Actis , a growth investor, has agreed to sell its remaining stake in XP Investimentos, a large independent retail brokerage firm in Brazil, to US investment firm General Atlantic , according to a statement.
Terms of the transaction were not disclosed.
Actis sold half of its stake in XP Investimentos to General Atlantic in January 2013. The latest transaction will see Actis exit its involvement with XP Investimentos completely, according to the statement.
It is unclear which fund General Atlantic is investing from. The firm did not respond to a request for comment.
Actis first invested in XP Investimentos in 2010, when it acquired a $58 million minority stake. The investment has helped the company capitalise on a surge in interest among Brazilians for investment products, including equities, mutual funds, bonds and insurance. With Actis's backing, the company has invested in technology, has diversified into new product lines and made a series of acquisitions, according to the statement.
“We have been delighted to support XP Investimentos and help cement its position as the largest independent financial platform in Brazil,” said Chu Kong, co-head of Latin America at Actis, in the statement.
“It has enjoyed strong growth, achieved both organically and through carefully selected acquisitions.”
Actis also strengthened the board of XP Investimentos with the appointment of Mark Collier as non-executive director in 2012. Collier was previously president of Charles Schwab Europe and co-CEO of Schwab International. The XP Investimentos management team is led by Guilherme Benchimol.
XP Investimentos, founded in 2001, has also been providing retail investors with access to financial education. The company has trained more than 500,000 people in topics ranging from the basics of personal finance to advanced portfolio management strategies.
London-based Actis has $7.6 billion in assets under management and has invested $1.1 billion in the financial services sector across growth markets, including $230 million in the sector in Latin America. Actis typically makes buyout and growth investments with a minimum size of $50 million. The firm applies developed market disciplines to growth markets through a team of 100 investment professionals in 10 offices throughout Africa, China, India, Latin America and South-East Asia.
The firm has invested more than $4.4 billion in over 160 companies in financial services, oil and gas, retail, mining, real estate, infrastructure, leisure, telecoms, healthcare, manufacturing and agribusiness sectors. Actis recently exited pan-African electronic payment company EMP Holdings.
New York-based General Atlantic is a growth equity firm founded in 1980 and has $17.9 billion assets under management. General Atlantic provides capital and strategic support for growth companies, with 100 investment professionals based in New York, Greenwich, Palo Alto, Sao Paulo, Mexico City, London, Munich, Amsterdam, Beijing, Hong Kong, Mumbai and Singapore. The firm's latest fund, General Atlantic Separate Account fund held a close of $250 million in January, according to PEI Research and Analytics.