Fosun Expands Foreign Financial Footprint With Brazil Deal

Tom Burroughes

7 November 2018

Hong Kong-listed , which has acquired a number of Western financial services firms, including those in the wealth space, has concluded its purchase of a 69.14 per cent stake of Guide Investimentos from Brazil's central bank.

Fosun has paid R$167.9 million ($45 million) for the business, and a further R$120 million that is dependent on how well the firm performs in future, it said in a statement yesterday.

The acquisition fits Fosun's strategy of investing and building operations in emerging markets, particularly in Latin America. Fosun has already bought Rio Bravo, an independent asset manager, in 2016. "Guide's deal represents the second milestone in the creation of a solid and innovative Brazilian investment platform that will assist families and institutions in the country with affordable and customised investment strategies," Fosun said.

Guide, which changed its branding and strategy in 2013, dates back 51 years and is one of the largest investment platforms in Brazil.

After this transaction Banco Indusval SA holds a 20.00 per cent stake in Guide and 10.86 per cent stay with the managing partners that will remain at the head of the brokerage's management.

As reported this March, Fosun - founded in 1992 - signed a co-operation pact with HSBC as part of its growth plans. The group, which owns companies across a number of sectors, has bought non-domestic wealth and asset management firms as part of its growth strategy. It has also purchased Hauck & Aufhäuser, the venerable German private banking and financial firm.

In 2015 Fosun launched a financial platform for its investment and asset management business in Russia and neighbouring countries. However, not all of its bids have been successful; in 2015 it pulled out of an attempt to acquire BHF Kleinwort Benson.