The foreign investment market will change. the broker sprout bought the customer portfolio of Passfolio, the second largest company in the sector in Brazil. Current consumers will be migrated to the new company. The deal had no values disclosed.
Passfolio has over 200,000 accounts and nearly $100 million in assets in custody. Customers have already started to receive emails from the two companies with information about the migration.
In the message, Passfolio says it will cease its activities without November 18, 2022. Investments will be transferred to Sproutfi, and funds transfer services will be closed. Money on PassCard, PassEarn and Crypto products will not be migrated.
The migration process is free of charge and should be simple, as both Passfolio and Sproutfi use DriveWealth as an asset custodian — meaning, behind the scenes, little changes. Sproutfi also made a page with information for Passfolio customers.
Investment market is more competitive
according to Pipeline Value, Passfolio was the second largest foreign investment company for Brazilians in terms of investment volume. Behind her comes Nomad, which started out offering a current account in dollars to Brazilians, but entered the investment market.
The first, right in front, is Avenue. In August, Itaú struck a deal to take control of Avenue.
O Pipeline Value points to the drying up of global liquidity as one of the factors that hampered Passfolio’s plans. Ruben Guerrero, founder of Sproutfi, says that moments of volatility, a consolidation of the market is expected.
In addition to economic circumstances, another factor is increased competition. Global investments were previously restricted to dedicated companies, but Brazilian banks and brokerages began to offer products of this type, such as Inter, XP, C6 Bank and Agora (from Bradesco).
With information: Pipeline Value.
https://tecnoblog.net/noticias/2022/10/19/passfolio-sai-do-mercado-de-investimentos-e-migra-clientes-para-sproutfi/