“You can’t just fly in and out and expect to understand the depth of a market like Europe,” says Vincent Lee, Temasek’s Director for Technology & Consumer Investments. “You need to be on the ground, building relationships and embedding yourself in the ecosystem.”

Since the mid-2010s, Temasek’s journey in Europe had been one of steady expansion, with offices in London, Brussels, and most recently, Paris. Yet, despite landmark deals in areas like digital payments and sustainable solutions, the region’s consumer and technology sectors remained a small part of the overall Europe portfolio.

“Europe has no shortage of great consumer brands,” says Vincent, “and there is a lot happening in technology, especially in the adoption of Software as a Service as Europe ramps up on digitalisation.” Temasek’s 2016 investment in Italian/French luxury apparel brand Moncler and the solid returns it delivered strengthened the firm’s convictions about the region. “There was a sense that we could build on this momentum if we truly doubled down on these opportunities.”

Initially, the team scheduled quarterly trips from Singapore to assess potential investments, but the limitations of this model quickly became evident. “The consumer sector is a very localised business. You need to appreciate the market context, especially in a market as diverse as Europe,” he says. “Also, given the geographical spread of businesses, we would not have been able to cover them effectively without being physically there.”

In February 2023, Vincent and his young family found themselves putting down roots in London.

Local roots, global ambitions

For Vincent, the move was the culmination of a journey that began in 2015, when he transitioned from his job at a regional bank to join Temasek.

“Back then, I was doing banking mergers, but I wanted to be on the buy side,” he says. “What drew me to Temasek was the chance to work for a Singapore-based firm, and yet have the opportunity to tap into global opportunities.” The opening in the consumer team struck a personal chord. “I’ve always been interested in the consumer space, mostly because it’s tangible and relatable – and with rising global affluence, it was clear that Temasek had ambitions to do more in that space.”

Vincent spent his early years with Temasek focused on China, India, and Southeast Asia, where he worked on traditional consumer businesses like hypermarkets and fast-food chains. By 2018, the landscape had shifted. The distinction between the consumer and technology sectors blurred as brands like Amazon and Grab disrupted traditional models and reshaped consumer behaviour. Temasek adapted by merging its consumer and technology teams.

As Temasek’s global ambitions grew, so did its recognition of the untapped potential of Europe’s consumer and technology sectors. “We began to be more active, flying to the markets,” says Vincent. But it quickly became clear that occasional visits would not cut it. “To grow our footprint and access opportunities that might otherwise fly under the radar, we needed to build local relationships and credibility,” Vincent explains. “And to do that, we needed boots on the ground.”

When the opportunity arose to advance Temasek’s consumer and tech initiatives in Europe, Vincent initially hesitated. “I had a young family, and the thought of starting over in a new country was daunting,” he admits. The opportunity to grow and make a meaningful impact eventually outweighed his hesitation, he says, “and we took the plunge".

In London, Vincent quickly immersed himself in building relationships with family-owned businesses, the backbone of Europe’s luxury sector. “We talk a lot about identifying resilient companies and global champions,” he says. “Luxury brands fit that description – they’ve weathered economic storms and continue to deliver strong returns.”

The importance European business culture placed on building trust and fostering collaboration through in-person engagement quickly became clear. “I prioritise face-to-face meetings,” Vincent shares. “You can’t replicate the depth of understanding that comes from direct interactions with CEOs, CFOs, and advisors. It’s through these connections that we gain real insight and build trust for the long term.”

Partnerships have become another pillar of Temasek’s evolving strategy, particularly in the public and equity co-invest markets, creating opportunities to co-invest with firms that have similar thematic approaches and complementary strengths. “It allows us to look at things beyond what we’ve traditionally focused on.”

Temasek’s on-the-ground presence has been instrumental in forging these partnerships. “Building relationships with co-investment partners wouldn’t have been possible without us being in the market itself,” Vincent notes.

The long view on Europe

Creating lasting connections remains central to Vincent’s – and Temasek’s – approach. “It’s not just about market expansion; it’s about forging partnerships that are rooted in trust and shared values, and building relationships that will stand the test of time.”

Temasek’s strategy of embedding sector-specific expertise locally is already paying dividends. Over the past 18 months, the firm has deepened its partnerships and expanded its investment footprint, including in areas like luxury cruises, premium outlet stores, emerging technologies and sustainable packaging. The firm plans to invest $20 billion to $25 billion in the EMEA region over the next five years.

Looking ahead, Vincent sees significant potential for Temasek. “The sector will continue to compound,” he says. “There are untapped markets and companies poised for growth. It’s an exciting time to be part of this journey.”