Singapore state investor Temasek has invested an undisclosed amount in the Scaleup Europe Fund, managed by EQT, as an early and key investor.
According to an announcement on Tuesday (Oct. 20) on its website, Temasek said Europe has deep innovation, a strong industrial base and entrepreneurial talent, but many of its most promising companies still lack the growth capital needed to reach critical scale. Too often, they have to look elsewhere for funding.
The Scaleup Europe Fund, backed by the European Commission and leading institutional investors, aims to bridge this gap and enable Europe’s best companies to scale while continuing to grow in the region, the announcement added.
According to EQT’s website, the fund is targeting €5 billion ($5.6 billion) to support promising European technology companies from Series B through to pre-IPO. Its investment focus includes strategic sectors such as AI applications, deep AI, quantum computing, robotics, clean energy, space, biotechnology and advanced industrial systems.
Founded by the European Commission alongside Novo Holdings, Allianz, APG, EIFO, CriteriaCaixa, Santander/Mouro Capital, Fondazione Compagnia San Paolo, Intesa Sanpaolo and Fondazione Cariplo, the fund combines growth capital with ecosystem support to help Europe’s next generation of technology leaders expand globally.
Europe is an integral part of Temasek’s investment strategy, driven by the region’s potential to produce globally competitive companies.
In September, Temasek deepened its commitment to Italy by acquiring a 9% strategic minority stake in FSI SGR, the management company of Italian growth equity investor FSI, which manages approximately €5 billion. Temasek will also commit additional capital to FSI’s future funds, according to a Temasek announcement then.
Temasek, in its announcement, stated that the investment reflects its conviction in Europe’s long-term potential. It added that they invest in European companies directly, and through trusted partners and fund managers who bring local networks and sector expertise.
