DXA private-equity firm adopts a new fundraising model
New York City, Dec 16, 2020 (Issuewire.com) - DXA Investments Gains Equity Stake in Greenpeople
DXA Investments is pleased to announce that it has secured a substantial equity position in Greenpeople Indústria e Comércio de Alimentos Ltda. Greenpeople, a privately-held firm based in Rio de Janeiro, is Brazil's first food tech company, producing 100 percent natural juices using a pioneering high pressure technology. Oscar Decotelli, DXA's CEO, who has an enviable record of spotting emerging high-tech startups, is bullish on Greenpeople. As Decotelli states "Greenpeople is DXA's first investment in Brazil's health and foodtech sector. We believe the company has enormous potential due to its presence in the strong trend of healthy eating, its adoption of technology and sustainability, and empowered management which together form a solid foundation for growth." The deal with Greenpeople marked the launch of DXA's implementation of a fintech platform, a first among private equity firms in Latin America. Going forward, fintech will enable DXA to attract the participation of smaller investors with subscriptions starting at USD 10K to join the company's existing group of large investors who were required to meet a USD 1 million threshold.
DXA is a Rio de Janeiro-based private equity firm that accesses capital for investments in emerging high-growth firms, principally in Brazil. In addition to its Rio headquarters, the firm maintains offices in São Paulo and New York. DXA acquired an approximately 12 percent equity stake in Greenpeople and has now a seat on its Board of Directors. Greenpeople's prominent shareholders include company founder Bianca Laufer; Eduardo Eugênio Gouvêa Vierira; Luciano Huck of Joá Investimentos; and Oskar and Nazaré of the OM Group. Both the magnitude and timing of DXA's investment in Greenpeople comes amid a challenging and disruptive economic and investment operating environment wrought by the COVID-19 epidemic. Despite this, DXA recognized the significant opportunity and potential for ROI (Return on Investment) in Greenpeople.
DXA's Decotelli sees the global cold-pressed juice market as an increasingly important commodity, a market in which Brazil is a leading global player. Decotelli cites the growth potential of the natural juice market which is forecast to exceed USD1 billion by 2027, according to marketdataforecast.com. Underpinning this growth is Brazil's status as the third-largest fruit producer in the world. Currently, about 97 percent of Greenpeople's production is directed towards the domestic market, where fruit consumption has increased over 40 percent since the onset of the pandemic. In addition, Brazil has the world's largest renewable freshwater resources ensuring an ample supply of water to Greenpeople's water-intensive production process.
Expansion into Fintech Key to Expanding DXA's Investor Base
DXA Invest, the Rio de Janeiro-based private equity firm, is aggressively incorporating fintech to significantly broaden its investor base. Previously, subscribers in DXA had to meet a large USD 1M minimum investment requirement. The entry of the firm into fintech is now allowing DXA to attract smaller investors with thresholds of USD 100K down to USD 10K. The use of fintech is changing how DXA raises capital by significantly broadening its reach to smaller investors, many of whom lacked access to the cutting edge, economy-transforming investment opportunities in which the firm has a solid track record.
DXA is among the first private equity managers in Latin America to use fintech to better manage its financial operations and to more readily access investment capital. DXA's logical entrance into fintech comes at an opportune moment as Brazil ranks fifth among the largest fintech fundraising centers in the world with 820 fintechs across an array of market segments. Over the past 12 months through October 2020, fintechs accounted for more than 40 percent of the USD 2.2 billion invested in Brazilian startups. DXA now joins the other players in Brazil's burgeoning fintech. And although the firm remains focused on its core private equity business, its embrace of fintech serves DXA's goal of democratizing access to its portfolio to an expanded number of high net worth investors.
DXA INVESTMENTS is a private equity investment firm founded in 2012 and located in Rio de Janeiro, Brazil. DXA also has offices in São Paulo, and New York City and has a team of professionals that serve its client base of select families, institutions, and high net worth individuals from across the globe. DXA currently manages approximately USD 200 million in assets for its clients. For more information, visit the firm's website at www.dxainvestments.com
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