Singaporean state-owned investor Temasek Holdings has acquired a 9% stake in the management company of Italian private equity firm FSI for an undisclosed amount, according to a joint statement. It will also invest in the firm's future funds. Temasek is also an investor in FSI's Scale-up Capital Solutions fund, which targets the smaller end of mid-market investments.

FSI's two existing flagship funds raised about €1.4 billion ($1.6 billion) and €1.6 billion, respectively, FSI's website showed. Nagi Hamiyeh, President of Temasek Global Investments, said the firm had been backers of FSI's funds since 2018. The Milan-based investor specializes in backing Italian mid-market businesses, which it defines as those with revenues of €70 million to €200 million, and earnings before interest, taxation, depreciation and amortization of €10 million to €30 million. "We can leverage the Temasek platform, drawing on our sector capabilities and global networks to help Italian companies expand into new markets," Hamiyeh said in the statement.