Advent International, the global private equity firm, has acquired 30 per cent of CETIP – Balcao Organizado de Ativos e Derivativos, the largest central depository for private fixed-inc
Advent International, the global private equity firm, has acquired 30 per cent of CETIP – Balcao Organizado de Ativos e Derivativos, the largest central depository for private fixed-income securities and over-the-counter derivatives in Latin America.
The value of Advent’s investment was approximately BRL360m (USD170.6m), subject to an earn-out achievement and other conditions, making it the largest private equity transaction in Brazil this year. The investment has been approved by the Brazilian regulatory authorities.
CETIP was created jointly by the Central Bank of Brazil and numerous market participants in March 1986 to effect the processing of transactions in the Brazilian financial market with greater security and agility. The company remained a mutual-owned non-profit organisation until it was demutualized in June 2008.
Today CETIP offers registration, custody, trading and collateral management to 8,200 customers, including banks, brokerage houses, securities dealers, leasing companies, insurance companies, investment funds and pension funds.
"We are confident that Advent can help CETIP develop to its full potential and aid in the development of the Brazilian capital markets," says Martin Escobari, a managing director in Advent International’s Sao Paulo office. "Advent can leverage its deep knowledge of financial services and local presence to help CETIP strengthen its management processes, new product development and build deeper relationships with its customers."
CETIP is Advent’s third recent investment in Brazil and its tenth investment in the Latin American financial services sector. In September 2008, Advent acquired Frango Assado, Brazil’s largest highway restaurant chain, and Quero-Quero, a home-improvement retailer, credit-card issuer and consumer-finance company in southern Brazil.
"We selected Advent to be our strategic partner and largest individual shareholder for the transformation of CETIP after a long and detailed process of mutual discovery," says Edgar da Silva Ramos, chairman of CETIP’s board. "Advent was extremely diligent, showed its sector knowledge and has already built confidence with market participants. All this bodes well for our partnership in the future."
