Key Takeaways
- • 3G Capital cofounders Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto Sicupira are launching LTS One, a new investment partnership with Munib Islam, former co-chief investment officer at hedge fund Third Point, to pursue activist and minority-stake investment strategies.
- • LTS One represents a strategic pivot for the three Brazilian billionaires, who have traditionally acquired controlling stakes in companies; the new fund will focus on influencing management while holding minority positions, marking a departure from their historical playbook.
- • Munib Islam brings significant activist expertise, having led Third Point's high-profile campaigns at Nestlé, Campbell Soup, Sony, and Baxter International, where he was appointed to the board in 2015.
- • LTS Investments, the holding company and family office overseeing the fortunes of Lemann, Telles, and Sicupira, is capitalizing on their extensive operating experience from building major holdings including Anheuser-Busch InBev, Restaurant Brands, and Kraft Heinz (via partnership with Warren Buffett's Berkshire Hathaway).
- • The partnership was facilitated through a mutual introduction during the pandemic, with negotiations conducted via Zoom calls across three continents, reflecting the cofounders' remote coordination across geographies.
Summary
Three of Brazil's most prominent billionaires—Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto Sicupira—are partnering with veteran U.S. activist investor Munib Islam to establish LTS One, a new investment partnership designed to pursue long-term value creation through minority stakes and activist engagement strategies. The partnership, facilitated through LTS Investments (the family office holding the cofounders' personal fortunes), marks a notable strategic evolution for investors historically known for acquiring controlling interests in major corporations.
Islam, who previously served as co-chief investment officer at Third Point, brings a proven track record of identifying acquisition targets and structuring activist campaigns. During his tenure at Third Point, Islam played instrumental roles in the hedge fund's most prominent initiatives, including activist campaigns at food conglomerate Nestlé, packaged food manufacturer Campbell Soup, consumer electronics conglomerate Sony, and hospital products company Baxter International, where he was appointed to the board in 2015. His appointment to LTS One signals the cofounders' intent to leverage activist expertise previously unavailable within their traditional operating model.
Lemann, Telles, and Sicupira have spent their careers building a portfolio of strategic controlling investments, most notably Anheuser-Busch InBev (the world's largest brewer by volume), Restaurant Brands International (parent of Burger King and Tim Hortons), and Kraft Heinz, developed through a high-profile partnership with Warren Buffett's Berkshire Hathaway. The cofounders, who range in age from their 70s to 80s, are now exploring a complementary investment approach that allows them to influence management and drive value creation without requiring majority control. According to sources familiar with the arrangement, the partnership was introduced through a mutual connection, with terms finalized through remote negotiations during the pandemic when the principals were located on three separate continents.
Islam, who previously served as co-chief investment officer at Third Point, brings a proven track record of identifying acquisition targets and structuring activist campaigns. During his tenure at Third Point, Islam played instrumental roles in the hedge fund's most prominent initiatives, including activist campaigns at food conglomerate Nestlé, packaged food manufacturer Campbell Soup, consumer electronics conglomerate Sony, and hospital products company Baxter International, where he was appointed to the board in 2015. His appointment to LTS One signals the cofounders' intent to leverage activist expertise previously unavailable within their traditional operating model.
Lemann, Telles, and Sicupira have spent their careers building a portfolio of strategic controlling investments, most notably Anheuser-Busch InBev (the world's largest brewer by volume), Restaurant Brands International (parent of Burger King and Tim Hortons), and Kraft Heinz, developed through a high-profile partnership with Warren Buffett's Berkshire Hathaway. The cofounders, who range in age from their 70s to 80s, are now exploring a complementary investment approach that allows them to influence management and drive value creation without requiring majority control. According to sources familiar with the arrangement, the partnership was introduced through a mutual connection, with terms finalized through remote negotiations during the pandemic when the principals were located on three separate continents.
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