The Astrea Platform

Background

Temasek and its investment vehicles (the “Temasek Entities”) have been investing in PE Funds for over two decades and continue to be active investors in PE Funds globally. PE Funds, as an asset class, have created value for the Temasek Entities in the form of direct returns, as well as opportunities to make further direct investments alongside the GPs of PE Funds.

Prior to 2016, certain Temasek Entities launched Astrea I and Astrea II respectively, each of them involving investment products based on portfolios of PE Funds. In 2016, Azalea (through its wholly-owned subsidiary) launched the Astrea III transaction. The Astrea III transaction introduced the first listed notes in Singapore backed by cash flows from PE Funds.

Astrea I (2006):

  • Securitisation of a diversified and balanced portfolio of 46 high quality PE funds sourced from the Temasek Entities
  • Two classes of unrated securities and two classes of rated securities were issued and offered to institutional investors
  • The rated securities maintained their credit ratings throughout their tenure and were fully repaid in 2011
  • Intended as the first of a series of products based on diversified portfolios of PE funds

Astrea II (2014):

  • Well-diversified portfolio of 36 high quality PE funds sourced from the Temasek Entities
  • Offered to institutional investors, including sovereign wealth funds, pension funds, insurance companies and endowment funds

Astrea III (2016):

  • US$510 million of asset-backed securities
  • Three classes of rated notes and one class of unrated note were issued and offered to institutional and accredited investors in Singapore and abroad, with the exception of the United States
  • Assets comprised a portfolio of 34 PE Funds with a net asset value of US$1,141.6 million at launch. The PE Funds were managed by 26 GPs focusing on buyout and growth equity strategies
  • The credit rating of the Class A-1 notes of the Astrea III transaction was upgraded about a year after issuance by S&P and Fitch

Azalea was established to undertake the development of the Astrea Platform with the launch of Astrea III. It is focused on the development and innovation of new investment products to broaden investor access to private equity. It invests in suitable private equity funds and package them into diversified portfolios that will suit the investment objectives and risk tolerance of the targeted investors.

As an indirect wholly-owned subsidiary of Temasek, it is an operating company with a board and management independent of Temasek. In 2018, Azalea launched Astrea IV, a landmark transaction in the journey toward providing access to private equity-based investments for retail investors.