Financial Data and Key Metrics Changes - The company reported organic fundraising of $1.7 billion in Q4 2025 and a record $7.7 billion for the full year, exceeding the revised target of $6 billion by over $1 billion [4] - Fee-related earnings reached $203 million in 2025, up 19% year-over-year, with distributable earnings per share at $1.27 [5][23] - Total fee-earning AUM rose to $41 billion in Q4 2025, a 5% sequential increase and 24% year-over-year growth [7][17] - Fee-related earnings for Q4 2025 were $64.2 million, representing a 30% sequential and 17% year-over-year growth [21] Business Line Data and Key Metrics Changes - Infrastructure strategies raised approximately $2.3 billion in 2025, significantly up from the previous year [10] - GPMS raised almost $2 billion in 2025, indicating strong client support [11] - The credit platform raised a record $1.8 billion in 2025, surpassing the previous record of $1.4 billion in 2024 [11] - Real estate strategies raised over $520 million in Q4 2025, contributing to the company's position as the largest manager of REITs in Brazil [13] Market Data and Key Metrics Changes - The Brazilian credit market reached $1.7 trillion in 2024, with $800 billion estimated as the addressable market for asset-backed, non-bank private credit [12] - The company noted a 30%+ CAGR for CLOs in Brazil since 2019, highlighting strong growth in this asset management strategy [12] Company Strategy and Development Direction - The company aims to achieve a fee-earning AUM target of $70 billion by year-end 2027, supported by recent acquisitions and strong fundraising momentum [7][9] - The acquisition of Solis and several REITs is expected to enhance capabilities in private credit and real estate, respectively [5][6] - The company is expanding its investment strategies, including infrastructure development, private equity buyout, and venture capital, to diversify its performance fee earnings stream [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2026 and 2027 fundraising targets of $7 billion and $8 billion, respectively, due to strong demand for their investment strategies [9][33] - The macroeconomic environment is seen as favorable, with financial deepening, deregulation, and increased allocations to alternatives driving demand [28][29] - Management remains optimistic about generating future performance fees, particularly from Infrastructure Fund III and other new strategies [25][64] Other Important Information - The company announced a dividend increase to $0.65 per share for 2026, reflecting strong cash generation [51] - A new CFO, Rafael Denadai, will assume the role in April 2026, following Ana Russo's transition to advisory roles [30][31] Q&A Session Summary Question: Can you discuss the private equity valuation process and how valuations are validated by third parties? - The company uses an independent appraiser annually to value private assets, employing a discounted cash flow model and comparing results with industry multiples [56][58] - Valuations are adjusted quarterly based on the cost of capital unless significant changes occur [60] - Unrealized performance fees do not affect management fees or employee bonuses, as performance fees are only recognized when cash is received [62][63] Question: What are the prospects for IPOs and strategic exits in private equity in 2026? - The company noted that while exits to other private equity firms are limited, the strong performance of public equities and declining interest rates in Brazil could benefit private equity realizations [70]