XP Investimentos, a Brazil-based independent brokerage firm, has received a US$58m equity investment from Actis.
With the investment, which is still subject to approval by the Brazilian Central Bank, Actis has acquired a minority stake in the company and will help XP Investimentos prepare for an IPO. In particular, the capital will enable XP to invest in technology, network expansion, new product development, and the pursuit of selective acquisitions.
The company provides individuals with access to financial education with tipics ranging from investment basics to advanced portfolio management strategies. The XP Group also includes an asset management company with more than US$350m under management, and an insurance broker.
This is the third deal by Actis in Brazil in the past three months having invested US$58m in Brazilian supermarket chain Companhia Sulamericana de Distribuicao in September 2010 and US$53m in Gtex Group, a cleaning products manufacturer, in October 2010.
The investment in XP will be made from its US$2.9bn fund, Actis Emerging Markets 3.