Vórtx, a capital market infrastructure fintech with more than half a trillion assets on its platform, acquired control (51%) of Basement, a platform for managing long-term incentive programs (ILPs) and controlling equity interests. The transaction, whose value was not disclosed, follows FTV Capital-led BRL 190 million Series B, and the fintech‘s plans to expand infrastructure to the capital markets.
“Basement had been disputed by other players in the market in recent years, but until then, it had not accepted any M&A process,” said Juliano Cornacchia, co-founder and CEO of Vórtx, in a press release.
“It was mainly the shared conviction that there will be a more liquid and efficient market for unlisted companies that sparked our interest in joining forces with Vórtx,” added Frederico Rizzo, CEO and co-founder of Basement.
To accelerate its expansion in addition to organic growth and new businesses, Vórtx has also been investing in acquisitions. The purchase of the control of Basement comes after the acquisition of Simplific Pavarini, one of the most traditional trustees in Brazil, with around R$ 200 billion in the custody of corporate debt, investments in Investtools (technology for investment managers), in Preparation (hiring and recruitment startup) and at Parfin (infrastructure platform for investing in crypto assets).
Basement was created from a problem identified by the founders of the business while they were undertaking in the equity crowdfunding market: the difficulty of managing a cap table with many partners. Basement itself has already received investments via equity crowdfunding and has more than 300 investors in its corporate structure. The platform also helps public and private companies manage stock options, making it simple to share equity so that more people can acquire financial assets.
“Part of the investment went to buying some of the participation of crowdfunding investors,” explained Cornacchia. “The purchase is strategic and reinforces Vórtx’s financial services arm, bringing people and systems to areas such as bookkeeping of all types of assets, linked to Vórtx operations or not, to escrow accounts, and Basement’s ILPs product. We will be even better able to work on this important business front of the market. Basement will work integrated with the Vórtx ecosystem. Still, it will continue with its brand, founders, and team independently and with enough autonomy to continue executing the business plan outlined”.
Both companies are part of the CVM’s Regulatory Sandbox (the innovation sandbox by Brazil‘s SEC), Vórtx with a blockchain platform for the secondary market, and Basement with bookkeeping for privately-held companies.
The recent regulatory change for Brazilian corporations was another factor favoring the Basement acquisition by Vórtx. With DREI’s Normative Instruction 82, corporate books must have a digital format, which opened a new market for the digital bookkeeping and managing of these documents. Basement created a product for that.