By Nick Hedley
Singapore’s state-owned investment firm Temasek and Brazilian
family-owned investment group Votorantim have launched a $700 million fund
aimed at capitalizing on investment opportunities in Brazil.
The new investment vehicle, called 23S Capital and headed by
Temasek’s Matheus Villares, will provide growth funding to Brazilian companies,
the investors said in a joint statement.
“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,” Villares said. “This strategy will position 23S Capital as a
long-term partner to companies and entrepreneurs pursuing this journey.”
Temasek CEO Dilhan Pillay said the 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.”
Temasek, which has a net portfolio value of S$403 billion
(US$294 billion), has been increasing its allocations to the Americas and to
Europe, the Middle East and Africa, although around two-thirds of its assets
are still in Asia.
“We will partner up with entrepreneurs and high-growth
companies to support them in the long run to become champions in their
sectors,” Votorantim CEO João Schmidt said.
In a separate statement, Fitch Ratings said the partnership
would have no impact on Votorantim’s credit ratings as it would not meaningfully
affect its liquidity position.
“Fitch recognizes that the partnership could open new
investments avenues for the group in the future regarding ongoing investments
beyond the announcement.
“Fitch believes Votorantim remains committed to fostering
more stable business within its portfolio, which should help provide additional
resilience to Votorantim’s investment-grade ratings as it navigates different
macroeconomic cycles.”