Temasek Renews Efforts in Brazil with Votorantim Partnership Fund

Posted on 08/10/2022

Singapore’s Temasek Holdings (Private) Limited is partnering with Brazil’s Votorantim S.A. to form a US$ 700 million (about R$3.6 billion) fund to invest in companies in Brazil. The fund is named 23S Capital and will target long-term investments in high-growth sectors of the Brazilian economy. Votorantim S.A. is a permanently capitalized investment holding company, with a long-term investment approach. 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. 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.

“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.” said 23S Capital’s chief executive Matheus Villares (also an employee of Temasek Holdings).

In the first quarter of 2022, Votorantim concluded the consolidation of energy assets held by Votorantim and Canada Pension Plan Investment Board (CPP Investments) in Brazil, resulting in the creation of one of the largest renewable platforms in Brazil – Auren Energia, with 3.3 GW of hydro/wind capacity in operation. Auren is listed on the Novo Mercado segment of B3.

Cleary Gottlieb represented Votorantim in connection with the formation of a co-investment vehicle with Temasek Holdings and its affiliates.

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