XP Inc. Acquires Minority Stake in Vista Capital, a Leading Brazilian Asset Manager

Rhea-AI Summary

XP Inc. (Nasdaq: XP) has acquired a minority stake in Vista Capital, a prominent Brazilian equity and hedge fund manager with over R$4.5 billion in Assets Under Management (AUM). This acquisition aligns with XP's strategy to create a comprehensive ecosystem of financial managers and enhance market liquidity. Vista's leading fund has achieved a remarkable 444% return since inception. This collaboration is expected to expand XP's product offerings and foster growth in AUM, further democratizing investment access for Brazilians.

Positive

• Acquisition of minority stake in Vista Capital enhances XP's investment ecosystem.
• Vista Capital manages over R$4.5 billion in AUM, demonstrating strong market presence.
• Vista's flagship fund yielded 444% since inception, significantly outperforming its benchmark.
• Strategic partnership expected to drive growth in AUM and diversify financial products.

Negative

• None.

SÃO PAULO, Brazil, Nov. 16, 2021 (GLOBE NEWSWIRE) -- XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced today the acquisition of a minority stake in Vista Capital, one of the main independent equity and hedge funds managers in Brazil, with over R$4.5bn in Assets Under Management (AUM). This transaction reinforces XP’s strategy to develop the most complete ecosystem of managers and distributors in Brazil.

Additionally, the development of independent asset managers meets XP's strategy by contributing to an increase in secondary market liquidity, helping to democratize investment products to more Brazilians.

Vista has a solid performance track record in hedge funds and equity funds, with its flagship fund Vista Multiestratégia FIC FIM yielding 444% since inception and net of fees, against 68% of its benchmark. Both teams expect that, along with Vista’s ability to further develop new products, it can grow its AUM, and benefit both the asset manager and our funds platform.

Vista Capital
Founded in 2014 in Rio de Janeiro, Vista currently manages over R$4 billion in multimarket and equity investment funds.

About XP

XP is a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by:

• Educating new classes of investors;
• Democratizing access to a wider range of financial services;
• Developing new financial products and technology applications to empower clients; and

• Providing high-quality customer service and client experience in the industry in Brazil.

XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 800 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control.

XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.

FAQ

What is the significance of XP's acquisition of Vista Capital?

XP's acquisition of Vista Capital enhances its financial ecosystem and aims to improve market liquidity in Brazil.

How much AUM does Vista Capital manage?

Vista Capital manages over R$4.5 billion in Assets Under Management.

What are the expected outcomes of XP's partnership with Vista Capital?

The partnership is expected to increase Vista's AUM and expand XP's product offerings.

What is the performance of Vista Capital's flagship fund?

Vista's flagship fund has yielded 444% since its inception, net of fees.

What strategy does XP aim to achieve with independent asset managers?

XP aims to democratize access to investment products and increase secondary market liquidity.