Singapore’s investment landscape is abuzz with debate following 65 Equity Partners’ involvement in the privatization of TalkMed Group, a decision that appears to contradict its stated mission to bolster the Singapore Exchange (SGX). This move comes at a time when the local equities market faces challenges, with delistings outpacing initial public offerings (IPOs).

Privatization Proposal Sparks Questions

Late last year, TalkMed Group, a leader in oncology services, received a privatization offer from Tamarind Health. Joining the deal was 65 Equity Partners, a Temasek-backed investment firm, which is subscribing to shares in Tamarind Health through its local enterprise fund, securing an 18.3% voting interest.

The rationale for TalkMed’s delisting is ostensibly to spur growth. The privatized entity, according to proponents, will attract a broader regional patient base and offer more competitive treatment. However, this move raises questions about 65 Equity Partners’ alignment with its stated mission to support SGX listings through its second fund, Anchor Fund @ 65.

Inconsistent Mandates?

Anchor Fund @ 65, one of the firm’s initiatives, aims to support high-quality companies seeking SGX listings. CEO Tan Chong Lee has repeatedly emphasized this goal. Yet, 65 Equity Partners’ involvement in delisting TalkMed suggests a potential conflict with its role in bolstering Singapore’s public equities market.

This is not the first time the firm has raised eyebrows. In 2024, 65 Equity Partners invested S$100 million from the same local enterprise fund into Hi-P International, a precision manufacturing firm taken private in 2018. Similarly, in 2022, it injected S$150 million into Cityneon, which delisted in 2019. Both investments sparked speculation about whether these companies were being primed for a second SGX listing, but no such moves have materialized.

Amidst a Struggling SGX

65 Equity Partners’ actions unfold against a backdrop of intensified efforts to revitalize the SGX. In 2024, the SGX saw only four IPOs, while 20 companies delisted. The Monetary Authority of Singapore has convened a task force, involving private and public stakeholders, to rejuvenate the ailing bourse.

Given these circumstances, the optics of 65 Equity Partners’ role in TalkMed’s privatization are problematic. Critics argue that the move contradicts Singapore’s push to attract more companies to list publicly, further eroding investor confidence in the market.

A Strategic Path Forward?

Despite the skepticism, some observers speculate that these moves could be strategic. For instance, Hi-P and Cityneon could eventually relist on SGX with stronger financial positions, bolstered by 65 Equity Partners’ investments. TalkMed, too, might eventually return to public markets after restructuring under Tamarind Health.

Still, the perception remains that 65 Equity Partners’ actions muddy its mandate. Investors already wary of Singapore’s equities market might see this as another reason for hesitation.

Looking Ahead

As Singapore grapples with how to invigorate its public markets, 65 Equity Partners’ role in privatization deals like TalkMed’s invites scrutiny. Is this a short-term play to strengthen companies before they relist, or does it signal a deeper misalignment within its investment strategy?

For now, the move underscores the challenges of balancing private and public market objectives—and leaves market watchers wondering about the future of SGX.

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