Brazilian financial services platform XP has agreed to acquire a minority stake in local quantitative investment manager Giant Steps.
The financial terms of the deal were not disclosed.
A leader in systematic funds, Giant Steps is said to have nearly BRL7bn ($1.39bn) in AUM.
The deal is expected to help the investment manager further build its product portfolio and fuel its international growth plans.
It is also expected to help Giant Steps to undertake overseas recruitment by opening offshore branches.
XP partner Gustavo Pires said: “This partnership places XP alongside one of the most innovative managers in the country, which has been generating robust results in recent years for its clients through the intensive use of technology.
“This combination along with an exceptional team, positions Giant Steps as the leading player in this rapidly growing market.”
Giant Steps founding partner Flavio Terni said: “We have chosen XP as we believe that with their support we will further accelerate our investments in fronts that we believe are sources of competitive advantage: people, expansion of technological infrastructure and the acquisition/development of alternative data – such as sentiment analysis on Twitter to image and video processing.”
The completion of the transaction is subject to certain customary conditions.
Headquartered in Sao Paolo, XP focuses on offering low-fee financial products and services in Brazil.
Last year, the platform entered into a wealth management partnership with a team of private bankers.