The proceeds are anticipated to fuel Betashares’ continued expansion, both within Australia and internationally.
Singapore-based Temasek will invest up to $300 million in Betashares, acquiring a minority stake in the company alongside fund managers, staff members, and private equity firm TA Associates.
The investment, which comes at a time of robust growth for Betashares, is expected to fuel its ongoing growth trajectory, which has to date been largely organic. The firm currently manages over $38 billion on behalf of over 1 million investors, financial advisers and institutions across its range of ETFs.
During this period of growth, the fund manager also launched its retail investment platform Betashares Direct, an innovative retail investment platform designed to empower self-directed investors in building sustainable wealth. Moreover, the company announced its intention to enter into the Australian superannuation industry via the acquisition of Bendigo and Adelaide Bank’s superannuation business.
Commenting on the investment, Alex Vynokur, Betashares founder and chief executive officer, statedt: “The investment by Temasek will help accelerate the next phase of our journey, both organically as well as through acquisitions and strategic investments. We’re excited by the opportunity in front of us.”
“Since founding the business 14 years ago, we have developed a leading position in Australia’s ETF industry,” Vynokur said.
“We have worked hard to expand the range of high-quality investment solutions available to investors and their financial advisers, democratised access to wealth creation opportunities for our clients, and improved the range of genuine educational content, emphasising the power of long-term investing.”
Looking ahead, the CEO said that Betashares remains focused on expanding its presence across more products, services, and international markets.
Also commenting on the Temasek investment, Edward Sippel, managing director at TA Associates, said that Betashares is well-placed to capitalise on the structural changes that are underway in the international financial services landscape.
“TA is a highly committed long-term investor in Betashares. We believe Betashares has a bright future as the business continues to grow and expand,” Sippel explained.
“We’re looking forward to continuing our partnership with the Betashares management team as they leverage the company’s market-leading position, growing range of quality offerings and deep understanding of the industry.”
In March 2021, Mirae Asset Global Investments Group sold its majority stake in Betashares to TA Associates, which now holds a 53.5 per cent stake in the business, with the remainder owned by minority shareholders.
