Votorantim, a Latin American capital investment company, is joining forces with Temasek to invest up to BRL$3.6bn ($700m) in growth capital in multiple sectors of the Brazilian economy.
The partnership between the two firms called 23S Capital has obtained regulatory approval from the Brazilian competition authority, Conselho Administrativo de Defesa Econômica (CADE).
Based in Brazil, Votorantim has interests in businesses across different economic sectors. These include financial services, building materials, metals and mining, renewable energy, infrastructure, real estate, and agriculture.
Temasek is a Singapore-based investment company with a net portfolio value of S$403bn ($294bn), as of 31 March 2022.
Votorantim CEO João Schmidt said: “We are excited to announce this highly strategic partnership with Temasek, a global investor that shares the same positive vision on Brazil’s potential.
“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.”
According to Temasek, the new investment platform has been established upon an entrepreneurial DNA shared by the two firms. The 23S Capital platform will focus on making long-term investments and generating sustainable value creation.
The partnership is said to bring together local knowledge, a global network, industry skills, and the financial strength required for promoting the future generations of Brazilian firms.
Temasek executive director and CEO Dilhan Pillay 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.”
