Temasek’s Vertex Holdings launches third master fund, aims to raise $800m

Vertex Ventures. Photographer: Sam Kang Li/Bloomberg

Singapore’s Vertex Holdings, the venture capital arm of Singapore state investor Temasek Holdings, has launched a third fund-of-funds vehicle with a target size of $800 million.

Vertex Holdings raised $730 million for the predecessor vehicle. 

The latest Vertex Master Fund III will deploy capital directly into Vertex’s network of six funds, Vertex Holdings chief executive Chua Kee Lock told DealStreetAsia. The master fund will be the anchor investor for these funds starting this year.

Vertex Holdings has five early-stage funds – Vertex Ventures Israel, Vertex Ventures USA, Vertex Ventures China, Vertex Ventures SEA&India, Vertex Ventures Healthcare – and one growth-stage fund called Vertex Growth, also the newest member of the Vertex investment vehicle. 

Currently, Vertex Holdings is the only investor and there are no immediate plans to raise money from other investors, Chua said.

Vertex’s second master fund closed in December 2019 at $730 million, with Temasek as the anchor investor contributing about three-quarters of the total corpus. Other investors that participated included Japanese corporates Sumitomo Mitsui Banking Corp, Marubeni, ABeam Consulting and the Development Bank of Japan. It was the first time Vertex had raised capital externally at the master fund level.

Startups Vertex has backed include Grab, theAsianParent’s Tickled Media, and PatSnap, which last week announced that it raised $300 million in a Series E round. 

Other firms it recently backed are Chinese biotechnology player Wuhan Binhui Biotech in a $93 million Series C round co-led by Vertex Ventures China, and Singapore-based digital health platform Speedoc which raised $5 million in a Series A round led by Vertex Ventures Southeast Asia and India.

In September last year, Vertex Ventures China fully closed its RMB-denominated fund at 3 billion yuan ($438 million), bringing the total size of RMB and USD-denominated funds raised by Vertex Ventures China to over 10 billion yuan ($1.5 billion). In October 2019, Vertex Ventures China had secured nearly 4 billion yuan ($584 million) in capital commitment for its USD Fund IV.

Vertex Ventures China’s portfolio includes bike-sharing player Mobike, intelligent logistics solution startup Geek+, customer service robot developer XiaoduoAI,  among others.

Vertex Ventures closed its oversubscribed $305-million fourth Southeast Asia and India fund in September 2019. The fund is backed by LPs including sovereign wealth funds, financial institutions, corporates and family offices from Asia and Europe. In June last year, Vertex announced that XA Network, an ex-Google angel syndicate formerly known as Xoogler Angels, had joined the vehicle as a limited partner. 

Its regional portfolio includes Grab, Patsnap, Validus, Tickled Media, FirstCry, Warung Pintar and Nium.

Vertex Ventures closed its $290-million growth vehicle in September 2019 to invest in high-growth technology firms, typically in their third and fourth rounds of funding.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.