Vinci Partners(VINP) - 2025 Q1 - Quarterly Report

Company Overview This section introduces the company's scale, regional presence, and client relations structure Introduction to Vinci Compass Vinci Compass is a premier alternative asset manager in Latin America with R$305 billion in AUM and over 25 years of experience - Vinci Compass is a leading alternative asset manager in Latin America with R$305 billion in AUM[3][4] - The company operates in 7 Latin American countries plus the USA and UK, employing over 630 professionals and has over 25 years of experience[6] - Core business areas include Global Investment Products & Solutions, Credit, Private Equity, Real Assets, Equities, and Corporate Advisory, supported by centralized functions like Research, ESG, and Risk management[4] Pan-Regional Presence and Diversification The company has a diversified pan-regional presence, with Brazil being the largest contributor to AUM and revenue | Breakdown | Top 3 Segments/Regions | Percentage | | :--- | :--- | :--- | | AUM by Country | Brazil | 62% | | | Mexico | 24% | | | Chile | 8% | | Fee Related Revenues by Country | Brazil | 43% | | | Mexico | 23% | | | Chile | 13% | | AUM by Segment | Global IP&S | 76% | | | Credit | 10% | | | Private Equity | 5% | | Fee Related Revenues by Segment | Global IP&S | 49% | | | Credit | 25% | | | Real Assets | 8% | Client Relations Group A robust client relations group of 77 professionals across 9 countries drives distribution of alternative products - The client relations team consists of 77 professionals across 9 countries, demonstrating a unique institutional reach and expertise in alternative products[9] Business Segments This section details the company's core business segments, including their AUM and strategic focus Global Investment Products and Solutions (Global IP&S) The Global IP&S segment, the largest by assets with R$232 billion in AUM, focuses on institutional clients and third-party distribution | Metric | Value | | :--- | :--- | | AUM | R$232 billion | | AUM from Institutional Clients | 71% | | Fee Related Revenues from TPD Alternative | 32% | Credit The Credit segment manages R$29 billion in AUM across a diversified platform of local and hard currency strategies | Metric | Value | | :--- | :--- | | AUM | R$29 billion | | Liquid Credit AUM | R$12.5 billion | | Private Credit AUM | R$13.9 billion | | Team Size | +50 Portfolio Managers and Analysts | Private Equity The Private Equity segment manages R$16 billion in AUM, focusing on Growth Buyout and Impact strategies with strong historical returns | Strategy | Focus | Gross MOIC | Gross IRR | | :--- | :--- | :--- | :--- | | VCP | Growth Buyout | 2.4x | 64.6% | | VIR | Impact, Minority Growth | 1.7x | 22.1% | - Total Private Equity AUM is R$16 billion as of March 2025[16][17] Equities The Equities segment manages R$15 billion in AUM, with a focus on Latin American and country-specific strategies | Geography | AUM (R$ bn) | | :--- | :--- | | Brazil | 10.0 | | Chile | 2.6 | | Mexico | 1.1 | | Argentina | 0.6 | | LatAm (Regional) | 0.5 | | Total | 14.8 | Real Assets The Real Assets segment holds R$12 billion in AUM invested in income-generating tangible assets with long-term lock-ups | Sector | AUM (R$ bn) | | :--- | :--- | | Real Estate | 6.4 | | Infrastructure | 3.8 | | Forestry | 1.7 | - The segment manages 130,000 hectares of net planted area in Brazil and is raising capital for VICC, an Article 9 compliant fund[20] Corporate Advisory The Corporate Advisory division provides strategic advisory services for middle-market M&A and capital markets transactions | Service | Transaction Volume (R$) | | :--- | :--- | | M&A Transactions | +R$161 bn | | Fund Raising Transactions | +R$60 bn | | Capital Markets Transactions | +R$40 bn | Financial Highlights This section presents key financial results, fundraising activities, and performance metrics for the first quarter of 2025 First Quarter 2025 Highlights Q1 2025 featured strong YoY growth in earnings, R$1.1 billion in new capital, and a quarterly dividend of US$0.15 per share | Metric | Q1 2025 Value | YoY Change | | :--- | :--- | :--- | | Fee Related Earnings (FRE) | R$ 66 mm | +22% | | Adjusted Distributable Earnings (Adj. DE) | R$ 62 mm | +26% | | Capital Subscriptions | R$ 1.1 bn | - | | Quarterly Dividend | US$ 0.15 | - | - Key fundraising successes in the quarter include the second closing of PEPCO II (private credit in Peru) and the first close of SPS IV, which matched the total commitments of its predecessor vintage[25] Strategic Fundraising The company has a robust 2025 fundraising pipeline focused on cross-border and local-to-local initiatives - Cross-Border Initiatives: - VICC (Infrastructure): Reached 70% of fundraising target with strong traction from international investors - SPS IV (Credit): Achieved a strong first closing, matching the size of its previous vintage - VIR V (Impact): Planned for launch in 2025 to expand the impact investing strategy - Equities: Plan to launch a UCITS platform in 2025 for LatAm, Brazil, and Mexico equity strategies[27] - Local-to-Local Initiatives: - Credit: Progressing with products in Brazil (MAV III, VCE), Peru & Chile (existing strategies), Colombia (launching COPCO I), and Mexico (new structured private credit fund) - Global IP&S: Expecting healthy inflows from third-party distribution (TPD) and launching a new fund of funds (VSP II) in 2025 - Real Estate: Preparing to raise capital for new industrial warehouse and residential products in Brazil[29] First Quarter 2025 Earnings Q1 2025 Fee Related Earnings grew 22% YoY to R$65.7 million, while Adjusted Distributable Earnings grew 26% to R$62.3 million | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 231,644 | +117% | | FEE RELATED EARNINGS (FRE) | 65,677 | +22% | | ADJUSTED DISTRIBUTABLE EARNINGS | 62,306 | +26% | | Adjusted DE per share (R$/share) | 0.98 | +6% | Total Assets Under Management (AUM) Analysis Total AUM reached R$304.6 billion, a 342% YoY increase, though it declined 7% QoQ due to FX variation - Total AUM reached R$304.6 billion, up 342% YoY[35] - AUM decreased 7% QoQ, primarily due to negative FX variation (R$18.9 billion)[35] - Capital subscriptions in Q1'25 totaled R$1.1 billion, and R$3.8 billion over the last twelve months, with the Credit segment being the primary contributor[32][35] Performance Eligible AUM & Accrued Fees The company has R$46.4 billion in performance fee eligible AUM, generating R$275.0 million in gross accrued performance fees | Metric | Value | | :--- | :--- | | Performance Fee Eligible AUM (PEAUM) | R$46.4 billion | | Gross Accrued Performance Fees | R$275.0 million | - The Private Equity segment accounts for 80% of the gross accrued performance fees, primarily from the VCP strategy[37][38] Fee Related Revenues (FRR) Q1 2025 Fee Related Revenues grew 117% YoY to R$231.6 million, driven by strong management and advisory fees | Revenue Stream (R$mm) | 1Q'25 | 1Q'24 | YoY Change | | :--- | :--- | :--- | :--- | | Management fees | 195.5 | 96.5 | +103% | | Advisory fees | 24.9 | 10.4 | +140% | | Total Fee Related Revenues | 231.6 | 106.8 | +117% | Financial Metrics Overview Key financial metrics show significant LTM growth, with a 22% increase in FRE and a 7% increase in Adjusted DE | Metric (R$mm) | 1Q'25 | 1Q'25 YoY Change | 1Q'25 LTM | LTM YoY Change | | :--- | :--- | :--- | :--- | :--- | | Fee Related Earnings (FRE) | 66 | +22% | 260 | +22% | | Performance Related Earnings (PRE) | 2 | +37% | 22 | +109% | | Adjusted Distributable Earnings (DE) | 62 | +26% | 252 | +7% | Realized GP Investment and Financial Income Q1 2025 realized GP and financial income rose 12% YoY, but LTM income declined 19% due to cash deployment for acquisitions | Income (R$mm) | 1Q'25 | YoY Change | 1Q'25 LTM | LTM YoY Change | | :--- | :--- | :--- | :--- | :--- | | Realized GP Investment Income | 4.3 | -3% | 25.3 | +43% | | Realized Financial Income | 14.4 | +17% | 51.3 | -33% | | Total | 18.7 | +12% | 76.6 | -19% | Balance Sheet & GP Commitments The company holds R$811.4 million in Net Cash and Investments and has R$1.4 billion in GP capital commitments | Balance Sheet & Commitments (R$ millions) | Value (1Q'25) | | :--- | :--- | | Net Cash and Investments | 811.4 | | Total GP Capital Committed | 1,415.0 | | Total GP Capital Called | 725.5 | | Fair Value of GP Investments | 697.4 | Appendix I: Segment Summaries This appendix provides a detailed financial breakdown for each of the company's business segments Segment Earnings Breakdown Private Equity was the largest LTM contributor to earnings, followed by Real Assets and Global IP&S, showing diversification | 1Q'25 LTM Contribution | Fee Related Earnings (FRE) | Segment Distributable Earnings (DE) | | :--- | :--- | :--- | | Private Equity | 37% | 30% | | Real Assets | 20% | 26% | | Global IP&S | 17% | 17% | | Credit | 11% | 13% | | Equities | 9% | 8% | | Corporate Advisory | 6% | 5% | Global IP&S Segment Details The Global IP&S segment's FRE grew 238% YoY to R$21.0 million in Q1 2025, driven by the Compass TPD business integration | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 99,257 | +397% | | FEE RELATED EARNINGS (FRE) | 21,035 | +238% | | AUM (R$ billions) | 232 | +799% | Credit Segment Details The Credit segment's FRE grew 67% YoY in Q1 2025, with AUM reaching R$29 billion due to organic and inorganic growth | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 52,818 | +292% | | FEE RELATED EARNINGS (FRE) | 10,202 | +67% | | AUM (R$ billions) | 29 | +287% | Private Equity Segment Details The Private Equity segment's FRE grew 23% YoY to R$19.4 million in Q1 2025, driven by successful fundraising | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 31,294 | +19% | | FEE RELATED EARNINGS (FRE) | 19,433 | +23% | | AUM (R$ billions) | 16 | +14% | Equities Segment Details The Equities segment's AUM grew 49% YoY to R$15 billion, though FRE declined due to higher post-combination expenses | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 18,794 | +35% | | FEE RELATED EARNINGS (FRE) | 5,177 | -22% | | AUM (R$ billions) | 15 | +49% | Real Assets Segment Details The Real Assets segment's AUM grew 9% YoY to R$12 billion, but FRE declined 8% due to increased expenses | Metric (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total Fee Related Revenues | 29,024 | +24% | | FEE RELATED EARNINGS (FRE) | 11,722 | -8% | | AUM (R$ billions) | 12 | +9% | Corporate Advisory Segment Details The Corporate Advisory segment had a seasonally quiet Q1 but generated R$15.8 million in FRE over the last twelve months | Metric (R$ thousands) | 1Q'25 | 1Q'25 LTM | | :--- | :--- | :--- | | Net revenue from advisory fees | 457 | 33,556 | | FEE RELATED EARNINGS (FRE) | (1,240) | 15,770 | Appendix II: Financial Statements & Supplemental Details This appendix contains the consolidated financial statements, non-GAAP reconciliations, and other supplemental data Income Statement The Q1 2025 consolidated income statement shows a net income of R$55.9 million, a 22% increase year-over-year | (R$ thousands) | 1Q'25 | YoY Change | | :--- | :--- | :--- | | Total net revenues from services rendered | 234,721 | +115% | | Operating profit | 67,404 | +23% | | NET INCOME | 55,928 | +22% | | ADJUSTED NET INCOME | 48,015 | -6% | Non-GAAP Reconciliation This section reconciles GAAP metrics to non-GAAP indicators like FRE, PRE, and Adjusted Distributable Earnings - This table reconciles GAAP Net Income of R$55.9M to Adjusted Distributable Earnings of R$62.3M for Q1 2025 by adjusting for unrealized items, non-cash expenses like depreciation and equity-based compensation, and non-operational expenses[91] Balance Sheet As of March 31, 2025, the company reported total assets of R$3.43 billion and total equity of R$1.89 billion | (R$ thousands) | 03/31/2025 | | :--- | :--- | | Total Assets | 3,426,917 | | Cash and cash equivalents | 163,782 | | Intangible assets | 1,054,859 | | Total Liabilities | 1,537,307 | | Total Equity | 1,889,610 | AUM & Fee-Earning AUM Rollforward Total AUM decreased from R$327.0 billion to R$304.6 billion in Q1 2025, mainly due to negative FX variation | AUM Rollforward Q1 2025 (R$ millions) | Amount | | :--- | :--- | | Beginning balance (Q4'24) | 326,961 | | Net Capital Subscription / (Return) | 761 | | Net Inflow / (Outflow) | (7,567) | | FX Variation | (28,947) | | Appreciation / (Depreciation) | 3,344 | | Ending balance (Q1'25) | 304,552 | Investment Records This section details historical performance data and returns for the company's various liquid and closed-end funds - Provides performance data (YTD, 12M, 24M returns) for key open-end funds across Equities, Credit, and Global IP&S against their respective benchmarks[100][101] - Details the historical performance of closed-end funds, showing strong long-term value creation, such as the VCP Private Equity strategy's aggregate Gross MOIC of 2.4x and the SPS Credit strategy's Gross MOIC of 2.7x[102] Shareholder Dividends & Share Summary The company declared a US$0.15 dividend per share for Q1 2025 and continued its share repurchase program | Metric | Q1 2025 | | :--- | :--- | | Adjusted DE per Common Share | US$0.17 | | Actual Dividend per Common Share | US$0.15 | | Shares Repurchased | 683,148 | | Total Common Shares Outstanding | 63,363,207 | - The remaining authorization for the share repurchase plan was US$1.6 million as of March 31, 2025[104]