General Atlantic to buy 31 pct stake in Brazil brokerage

Thu Dec 6, 2012 4:09am IST

* Stake valued at $200 million

* Purchase follows 2010 investment by Actis

SAO PAULO Dec 5 (Reuters) - U.S.-based buyout firm General Atlantic LLC agreed to pay 420 million reais ($200 million) for a 31 percent stake in XP Investimentos CCTVM SA, Brazil's largest independent brokerage, the companies said on Wednesday.

The purchase, XP said, puts off plans the brokerage had of listing shares on the stock market next year. "We got to know General Atlantic and our plans changed," said Guilherme Benchimol, XP's founder. "We have all we need now for the next few years."

XP, founded in 2001, boasts more than 70,000 retail investors and handles more than 20 billion reais ($9.6 billion) worth of trading each month. XP also owns educational, insurance, and wealth management units. XP has said it was considering offering investment banking services, too.

The purchase by General Atlantic follows a 100 million real ($47.8 million) investment in the brokerage last year by private equity firm Actis. Fo llowing that transaction, XP's original partners retain 59 percent of the brokerage and Actis owns 10 percent.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage