How 3G Capital’s João Castro Neves Wins

João Castro Neves has shaped myriad companies with his strategic vision and effective management. He’s driven growth and enhanced their operational efficiencies, especially in the beverage industry and most recently as an instrumental player in 3G Capital’s acquisition of the venerable home furnishings concern Hunter Douglas.

“3G Capital and Hunter Douglas share a strong belief in durable value creation through operational excellence, entrepreneurship, and a culture of meritocracy,” said Castro Neves, a partner at 3G. “I look forward to working closely with David Sonnenberg and the Hunter Douglas management team as we accelerate Hunter Douglas’ growth in partnership with our remarkable founders, managers, and business partners.”

João Castro Neves and his partners take an immersive approach to investing. Many firms invest in companies to achieve short-term growth and then make a quick profit. 3G Capital takes a different avenue. This firm seeks companies it can invest in, own, and operate over the long term. This high-level approach has seen 3G Capital achieve great success with giants like Kraft Heinz and Burger King. At Burger King, 3G Capital’s 2010 buyout and transformation of Burger King into Restaurant Brands International yielded 3G nearly $19 billion on its initial $1.6 billion equity investment, as recently cited by the Financial Times as among the most profitable private equity industry transactions. Since its 2010 acquisition of Burger King Holdings, 3G Capital has been the company's largest shareholder supporting the company's global growth transformation including the creation of RBI (Restaurant Brands International) and acquisitions of Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs, generating approximately over 20 times in total shareholder returns.

The investment firm’s small, exclusive portfolio reflects the specific criteria that João Castro Neves and his partners follow when seeking investment opportunities. Many private equity firms have as many as 100 companies in their portfolios. 3G Capital’s strategy is far more selective — it typically invests in one company every few years.

Shaping Businesses Around the World

João Castro Neves first entered the business space over 30 years ago, helping his architect father. Together, they worked on home and renovation projects in Rio de Janeiro, foreshadowing the impressive projects Castro Neves would later take on.

Castro Neves also completed a degree in computer engineering at the Pontifical Catholic University of Rio de Janeiro and an MBA at the University of Illinois. Today, Castro Neves remains actively involved with the University of Illinois, serving on the External Advisory Board for the Lemann Center for Brazilian Studies at the University of Illinois, endowed by 3G Capital co-founder, Jorge Paulo Lemann.

Over the years, Castro Neves has worked in France, the U.S., Argentina, and his native country, Brazil. Having developed experience and expertise worldwide, he’s in an unrivaled position to support enterprises all over the globe. Since 2015 he’s lived in New York with his wife of nearly 30 years and his daughter.

Global Leadership

During his extensive career, João Castro Neves dedicated 20 years to serving Anheuser-Busch InBev, the world’s biggest brewing company, in global leadership roles. As the CEO of Anheuser-Busch and the North American Zone president of AB InBev, he typified the type of thought leadership that propelled him to the top. “I was responsible for running its North America operations and led a team of more than 19,000 employees,” he posted on LinkedIn. “During my tenure at AB InBev, I helped grow publicly listed subsidiary Ambev into the most valuable company in Latin America in terms of market capitalization. We achieved those results primarily through three pillars — reputation, innovation, and productivity to reinvest”.

João Castro Neves’ Latest Milestone: Becoming the CEO of Hunter Douglas

In 2021, 3G Capital announced it would buy Hunter Douglas for $7.1 billion. When it comes to businesses with longevity, a deep history in their markets, and incredible growth potential, it’s hard to top the window coverings manufacturer and retailer Hunter Douglas. A family-owned and run business that traces its roots back to 1919, the company has grown to be the No. 1 global player in its market. So it was with some surprise that the family-run business was acquired by a private equity firm in 2022. Over the past hundred years, Hunter Douglas has always invested strategically, with the goal of strengthening its core business and growing throughout its value chain and market channels. It’s become the most widely recognized name in the industry with unmatched consumer brand awareness and a diversified product offering and channels such as e-commerce.

In conjunction with the Sonnenberg family — which continues to own 25% of the enterprise — 3G Capital developed a new “best-of-both” management team to ensure Hunter Douglas’ future success. At the core of this team, its leaders selected João Castro Neves as the new CEO. With substantial experience and expertise in consumer-facing companies, Castro Neves is well placed to steer Hunter Douglas’ ongoing success in over 100 countries.

When 3G’s co-founder and co-managing partner, Alex Behring, and his team were looking to add another company to its portfolio, the firm saw not only a formidable and popular brand that had proved its longevity, but also a company with robust organic and inorganic growth potential across multiple geographies and channels. It saw an opportunity to collaborate closely with family leadership to help a prized consumer brand grow to even greater heights.

For 3G and Alex Behring, it was the firm’s first new platform investment in several years and embodies what the company seeks as long-term investors and operators — a fundamentally vigorous, easy-to-understand business that demonstrates solid leadership, matched with a resilient business model. Straight after the transaction closed, Alex Behring and 3G appointed a highly experienced management team of 3G partners and existing Hunter Douglas executives. The best-of-both combination is designed to lead Hunter Douglas into its next phase of growth and operational improvement. Subsequently, 3G Capital appointed João Castro Neves to serve as Hunter Douglas Group CEO.

Since 3G acquired Burger King, the company has seen material international expansion taking the company’s brands into more than 30 new countries and infilling existing countries. Originally, Tim Hortons was almost exclusively in Canada; now, there are around 700 Tim Hortons in China alone.

Hunter Douglas is barely scratching the surface internationally in areas like Latin America and Asia. For 3G, Hunter Douglas’ brand and consumer reputation seem to have been big draws.

Additionally, 3G’s acquisition of Hunter Douglas serves as an illustration of how sustainability and sound investment decisions can merge harmoniously. Hunter Douglas offers a range of innovative products that grant homeowners the ability to effortlessly regulate natural light and heat, leading to a notable reduction in energy consumption and costs. Hunter Douglas products provide insulation and temperature management, with solid energy-saving paybacks. By leveraging Hunter Douglas’ products’ inherent benefits, 3G not only secures a competitive advantage but also invests in a more sustainable future.

João Castro Neves is now advancing Hunter Douglas’ growth with the company’s founders, managers, and business partners. His illustrious career has spanned continents, industries, and leadership roles. At the helm of 3G Capital and as the CEO of Hunter Douglas, he continues to impact the global investments arena.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.