Latest LTS Investments News
Jul 27, 2021
July 28, 2021 BOSTON, July 27 (Businesshala) – Three Brazilian billionaires who founded investment firm 3G Capital are backing a veteran US investor who played a key role in hedge fund Third Point’s active campaigns, placing large, long-term bets on companies. For, said three people with familiar plans. LTS One will be a new investment partnership between LTS Investments and Muneeb Islam, who was previously co-chief investment officer at Third Point. LTS Investments is the holding company and investment office that oversees the family fortunes of 3G Capital cofounders Jorge Paulo Lemon, Marcel Telles and Carlos Alberto Sicupira. Islam and a representative for the LTS declined to comment. Warren Buffett to help build companies such as Lemon, Tails, Secupira and 3G with beverage and brew giant Anheuser-Busch InBev (ABI.BR), fast food holding company Restaurant Brands (QSR.TO) and create food K is known for partnering with Berkshire Hathaway. Company Kraft Heinz (KHC.O). Now the trio of billionaires, who are in their 70s and 80s and have spent their careers trying to take a controlling stake in six of their strategic investments, are trying something new – impressing the management while keeping a minority stake, sources said. Said, who requested anonymity because the plans have not been publicly announced. LTS Investments, named after the initials of the principals’ last names, was introduced into Islam through a mutual relationship and the men agreed on terms over a Zoom call during a pandemic that saw them Located on three different continents. Islam brings the ability to identify targets and structure activist campaigns. He served in Third Point’s most high-profile efforts, including food companies Nestle (NESN.S) and Campbell Soup (CPB.N), conglomerate Sony (6758.T) and hospital product maker Baxter International (BAX.N). where he was named to the board in 2015. Engagement but no flashy fight The LTS One is unlikely to make its mark with a lucrative proxy battle like that of newcomer Engine No. 1 at Exxon Mobil (XOM.N) this year, when it won three board seats. Instead, the fund, which initially does not expect to accept outside funding, plans to engage behind the scenes and many activists have been known to stop meeting demands. Rather than calling for a share buyback or divestment of underperforming units, LTS One will be more interested in changing the direction of a company’s earnings than in reshaping its portfolio. Sources said it expects to pick up a significant minority stake in companies in various sectors and countries. And because the fund won’t be a traditional hedge fund with investors who may be itching if progress isn’t immediate, Islam and his team are able to make long-term investments of five years or more instead of exiting after two years. Will be Three years as workers often do. Sources said LTS One has already invested about $1 billion in several positions, but did not say how much money it plans to put into work in the future. Islam, 47, plans to hire a small team of analysts in New York. Sources said he will be the first to contact the company’s management team and board, but three principals Lemon, Tails and Secupira expect to be involved as well, doing more than providing seed capital for a new activist hedge fund. are. Islam is taking on a new role in 2020 after dropping the third point. Third Point, which gained 11% during the first quarter of 2021 and has returned an average of 15.1% in a year since its launch in 1996, engages in various strategies, including, for example, activation by the Starboard Value Method. , Put is not considered a pure-play activist firm. After a slowdown in active campaigns during the pandemic, activity is picking up again, with 55 campaigns launched in the United States during the first half of 2021. Activists in Japan launched 10 campaigns in the first half of the year, indicating more activity outside the US. companies. Reporting by Swaya Herbst-Bellis in Boston Editing by Matthew Lewis .