Business
XP Inc. Acquires Minority Stake in Real Estate Financing Startup Direto
SÃO PAULO--(BUSINESS WIRE)-- XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in
About this update from Xp Inc.
[{"type":"text","content":" SÃO PAULO--(BUSINESS WIRE)--\nXP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced today the signing of an agreement with Direcional Engenharia (BVMF: DIRR3) to invest in the real estate financing startup Direto.\n\nThe acquisition of 49.9% of Direto's capital, still subject to regulatory approval, represents an important milestone for XP Inc. in a market with high potential and in which Direcional has proven expertise throughout its forty years of history.\n\nDireto will rely on XP's distribution structure, tech platform and funding solutions and on Direcional's knowledge and efficiency in the real estate market, acting in business origination and in the formation of a team with extensive real estate and credit analysis experience. The management of Direto will remain independent from its shareholders, with its own team in São Paulo and Belo Horizonte.\n\nInitially, three complementary solutions will be offered: (i) loans for the acquisition of new and used properties, which may involve partnerships with other financial institutions; (ii) home equity, in which the property is used as collateral for loans and (iii) acquisition of receivables portfolios from home builders and developers.\n\nThe deal will allow XP Inc. to expand its operations in the real estate segment, in which it is already one of the main references in the structuring and distribution of Certificates of Real Estate Receivables (CRI) and Real Estate Investment Trusts (REIT) and in the securitization market. The real estate market in Brazil offers many opportunities, is gigantic (as of October 2021, the credit portfolio had reached R$ 800B according to Brazilian Central Bank), but still underpenetrated and inefficient in several segments. This partnership is one additional step into this segment, aligned with XP Inc.'s long-term strategic planning, to offer more solutions to clients and expand our addressable market while maintaining an asset-light business model.\n\nAbout XP\n\nXP is a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by:\n\n\nEducating new classes of investors;\n\n\nDemocratizing access to a wider r...