Early Asian family offices sink deep roots in Singapore

Long before family offices became a buzzword here, some of Asia’s biggest conglomerates had already set up such entities in Singapore to provide fund management services, conduct succession planning and hold their business operations and assets.

One such outfit, Pacific Eagle Asset Management (Peam), was set up 20 years ago to offer fund management services in Asia to the family of Indonesian billionaire Sukanto Tanoto. Since then, it has sunk roots in the Singapore economy, and its philanthropic arm, Tanoto Foundation, has helped drive initiatives here since 2001.

The Tanoto family runs pulp, paper and palm oil giant Royal Golden Eagle (RGE).

Ms Imelda Tanoto, RGE’s Managing Director and member of the Investment Advisory Committee which oversees Peam, said setting up a family office here “was a natural decision for us”.
 

“Our corporate business at RGE is headquartered in Singapore. In addition, the growth and development of the Singapore financial industry over the years has enabled a vibrant and deep ecosystem that supports the needs of family offices,” Ms Imelda, the eldest daughter of Mr Sukanto, added.

“We appreciate the stable political climate, the considered moves in legislative and regulatory policies, and especially the relevant authorities’ close consultations with industry players. This gives confidence to family offices in planning how and where to invest our funds. The pro-business attitude of the Government and safe social environment are also a key consideration.”

Peam, which manages the family’s financial assets and invests in public and private equities, public and private debts as well as hedge funds, has 20 employees in investment, finance, accounting and other related roles.

Of the 20-strong staff, 16 are Singaporeans and two are permanent residents.

Ms Imelda said the office has contributed to the Singapore economy through close working relationships with local financial institutions such as private and investment banks, asset managers, as well as legal and accounting firms.

“In addition, we engage professional services companies on non-financial issues,” she added.

Singapore conglomerate Tolaram, which has business interests in consumer goods, fintech, infrastructure and industrial areas, considers itself a forerunner of family offices here.

It established the Tolaram family office eight years ago to hold its business operations and family assets.

The conglomerate, which has a strong presence in Indonesia, Estonia and Africa, has been based in Singapore for nearly 50 years after moving its operations from Malang, Indonesia. It has more than 50 employees here.
 

“In 2015, Tolaram restructured into a trust as a way of future-proofing the business. We wanted to create a legacy that would last for generations and have proper governance frameworks in place,” said Tolaram Chief Executive Sajen Aswani.

As part of the restructuring, asset management arm Maitri Asset Management was set up to invest liquid assets for the family and the business.

“A majority of our business investments and operations are in developing markets like Nigeria and across the rest of Africa where the economic and political climates are volatile,” he added.

A joint venture with Kellogg in 2015 to produce snacks and noodles for the African market culminated in the opening of a US$100 million (S$135 million) cereal plant in the Lagos Free Zone in 2017. Today, Kellogg-Tolaram is the single largest cereal player in Africa, Mr Aswani said.

Both family offices are engaged in philanthropic efforts.

The Ishk Tolaram Foundation provides grants to Singapore-based non-profit groups that offer children, youth and adults access to education and skills training. It has partnered with more than 10 organisations, including Boys’ Town and the Dyslexia Association of Singapore.

The Tolaram Innovation and Entrepreneurship Fund at Singapore Management University was recently set up with a contribution of $600,000 across three years. In 2022, Tolaram donated $300,000 to Autism Resource Centre’s Pathlight School to support operations and programmes, Mr Aswani added.

Through the Tanoto Foundation, Peam has invested about $21 million in medical research and initiatives that can tackle diseases that are prevalent in Singapore and Asia, and provided universities here with scholarships and financial support through endowment funds totalling $7 million.

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