Vinci Partners Investments Ltd. (NASDAQ:VINP) Q4 2024 Earnings Conference Call February 26, 2025 5:00 PM ET Company Participants Anna Castro - Investor Relations Manager Alessandro Horta - Chief Executive officer Bruno Zaremba - President, Finance & Operations Sergio Passos - Chief Operating Officer & Chief Financial Officer Conference Call Participants Ricardo Buchpiguel - BTG Guilherme Grespan - JPMorgan William Barranjard - Itaú BBA Tito Labarta - Goldman Sachs Operator Good evening, and welcome to the V ...

Fourth Quarter & Full Year 2024 Earnings Presentation February 26, 2025 1 Disclaimer This presentation contains forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to eve ...

Core Viewpoint - Vinci Partners Investments Ltd. is set to release its financial results for Q4 2024 on February 26, 2025, and will host a conference call to discuss these results [1]. Company Overview - Vinci Compass is recognized as a leading partner for alternative investments and global solutions in Latin America, with nearly three decades of experience [3]. - The company operates from eleven offices across Latin America and the US, specializing in various sectors including Private Equity, Credit, Real Estate, Infrastructure, Forestry, Equities, Global Investment Products & Solutions, and Corporate Advisory [3]. - As of September 2024, Vinci Compass managed R$296 billion in assets under management and advisory on a Proforma basis [3]. Conference Call Details - The conference call will be accessible via the company's website, and a replay will be available for those unable to attend the live broadcast [2].

Core Points - Vinci Partners is conducting a combination with Compass Group, which was announced in a press release and slide presentation available on their website [3]. Group 1 - The conference call features key participants including Anna Castro (Investor Relations Manager), Alessandro Horta (CEO), and Bruno Zaremba (President of Finance and Operations) [1][3]. - The call is recorded and will include a question-and-answer session later [1]. - The company emphasizes that the call may contain forward-looking statements that are uncertain and outside of the firm's control [4]. Group 2 - The company will refer to certain non-GAAP measures during the call, with reconciliations provided in the press release [5]. - The call does not constitute an offer to sell or solicit an offer to purchase interests in any Vinci or Compass fund [5].

Summary of Vinci Partners Investments Ltd. and Compass Group M&A Call Company and Industry Overview - **Company**: Vinci Partners Investments Ltd. (NASDAQ: VINP) and Compass Group LLC - **Industry**: Alternative Investments in Latin America Key Points and Arguments Combination Announcement - The merger between Vinci Partners and Compass Group officially creates Vinci Compass, marking a transformative moment for the organization [7][15][19] Strategic Vision - Vinci's strategy focuses on becoming a leader in alternative investments in Latin America, leveraging Brazil's underpenetrated alternatives market [8] - The combination aims to redefine alternative investments in Latin America, targeting a market with less than 5% of AUM allocated to alternatives [15][19] Financial Performance - Since its IPO in 2021, Vinci raised over BRL12 billion, increasing long-term AUM to BRL38 billion, a 52% increase from 2020 [9] - The merger is expected to nearly double fee-related revenues, with pro forma FRE for Q3 year-to-date reaching BRL218 million compared to BRL169 million for Vinci standalone [40] - Distributable earnings per share increased by 44% since the IPO, with a commitment to maintain dividends at $2.60 per share [14][41] Growth Opportunities - The combination is expected to unlock significant growth potential, particularly in the underpenetrated Latin American market [44][53] - Pension fund reforms in Mexico could increase allocations to alternatives from $50 billion to $140 billion by 2028 [47] - The firm plans to scale regional mandates, particularly in private equity and infrastructure, with a target of launching the first pan-regional alternative product [48] Integration and Governance - The unified leadership team includes executives from both firms, ensuring seamless integration and operational efficiency [25][29] - The combined platform spans seven countries in Latin America, enhancing distribution capabilities and client reach [30][31] Market Positioning - Vinci Compass will serve as a leading full-service alternative asset manager in Latin America, with combined AUM of nearly BRL300 billion [24] - The firm aims to capitalize on the increasing demand for alternatives across various client segments, including institutional investors and high-net-worth individuals [31] Financial Structure and Tax Implications - The merger will alter the currency balance, with a shift towards a more dollarized business model [73] - The blended tax rate for the group is expected to be between 15% and 20% post-acquisition [76] Future Outlook - Management anticipates a strong contribution from Compass in Q4 2024, projecting approximately BRL15 million in FRE [43] - The focus will be on enhancing FRE margins and driving efficiency through integration [42] Additional Important Insights - The merger is seen as a strategic move to enhance governance, earnings visibility, and create new recurring revenue streams [14] - The integration of distribution teams from both firms aims to deliver tailored solutions to clients across diverse markets [29] - The firm is exploring additional M&A opportunities in Latin America, identifying over 30 potential targets across various sectors [52] This summary encapsulates the key points discussed during the conference call, highlighting the strategic vision, financial performance, growth opportunities, and future outlook for Vinci Compass following the merger with Compass Group.

| --- | --- | --- | |-----------------|-------|-------| | | | | | November 2024 | | | Vinci Partners: Closing a successful first chapter 2 Growth Avenues since IPO in 2021 1 Taking advantage of the underpenetration of Alternatives in Brazil to grow the platform organically Leverage fundraising and FRE expansion through GP commitments in proprietary funds | --- | --- | |-----------------------------------|------------------------------------------| | | | | strategies and grow business 3 | Opportunistic M&A t ...

Core Insights - Vinci Partners Investments Ltd. has officially rebranded as Vinci Compass, marking a significant transformation for the organization after years of strategic planning and growth [2]. Company Overview - Vinci Compass is a leading provider of alternative investments and global solutions in Latin America, with nearly three decades of experience and operations in eleven offices across Latin America and the US [4]. - The company manages over US$54 billion in assets under management and advisory on a proforma basis as of September 2024 [4]. - 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 [4]. Webcast and Communication - The company hosted a virtual webcast to discuss its rebranding and future direction, accessible through its website [3]. - A detailed presentation related to the webcast is available for stakeholders [2].

Core Viewpoint - Vinci Partners Investments Ltd. is hosting a virtual webcast on November 25, 2024, to discuss the combination with Compass, ongoing integration, potential synergies, M&A activity, and future growth strategies across Latin America [1]. Company Overview - Vinci Partners is a leading alternative investment platform in Brazil, established in 2009, with business segments including private equity, public equities, real estate, private credit, infrastructure, special situations, investment products, and retirement services [3]. - The company also provides corporate advisory services, focusing on pre-IPO and M&A advisory for Brazilian middle-market companies [3]. - As of September 2024, Vinci Partners had over US$54 billion in assets under management following the closing of its combination with Compass, a prominent independent asset management firm in Latin America [3].

Financial Data and Key Metrics Changes - Vinci generated fee-related earnings of R$53.8 million or R$1.02 per share for Q3 2024, with adjusted distributable earnings of R$57.1 million or R$1.08 per share, reflecting a 12% year-over-year increase on a per share basis [6][55] - The company reached R$70 billion in assets under management (AUM), posting an 8% year-over-year growth [7] - Year-to-date FRE totaled R$169 million or R$3.19 per share, representing a 14% year-over-year increase on a per share basis [48] Business Line Data and Key Metrics Changes - Distributable earnings reached R$57 million in the quarter, reflecting a 12% year-over-year increase on a per share basis [10] - The public equity strategy saw positive net inflows, primarily from institutional investors, indicating a potential recovery in this segment [22][71] - The IP&S segment experienced outflows of R$1.2 billion, primarily driven by withdrawals within separate mandate strategies [25][88] Market Data and Key Metrics Changes - The Brazilian economy has been growing strongly post-pandemic, while the stock market has remained stable since early 2021, leading to a perception of undervaluation among international investors [23][71] - The company noted that Brazil's market is currently two standard deviations from the mean compared to the S&P 500, suggesting a favorable entry point for medium-to-long term investors [22] Company Strategy and Development Direction - The combination with Compass marks the establishment of a leading pan-regional alternative asset manager, enhancing the product offering across major strategies [11][20] - The acquisition of Lacan will allow Vinci to launch a forestry strategy, which is expected to complement existing investment solutions and tap into the carbon market [16][60] - The company aims to expand its reach into other Latin American markets beyond Brazil, with potential growth in countries like Uruguay and Chile [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong finish to the year, anticipating final closings for several funds and continued fundraising success in private markets [8][10] - The company expects to see growth in the retirement services vertical following the launch of the Mio Vinci Partners platform [27][30] - Management acknowledged the challenges posed by high interest rates in Brazil but remains focused on navigating these conditions effectively [25][94] Other Important Information - The integration process with Compass is progressing well, with a strong cultural alignment and shared vision between teams [13] - The company expects the acquisition of Lacan to favorably impact AUM and segment results for Q4 2024 and into 2025 [19] Q&A Session Summary Question: Can you talk about the ambitions for the Lacan vertical mid to long-term? - Management expressed enthusiasm for Lacan, estimating potential AUM could reach around R$5.5 billion to R$6 billion, with plans to expand internationally in the future [60][62] Question: Can you provide an update on the fundraising for VCP IV? - Management indicated that VCP IV is nearing completion, with strong interest from local institutional investors and some international investors in due diligence [66][68] Question: What are the expectations regarding management fees and retroactive fees? - Management reported R$3 million in retroactive fees for the quarter, with expectations for continued impact from new commitments in VCP IV and VICC [78][80] Question: How is the IP&S segment expected to evolve given the current interest rate environment? - Management noted that while the high interest rate environment poses challenges, recent performance improvements in funds may help moderate outflows [94]

Group 1 - Vinci Partners Investments (VINP) reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of 18.75% [1] - The company posted revenues of $20.67 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.18%, although this represents a decline from year-ago revenues of $22.35 million [2] - Vinci Partners has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] Group 2 - The stock has underperformed the market, losing about 3% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $21.04 million, and for the current fiscal year, it is $0.65 on revenues of $83.52 million [7] Group 3 - The Zacks Industry Rank indicates that the Financial - Miscellaneous Services sector is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]