New Brazilian PE Fund Launched

Banco Bradesco of Brazil and Banco Espírito Santo of Portugal have formed 2bCapital, a new private equity fund manager that will operate in Brazil. Each bank will provide R$50 million for 2bCapital’s debt fund, which will target R$500 million (US$277m).


Banco Bradesco (BOVESPA: BBDC3, BBDC4; NYSE: BBD; and Latibex: XBBDC) and Banco Espírito Santo (BES), headquartered in Portugal, have formed a partnership to create 2bCapital, a new private equity fund manager that will operate in Brazil.

2bCapital will be controlled on an equal basis by the subsidiaries BRAM – Bradesco Asset Management and Espírito Santo Capital (ES Capital).

2bCapital will launch its first fund amounting to R$500 million, with each partner providing R$ 50 million. The fund will be open to domestic and international investors attracted by the representative nature of the two partners and the opportunities in the Brazilian business sector.

The first 2bCapital fund will invest in companies from preselected industries with annual revenues of more than R$ 100 million, high growth potential, good management and growing profitability. Investments may include minority as well as controlling stakes.

2bCapital is also planning to launch other funds of a generic nature or industry in Brazil in the future.

The CEO of 2bCapital will be Mr. Manuel de Sousa who is currently head of ES Capital in Brazil where he has been working for more than five years. The new team will include professionals with experience in private equity and new executives will be hired to meet the growing business prospects.

2bCapital partners

BRAM is a Bradesco subsidiary and the second-largest private asset management firm in Brazil with around R$ 160 billion in assets owned by more than 3.3 million investors in investment funds and managed portfolios.

ES Capital is controlled by the Banco Espírito Santo Group and IR part of its investment banking unit. It has 13 years experience in private equity management in Portugal, Spain and France. BES is the second-largest privately-owned Portuguese bank with total assets of US$117 billion and assets under management of US$ 26 billion.