Market trends

Bank capital positions have improved but increased regulation and slow growth are of concern to the financial services industry. We completed two joint venture transactions in 2009 as larger institutions look for ways to accelerate the growth of subsidiaries. Our carve-out expertise offers banks an alternative solution for non-core operations. The business services sector remains highly fragmented. The wider focus on cost-cutting within the economy is a growth driver for providers of outsourced business services where Advent is well established. Our new office in India has increased our ability to partner with outsourced service providers and transaction processors.

CETIP

One of our most effective strategies is to combine global sector expertise with deep local knowledge. In 2009, Advent acquired a stake in CETIP, the central depository and trading platform for fixed-income and over-the-counter derivatives in Brazil. Our São Paulo and Boston teams leveraged our knowledge from investments in BondDesk in the US (current) and GFI globally (exited 2006) to demonstrate our ability to add value. At the same time, our local team negotiated with 312 sellers and built consensus with key local constituencies. Since the investment, two of Advent’s US operating partners have been working closely with CETIP to apply the BondDesk model to develop the local bond-trading market, expand the CETIP platform and introduce new products. We assisted in reinforcing management, introduced international best practices and are helping secure external partnerships for product development. We also helped CETIP achieve a long-planned IPO.

www.cetip.com.br