SovereignWealthFunds.comFundo Soberano do Estado do Espirito Santo (FUNSES)
FUNSES: what it invests in
Geography Mainly domestic
FUNSES: how big it is, and on what basis
In US dollars: about USD 0.564B. R$ 2,934.7 million at the ECB rate of 5.2027 reais per US dollar on 30 September 2026.
FUNSES: what it publishes
Published 6 · Partly 3 · Not published 1
Our 10 item score. It measures what is public, not how well a fund is run.
- Transparency scoreS7
- 7.5 of 10
At a glance. FUNSES is the sovereign fund of the Brazilian state of Espírito Santo, built from oil and gas royalties since 2019. It held R$ 2.93 billion (about USD 564 million) on 1 October 2026. Sixty percent of inflows go to a development strand run by Bandes, backing startups and local companies, and 40 percent to a savings fund run by Banestes. S5 S6 S2
Key points
- R$ 2,934.7 million on 1 October 2026, per the official site. S5
- Net equity rose 27.7 percent in 2025 to R$ 2.37 billion. S3
- Royalty inflows of R$ 228.9 million in 2025. S3
- FIP Funses 1 venture fund: R$ 250 million committed, 42 portfolio companies. S3
- ESG debenture programme: R$ 189 million invested, up to R$ 50 million per project. S3
- Savings fund at Banestes held R$ 985 million at end 2025. S3
Interesting facts
Mandate and goals
FUNSES manages oil royalties for present and future generations through two strands: strategic investment for a more diverse state economy, and a savings reserve against oil revenue swings. S1
- Build economic infrastructure and attract new productive chains. S4
- Promote innovation and sustainability through startups and ESG projects. S4 S3
- Hold a long-term reserve that supports counter-cyclical fiscal policy. S4
- Spending rule: Inflows split 60 percent development (Bandes) and 40 percent savings (Banestes) under COGEF Resolution 03/2021 S2
How it invests
| Industries | Technology, Industrials and manufacturing, Agriculture and food security, Healthcare and life sciences, Renewables and climate S3 |
|---|---|
| Asset classes | Venture capital, Private credit, Fixed income, Cash and money markets S3 |
| Stages | Seed, Venture, Growth, Credit S3 |
| Geography | Mainly domestic S3 |
| Direct / through funds / co-invest | Yes / Yes / Yes S3 |
| Ticket size | ESG debentures up to R$ 50 million per project, FUNSES share up to 80 percent with 20 percent sponsor equity S3 |
| Deal sizes seen | Up to R$ 50M per debenture project |
| External managers | Quartzo Capital manages FIP Funses 1; Lions Trust administers it S3 |
| Co-investment programme | Venture fund and planned decarbonisation FIDC are built to draw private co-investment S3 |
Asset mix: Cash at Bandes 46%, Long-term funds (savings fund and FIP) 45%, ESG debentures 8% (as of 2025-12-31) S3
Published criteria
- Projects in Espírito Santo that diversify the economy. S3
- Debenture sponsors must put in at least 20 percent of their own capital. S3
- Savings strand aims to beat the CDI rate with a conservative-to-moderate profile. S3
Fund commitments
| Manager | Fund | Amount | Year |
|---|---|---|---|
| Quartzo Capital | FIP Funses 1 | R$ 250M | Not published S3 |
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2022 | FIP Funses 1. 10-year venture fund; 42 companies, R$ 84.2M invested and R$ 83.6M of private co-investment drawn in. S3 | Fund commitment | Technology | Venture | R$ 250M committed |
| 2023 | FUNSES ESG debenture programme. Non-convertible debentures in five private companies across industry, agribusiness, health, education and energy. S3 | Direct investment | Industrials and manufacturing | Credit | R$ 189M invested of up to R$ 250M |
| Not published | Banestes Funses FIF Multimercado. Savings strand fund aiming to beat the CDI rate. S3 | Fund commitment | Multi-sector | Public markets | R$ 985M |
| 2026 | Decarbonisation FIDC. Blended receivables fund at the call-for-proposals stage, with R$ 400M of planned mezzanine. S3 | Fund commitment | Renewables and climate | Credit | R$ 500M senior public capital (planned) |
Case studies
A state venture fund for Espírito Santo S3
- What: FUNSES set up FIP Funses 1 to back startups and tech firms through acceleration and direct deals.
- When: 2022 onward
- Size: R$ 250M committed
- Why: Raise the complexity and diversity of a state economy reliant on oil.
- Outcome: 42 companies backed, 32 via acceleration and 10 direct; private investors matched almost one for one.
ESG debentures for local projects S3
- What: A public call offered debenture finance to private companies with ESG projects in the state.
- When: May 2023 onward
- Size: R$ 189M invested
- Why: Fund industry, agribusiness, health, education and energy projects.
- Outcome: Five companies financed; the book grew 21.2 percent in 2025.
Investment process
COGEF, chaired by the Secretary of Development, approves the strategic plan within the Governor’s guidelines. Members include the Finance and Planning secretaries, the Attorney General and the heads of Bandes and Banestes; an executive secretariat runs operations. S3 S4
| Committee | Role |
|---|---|
| COGEF management council | Approves strategy, allocations and startup investments S3 |
| Executive Secretariat (SECEX) | Administrative body S3 |
- Public calls invite projects for the debenture programme. S3
- COGEF approves allocations and startup investments. S3
- Bandes and the venture manager execute; Banestes runs the savings fund. S3
How to approach: Startup and project programmes are published on the FUNSES site, with a contact form. S5
Size and returns
- Headline size: R$ 2.93B (Fund market value, as of 2026-10-01) S5 S6
- In US dollars: about USD 0.564B. R$ 2,934.7 million at the ECB rate of 5.2027 reais per US dollar on 30 September 2026.
- Net equity, end 2025: R$ 2.37B (about USD 433M) (Net assets or equity, as of 2025-12-31) S3 S8
- Returns: the fund does not publish a return figure.
- Size over time (BRL billion): 2024-12 1.85, 2025-12 2.37, 2026-10 2.93 S3 S5
Leadership
Governance and transparency
- Legal basis: Complementary Law 914/2019; Decree 4.765-R of 2020 as amended S1 S4
- Oversight: COGEF management council, linked to the State Treasury Secretariat S3
- Uses federal pension fund investment rules as a best-practice guide. S3
- COGEF resolutions and minutes are published. S7
Transparency score: 7.5 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
FUNSES actively seeks private co-investors: its venture fund drew nearly one private real for each public real, and the planned FIDC adds mezzanine slots. S3
Reports
- FUNSES performance report 2025: https://fundosoberano.es.gov.br/Media/FUNSES/Relat%C3%B3rios/Relat%C3%B3rio%20de%20desempenho%20FUNSES%202025.pdf S3
Common questions
How big is FUNSES?
R$ 2.93 billion on 1 October 2026, about USD 564 million. S5
Where does its money come from?
A share of Espírito Santo oil and gas royalties and special participations. S2
Does it invest in startups?
Yes, through the R$ 250 million FIP Funses 1, managed by Quartzo Capital. S3
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All sovereign wealth funds in Latin America and Caribbean · All strategic development funds · All funds in Brazil
Sources
Disclaimer
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