Messem and Faros merge into the largest independent brokerage – 04/04/2023 – Market

The Faros Private and Messem Investimentos offices, both linked to XP, announced this Tuesday (4th) that they will merge their businesses, forming the largest independent investment brokerage in Brazil, with BRL 65 billion in custody and more than 50,000 clients .

According to a statement, the expectations of the offices is to reach BRL 100 billion in custody by the end of 2024. XP will remain a partner after the merger, with a 42% share of the business. The remaining 58% will be divided among the consulting partners.

After the merger, Messem/Faros will have units in 25 cities and will be present in ten states, in addition to the Federal District, with 450 investment advisors. The company will operate as a single brokerage, but the brands will initially continue with separate autonomous agent activities.

“The union will make us more competitive in the market. XP will remain a partner and great business partner”, says Felipe Scheffler, managing partner of Messem.

Messem’s chief executive, Mauro Silveira, claims that the two offices are complementary, which led to the merger of activities. “The first [Messem] has great expertise in high income and retail, while the second [Faros] stands out in the private and wealth management segment”, he says.

The negotiation took 12 months, and the forecast is that the process, which is still under analysis by the Central Bank, will be authorized by the second half of this year.