MAS launches USD5bn kitty to woo fund managers to drop anchor here

  • The Monetary Authority of Singapore (MAS) is making an USD5bn move to anchor fund managers in Singapore, in preparation for a scale-up in private market activity.
  • This is the first time it is launching a fund for private market investments, to be managed by top global private equity and infrastructure fund managers. The managers must either be committed to deepening their existing presence in Singapore or establishing a significant one.
  • Under the programme, MAS will allocate USD5bn of its own capital as part of its investment in the private markets asset class.
  • The fund was announced on 13 Nov 18 by Enterprise Singapore chairman and MAS board member Peter Ong at the Global Investor Summit, which is being held during the 2018 Singapore Fintech Festival.
  • Already, the fund is generating some buzz among observers. Justin Ong, Asia-Pacific Asset and Wealth Management Leader of PwC Singapore, told The Business Times that MAS’ move is similar to what the authorities did back in 1994, when they were looking to develop the Singapore asset management industry by giving out up to SGD30bn to managers who set up in Singapore.
  • In Oct 18, the authorities passed into law a new type of entity called the Variable Capital Company, which will allow funds to both manage from and domicile in Singapore. The move is aimed at boosting the fund management ecosystem in Singapore.

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