The Singapore Economic Development Board (EDB) has appointed seven fund management companies as Global Investor Programme (GIP)-select funds.
Investment into a GIP-select fund is one of three investment options1 for investors with strong entrepreneurial and managerial experience seeking permanent residency through the GIP. Under this option, known as GIP Option B, applicants are required to invest S$25 million in a GIP-select fund. The investment quantum is a tenfold increase from the required amount of S$2.5 million under the previous GIP fund investment criteria.
The introduction of new GIP-select funds was part of broader changes made to the programme in March 20232. Through these GIP-select funds, GIP applicants can deploy more investments in the local ecosystem, generating greater positive spin-offs for Singapore companies and the economy, and creating more good jobs for Singaporeans.
The GIP-select funds
The seven fund managers offering GIP-select funds were appointed following an open and transparent Call for Proposal (CFP) exercise conducted from 2 to 31 March 2023. They are:
a. B Capital Group Singapore Pte Ltd;
b. East Ventures Advisory Pte Ltd;
c. GGV Capital Pte Ltd;
d. HHLR Management Pte Ltd;
e. Insignia Ventures Partners Pte Ltd;
f. Jungle Ventures Pte Ltd; and
g. Vertex Venture Management Pte Ltd.
The fund managers were chosen as they met criteria listed in the CFP, including possessing Assets Under Management (AUM) of at least S$1 billion. They also passed EDB’s holistic assessment and evaluation of their track record, investment mandate and strategy in Singapore, as well as the sectoral focus of their funds. [Refer to Annex A for the full list of qualifying criteria.]
The GIP-select funds will invest at least 50% of GIP monies received or S$50 million of GIP monies received (whichever is lower) from GIP Option B investors, into Singapore-based companies that are in sectors promoted by EDB and other economic agencies. [Refer to Annex B for the list of sectors.]
The fund managers have been appointed for an initial period of three years3. They are required to submit quarterly reports of their investment activities to EDB. The status of all fund managers will be renewed after the three-year period, subject to a review of their local investments. EDB retains the discretion to call for proposals for new GIP-select funds every year.
Generating positive spin-offs for Singapore
The appointed fund managers bring extensive market networks and domain knowledge to help founders and innovative companies in Singapore accelerate their go-to-market strategies, connect with potential customers, and find talent in the region and globally. This is expected to catalyse early- and growth-stage investments across various sectors in Singapore, especially in the present environment where investors are more cautious. Over time, these investments could facilitate the growth of the next crop of new ventures based in Singapore that can scale to become globally-leading businesses.
Between 2011 and 2022, GIP investors created 24,699 jobs across a range of roles such as software engineers, researchers, and corporate functions. EDB will continually review the GIP to ensure that the programme remains effective in attracting top-tier business owners and owners of risk capital to support the local start-up and financial ecosystem, and create more good jobs for Singaporeans.
Details of the GIP-select funds can be found at https://www.edb.gov.sg/en/how-we-help/global-investor-programme. Fund management companies interested in the programme may also visit https://www.edb.gov.sg/en/how-we-help/global-investor-programme for more information.
