Swiss private banking giant Credit Suisse has entered into a strategic agreement with Brazilian digital bank and investment platform Banco Modal (modalmais).
The agreement will see Credit Suisse purchase preferred shares equivalent to around 35% of the total capital of modalmais.
Modalmais will continue to be controlled by its founder, Diniz Ferreira Baptista, and by its principal executives, including co-chief executives Cristiano Ayres and Eduardo Centola.
The deal will allow Credit Suisse to access the technology of the modalmais’ digital platform and all the functions and investment possibilities to serve its clients.
The Swiss wealth manager will also be able to distribute a selection of its products, such as structured notes, funds, debt transactions and share offerings to modalmais’s base of nearly one million clients.
Philipp Wehle, chief executive of international wealth management at Credit Suisse, said: “This announcement underlines our strong commitment to our Brazilian clients and our growth ambitions for this priority market.
“This transaction further enhances our ability to serve our clients digitally while getting access to additional client segments in a fast-growing environment.”
The financial terms of the deal were not disclosed.