UBS Invests in Bolsonaro’s Ex-Economy Minister Guedes’s Green Fund

Swiss banking giant UBS grabs headlines today, February 20, 2025, announcing a minority stake acquisition in Yvy Capital, as reported by Valor Econômico.

Founders Paulo Guedes, ex-Brazilian Economy Minister, and Gustavo Montezano, former BNDES president, steer this firm toward sustainable investments. The deal, awaiting regulatory approval, targets Brazil and South America’s rising role in global green markets.

UBS aims to harness Brazil’s strengths in food security, energy transition, and low-carbon growth through Yvy’s expertise. Guedes and Montezano launched Yvy in 2023, managing $55 million in assets, including a $55 million Solinftec agtech deal.

Now, with UBS’s $6.1 trillion post-Credit Suisse portfolio backing them, Yvy plans a $90 million infrastructure fund. The partnership blends UBS’s global reach with Yvy’s local know-how, spotlighting founders like Roberto Azevêdo, ex-WTO head, and Rodrigo Xavier, former UBS Pactual CEO.

Yvy’s focus sharpens on practical gains, not just ideals, as Guedes pivots from his Bolsonaro-era neoliberal roots. Montezano’s BNDES tenure modernized funding, setting the stage for this green shift.

Brazil’s Green Investment Surge

Figures tell a compelling story: Brazil drew $10 billion in green investments in 2024, fueled by policies Guedes once shaped. UBS, managing $270 billion in Latin American wealth, sees Yvy as a foothold in a market promising strong returns.

The Solinftec stake alone hints at a $270 million valuation soon. Yet, challenges linger. Regulatory hurdles could delay the deal until mid-2025, and Brazil’s fiscal woes under Lula’s administration temper optimism.

Still, UBS’s Marcello Chilov calls it a move for “long-term value” with real-world impact. Yvy’s carbon market push with Rubicon Carbon adds depth to its strategy.

This investment signals a broader trend: global banks chasing sustainable profits in emerging markets. UBS bets on Brazil’s natural edge, while Yvy gains muscle to scale fast. The narrative shifts from Guedes’s controversial past to a pragmatic play in a $6.1 trillion game, where climate and cash align.