Actis Invests US$58 Million in XP Investimentos, Brazil's Largest Independent Brokerage FirmBy Actis Llp, PRNE
Thursday, November 25, 2010
SAO PAULO, November 26, 2010 - Actis, the global emerging markets private equity specialist,
has acquired a minority stake in XP Investimentos, Brazil's largest
independent brokerage firm, through a capital injection of US$58 million.
Actis will work with XP to prepare it for an IPO. The transaction is subject
to approval by the Brazilian Central Bank.
XP Investimentos was the pioneer in providing individuals with
access to financial education and now has the largest capital markets
educational programme in Brazil. More than 300,000 people have been trained
by XP in topics ranging from investment basics to advanced portfolio
This is the third investment by Actis in Brazil in the past
three months. Actis invested US$58 million in Brazilian supermarket chain
Companhia Sulamericana de Distribuição ('CSD') in September 2010; and US$53
million in Gtex Group, a cleaning products manufacturer, in October 2010.
Actis's investment in XP will be made from its US$2.9 billion fund, Actis
Emerging Markets 3.
XP started operations in 2001 and currently has over 70,000
customers and 215 branches in more than 100 Brazilian cities. The brokerage
firm has recently been recognised as one of the "Most Innovative Companies in
Brazil" by Época magazine, and one of the "Best Companies to Work For" by the
Great Place to Work Institute.
In addition to brokerage and education, the XP group also
includes an asset management company with more than US$350 million under
management, and an insurance broker.
Guilherme Benchimol, General Manager of XP said, "Our vision
is for XP to become Brazil's largest 'financial shopping centre'. In Brazil
today, universal banks dominate the market and mostly limit their offering to
their own products. Our independent status enables us to offer all our
customers, in one place and with low minimum tickets, access to stock
exchanges, mutual funds, bonds, pensions, insurance and any other financial
Actis's investment in XP reflects a belief in the potential of
this sector in Brazil, where despite recent growth, only 0.3% of Brazilians
invest directly in equities. It is anticipated that in the coming years this
number will grow exponentially, reaching 5 million people, according to
estimates from the Brazilian Stock Exchange.
Actis's investment will enable XP to solidify the high growth
seen in recent years, and to invest in technology, network expansion, new
product development, and the pursuit of selective acquisitions. With several
other investments in financial institutions across the emerging markets,
Actis plans to support XP in the preparation of an IPO, to become the first
publicly traded company in this sector in Brazil.
Chu Kong, co-Head of Actis in Latin America, said, "This
investment reflects our confidence in Brazil and the strong growth potential
of the market segment. Actis has a successful track record in the financial
sector and will bring this expertise to leverage XP's growth."
Paul Fletcher, Senior Partner at Actis, said, "This
partnership consolidates Actis's position as one of the most active private
equity investors in Brazil, further strengthening our ability to make future
investments in the region."
Actis is a leading private equity investor in the emerging
markets with a growing portfolio of investments in Asia, Africa and Latin
America; it currently has US$4.7bn funds under management. Actis has over 100
investment professionals on the ground in 9 offices worldwide.
Actis is committed to promoting the sustainable growth of the
private sector in the emerging markets. Our aim is to ensure that the capital
we raise and manage makes a lasting, tangible and positive difference in the
countries in which we operate by creating opportunities for the companies in
which we invest, as well as their stakeholders.
For further information please contact: São Paulo, Brazil Vanessa Godoy Printec Comunicação +55-11-5182-1806 firstname.lastname@example.org London, UK Claire Davies Actis +44-207-234-5115 email@example.com
For further information please contact: São Paulo, Brazil, Vanessa Godoy, Printec Comunicação, +55-11-5182-1806, vanessa.godoy at printeccomunicacao.com.br, London, UK; Claire Davies, Actis, +44-207-234-5115, cdavies at act.is
Tags: Actis Llp, Brazil, November 26, Sao paulo