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

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

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