TRUE Light Capital has secured commitments of US$3.3 billion for its inaugural flagship fund, True Light Fund I, which will invest alongside Temasek in opportunities linked to Greater China.

In its statement announcing the closing of the fund on Thursday (Sep 28), True Light said investors included sovereign wealth funds, foundations, financial institutions and family offices.

True Light’s chief executive Yeo Chee Kian expressed confidence in the resilience of the Chinese economy, and said he remains positive about China’s fundamentals, in spite of the country’s challenging macroeconomic environment and its geopolitical conflicts with the United States and European Union.

“China has strengths that underpin this (resilience) – structural competitiveness brought about by its vast engineering talent pool, an efficient and integrated supply chain, innovation, and a very sizeable domestic consumption market,” Yeo told The Business Times.

He said that True Light’s focus is on “policy-aligned opportunities” that steer clear of geopolitical complications, and instead cater to the demands of the Chinese domestic market.

Its investments focus on the four long-term structural trends of digitisation, longer lifespans, sustainable living and the future of consumption.

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There are no pre-set allocations towards sectors, asset classes and investment targets.

“This flexibility allows us to invest thematically in all asset classes and position ourselves across a value chain. It also enables us to invest in both existing and future technologies, and zoom in on a certain product type or service when opportunities present themselves,” said Yeo. 

For example, to leverage the potential of the electric vehicle (EV) industry, True Light has incorporated both established EV and battery manufacturers into its portfolio, alongside early-stage developers working on the next generation of battery technologies.

On the broader innovation theme, True Light has also invested in Jaka Robotics, a collaborative Chinese robotics company that provides manufacturers with intelligent and cost-effective automation solutions to boost productivity across multiple industries.

With the closing of Fund I, Yeo added that True Light will continue to evolve its product offering, and extend the opportunity to invest in Greater China to more investors.

An independent, wholly-owned subsidiary of Singapore investment company Temasek, True Light was established in 2021 and invests in opportunities that “have a nexus to or have a major business relationship with Greater China”.

The company operates from two offices – in Singapore and Shanghai – and has close to 20 employees.