The value of Advent's investment was approximately $170.6 million, subject to an earn-out achievement and other conditions, making it the largest private equity transaction in Brazil this year. The investment has been approved by the Brazilian regulatory authorities.

Cetip was demutualised last year and filed for an IPO on the Bovespa. However the plans were thwarted by collapsing stock market values, leading to a search for outside investment. The clearer reported a net profit of BRL41 million in 2008 on net revenue of BRL89 million.

Cetip was created jointly by the Central Bank of Brazil and market participants in March 1986 and today is the country's market leader in custody and settlement activities, with $1.1 trillion assets under custody.

Growth trends for the fixed-income and OTC derivatives markets in Brazil remain positive, says Martín Escobari, a managing director in Advent International's São Paulo office.

"We are confident that Advent can help Cetip develop to its full potential and aid in the development of the Brazilian capital markets," he says. "Advent can leverage its deep knowledge of financial services and local presence to help Cetip strengthen its management processes, new product development and build deeper relationships with its customers."

Advent has relevant experience in both the fixed-income and OTC derivatives segments, having previously invested in both BondDesk and GFI. Two of Advent's operating partners - Rob Slaymaker, chairman and former CEO of BondDesk, and Dave Gomach, former CFO of the Chicago Mercantile Exchange - helped develop the business case for Cetip.