SINGAPORE (July 13): Grappling with its first portfolio decline in 7 years, Singapore’s state-owned investment company Temasek Holdings is looking to mixed martial arts (MMA) to score a knockout amid a challenging economic climate.

Temasek’s wholly-owned subsidiary Heliconia Capital Management is leading a consortium to invest in Singapore-based MMA promoter One Championship.

While the value of the deal was not disclosed, it was reported to be worth a “significant eight-figure sum” and could see One Championship grow beyond the $1 billion valuation mark.

The move comes hot on the heels of news on Monday that US-based MMA promoter Ultimate Fighting Championship (UFC) was sold for US$4 billion (S$5.4 billion) to a group led by talent agency WME-IMG.

Temasek is not pulling any punches in its fight to reverse its first portfolio loss since the financial crisis in 2008-09.

Temasek's portfolio was worth S$242 billion at the end of March, down from S$266 billion a year earlier. One-year total shareholder return came in at minus 9%.

The state investment firm last week put US$3 billion with a fund managed by Avanda Investment Management, started last year by former GIC senior executives.

Earlier on July 4, Temasek was among investors injecting a total of 510 million euros (S$764 million) in French asset manager Tikehau Capital Partners and its holding company as part of two capital increases.

With the deal, Temasek holds a stake of more than 5% in Tikehau’s parent company Tikehau Capital Advisors, which recently agreed to acquire iREIT Global's manager for an undisclosed sum.