyze their growth as they pursue their regional expansion and transformation strategies.

In Singapore, it also plans to work closely with other Singapore-focused funds such as Heliconia Capital Management, Tower Capital Asia, and Novo Tellus Capital Partners.

65 Equity Partners is managed by a core team of investment professionals led by Chief Executive Officer Tan Chong Lee, who also holds the position of President of Temasek International, the wholly-owned management and investment arm of Temasek Holdings. It is also expanding its international footprint by building its team across offices in Europe and the US, in addition to its headquarters in Singapore.

“As an investment firm, we seek to generate superior risk-adjusted returns by leveraging our strong local insights, broad Asian network, and international presence. 65 Equity Partners aims to be the partner of choice for promising companies looking to accelerate growth, reorganize their capital structure, execute M&A or provide liquidity to their shareholders. We look forward to working hand-in-hand with businesses on their journey to realize their ambitions and growth potential,” said Tan.

Temasek International Chairman Lee Theng Kiat also said, 65 Equity Partners complements the broader investment strategy of Temasek as a generational investor committed to delivering sustainable returns over the long term.

“While Temasek has full flexibility to invest across a spectrum of opportunities, we have created 65 Equity Partners as a dedicated platform to offer tailored capital solutions, particularly for high potential businesses seeking to expand internationally. The platform will also have the flexibility to deploy funds into opportunities that may sit outside the core focus areas of Temasek, such as take-private situations or family business restructurings, thereby increasing the breadth of solutions offered by our wider ecosystem,” he said.

65 Equity Partners currently manages Local Enterprise Fund @ 65, a joint S$1 billion ($742 million) fund with the Singapore Government, led by the Ministry of Trade and Industry to develop regional champions, as well as Anchor Fund @ 65, a S$1.5 billion ($1.11 billion) co-investment fund announced in September this year that will support new economy businesses and regional market leaders ahead of their public fundraising in Singapore’s public equity market.

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