- XP’s rival BTG has attracted the offices linked to XP and formed a partnership with them, transforming them into brokerage houses, which gives these companies more control over their client base;
- Now, XP paves its way to this new business model as a partner of Messem.
Brazilian broker XP Inc. and the independent agents’ office linked to XP, Messem Investimentos, announced the creation of a new brokerage house. XP will have a 49.9% stake in the new business, while Messem will hold 50.1%.
Messem’s shift from an office of autonomous agents to a brokerage house is XP’s response after losing at least four offices of autonomous agents to rival BTG Pactual. BTG has attracted the offices linked to XP and formed a partnership with them, turning them into brokerage houses, which gives these companies more control over their client base.
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Now, XP paves its way to this new business model as a partner of Messem. Guilherme Sant’Anna, managing partner of XP Inc. said in a press release that the new partnership model will open even more opportunities to accelerate XP Inc.’s growth in a changing financial market. “The partnership with Messem is the first step of a new moment for XP Inc., always focusing on what is best for our clients and, also, for our partners.”
Messem was born 14 years ago as a branch of XP in Brazilian Southern city of Caxias do Sul. Today, the company operates in more than 15 cities in Brazil, with over BRL 15 billion of assets under management and a team of 400 people among advisors, specialists, and support areas.
Mauro Silveira, CEO at Messem, said that being the first office of XP’s autonomous agents to become a brokerage house demonstrates the transformation that the sector has been going through and reinforces the long-term partnership between the two companies.
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“For us, the development of this new business model, alongside XP, is a natural path. Our focus has always been and will continue to be, to offer the best service to our clients. Today, we take another step in that direction, with the possibility of further customizing the experience of each investor,” he said.
The new brokerage is expected to begin operations in the next 12 months and still depends on the approval of the applicable regulatory entities, including the Brazilian Central Bank.