Votorantim and Temasek will Invest Almost BRL 4 Billion in Growth Companies
Grupo Votorantim is cooperating with Temasek, the Sovereign Wealth Fund in Singapore, to create a new manager ready to invest 3.6 billion Brazilian riyals in growth stocks in Brazil – so far occupy an area dominated by Softbank.
The new director – named 23S Capital – Matthews Villaris, president of Timacic in Brazil, will include the ten employees of the sovereign wealth fund already in the country.
Temasek has worked in Brazil for 14 years and has previously invested in companies such as saisshoes, Hidrovias do Brasil, Conductor, BionExo, Clínica Sim and Neway.
The sovereign wealth fund has over a trillion US dollars allocated in many countries – from Asia to the United States, and from Europe to Latin America.
Matthews told the Brazil Journal that 23S Capital’s idea is writing checks ranging from 250 million Brazilian riyals to 300 million Brazilian riyals to businesses in its final stages.
The manager will be sector neutral, but will focus on sectors that have natural growth in Brazil, such as healthcare, education, fintech and agricultural businesses.
For Votorantim, the partnership with Temasek is another step in converting its portfolio. In recent years, CEO Joao Schmidt has diversified the portfolio and created new investment sectors – in infrastructure and real estate – and made the company more connected. (The company is a partner of CPP Investments in Auren Energia and Caisse de Dépôt et placement du Québec – Cdpq in Votorantim Cimentos in North America, and now in Temasek).
Votorantim made profits worth 49 billion Brazilian riyals last year, with EBITDA worth 12 billion Brazilian riyals and net income of 7 billion Brazilian riyals. The holding company has invested around 5 billion Brazilian riyals every year.
This is not the first time that Temasek has cooperated with another pioneer investor to gain exposure in certain markets or sectors.
Last year he entered the Sovereign Wealth Fund in partnership with Black Rock Investment Company in startups that solve climate change issues. The two companies have joined to pump $600 million into the joint project called Decarbonisation Partners.
“With everything happening on the global stage, we need to think more and more about additional partnerships with companies that share our long-term vision and values,” Delhan Pillay, Teyimasik’s global CEO, told The Brazil. .
According to him, Temasek can help companies invest to benefit from their global existence, attract talent and build relationships.
The timing of the partnership seems ideal.
The creation of the new manager comes at a time of pressure from the global stock market correction.
Despite the creation of the joint project, Delhan said that Timassic will continue to make investments alone in Brazil – mainly in earlier rounds, such as Series A and B.
Temasek is historically famous for its investments in Asia – where it has shares in a number of financial institutions – has diversified its portfolio, which has increased its exposure to Europe and the United States. Over the past eight years, 70% of total capital has gone into these two geographic regions.
The box was also moving below the value chain: today 40% of the number of transactions at the start, although 80% of the capital is still in large notes.
New investments have focused on fintech companies, payment companies, insurance and asset management companies – which benefit from the growing population life and the need for financial planning that comes with it. .