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By Yantoultra Ngui

SINGAPORE (Reuters) -Singapore's state investor Temasek sees growing investment opportunities in Europe as the impact of trade tensions on the economic climate makes some companies more attractive in terms of valuations, a senior executive told Reuters on Thursday.

A trade war, that followed U.S. President Donald Trump's "Liberation Day" on April 2, had led to volatility in global markets and prompted some investors to focus more on European assets.

Temasek, which invested more than S$10 billion ($7.8 billion) in Europe in the year ended March 2025, sees this macroeconomic environment as an opportunity to look at more companies in the region, executives told Reuters on Thursday.

"Sometimes the macro helps us go into companies that we have liked, that were not within our reach from a valuation perspective," Nagi Hamiyeh, Temasek's head of Europe, the Middle East and Africa, told Reuters in an interview.

"On top of it when you look at Europe, there is still a big gap in terms of valuation or valuation arbitrage in Europe and the U.S., so that makes us even more confident about what we can achieve in Europe," he added.

Temasek reported an 11.6% year-on-year jump in its net portfolio value on Wednesday to a record S$434 billion at the end of its financial year on March 31.

The S$10 billion investment in Europe made over the last financial year represents about 40% of the up to S$25 billion investment it said last year that it planned to make in Europe over five years.

These investments included French renewable energy group Neoen and Ireland-based video game technology services company Keywords Studios.

Looking ahead, Temasek is seeking investment opportunities in European companies that are global, as well as family-run businesses with strong franchises in sectors such as industrials, renewable energy, financial services and consumer goods, Hamiyeh said.

Temasek sees potential to increase its exposure in markets such as France, Italy, Germany and Scandinavia, he added.

($1 = 1.2791 Singapore dollars)