Instead of a large upfront equity investment, strategic partners can use warrants. This gives the corporation the option to earn equity later if the startup achieves specific milestones, often through their joint partnership. This approach de-risks the initial investment and directly rewards successful collaboration.

Temasek evaluates global investments on two fronts: financial returns and the strategic insights they generate. This "network effect" allows them to transfer knowledge from one portfolio company to others, enhancing value across their entire ecosystem and justifying investments beyond pure financial metrics.

Rather than competing in crowded auctions, elite private equity firms pursue a differentiated "executive new build" strategy. They partner with proven operators to build new companies from scratch to address a market need, creating proprietary deals that other firms cannot access.

Effective private equity boards function as strategic advisory councils rather than governance bodies. Board members are expected to be co-investors who actively help with strategy, networking, and operational challenges like procurement, making them a key part of the value creation engine.

To maximize value creation, young private equity firm Teopo Capital made a strategic decision to hire a full-time operating partner dedicated to portfolio companies before building out a fundraising team. This signals a deep commitment to hands-on operational improvement as their core strategy.

Temasek's partnership philosophy is not about risk diversification. Instead, it prioritizes collaborating with partners who can augment its internal capabilities and provide specific skill sets it lacks for a given opportunity. This makes partnership a strategic tool for capability building, not just capital sharing.

Recognizing that investment capabilities alone are insufficient, Temasek proactively established a geopolitical team and a Washington D.C. office in 2017. This was done not in reaction to a crisis but in anticipation of global shifts that could have widespread ramifications on their portfolio.

Unlike Norway's model of direct government ownership, Singapore's Temasek acts as a holding company. This structure allows it to convene portfolio company leaders (e.g., in a Sustainability Council) to share insights and best practices, creating synergies that would be impossible with disparate ownership.

Unlike sovereign wealth funds like GIC that manage government reserves, Temasek operates as an investment holding company that owns its assets. This fundamental difference means Temasek must actively sell assets ('recycle capital') to fund new investments, creating a unique tension between holding long-term winners and pursuing new opportunities.