General Atlantic Invests $50 Million in Arco

Paul, Weiss is advising General Atlantic in its $50 million strategic investment in Arco Platform Limited, a Brazil-based educational software company, alongside a $100 million investment by Dragoneer Investment Group LLC. Under the terms of the agreement, GA and Dragoneer will purchase of convertible senior notes at a conversion rate equivalent to $29 per share of Arco class A common shares, subject to customary closing conditions. The convertible notes mature in 2028 and bear interest at 8% per year fixed in Brazilian reals. Upon completion of the transaction, GA will own approximately 2.8% of Arco’s total shares on an as-converted basis.

The Paul, Weiss team includes, among others, corporate partners Matthew Abbott and Christopher Cummings, and tax partner Lindsay Parks.