Core Insights - The company has established a strong position in the Latin American alternative asset market, similar to trends seen in the U.S. and Europe, with a focus on brand recognition and platform attractiveness [1] - Distributable earnings for the quarter reached R$57 million, reflecting a 12% year-over-year increase on a per share basis, indicating robust growth [1][36] - The company anticipates a strong finish to the year with several fund closings and continued fundraising success despite varying interest rate environments [2] Fundraising and AUM Growth - The company reported R$70 billion in assets under management (AUM), an 8% year-over-year growth, driven by capital raising efforts in private market funds [3] - Fee-related earnings for the quarter were R$53.8 million, or R$1.02 per share, with adjusted distributable earnings at R$57.1 million, or R$1.08 per share [4][36] - The integration with Compass has created a leading pan-regional alternative asset manager, enhancing the company's product offerings and distribution capabilities [5][6] Strategic Developments - The acquisition of Lacan, a timberland investment management organization, is expected to enhance the company's forestry strategy and contribute positively to AUM and segment results [9][10][12] - The company has successfully secured commitments from international investors, including a significant milestone with a Mexican LP for VCP IV, showcasing the effectiveness of the integrated platform [8][24] - The company is launching new investment strategies in collaboration with top asset managers, including a new retirement strategy with BlackRock, further expanding its offerings [18][19] Market Conditions and Performance - The Brazilian economy is showing strong growth post-pandemic, while the stock market remains stable, presenting an attractive entry point for medium-to-long term investors [14][15] - The company is experiencing outflows in its IP&S segment, primarily due to high interest rates, but expects to see a moderation in negative impacts moving forward [16][62] - The company anticipates continued growth in fee-related earnings driven by new commitments in private markets and a strong advisory service pipeline [31][36]

Financial Data and Key Metrics Changes - Venture Compass generated fee related earnings of R65.7 million or R1.04 per share and adjusted distributable earnings of R62.3 million or $0.98 per share for Q1 2025, representing a 22% year-over-year increase in FRE and a 266% increase in adjusted distributable earnings [3][4][8] - The company declared a quarterly dividend of $0.15 per common share, payable on June 10 to shareholders of record as of May 27 [4] - Fee related revenues totaled R million, reflecting a 117% increase year-over-year and a 6% growth quarter-over-quarter [38] Business Line Data and Key Metrics Changes - The credit segment was a highlight, with successful fundraising across various funds, including PEPCO II raising over million dollars and SPS four raising approximately BRL200 million [7][21] - The agribusiness credit fund, Mavi three, also marked its first closing this quarter, indicating strong activity across credit strategies [7] - The equities segment is seeing compelling opportunities, with Latin American equities trading at attractive valuations compared to peers [15][16] Market Data and Key Metrics Changes - The Brazilian Central Bank signaled nearing the end of its interest rate hikes, which may lead to a more supportive credit market environment [11] - Foreign investors returned as net buyers of BRL3.8 billion in Q1 2025, compared to a net sell-off of BRL6 billion in Q4 2024, indicating a shift in market sentiment [25] - The geopolitical backdrop is expected to attract capital inflows into Latin America, seen as a stable region with strong diplomatic ties [12] Company Strategy and Development Direction - The company is focused on integrating its platforms to foster collaboration and drive sustainable growth across various time horizons [5][6] - There is a strong emphasis on credit strategies, with expectations for growth in this segment to continue in 2025 [8][9] - The company plans to leverage technology, particularly AI, to enhance operational efficiency and decision-making [33][34] Management's Comments on Operating Environment and Future Outlook - Management views the current macroeconomic environment as an opportunity rather than a challenge, particularly in the credit segment [9][10] - The company is optimistic about capturing value for investors amid global trade dynamics and evolving geopolitical conditions [11][12] - There is confidence in the strength of the platform and a strong pipeline of products expected to drive growth in 2025 [18] Other Important Information - The company hosted annual global investment conferences across multiple Latin American countries, reinforcing its position as a trusted partner for capital allocators [13] - The Climate Infrastructure Fund, VICC, is set for its final closing in Q2 2025, focusing on high-impact projects aligned with sustainable infrastructure [17][27] Q&A Session Summary Question: Expectations for FRE margin growth and impact of BRL appreciation - Management expects FRE costs to remain disciplined, with potential for mid-double digit revenue growth, which would allow for substantial cost leverage [47][48] - The impact of BRL appreciation on distributable earnings was minimal, with a positive impact of $2 million noted [50][51] Question: Drivers behind IP and S segment performance - The decline in the IP and S segment was attributed to currency fluctuations and net outflows, particularly in liquid TPV [57][66] - Accrued performance markdowns were mainly due to currency impacts, with expectations for recovery in the second quarter [60][63] Question: Interest in Latin America and potential benefits - There is increasing real interest from global investors in Latin America, particularly in equities, infrastructure, and credit [78][79] - The company is seeing commitments from Asian investors and discussions for sustainable infrastructure investments [79] Question: FRE margin outlook for the year - Management maintains a target for FRE margins in the low 30s, with expectations for recovery in corporate advisory revenues [80][82]