Chinese conglomerate Fosun has agreed to acquire Guide Investimentos, a Brazilian wealth manager and institutional brokerage.
Sao Paulo-based Guide is part of Brazilian lender Banco Indusval, which will now retain a maximum 20% stake in the company.
The deal consideration includes an initial payment of $52m and a further $37m based on Guide’s future performance.
Fosun global partner and executive director Alex Gong said: “As a value investor, Fosun’s continued investment in Brazil reflects our long-term development strategy in Latin America and Brazil market. For us, serving the world’s family clients with top-quality goods and services is our core mission and Guide is another key addition to our global platform.”
The transaction is expected to be wrapped up in the first half of 2018, subject to regulatory approval.
Banco Indusval CEO Jair Ribeiro said: “We always wanted a partner that could reinforce the non-bank DNA of Guide, invest in its technology capacity and bring a global view to the investments of Guide’s clients. Guide’s growth in the last few years has propelled the company to 50.000 clients and today’s agreement with a major global financial partner like Fosun was always our planned next step.”
The latest acquisition aligns with Fosun’s plan to expand footprint in emerging countries, mainly in Latin America. The Chinese firm established its presence in Brazil with the acquisition of Rio Bravo Investimentos in 2016.