What FUNSES1 does

FUNSES (Fundo Soberano do Estado do Espírito Santo) is a state-level sovereign wealth fund created by Lei Complementar nº 914 of June 17, 2019, and wholly owned by the Government of Espírito Santo, Brazil. Its primary funding source is mandatory transfers from petroleum royalties — at least 40% of royalties and 15% of special participation revenues — which it manages across an intergenerational savings mandate (operated by Banestes with conservative investments above SELIC) and an active economic development mandate (operated by Bandes). The fund is linked to the Secretaria de Inovação e Desenvolvimento for business conception and to the Secretaria da Fazenda for administrative, financial, and accounting oversight, with governance through the Conselho Gestor (Cogef).

The fund operates four distinct investment vehicles. FIP Funses 1, launched in March 2022 with a R$ 250 million initial contribution, is a closed-end multi-strategy venture capital fund of funds managed externally by Quartzo Capital (after TM3 Capital) and operated for acceleration by ACE Ventures; it issues equity investments from R$ 300k to R$ 30 million per company. The Funses ESG Development Fund, approved in May 2023, deploys R$ 250 million via debentures (priced at up to 100% of SELIC) for R$ 20–50 million projects in industry, health, education, and energy. The Decarbonization Fund, announced in November 2024 and launched in January 2026 with nearly R$ 1 billion, finances energy transition projects under BTG Pactual. The fourth vehicle is the conservative savings reserve managed by Banestes. The fund balance reached R$ 2,644,962,960.64 as of June 22, 2026.

FUNSES raised its visibility internationally by ranking 1st in Brazil and Latin America and 3rd globally in the Global Sovereign Funds Ranking 2025. As of late 2025, the fund had approved R$ 95.5 million in financing for 42 companies and accelerated over 200 startups digitally across 11 batches. All portfolio companies must be domiciled in Espírito Santo, making FUNSES a regional capital allocator rather than a national or pan-Latin American one. Its business model is therefore not commercial revenue generation but the prudent stewardship of public oil revenues blended with active VC and project-finance deployment for state economic development.

Name

FUNSES1

Legal name

Fundo Soberano do Estado do Espírito Santo (FUNSES)

Website

https://fundosoberano.es.gov.br

Company type

Private

Founded year

2019

Operating status

Operating

Short description

FUNSES is Brazil's only state sovereign wealth fund, created in 2019 by Espírito Santo to manage oil and gas royalty revenues. It deploys capital via the R$ 250M FIP Funses 1 venture fund, a R$ 250M ESG debenture program, and a nearly R$ 1B Decarbonization Fund, investing exclusively in Espírito Santo–domiciled companies.

Ownership category

akta.pro rank

Product category

Sovereign Wealth Fund Management

NAICS

Funds, Trusts, and Other Financial Vehicles (525)

SIC

Finance Services (6199)

akta.pro primary industry

Transition / Engagement & Stewardship Funds (FSANAJAO)

Keywords

• Sovereign wealth fund
• Venture capital
• Digital acceleration
• ESG debentures
• Decarbonization financing

Headquarters

HQ city

Vitória

HQ country

Brazil

HQ region

Latin America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Others, Operations, Personnel

Revenue model

1. Investment Returns and Capital Gains: The fund generates returns through equity participations in startups and growth-stage companies acquired via FIP Funses 1. Returns come from capital gains upon exit, dividends, and appreciation of portfolio company valuations. The fund holds minority stakes in investee companies for a defined period.
2. Debenture Interest Income: The Funses ESG Development Fund and other debenture programs generate income through interest payments on issued debentures, priced at up to 100% of the SELIC rate with potential discounts of up to 10% based on regional development indices. Project financing ranges from R$ 20 million to R$ 50 million per company.
3. Oil and Gas Royalty Revenues: At least 40% of oil royalties and 15% of special participation revenues from petroleum and gas extraction in Espírito Santo are transferred to FUNSES as the primary funding source. These transfers provide the ongoing capital base that is then allocated across the fund's investment vehicles.
4. Fund Management Fees: External fund managers (TM3 Capital, Quartzo Capital) are appointed to manage the FIP Funses 1 vehicle, with management fees and carried interest structures typical of Brazilian venture capital and private equity fund operations.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

FUNSES1 (Fundo Soberano do Estado do Espírito Santo) is the sovereign wealth fund of the Brazilian state of Espírito Santo, capitalized by oil and gas royalty transfers. It deploys capital through multiple vehicles including a venture capital fund (FIP Funds 1), a digital startup acceleration program (Aceleração Digital), an ESG-linked debenture program, and a decarbonization credit program supporting technology, innovation, and energy-transition projects.

Product overview

FUNSES (Fundo Soberano do Estado do Espírito Santo) is a sovereign wealth fund that operates multiple investment products: the core Funses fund for intergenerational savings, the FIP Funses 1 venture capital fund for startup investment and acceleration, the Aceleração Digital program for digital startup acceleration, the Funses ESG de Desenvolvimento for sustainable debenture financing, and the Fundo de Descarbonização for green economy initiatives. All programs are coordinated with Bandes (development bank) and operated through selected partners including TM3 Capital and ACE Ventures.

Differentiator

Problem solved

Functional benefit

Brands

• FIP Funses 1: Fundo de Investimento em Participações (FIP) venture capital multiestrategy fund linked to FUNSES, investing in startups and innovative companies in Espírito Santo with R$ 250 million initial allocation.
• Fundo de Descarbonização
• Funses ESG de Desenvolvimento

Products and services

• FIP Funds 1

Quantifiable outcome

• Achieved 1st place in Brazil and Latin America, 3rd globally, in the Global Sovereign Funds Ranking 2025
• +6 more outcomes

Named customers10 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• ACE Ventures (ACE)coreStrategic or Co-development Partner · 18 March 2022ACE Ventures serves as the acceleration partner for Funses 1, executing both digital and in-person acceleration programs. Founded in 2012 by Pedro Waengertner and Mike Ajnsztajn, ACE has accelerated 150+ startups, completed 27 exits, and conducted 100+ acceleration programs. It has verticals in venture capital, consulting (ACE Cortex), education (Future Dojo), and M&A advisory.

Scale indicators12 records

Recent moves10 records

Expansion highlights5 records

Broad incumbents

• GIC (Singapore): Singapore's sovereign wealth fund managing the country's foreign reserves with significant exposure to private equity, real estate, and infrastructure globally. Comparable as a diversified SWF applying institutional governance and multi-asset strategies.
• Temasek Holdings: Singapore state-owned investor with a diversified portfolio across PE/VC, growth equity, and direct strategic stakes. Comparable as a sovereign investor with active venture and growth-stage direct investments through structured vehicles.
• Khazanah Nasional: Malaysian state-linked sovereign investment fund with strategic holdings, venture activity, and economic development objectives. Comparable as a state-level investment fund pursuing both commercial returns and developmental mandates.
• Mubadala Investment Company: UAE sovereign investor with substantial VC, growth equity, and direct investment activity across technology and energy transition sectors. Comparable due to its explicit focus on energy transition investment and Latin America/emerging market deal sourcing.
• Government Pension Fund Global (Norway): The world's largest sovereign wealth fund, funded by oil and gas revenues and managed by Norges Bank Investment Management. Comparable as a commodity-funded SWF with rigorous governance, transparency, and benchmark global ranking — FUNSES is benchmarked against it in the 2025 Global Sovereign Funds Ranking.
• Qatar Investment Authority: Qatar's sovereign wealth fund investing globally across PE/VC, infrastructure, and direct holdings. Comparable as a hydrocarbon-funded SWF with growing commitments to energy transition and emerging-market venture investing.

Direct peers

• BNDES: Brazil's national development bank operates PE/VC and credit investment programs (including Criatec, similar venture vehicles) across Brazilian states. Most directly comparable Brazilian public investor deploying capital into startups and growth companies, with overlapping Decarbonization/transition mandates via BNDESPar.
• Alaska Permanent Fund: Subnational (state-level) sovereign wealth fund established with oil-resource revenues and a multi-generational mandate. Directly comparable as a state-level SWF funded by natural-resource royalties with intergenerational and economic development objectives.
• Fundo Soberano do Kuwait (KIA): The Kuwait Investment Authority is one of the world's oldest sovereign wealth funds, funded primarily by hydrocarbon revenues and mandated to invest across generations. Comparable in commodity-driven capital base, intergenerational savings mandate, and global diversification into PE/VC.

Regional players

• Public Investment Corporation (South Africa): Africa's largest investment manager, with mandates to invest domestic pension and sovereign capital across asset classes including infrastructure and development. Comparable as an emerging-market state investment institution with development-aligned mandates.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments7 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FUNSES1