Brazil-based investment management and advisory firm XP has committed R$8bn ($1.5bn) from its own balance sheet to a corporate venturing subsidiary called XP Ventures, Contxto has reported.
Founded in 2001, XP runs an online financial product portal offering access to more than 600 investment products including hedge funds, pension plans and bonds, in addition to providing guidance across a number of investor classes.
The unit has not set parameters regarding the size of its investments or the stage at which it will provide funding, but it is tasked with making strategic investments and will also consider business development deals with prospective portfolio companies.
XP Ventures has so far backed two Brazil-based companies through the vehicle, paying an undisclosed amount for majority stakes in online lending marketplace Antecipa and Fliper, the creator of a financial transaction tracking product, in June this year.
Marcos Sterenkrantz, head of XP Ventures, told Contxto: “If we see an opportunity, we will call our committee and raise the funds to invest in that opportunity. If we find 15 or 20 companies that are interesting and that make sense to us, we will invest.
“We are not a venture capital fund that is looking for a startup to invest and sell 10 years from now at 50 times its value. We want to find companies that enhance the purpose of XP, to help Brazilians invest better, and we also want to be smart money investors.”