Singapore's GIC accelerates deals with US as China cools

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Singapore's sovereign wealth fund GIC has accelerated trading in the US, investing in venture capital funds and technology companies as it seeks growth beyond China. GIC, whose assets are estimated by analysts at more than $700 billion, has told private equity and venture capital executives this year that it wants to increase exposure to U.S.-focused funds, three people familiar with the matter said. the investor's thinking. “We can't suggest opportunities fast enough,” said a partner at a global venture fund with an office in San Francisco. “They're looking forward to what we have from San Francisco to Orlando.” The focus on the US by one of Asia's largest sovereign wealth funds reflects optimism in the resilience of the country's top technology companies despite last year's sharp sell-off.

The United States is also a prime hunting ground for AI companies as the industry expands rapidly. It also comes despite the collapse of funding from venture capital groups in the US and falling valuations of Russia Mobile Number List private companies. That slowdown could impact GIC's investment levels through 2023, although interest in the U.S. has remained high this year, the partner said. But the US remains one of the biggest destinations for capital, especially in technology, as global investors reconsider their strategy in China due to concerns including geopolitical tensions with the US, an economic slowdown and crackdowns. against business. GIC closed 63 deals involving U.S.-based private companies, including in technology, healthcare and property.



Compared with 39 in 2019 and 2018, according to Refinitiv data. By comparison, ITjuzi, a data provider that monitors inflows to China, recorded two direct investments in Chinese companies by GIC last year, up from 16 in 2021. GIC declined to comment but previously said it maintains significant exposure to large markets, including China. A venture capitalist with offices in Silicon Valley said the company had held talks with GIC about increasing its commitments to U.S. funds, including in the secondary market. The latter is where private stakes in startups and venture capital funds change hands. GIC “indicated that they were looking to increase the hiring of investment specialists,” the person added. GIC advertises 18 jobs in the US, according to LinkedIn.