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Actis Invests US$58 Million in XP Investimentos, Brazil's Largest Independent Brokerage Firm.

SAO Sa´o

n. 1. (Zool.) Any marine annelid of the genus Hyalinæcia, especially H. tubicola of Europe, which inhabits a transparent movable tube resembling a quill in color and texture.
 PAULO, November 26, 2010 /PRNewswire/ -- Actis, the global emerging markets private equity specialist, has acquired a minority stake in XP Investimentos, Brazil's largest independent brokerage firm, through a capital injection of US$58 million. Actis will work with XP to prepare it for an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . The transaction is subject to approval by the Brazilian Central Bank.

XP Investimentos was the pioneer in providing individuals with access to financial education and now has the largest capital markets educational programme in Brazil. More than 300,000 people have been trained by XP in topics ranging from investment basics to advanced portfolio management strategies.

This is the third investment by Actis in Brazil in the past three months. Actis invested US$58 million in Brazilian supermarket chain Companhia Sulamericana de DistribuicEuo ('CSD') in September 2010; and US$53 million in Gtex Group, a cleaning products manufacturer, in October 2010. Actis's investment in XP will be made from its US$2.9 billion fund, Actis Emerging Markets 3.

XP started operations in 2001 and currently has over 70,000 customers and 215 branches in more than 100 Brazilian cities. The brokerage firm has recently been recognised as one of the "Most Innovative Companies in Brazil" by Epoca magazine, and one of the "Best Companies to Work For" by the Great Place to Work Institute.

In addition to brokerage and education, the XP group also includes an asset management company with more than US$350 million under management, and an insurance broker.

Guilherme Benchimol, General Manager of XP said, "Our vision is for XP to become Brazil's largest 'financial shopping centre'. In Brazil today, universal banks dominate the market and mostly limit their offering to their own products. Our independent status enables us to offer all our customers, in one place and with low minimum tickets, access to stock exchanges, mutual funds, bonds, pensions, insurance and any other financial product."

Actis's investment in XP reflects a belief in the potential of this sector in Brazil, where despite recent growth, only 0.3% of Brazilians invest directly in equities. It is anticipated that in the coming years this number will grow exponentially, reaching 5 million people, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 estimates from the Brazilian Stock Exchange.

Actis's investment will enable XP to solidify so·lid·i·fy  
v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies

v.tr.
1. To make solid, compact, or hard.

2. To make strong or united.

v.intr.
 the high growth seen in recent years, and to invest in technology, network expansion, new product development, and the pursuit of selective acquisitions. With several other investments in financial institutions across the emerging markets, Actis plans to support XP in the preparation of an IPO, to become the first publicly traded company publicly traded company

A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market.
 in this sector in Brazil.

Chu Kong, co-Head of Actis in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , said, "This investment reflects our confidence in Brazil and the strong growth potential of the market segment. Actis has a successful track record in the financial sector and will bring this expertise to leverage XP's growth."

Paul Fletcher, Senior Partner at Actis, said, "This partnership consolidates Actis's position as one of the most active private equity investors in Brazil, further strengthening our ability to make future investments in the region."

About Actis

Actis is a leading private equity investor in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$4.7bn funds under management. Actis has over 100 investment professionals on the ground in 9 offices worldwide.

Actis is committed to promoting the sustainable growth of the private sector in the emerging markets. Our aim is to ensure that the capital we raise and manage makes a lasting, tangible and positive difference in the countries in which we operate by creating opportunities for the companies in which we invest, as well as their stakeholders Stakeholders

All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government.
.

http://www.act.is
 For further information please contact:
     SEuo Paulo, Brazil
    Vanessa Godoy
    Printec ComunicacEuo
    +55-11-5182-1806
    vanessa.godoy@printeccomunicacao.com.br
    London, UK
    Claire Davies
    Actis
    +44-207-234-5115
    cdavies@act.is 
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Publication:PR Newswire Europe
Geographic Code:3BRAZ
Date:Nov 26, 2010
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