Global growth investor General Atlantic has agreed a BRL420m ($200m) deal for a 31 per cent stake in XP Investimentos, Brazil’s largest independent brokerage.
XP deals with more than BRL20bn of trades each month and has more than 70,000 retail investors.
Emerging markets-focused private equity firm Actis part-exited its investment in XP by selling half its original stake to GA as part of the deal.
Actis bought a minority stake in XP for $58m in 2010. Since then the company has more than doubled in value, diversified into new product lines, and made five acquisitions.
Chu Kong, partner of Latin America at Actis, said, “The financial services sector in Brazil is extremely appealing to Actis – it is high growth and dynamic.
“XP has been a star investment for us and continues to perform well.
“The investment of significant new funds by General Atlantic will help strengthen XP’s capital base and support the company’s growth trajectory towards an IPO within the next few years.
“Meanwhile, Actis is able to capitalise on the significant value created to date and return money to investors.”
General Atlantic also owns a stake in Brazilian health insurance broker Qualicorp, which it increased when Carlyle bought into the company in July 2010.
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