Votorantim and Temasek Launch Strategic Partnership with New US$700M Fund to Invest in Brazil
New vehicle combines the track record of the two investment companies to explore growth opportunities in Brazil.
08/09/2022 – Votorantim and Temasek today announced a strategic partnership to explore new investment opportunities in growth capital in various sectors of the Brazilian economy. By the terms of the agreement, Votorantim and Temasek will be partners in a new investment fund, in which both parties have committed to invest up to US$700 million (about R$3.6 billion).
With more than 100 years of history in Brazil, 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. Temasek is a global investment company headquartered in Singapore, with a net portfolio value of US$297 billion.
“We are excited to announce this highly strategic partnership with Temasek, a global investor that shares the same positive vision on Brazil’s potential”, said João Schmidt, CEO of Votorantim S.A. “Together through this new platform we will partner up with entrepreneurs and high growth companies to support them in the long run to become champions in their sectors”.
Dilhan Pillay, Executive Director and Chief Executive Officer of Temasek, said, “Our partnership with Votorantim is an evolutionary phase in our investment strategy and engagement in Brazil, representing a new and exciting way to explore investment opportunities in this geographically important market, with a like-minded investor that shares our long-term investment philosophy and brings strong domestic capability alongside Temasek’s global presence. 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, and we have every confidence that our team will carry the DNA and spirit of Temasek with them to excel in a challenging environment.”
In a further evolution, the Temasek investment team in Brazil, led by Matheus Villares, will move on to form a partnership with Votorantim called 23S Capital.
The new investment platform is founded upon an entrepreneurial DNA shared by both Votorantim and Temasek, focusing on long-term investments and sustainable value creation. 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.
Matheus Villares, CEO of 23S Capital, said: “Our 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. This strategy will position 23S Capital as a long-term partner to companies and entrepreneurs pursuing this journey.”
The creation of 23S Capital has received regulatory approval by Conselho Administrativo de Defesa Econômica (CADE).
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With 104 years of history, Votorantim is a Brazil-based, family-owned company with a long-term investment orientation. Current portfolio companies have operations in 16 countries, across various sectors, such as building materials, financial services, renewable energy, metals & mining, real estate, infrastructure and agriculture. Votorantim is part of a select group of Brazilian companies with investment grade classification by the three main rating agencies. To learn more, please visit www.votorantim.com.br/en/.
Temasek is an investment company with a net portfolio value of S$403 billion (US$297b) as at 31 March 2022. Our Purpose “So Every Generation Prospers” guides us to make a difference for today’s and future generations. Our Temasek Charter defines our three roles as an Investor, Institution and Steward, and shapes our ethos to do well, do right and do good. Sustainability is at the core of all that we do. We are committed to catalysing solutions to global challenges and activating capital – financial, human, social and natural – to bring about a better and more inclusive world for all. Temasek has overall corporate credit ratings of Aaa/AAA by rating agencies Moody’s Investors Service and S&P Global Ratings respectively. For more information on Temasek, please visit www.temasek.com.sg
 As at 31 March 2022. The equivalent net portfolio value in SGD: S$ 403 billion.