A Brazilian investment firm, with support from the prominent investor Marcelo Claure, is negotiating with Saudi financiers to establish a substantial $600 million investment vehicle. The fund is specifically focused on advancing projects within Brazil’s climate and energy domains.
EB Capital Gestao de Recursos Ltda, the company behind the initiative, aims to introduce this fund in the latter part of the year. They anticipate that Saudi Arabian contributors will furnish up to half of the required capital.
This will be a fantastic opportunity for Saudi investors to approach the Brazilian market,
stated Eduardo Melzer, the founder and CEO of EB Capital, during an interview in Riyadh.
The Sao Paulo-based firm currently manages assets totaling around $1 billion and is actively engaging large institutional investors and sovereign wealth funds across the globe. This expansion strategy received a significant impetus when Claure, a former high-ranking executive at SoftBank Group Corp., acquired a share in the firm and joined as a partner.
The mutual interests of Brazil and Saudi Arabia to fortify their trade and investment ties are evident. The Kingdom is on a quest to diversify its economy, heavily reliant on oil, and is seeking to diminish its carbon footprint. Concurrently, it is looking to ensure its supply of food and other vital commodities. In contrast, Brazil, Latin America’s largest economy, is soliciting investments for projects that will aid in the transition to renewable energy sources, besides bolstering its agricultural sector.
The Public Investment Fund of Saudi Arabia, with assets worth $925 billion, has historically supported institutional investment forces such as SoftBank, BlackRock Inc., and Brookfield Asset Management. Although it has indicated that its international investment ratio may decrease, the total dollar allocation for foreign transactions is set to increase as it expands its overall yearly investment outlay to $70 billion, up from the current $40 billion.
In the upcoming week, a non-profit entity managed by the Saudi sovereign fund, the FII Institute, will hold a summit in Rio de Janeiro. This marks the institute’s inaugural event in Latin America, featuring prominent figures including Claure, other investors, and Saudi officials like Yasir Al-Rumayyan, the governor of the PIF and chairman of Saudi Aramco.
EB Capital, which also includes former Petroleo Brasileiro SA chief Pedro Parente as a partner, boasts a diverse portfolio of 16 companies. Among these are entities specializing in fiber optics, recycling, educational platforms, and Bioo, a firm that converts agricultural and industrial waste into bioproducts.