The Autonomous Investment Agents (AAI) market in Brazil

1. AAI Market Overview

The market for Autonomous Investment Agents (AAI) in Brazil has undergone a profound transformation in recent years, driven by regulatory changes, technological advances, and a growing demand for personalized financial services.

With more than 20,000 certified professionals, the Autonomous Investment Agents sector has been growing year after year, driven by the growing demand for independent financial advisory services and the search for investment diversification.

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1.1 Brazil x Global Market

Compared to mature markets, such as the United States and the United Kingdom, where the model fee-based It is predominant, Brazil still has a mix of compensation models, including commissions and Fees fixed.

However, there is a growing trend towards the adoption of models that are more transparent and aligned with the client's interests. Key differences include:

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2. Key Recent Transactions in the AAI Market

In recent years, the AAI market in Brazil has witnessed several significant transactions, highlighting:

• EQI+ Acqua Vero (2022): Merger of two major players with the objective of scaling distribution, service specialization, and governance.
• MonteBravo + G5 Partners (2023): Movement that strengthened its operations in high-income clients and customized solutions.
• Messem+ Lifetime (2023): Integration focused on expanding national presence and capillarity in the interior of the country.
• Acqua+ SWM Group (2025): Market Consolidation, including retail service to large fortunes.

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In addition, platforms such as XP and BTG Pactual carried out minority acquisitions in AAI offices, seeking to expand their presence in the market and offer more integrated services. These transactions reflect a consolidation trend in the sector, where offices seek scale, improved governance, and specialization to face increased competitiveness and meet the most stringent regulatory demands.

• XPInc.: Participations in offices such as Monte Bravo, Msem, EQI.
• BTGPActual: Minority purchases and own network structuring. Ex: participation in the EQI after separation from XP (2024).

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3. Forms of Sector Assessment

Like any company, the valuation of AAI companies is a complex process that requires a combination of financial, operational, and market analysis. Common methods include:

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Transactions involving large platforms generally involve higher multiples due to the strategy of indirect control, loyalty, and maintenance of internal revenue. Majority transactions, on the other hand, are more technical and negotiated based on synergies, succession, and the need for capital.

Examples: the BTG Pactual Investment Bank is traded on the Stock Exchange at a market value of approximately R$ 161 Billion. Considering your Revenue for the last 12 months (R$ 35 Billion) and your total value of Assets under Management (R$ 1.6 Trillion), we have the following Multiples:

• EV/Revenue: 3.5x
• EV/AUm: 1.4%

International companies, such as BlackRock, T. Rowe Price, Franklin Resources, and The Carlyle Group, are traded at the following EV/AUm multiples:

• BlackRock: 1.2%
• T. Rowe Price: 1.8%
• Franklin Resources: 1.4%
• The Carlyle Group: 2.8%

These multiples serve as a reference to understand the relative value of AAI companies compared to global players.

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4. Factors that Influence Business Value

The factors that most influence the projections and, consequently, the value of AAI companies include:

• PINK (Return on Assets): Measures the company's efficiency in generating profit from Assets under Management. A higher ROA indicates greater efficiency and potentially greater value.
• Advisor Compensation Rule (Transfer): The way in which advisors are remunerated affects the Company's profitability. Models that align the interests of advisors with those of the company can be more valued.
• Proprietary Portfolio Compensation Rule: The way in which the Company capitalizes and eventually remunerates the Digital Wallet and the Portfolio collected by the partners affects the company's profitability. Models in which these revenues have no commission increase cash generation and, therefore, your business can be more valued.
• Dilution of Expenses: How operating expenses are distributed among advisors impacts the Profit Margin. Efficient dilution can increase profitability.
• Productivity per Advisor: The ability of each advisor to generate revenue is crucial. Offices with more productive advisors tend to have a higher value.

Additionally, other factors such as customer base diversification, technology adoption, and regulatory compliance also play significant roles in determining company value.

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5. Future Perspectives for the AAI Market

The future of the AAI market in Brazil points to greater consolidation, with more professional offices and strategic partnerships with Managers and Multi Family Offices. The demand for personalized and independent financial services will continue to grow, driven by the evolution of the Brazilian investor profile. Trends for the coming years include:

• Consolidation between offices with a gain in scale, governance, and succession.
• Mergers with Managers and Multi Family Offices to expand services and asset retention.
• Platforms vying for participation in large offices (XP, BTG, etc.).
• Valuation more technical, with a search for strategic investors and Private Equity Funds

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6. Track Record FC Partners

FC Partners stands out in advising the AAI sector, with a proven track record of advising offices on various transactions, working closely to ensure robust assumptions and projections aligned with market realities. More than 10 Merger Advisory Projects have already been carried out, Valuations and other Services.

We recently advised on the Merger between the Riva and 3A Offices, both located in Belo Horizonte, which together have more than R$ 15 billion in custody.

In a constantly evolving market, marked by consolidation trends and growing demand for personalized financial services, the role of advisory firms becomes crucial, not only facilitating transactions, but also providing strategic insights that help industry players position themselves for long-term success.

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Conclusion

The autonomous investment agent sector is maturing and is tending towards consolidation. Opportunities will exist for players who position themselves with structure, governance, and strategic vision. Understanding market dynamics and valuation methodologies will be essential to maximize the potential of companies in this constantly evolving sector.

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