Machado Meyer helps Faros in partnership with XP in the creation of a new brokerage house
Machado Meyer Advogados assisted Faros Investimentos in partnership with XP Investimentos S.A., for the incorporation of a brokerage house
Machado Meyer Advogados advised Faros Investimentos (the largest firm of independent investment agents in Brazil, with R$ 20 million under custody) and its partners in the preparation, negotiation and execution of a binding memorandum of understanding with XP Investimentos S.A., for the incorporation of a brokerage house (DTVM).
In the company, XP will have a 28% stake and the current partners of Faros will have a 72% stake, aiming at their equity participation, aiming at the private segment of XP.
The transaction may include other companies of the Faros group and will also depend on the signing of definitive agreements, which will include a shareholders’ agreement and operational agreements for the use of the XP platform.
This is a relevant transaction, through which XP took an important step to form a partnership with the largest company of independent agents in Brazil, which was already accredited to XP since 2013.
This move is part of a series of partnerships that have been occurring recently, in which financial institutions are in fierce competition to form partnerships with their accredited independent investment agents, generating a wave of broker creation in the financial market, which only tends to increase the competitiveness, quality, and volume of the industry.
Also, in comparison with the partnerships signed by XP with other accredited independent investment agents (this is the third announcement made by XP in less than 10 days), this was the first time XP remained as a minority shareholder in the partnership, aiming at a more robust and lasting project.
Machado Meyer advised Faros Investimentos and its partners with a team formed by the partner Guilherme Malouf (pictured) and the lawyer João Guilherme Soggio Gomes de Oliveira.
XP Investimentos S.A. was assisted by internal legal advisors.
