Singapore’s Temasek takes 9 percent stake in Italy’s FSI, expands European investment push

Singapore state-owned investment company Temasek has acquired a 9% stake in Italian growth-equity firm FSI and committed to backing the manager’s future investment funds, strengthening its investment focus on Italy and the broader European market.

Temasek announced the transaction on Monday, saying the partnership would support its continued expansion in Italy and Europe. The investment company did not disclose additional financial terms.

The stake was acquired in FSI’s management company, which oversees the firm’s funds and generates revenue through management fees and a share of investment returns. The structure gives Temasek an interest in FSI’s underlying investment platform rather than solely in its funds.

Temasek, which already invests in FSI-managed funds, will also provide capital to upcoming vehicles, including a fund targeting fast-growing small and medium-sized Italian businesses.

Temasek expands its Italy strategy

Temasek had a net portfolio of S$518 billion ($401 billion) as of March 2026 and has maintained investments in Italy for more than a decade. Its Italian holdings include luxury brands such as Ermenegildo Zegna, Golden Goose and Moncler.

The Singapore investment firm has also been increasing its activity across Europe, the Middle East and Africa (EMEA). It has set a target of investing between €14 billion and €17 billion in the region by 2029, after deploying €13 billion during the two years through March 2026.

Temasek Global Investments president and EMEA head Nagi Hamiyeh said Italy remains an important component of the firm’s European strategy. The partnership with FSI is expected to broaden that strategy into Italy’s mid-market and support companies seeking international expansion.

FSI targets Italy’s mid-market

FSI manages approximately €5 billion and focuses on mid-sized Italian companies, typically taking minority stakes alongside founders and family owners.

The firm said its funds have generated first-quartile returns over a 15-year period, while companies in its portfolio have recorded average annual revenue growth of more than 20%.

FSI chief executive Maurizio Tamagnini said Temasek was among the firm’s founding fund investors and that the new agreement builds on a common investment philosophy developed through their long-standing relationship.

The companies said the partnership is intended to bring additional international capital to Italy’s mid-market and founder-led businesses. FSI has invested in 25 Italian companies and carried out more than 50 bolt-on acquisitions.