Techtools creates Techtools Capital and plans to take a position BRL 5 billion in actual property and credit score
The manager, which is known in the market for betting on healthtechs through its venture capital fund, is creating Techtools Capital to invest in real estate and credit.
Techtools became known in the market for being a holding company that invests in healthtechs through venture capital. The first BRL 100 million fund invested in eight startups and was completely divested in 2021, with a return of 14 times the capital invested, according to Jeff Plentz, the manager and founder of the fund.
Now, Plentz is starting an ambitious new BRL 5 billion plan to take Techtools into asset classes other than venture capital. He is creating Techtools Capital to enter the real estate area and provide credit to a group of hospitals that are on the fringes of the financial market: Santas Casas.
“Santas Casas and philanthropic hospitals move more than R$ 100 billion a year”, says Plentz, to the NeoFeed. “And they have funding needs that no one meets.”
The idea is to leave exclusively the bits and bytes of healthtechs and invest in bricks and mortar, carrying out renovations, building annexes and equipping hospitals. In this endeavor, Plentz negotiates with construction companies, which will be investment partners.
“We want to contribute up to 30% of the capital”, says the founder of Techtools. “In up to five years, the intention is to equip, renovate or build up to 200 hospitals.”
In credit, Plentz is talking to banks and FIDCs (credit rights investment fund) to make offers to hospitals. The loans will be guaranteed by transfers of funds from the SUS, which are limited to 30% of the amounts that institutions have to receive. “They have a cash flow problem, but not insolvency,” says Plentz.
Techtools will not abandon venture capital. The company is also setting up a R$1 billion equity investment fund (FIP). Of this amount, R$ 250 million will be invested in healthtechs at an early stage. The remainder of the capital will be reserved for growth.
Two investments have already been made. The first was at Revo, which produces innovative orthopedic prostheses with recyclable materials. She was invested in fund 1 and received more resources now. The second investment was in Engenetiq, a biotechnology company from Minas Gerais that developed a low-cost DNA extractor.
Where does the money come from?
Of the BRL 5 billion he needs to get these initiatives up and running in up to five years, Plentz says he already has BRL 2 billion at home to start the projects, of which BRL 1.4 billion is from the earnings of his first venture capital fund and R$600 million were raised with family offices in Belgium and Italy.
To raise more capital, Plentz says construction and credit partners should also contribute resources to the projects. He is also prospecting resources with more LPs (limited partners). “Today, it is easier to raise funds from foreign investors than from Brazilian ones”, says Plentz. “They are living the scenario of inflation and high interest rates and they are seeing that we know how to deal with it better than they do.”
Plentz’s asset in raising capital is its arm that provides services and sells technology to healthcare companies, especially hospitals and healthcare providers. Today, Techtools Health, as this unit is called, has partnerships with 500 Santas Casas throughout Brazil.
It is in this consolidated aquarium that he intends to “fish”. In the case of the startups in which he invests, Plentz uses this immense “laboratory” to test and validate healthtech solutions that are at an early stage. In real estate and credit offers, the intention is to turn them into potential customers.
O NeoFeed spoke with some investors who believe that it will not be easy for Techtools to raise the capital it needs to carry out this billion-dollar project. They claim that the market is restrictive for new funding and that the manager has no experience in real estate and credit.
Plentz, in turn, claims that Techtools has a lot of experience in the healthcare area, the sector in which it intends to operate, and that expertise of real estate and credit will be in the hands of the partners that it intends to announce until the end of this year.