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June 24, 2020

Credit Suisse to pick minority interest in Brazilian digital broker modalmais

Swiss investment bank Credit Suisse has agreed to buy a stake of up to 35% in Brazilian digital broker modalmais.

Under the strategic long-term agreement inked between the two parties, the Swiss bank will buy preferred shares equivalent to up to 35% of the Brazilian firm’s total capital.

Financial terms of the transaction were not divulged.

Founder Diniz Ferreira Baptista along with co-CEOs Cristiano Ayres and Eduardo Centola will continue to remain in charge of modalmais.

Credit Suisse International Wealth Management Brazil CEO Marco Abrahão said: “modalmais has a modern digital platform that can benefit our clients in Brazil.

“It also gives us access to an additional segment of clients.”

The Brazilian digital broker was created in October 2015. Currently, it has an active client base of nearly a million and around BRL10bn ($10bn) in assets under custody.

Through the partnership, Credit Suisse intends to distribute its products including structured notes, funds, debt transactions and share offerings to the clients of modalmais.

The two firms aim to work alongside each other to explore synergies between their investment offerings.

modalmais founding partner Diniz Ferreira Baptista said: “modalmais will continue its growth trajectory.

“Most importantly: the platform will be able to offer more solutions to its expanding client base with the experience and sophistication of Credit Suisse by its side.”

modalmais co-CEO Eduardo Centola welcomed the deal, saying that the alliance will aid the firm’s transformation into an internationally recognised brand.

Credit Suisse has been operating for over 60 years in Brazil, where it offers private banking, asset management, and investment banking services.

The latest partnership comes shortly after the bank acquired a majority stake in its China securities joint venture.

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