Alliance Capital Management of New York is selling its 50 percent stake in BCN Alliance Capital Management S.A. to its joint venture partner Banco de Credito Nacional. BCN is a subsidiary of Banco Bradesco S.A. of Sao Paulo, Brazil.
The joint venture was launched in 1997.
Terms of the sale, which is expected to be completed this month, were not disclosed. The two firms announced the sale on March 27.
The sale of Alliance's half of the joint venture coincides with the establishment of Alliance's new regional investment management firm, also based in Sao Paulo. The firm, to be named Alliance Capital Latin America Ltd., was to be registered late last month. Offices are under construction and employees will begin working in late May or early July, said a company spokesperson.
The new firm will expand Alliance's presence in Latin America from Mexico to Argentina, according to the company. Alliance wants to take part in the rapid growth of the mutual fund industry in Latin America and capture pension fund assets, said John Carifa, president and chief operating officer of Alliance, in a statement.
Despite the sale, Alliance will continue to provide economic and technical advisory services to Bradesco's equity research team. Bradesco will distribute Alliance's mutual funds as they are approved for sale to Brazilian investors.