The fund will look at partnering up with entrepreneurs and high growth companies to become "champions in their sectors"
Singapore state investment firm Temasek has formed a strategic partnership with Brazilian investment holding company, Votorantim, to explore new investment opportunities in growth capital in various sectors of the Brazilian economy.
In a joint release by Votorantim and Temasek, the two sides say this will be facilitated by an investment fund, with both sides committing to invest up to US$700 million ($964 million).
Votorantim is one of the largest investment holding companies in Latin America, holding stakes in businesses across various economic sectors, including building materials, financial services, renewable energy, metals & mining, real estate, infrastructure, and agriculture.
Votoranim CEO Joao Schmidt says that the joint venture will “partner up with entrepreneurs and high growth companies to support them in the long run to become champions in their sectors”.
Dilhan Pillay, CEO of Temasek notes that “we see the strength of our approaches being combined into this new investment vehicle which will provide a new platform to partner Brazilian companies with growth capital.”
In addition, the Temasek investment team in Brazil, led by Matheus Villares, head of Brazil at Temasek International will move on to form a partnership with Votorantim called 23S Capital.
The new investment platform focuses on long-term investments and sustainable value creation, with the release stating that this partnership represents the “convergence of local knowledge, industry skills, a global network, and the financial strength needed to foster the future generations of Brazilian companies.”
Villares will also act as the CEO of 23S Capital, saying the partnership’s investment mandate will focus on themes associated with secular trends taking place in Brazil and globally, with an emphasis on new business models and technology across various sectors of the Brazilian economy.
The creation of 23S Capital has received regulatory approval from Brazil’s Administrative Council for Economic Defense, locally known as the Conselho Administrativo de Defesa Economica (CADE).