Temasek's partnership philosophy prioritizes acquiring new capabilities over simple risk diversification. The fund actively seeks partners who possess specific skills it lacks for certain investment opportunities. This approach treats partnerships as a strategic tool for enhancing internal expertise rather than a purely financial mechanism for spreading risk.
The primary risk in private markets isn't necessarily financial loss, but rather informational disadvantage ('opacity') and the inability to pivot quickly ('illiquidity'). In contrast, public markets' main risk is short-term price volatility that can impact performance metrics. This highlights that each market type requires a fundamentally different risk management approach.
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.
Singapore's prosperity is attributed to its founding leaders' decision to create a highly-paid, highly-educated, and hard-working civil service. This ensures top-notch talent formulates long-term policies that allow businesses to thrive, which is seen as crucial for guaranteeing the country's success over a multi-decade horizon for its citizens.