In that sense, we are getting to a point where the recognition of the brand and attractiveness of the platform has put us in a different position from other local and regional players. We had seen a similar evolution in the U.S. and European alternative asset markets with the sector displaying bigger concentration around the larger names and we are starting to witness the same phenomenon in our Latin America market. Moving on to our segment earnings. Distributable earnings reached R$57 million in the quarte ...

Core Insights - Vinci Compass Investments Ltd. has completed the acquisition of a 50.1% stake in Verde Asset Management, enhancing its position in the alternative investments sector in Latin America [1][3] - The acquisition adds approximately R$16 billion in assets under management (AUM), bolstering Vinci Compass's Global Investment Products & Solutions offerings [2][5] - The transaction is structured in two phases, with the first phase involving a controlling stake acquisition and the second phase planned for five years later to acquire the remaining 49.9% [3][4] Transaction Overview - The acquisition was announced on October 6, 2025, and closed on December 1, 2025, involving a mix of newly issued VINP Class A common shares and cash [3] - The payment for the acquisition is set in two installments, with the second contingent on revenue targets [3] - The transaction is expected to be immediately accretive on a double-digit basis to Free Cash Flow (FRE) per share and low-to-mid single-digit accretive to Distributable Earnings per share [4] Company Background - Vinci Compass is a leading provider of alternative investments and global solutions in Latin America, with nearly three decades of experience and R$316 billion in AUM as of September 2025 [5] - Verde Asset Management, founded in 2015, manages approximately R$16 billion and is recognized for its long-term investment strategies in Brazil [6]

Core Insights - Vinci Compass Investments (VINP) reported its 3Q25 results, which, along with the recent Investor Day and acquisition agreement with Verde Asset Management, provide valuable data for analysis [1] Company Analysis - The recent financial report and strategic moves indicate a focus on long-term operational performance rather than short-term market dynamics [2] - The acquisition of Verde Asset Management suggests a strategic expansion that may enhance VINP's competitive positioning in the industry [1] Industry Context - The investment approach emphasizes understanding the long-term earnings potential of companies and the competitive dynamics within their respective industries [2]

Financial Data and Key Metrics Changes - Vinci Compass generated BRL 77.1 million in earnings for Q3 2025, translating to BRL 1.22 per share, with a FRE margin of 32.3% and adjusted distributable earnings of BRL 73.1 million, or BRL 1.16 per share, marking a 28% increase year-over-year on a nominal basis [3][25] - Total assets under management (AUM) reached BRL 316 billion, a 4% increase quarter-over-quarter, with capital formation and appreciation totaling BRL 19 billion [22][13] Business Line Data and Key Metrics Changes - The credit segment raised over BRL 1 billion in the quarter, with 30% coming from international investors, indicating strong global interest [11] - The global IP&S segment saw AUM exceed BRL 241 billion, supported by approximately BRL 8 billion of inflows, with TPD alternative funds being a key growth driver [17][12] Market Data and Key Metrics Changes - Brazil is expected to benefit from a potential political shift reinforcing fiscal responsibility and a likely Selic-cutting cycle, creating a favorable environment for asset re-rating [10] - The trend of global investors seeking exposure beyond the U.S. is expected to support fundraising efforts, offering attractive risk-adjusted opportunities [11] Company Strategy and Development Direction - The acquisition of Verde is a significant milestone in strategic expansion, enhancing Vinci Compass's position as a leading alternative investment platform in Latin America [5][6] - The company aims to achieve a 38% FRE margin target by 2028, supported by cost reduction initiatives and substantial fundraising across all segments [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment, citing broad-based asset appreciation and easing rate bias across emerging economies as constructive for the platform [10] - The company is well-positioned to capture generational shifts in the global economy and markets, compounding value for clients and shareholders [13][22] Other Important Information - The company is adopting AI across its operations, with approximately 80% of the team using AI to enhance productivity and risk management [21] - The first Brazilian pension plan commitment to the SPS4 fund is expected to unlock further commitments from similar institutional investors [26][27] Q&A Session Summary Question: Regarding the first Brazilian pension plan commitment to SPS4, how fast do you think this new demand could come? - Management expects further commitments for this strategy but cannot predict the exact size of it, noting the low penetration of this type of investment among local and international institutions [26][27] Question: Should the improved FRE margin be considered the new base for the next quarter? - Management indicated that while there is some seasonality in expenses, they expect margins to remain above 30% going forward, with the Verde acquisition expected to positively impact margins in 2026 [29][30] Question: How much of the strong global IP&S inflows this quarter was related to TPD alternatives? - TPD alternatives had a significant positive impact, with a $2 billion contribution from a regional player into a US-based closed-end fund, and management remains optimistic about future inflows [31][32]

Financial Performance Highlights - Fee Related Earnings (FRE) reached R$7706 million in 3Q'25, a 43% increase year-over-year, resulting in R$122 per share[8] - Adjusted Distributable Earnings (Adj DE) increased by 28% year-over-year to R$7309 million in 3Q'25, with Adj DE per share at R$116[8] - The FRE margin was 323% in 3Q'25[8] - Capital formation & appreciation reached R$19 billion in 3Q'25[8] Assets Under Management (AuM) - Total AuM reached R$3163 billion, a 349% increase year-over-year, driven by the combination with Compass and the acquisition of Lacan[17] - Capital formation in 3Q'25 totaled R$84 billion, driven by net inflows and capital subscriptions across Global IP&S and Credit strategies[17] - Portfolio appreciation of R$105 billion in 3Q'25 was partially offset by R$60 billion in negative FX variation and R$06 billion in capital returned to investors[17] Segment Performance - Global IP&S AuM was R$2412 billion in 3Q'25, with R$76 billion in net inflows and R$88 billion of appreciation[51] - Credit AuM totaled R$33 billion, up 263% year-over-year[55] - Private Equity AuM was R$16 billion, down 2% year-over-year[59] - Real Assets AuM was R$12 billion, up 17% year-over-year[65] Investment Related Earnings (IRE) - Fair Value of Investments accounted for R$7264 million[42] - Total capital called of R$7812 million, representing 548% of the total capital committed to proprietary funds as of September 30, 2025[42]

Core Viewpoint - Vinci Compass Investments Ltd. will release its financial results for Q3 2025 on November 13, 2025, and will host a conference call to discuss these results [1]. Company Overview - Vinci Compass is a leading alternative investments and global solutions provider in Latin America, with nearly three decades of experience and operations in eleven offices across Latin America and the US [3]. - The company manages R$304 billion in assets under management and advisory as of June 2025 [3]. - Vinci Compass specializes in various sectors including Private Equity, Credit, Real Estate, Infrastructure, Forestry, Equities, Global Investment Products & Solutions, and Corporate Advisory, with dedicated teams for each segment [3]. Conference Call Details - The conference call will take place via Zoom at 5:00 pm ET on the same day as the financial results release [1]. - Access to the conference call can be found in the Events section of the company's website, with a replay available for those unable to attend live [2].

Core Points - Vinci Compass held its Investor Day 2025, welcoming both in-person and online attendees [1][2] - The event featured a strategic overview by CEO Alessandro Horta and a discussion on the recent acquisition of Verde Asset Management [2][3] Company Overview - The agenda included three blocks of presentations, starting with a strategic overview [3] - The acquisition of Verde Asset Management was announced just after market close prior to the event [3]

Business Model and Strategy - The company reported a balanced business model with three complementary earnings streams: FRE, PRE, and IRE, aimed at durable value creation for shareholders [14]. - The company aims to become the leading one-stop-shop platform for alternative investments in Latin America, targeting an under-allocated market with overall allocation under 5% [43]. - The governance model has been redesigned to support a larger, multi-market platform, enabling faster decision-making across regions and business lines [49]. - The company is focused on integrating its operations to enhance efficiency and capture higher take-rates through shared infrastructure and streamlined governance [46]. - The company is positioned to connect local investors with global opportunities, enhancing its competitive edge in the alternative investment space [29]. Market Growth and Demand - The total addressable market for alternative investments in Latin America is significant, with over 50 active strategies and a diversified client profile [17]. - The company has achieved a 4x growth in alternatives assets under management since 2020, indicating strong market demand [17]. - The private credit market is projected to grow significantly, with fundraising climbing from US$1.7 billion in 2022 to over US$3.3 billion in 2024, indicating strong demand in this segment [84]. - Alternative investments in LatAm are expected to grow significantly, from US$28.1 million (2%) to US$2.2 billion (24%) over the next decade [124]. - The total addressable market for LatAm institutional investors is projected to grow from US$1.5 trillion to US$3.0 trillion post-combination, indicating a 2.0x market size increase [118]. Financial Performance and Projections - Fee Related Earnings (FRE) have shown a compound annual growth rate (CAGR) of 13% since the IPO, indicating a resilient and diversified platform [61]. - Fee Related Revenues reached R$795 million in 2Q'25, with a target of approximately R$1.6 billion by full year 2028, reflecting a CAGR of about 22% [87]. - The company expects Fee Related Earnings (FRE) to grow from R$264 million in 2Q'25 to around R$600 million by 2028, representing a CAGR of approximately 26% [87]. - The FRE margin is projected to increase from 28% in 2Q'25 to 38% by 2028, indicating improved operational efficiency [87]. - The recurring fees constitute 84% of total Fee Related Earnings under management, underscoring the stability of cash flows [62]. Acquisitions and Strategic Moves - The strategic acquisition of Verde Asset Management is expected to add R$16 billion in AuM, enhancing the quality of earnings and increasing the share of discretionary mandates [93]. - Vinci Compass is acquiring 100% of Verde Asset Management over five years, structured in two phases, with an initial acquisition of 50.1% for R$4 million in cash and 3.1 million new Class A common shares [99]. - The transaction is expected to be immediately accretive on a double-digit basis to Free Cash Flow (FRE) per share and low-to-mid single-digit accretive to Distributable Earnings per share [105]. - The combined distribution network across Latin America (LatAm) will enhance the growth potential for Global Multi-strategy funds, leveraging Vinci Compass' existing infrastructure [96]. - The transaction will preserve independent investment and risk-management governance, with Verde's executives continuing in their roles, including CEO Luis Stuhlberger joining as a partner [99]. Economic and Market Conditions - Brazil's primary fiscal deficit is projected to improve from -2.5% of GDP in mid-2024 to zero by mid-2025, with expectations of a deterioration to -0.5% of GDP by the end of 2025 [148]. - The Central Bank's 1-year real interest rate is currently around 10.5%, significantly above the neutral rate of 5% [146]. - Brazil's GDP growth for 2025 is forecasted at +2.5%, driven primarily by a +1.3% increase in the agricultural sector [150]. - Inflation is expected to peak in the second quarter of 2025, with the IPCA forecasted to reach 3% by December 2025 [154][156]. - The Bovespa index is trading at a forward P/E of 8 times, indicating low equity allocation in Brazilian portfolios [164]. Regional Challenges and Opportunities - Argentina is experiencing USD outflows close to US$1 billion per month due to international travel, with negative foreign direct investment (FDI) as major companies like Telefonica, HSBC, and Total exit the market [179]. - Interest rates in Argentina have jumped significantly to defend the Peso, which is expected to impact economic activity in the coming months [181]. - The IMF projects Argentina's GDP growth to return to approximately 3% with recommendations for faster investment approvals and greater labor force participation [191]. - The upcoming federal elections in Argentina will renew half of the lower house and one-third of the Senate, with market focus on candidate performance [183]. - Mexico's government is under pressure to maintain fiscal discipline to retain its investment-grade rating amid high inflation and trade challenges [197].

Summary of Vinci Compass Investments 2025 Investor Day Company Overview - **Company**: Vinci Compass Investments (NasdaqGS: VINP) - **Event**: 2025 Investor Day held on October 07, 2025 - **Key Speaker**: CEO Alessandro Osta Core Industry Insights - **Focus**: Latin American alternative investments - **Market Size**: The total addressable market for alternatives in Latin America is estimated at $7 trillion, with current alternatives only at $87 billion, indicating significant growth potential [10][21] - **Growth Drivers**: - Regional expansion to distribute managed alternative investments - Increasing allocation to private credit to fill the financing gap in Latin America - Leveraging revenue streams by increasing discretionary products with higher returns [57] Key Financial Metrics - **Assets Under Management (AUM)**: Currently at BRL 320 billion, with a target to reach EUR 320 billion post-acquisition of VEG [59] - **Fee-Related Earnings (FRE)**: Expected to grow from BRL 800 million to BRL 1.6 billion by 2028, with a CAGR of 22% [56] - **Performance-Related Earnings (PRE)**: Anticipated to shift from 80% liquid to a more balanced mix with private funds, with expected performance fees exceeding BRL 340 million [40][32] - **Investment-Related Earnings (IRE)**: Focus on GP commitments to anchor fundraising and align interests with LPs [42] Strategic Developments - **Acquisition of VEG**: A strategic acquisition aimed at enhancing performance, distribution, and profitability, expected to be immediately accretive to FRE per share [58][60] - **Integration Strategy**: The merger of Vinci and Compass has created a unified platform with a strong distribution network across Latin America, enhancing access to both local and global investors [20][30] Client Relations and Market Position - **Client Base**: Over 40% of revenue comes from Latin American institutional clients, with significant relationships with insurance companies and family offices [72] - **Market Landscape**: The addressable market has doubled post-merger, expanding from a Brazil-centric focus to a broader Latin American strategy [74] Investment Opportunities - **Private Credit Market**: Expected to grow significantly, with a current focus on structural credit, infrastructure credit, and real estate credit, aiming to capture $13 billion in AUM by June 2025 [50] - **Global Investor Interest**: There is a growing trend of global investors seeking exposure to Latin American alternatives, with 58% of global buy-side firms planning to increase their investments in the region [84] Conclusion - Vinci Compass Investments is positioned as a leading player in the Latin American alternative investment space, with a robust growth strategy focused on expanding its AUM, enhancing its product offerings, and leveraging its strong client relationships to capture emerging market opportunities. The recent acquisition of VEG is expected to further solidify its market position and drive future growth.

Strategic Overview - Vinci Compass在拉丁美洲拥有强大的投资平台，管理着3200亿雷亚尔的资产[22]，拥有630名员工和60多名合伙人[22] - 该平台在8个国家设有12个办事处[22]，提供50多种积极的投资策略[22]，服务于机构投资者、家族办公室和高净值个人[22] - 该公司战略结合了Vinci Partners在巴西的投资制造能力和Compass Group在拉丁美洲的分销能力[45]，旨在将全球资本引入拉丁美洲机会[45] - 战略重点是成为拉丁美洲另类投资的一站式平台[50]，通过本地到本地、本地到全球和全球到本地的连接[29, 31, 35] Earnings Power - Vinci Compass拥有多元化的盈利模式，包括费用相关收益（FRE）、业绩相关收益（PRE）和投资相关收益（IRE）[67]，旨在实现周期性的平衡增长[66] - 截至2025年上半年，FRE按业务部门划分，私募股权占28%，全球IP&S占26%，房地产占21%，信贷占17%，股票占7%，企业咨询占2%[69] - 自首次公开募股以来，FRE实现了13%的复合年增长率[80]，平台和分销的扩大支持了利润率的扩张[80] - 截至2025年第二季度，业绩符合条件的资产管理规模为490亿雷亚尔[89]，其中私募股权占72%，全球IP&S占20%，信贷占22%[89] Growth and Targets - 公司预计到2028年实现强劲增长，费用相关收入的复合年增长率约为22%，费用相关收益的复合年增长率约为26%[127]，目标是到2028年实现约6亿雷亚尔的费用相关收益[128] - 2025年至2028年期间的筹资目标为1000亿雷亚尔[127]，主要增长动力包括渗透现有拉丁美洲关系、扩大私人信贷以及提高配置给高ROA产品的资产管理规模百分比[130, 131] - 收购Verde资产管理公司将增加160亿雷亚尔的管理资产[136]，并立即提高全球IP&S中多策略基金的规模[136]，预计将使每股FRE立即增加两位数[144]