Ex-ArcelorMittal Dealmaker’s $1 Billion Fund: A Play on Infrastructure and the U.S. Investment Accelerator

The retirement of Jefferson de Paula, a 34-year veteran of ArcelorMittal and former CEO of its South American Long Products and mining business, marks the end of an era at one of the world’s largest steel producers. But de Paula’s exit in April 2025 is not an end to his career in dealmaking—it is a pivot. He is now raising a $1 billion fund, leveraging his expertise in global industrial assets and the timing of a U.S. policy shift aimed at accelerating large-scale investments.

The Deal Architect’s New Playbook

De Paula’s career at ArcelorMittal spanned critical roles in managing complex supply chains, navigating regulatory environments, and executing deals in volatile markets like Brazil and Argentina. His new fund, while details remain sparse, is likely targeting infrastructure and energy projects—sectors where his experience in heavy industry and emerging markets could provide an edge. The timing aligns with President Trump’s Executive Order 14255, which created the United States Investment Accelerator in early 2025. This initiative aims to fast-track permits and streamline regulations for investments exceeding $1 billion, particularly in strategic sectors like semiconductors, energy, and advanced manufacturing.

The U.S. Investment Accelerator: A Tailwind or a Hurdle?

The Accelerator, housed in the Department of Commerce, has been tasked with reducing bureaucratic delays for large projects. For a fund like de Paula’s, this could mean smoother permitting for renewable energy plants, mining ventures, or infrastructure upgrades. However, success hinges on the Accelerator’s ability to overcome entrenched regulatory inertia.

ArcelorMittal’s stock has fluctuated with global steel demand, but its experience in navigating complex markets could inform de Paula’s fund’s risk management.

Sector Focus: Where Might the $1 Billion Go?

While de Paula’s fund has not disclosed its strategy, the Accelerator’s priorities suggest three key areas:

1. Renewable Energy Infrastructure: Projects like solar farms or offshore wind facilities require large capital outlays and federal permitting.
2. Critical Minerals Mining: The U.S. seeks to secure supply chains for lithium, cobalt, and rare earth elements—sectors where ArcelorMittal has historical expertise.
3. Green Steel Production: With global demand for low-carbon steel rising, investments in hydrogen-based or electric arc furnace technologies could attract the fund’s attention.

Risks and Realities

The fund faces headwinds. The Accelerator’s effectiveness depends on interagency cooperation and congressional action to reform permitting laws like the National Environmental Policy Act (NEPA). Without legislative changes, delays could persist. Additionally, global steel demand remains sluggish due to trade wars and overcapacity.

The industry’s capacity utilization has hovered below 80% since 2020, indicating persistent oversupply—a challenge for any infrastructure fund.

Conclusion: A Calculated Gamble

De Paula’s $1 billion fund is a calculated bet on two variables: the U.S. regulatory tailwind and the long-term demand for critical infrastructure. If the Accelerator can deliver on its promise to cut red tape, sectors like renewable energy and critical minerals could offer asymmetric returns. However, the fund must navigate geopolitical risks (e.g., China’s dominance in rare earths) and market volatility.

The stakes are high. Corebridge Financial’s recent pre-funding of a $1 billion debt maturity (part of its $2.4 billion liquidity buffer) underscores the premium placed on capital discipline in uncertain times. For de Paula’s fund, success will require not just strategic vision but also the agility to adapt to regulatory shifts and market cycles—a skill set honed over three decades in the rough-and-tumble world of industrial commodities.

In a sector where returns are often incremental, this fund’s ambition to achieve scale quickly could set a new benchmark—or reveal the limits of even the best-planned industrial turnaround.