Singapore’s sovereign investor Temasek is doubling down on Europe, identifying regions like France, Italy, Germany, and Scandinavia as high-potential targets for future capital deployment. The shift comes amid a recalibration in global trade dynamics, with valuation opportunities emerging in the wake of mounting macroeconomic tensions.
In an exclusive with Reuters, Nagi Hamiyeh, Temasek’s Head of EMEA, emphasized that current trade uncertainties—sparked in part by U.S. President Donald Trump’s recent protectionist wave—are making previously inaccessible European assets suddenly attainable. Temasek invested over S$10 billion ($7.8 billion) in the region in the year ending March 2025, a figure that constitutes nearly 40% of the S$25 billion it had earmarked for Europe over five years.
“Sometimes the macro helps us go into companies that we have liked, that were not within our reach from a valuation perspective,” said Hamiyeh.
The firm also noted a persistent valuation arbitrage between European and U.S. companies, a dynamic that adds to its confidence in scaling European investments. “That makes us even more confident about what we can achieve in Europe,” Hamiyeh added.
Temasek’s European Playbook
Temasek’s recent deals in Europe include:
- Neoen (France): A renewable energy group aligned with Temasek’s sustainability and green transition strategy.
- Keywords Studios (Ireland): A prominent player in video game tech services, highlighting Temasek’s pivot toward digital and entertainment sectors.
Looking ahead, Temasek is actively scouting for global-scale businesses and family-owned enterprises with strong sectoral moats in:
- Industrials
- Renewable Energy
- Financial Services
- Consumer Goods
Despite the global headwinds, Temasek reported a record net portfolio value of S$434 billion, up 11.6% year-on-year.
Temasek’s Europe-first strategy reveals a key global trend: valuation-centric, sector-focused investing in stable, legacy-rich markets. This is a blueprint other sovereign funds, private equity houses, and family offices would be wise to study closely.
The rebalancing of global investment flows—away from overpriced U.S. equities and toward under-leveraged, globally strategic European firms—signals a golden window for long-term capital allocators. With volatility driving down multiples, institutional investors have a rare chance to back undervalued, high-quality assets that may have otherwise remained out of reach.
IMAGE: Reuters
