Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Investor Presentation (August 2024)
67 slides from Vinci Compass Investments's investor presentation, Aug 27, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Disclaimer
2 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 sub
Slide 3: Business Overview
Business Overview VINCI partners VINP | Nasdaq Listed
Slide 4: Leading full-service alternative asset manager
4 Notes: ¹As of June 2024; ²Considers assets under management and advisory as of December 2023. Vinci Partners is a leading, full - service alternative asset manager 9 Business St r a t e g i e s 5 Dist r ibuti o n Channels 55% Capital committed for 5+ years¹ Vinci operates on a highly visible and i
Slide 5: Complete portfolio of investment products and solutions
5 Notes: ¹AUM is calculated as consolidated with double counting, due to funds from one segment investing in other segments and it ȼ s eliminated on consolidation and excluding double counting from co - managed funds between our segments. The platform provides an extensive range of products and solu
Slide 6: AUM base and revenue profile
6 50% 36% 14% 61% 17% 14% 8% Notes: ¹Long - term AUM includes funds with lockups for at least five years to quasi - perpetual capital commitments; ²Private markets strategies include Private Equity, Real Estate, Private Credit, Vinci SPS and Infrastructure. Our AUM base favors alpha - driven strateg
Slide 7: AUM funding base relies on proprietary distribution channels
7 38% 21% 20% 11% 10% Local Institutional¹ Institutional Offshore² HNWI³ Allocators & Distributors⁴ Public market vehicles⁵ Notes: ¹Local Institutional covers Brazilian pension funds (public and private), insurance companies, large and mid - size corporations and the government; ²Institutional Offsh
Slide 8: What is yet to come?
What is yet to come?
Slide 9: Integrated approach to Latin America alternative asset management
9 Notes: 1 Considers assets under management and advisory as of December 2023. Integrated Approach to Latin America Alternative Asset Management The combination between Vinci and Compass creates a leading asset manager in LatAm, with more than U$50bn 1 in AUM Deep Network of Relationships with LatAm
Slide 10: Consolidating Vinci's position as gateway to alternatives in Latin America
10 Consolidating Vinci's Position As The Gateway to Alternative Investments In Latin America Notes: 1 As of December 2023. Vinci Partners’ offices Compass’ offices Local to Local Local to Global Global to Local Global to Regional 7 Countries in LatAm plus USA +600 Employees 1 +25 Years Providing Inv
Slide 11: Creating a Leading LatAm Player
11 Creating a Leading LatAm Player Transaction to drive strong diversification of Vinci’s platform in product, fee revenues and funding 45% 37% 13% 5% 63% 16% 18% 3% Vinci Partners & Compass Per Segment Dec/2023 US$152mm Fee Related Revenues 1 Private Markets IP&S Public Equities Corporate Advisory
Slide 12: Acquisition of MAV Capital
12 Vinci Partners to expand agribusiness footprint with the acquisition of MAV Capital MAV Capital Transaction Rationale ▪ MAV Capital is an alternative asset manager focused on agribusiness with approximately R $ 550 million in assets under management in sector - specific private credit funds ▪ MAV
Slide 13: Unlocking Growth through strategic partnerships and acquisitions
13 Unlocking Growth: We are focused on delivering growth through strategic partnerships and acquisitions 2022 Acquisition of SPS Capital A new chapter in our product offering capabilities with the expansion into Opportunistic Capital Solutions, a sizable addressable market in Brazil. + US$ 37 bn AUM
Slide 14: Private Markets fundraising cycle: our near-term focus
14 Private Markets fundraising cycle: our near - term focus We will continue to have contributions from our ongoing fundraisings… ...with additional commitments coming from new and existing strategies Real Es t a te 2 H ’ 24 As a pioneer and leading player in the Brazilian private equity space, we a
Slide 15: Key takeaways
15 Key takeaways Our business model is structured to drive strong growth during favorable market conditions and to remain resilient during tougher scenarios Expansion of Vinci’s geographic footprint intro a true Pan - regional platform through strategic partnerships and acquisitions The alternative
Slide 16: Financial Highlights
Financial Highlights VINCI partners VINP | Nasdaq Listed
Slide 17: Second Quarter 2024 Financial Highlights
17 Vinci Partners Second Quarter 2024 Financial Highlights R$ 5.1 bn Capital S u bsc ripti o n s 2Q’24 LTM R$ 69 bn + 7% YoY AUM 2Q’24 US$ 0.17 Qu ar t er ly D ivi d e n d R$ 1.10 Adj. DE/share² 2Q’24 7.0% Dividend Yield 2Q’24 LTM R$ 108 mm Adj. DE 2Q’24 YTD R$ 58 mm Adj. DE 2Q’24 Notes: ¹FRE per sh
Slide 18: Fee Related Revenues and Total Expenses
18 93 114 14 11 107 126 2 Q ' 23 2 Q ' 24 Fee Related Revenues and Total Expenses 87% 91% 91% 91% + 18% + 12% ▪ Fee related revenues totaled R$125.6 million in the 2Q’24, up 18% year - over - year. This increase was pushed by organic growth across Private Market strategies over the quarter and retro
Slide 19: Performance fees and accrued performance
19 88% 5% 7% Private Equity Infrastructure Vinci SPS Notes : Vinci Partners recognizes the performance revenue according to IFRS 15 . Unrealized performance fees are recognized only when is highly probable that the revenue will not be reversed in the Income Statement . The fund FIP Infra Transmissão
Slide 20: Our GP Commitments are a long-term value creator
20 Our GP Commitments are a long - term strong value creator ▪ As of 2Q’24, Vinci Partners had R$1,149.2 million in capital commitments signed to proprietary funds mostly across Private Equity, Infrastructure, Credit and Real Estate. ▪ Realized investment gains are recognized quarterly as GP Investm
Slide 21: GP and Financial Income
21 Notes : ¹GP investment income comes from proprietary investments made by Vinci Partners in its own Private Markets’ funds and other closed - end funds across Public Equities and IP&S segments with long - term lockups ; ²Financial income is income generated through investments made with our cash a
Slide 22: Fee Related Earnings and Distributable Earnings
22 51 62 Fee Related Earnings (FRE) and Distributable Earnings (DE) DE Margin ▪ Fee Related Earnings (FRE) of R$61.9 million (R$1.16/share) in the quarter, up 22% year - over - year on an absolute basis and 24% year - over - year on an FRE per share¹ basis. This growth was primarily driven by a high
Slide 23: Second Quarter 2024 Segment Earnings
23 Notes: ¹FRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Year to Date values a re calculated as the sum of the last two quarters; ²Other items comprise the income/(loss) generated by financial income/(expenses) related to SPS acquisition,
Slide 24: Appendix – I Business Overview
Appendix – I Business Overview
Slide 25: Building up Vinci Partners: a history of growth and diversification
25 Notes: Starting from 2020, our official AUM is calculated on a consolidated basis, accounting for double counting resulting from funds from one segment investing in othe r s egments and excluding double counting from co - managed funds between our segments. Source: Vinci Partners Building up Vinc
Slide 26: Vinci's ecosystem sets us apart from competition
26 Vinci’s ecosystem sets us apart from competition Private Mar k ets Public E qu ities I P &S Retire m e n t Services C o r po rate Advisory Asset Origination Leverage from a robust platform with a broad spectrum of strategies to maximize investment opportunities Networking With +40 partners and a
Slide 27: Our ESG approach is a fundamental value
27 Our ESG approach is a fundamental value that permeates throughout our investment strategies We are pioneers among Brazilian firms in our commitment to ESG… Vinci Energia Sustentavel (VES) Credit Fund focused on private debt related to green energy funded by BNDES Vinci Impact and Return (VIR IV)
Slide 28: Brazil is a perfect fit for advancing this agenda
28 And Brazil is a perfect fit for advancing this agenda As of June 28, 2023, unless otherwise stated. Source: ¹Prequin; ²PEI; ³Vinci Partners Internal Research … and stands as a leader for climate and impact - oriented investments in Brazil total capital raised ($bn) 2,500 2,000 1,500 1,000 0 60 40
Slide 29: Vinci is primed to capitalize on secular trends
Vinci is primed to capitalize on secular trends…
Slide 30: The alternative market continues to grow on a global scale
30 Global Share (%) Source: PWC, Asset and Wealth Management Revolution 2023 The alternative market continues to grow on a global scale A global shift towards private markets reflects investors' heightened pursuit of returns and hedging strategies amid market volatility Propelled by declining real r
Slide 31: Substantial inflows from institutional investors to alternatives
31 As of December 2023, unless otherwise stated. Source: Public Plans Data; Center for Retirement Research at Boston College; ¹Thinking Ahead Institute. The alternative industry has experienced substantial inflows from institutional investors in recent years 57% 42% 34% 22% 9% 36% 2002 2003 2004 200
Slide 32: Brazilian investors shifting toward products with superior returns
32 48% 17% 9% 3% R$2.9 tn AUM 2015 23% Source: ANBIMA See notes and definitions at end of document Brazilian investors are shifting focus toward products with superior returns, but still relatively under allocated The Brazilian Market AUM has almost tripled since 2015 AUM allocation mix gradually sh
Slide 33: Brazilian pension allocation concentrated in fixed income
33 87% 13% Fixed Income Other asset classes 79% 21% Brazilian Complementary Pension Industry allocation is still heavily concentrated toward fixed income products As of December 29, 2023. Source: ¹Fenaprevi; ²Abrapp Sizeable opportunity for growth in alternatives coming from institutional investors,
Slide 34: Appendix – II Segment Summaries
Appendix – II Segment Summaries
Slide 35: Financials by segment
35 Financials by segment Segment Distributable Earnings 2Q’24 YTD by Segment Fee Related Earnings (FRE) 2Q’24 YTD by Segment R$145 mm ▪ Fee Related Earnings (FRE), disregarding Vinci Retirement Services segment, were R$121.9 million in the 2Q’24 YTD, with 67% of FRE coming from Private Markets, foll
Slide 36: Platform for alternative investments: Private Equity and Real Estate
36 We offer a complete and diversified platform for alternative investments Private Equity – R$15.5bn AUM (45%) PRIVATE MARKETS R$35 BILLION AUM Real Estate – R$6.7bn AUM (19%) The real estate strategy invests through two subs - strategies: Listed Perpetual Funds : The real estate strategy currently
Slide 37: Vinci SPS and Credit strategies
37 We offer a complete and diversified platform for alternative investments Vinci SPS – R$2.2bn AUM (7%) The Vinci SPS strategy invests across three core sub - strategies: 1) Corporate: • Primary Market Funding: New money provided through structured credit solutions. Downside protection th r o u gh
Slide 38: Private Markets segment results
38 Private Equity 45% Real Estate 19% C redit 18% Private Markets' AUM Vinci SPS 7% I nfr a s t r uc t u re 11% Private Markets ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2 Q' 24 1 Q' 24 2 Q' 23 (R$ thousands, unless mentioned) 24% 143 , 756 116 , 274 40% 81 , 238 62 , 519 57 , 842 Net revenue from man
Slide 39: International and commingled funds
39 International – R$1.6bn AUM (7%) Within our IP&S segment we have an offshore allocation service, or international exclusive mandates, managed by a team in our New York office. We provide tailored made investment solutions for local institutional investors and nigh net worth individuals that are s
Slide 40: Investment Products & Solutions
40 Investment Products & Solutions ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD PF¹ ∆ YoY (%) 2 Q' 24 1 Q' 24 2Q'23 PF¹ (R$ thousands, unless mentioned) ( 10 )% 38 , 773 43 , 302 ( 7 )% 18 , 959 19 , 814 20 , 485 Net revenue from management fees 3 , 449% 532 15 6 , 456% 524 8 8 Net revenue from advisory fees ( 9 )
Slide 41: Established public equities platform
41 We have an established and widely recognized public equities platform PUBLIC EQUITIES R$9 BILLION AUM Vinci Partners has a long track record and deep experience investing in public equities in Brazil. We focus on holding positions in companies for three to five years following deep analysis and r
Slide 42: Public Equities
42 Public Equities ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD PF¹ ∆ YoY (%) 2 Q' 24 1 Q' 24 2Q'23 PF¹ (R$ thousands, unless mentioned) ( 5 )% 27 , 726 29 , 061 ( 5 )% 13 , 762 13 , 964 14 , 433 Net revenue from management fees N / A – – N / A – – – Net revenue from advisory fees ( 5 )% 27 , 726 29 , 061 ( 5 )% 1
Slide 43: Leading corporate advisory business
43 We have a leading corporate advisory business About our Corporate Advisory team Our corporate advisory services team provides financial and strategic services to business owners, senior corporate management teams and boards of directors, focusing mostly on pre - IPO and M&A advisory services for
Slide 44: Corporate Advisory
44 Corporate Advisory ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2 Q' 24 1 Q' 24 2 Q' 23 (R$ thousands, unless mentioned) N / A – – N / A – – – Net revenue from management fees 3% 18 , 557 17 , 954 ( 36 )% 8 , 760 9 , 797 13 , 768 Net revenue from advisory fees 3% 18 , 557 17 , 954 ( 36 )% 8 , 760 9 ,
Slide 45: Retirement Services
45 Retirement Services ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2 Q' 24 1 Q' 24 2 Q' 23 (R$ thousands, unless mentioned) 3 , 679% 334 9 1 , 901% 175 158 9 Net revenue from management fees N / A – – N / A – – – Net revenue from advisory fees 3 , 679% 334 9 1 , 901% 175 158 9 Total Fee Related Revenues
Slide 46: Appendix – III Financial Statements
Appendix – III Financial Statements
Slide 47: How to analyze Vinci Partners' financial model
47 How to analyze Vinci Partners’ financial model Fee Related Earnings (FRE) (+) Management fees: our main source of revenues, derived from fees charged over our Fee - Earning AUM (+) Advisory fees: fees charged over advisory services provided by our corporate advisory and management teams ( - ) Ope
Slide 48: Financials - Income Statement
48 See notes and definitions at end of document Financials - Income Statement ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2 Q ' 2 4 1 Q ' 2 4 2 Q ' 2 3 (R$ thousands, unless mentioned) REVENUES 12 % 210 , 5 8 9 188 , 6 4 6 23 % 114 , 1 3 4 96 , 45 5 92 , 76 9 Net revenue from management fees ( 38 )% 7 ,
Slide 49: Financials - Non-GAAP Reconciliation
49 Financials - Non - GAAP Reconciliation 2Q'24 YTD 2Q'23 YTD 2 Q ' 2 4 1 Q ' 2 4 2 Q ' 2 3 (R$ thousands, unless mentioned) 119 , 9 2 4 106 , 4 3 0 65 , 01 4 54 , 91 0 56 , 14 5 OPERATING PROFIT ( 11 , 36 9 ) ( 12 , 72 8 ) ( 9 , 096 ) ( 2 , 273 ) ( 10 , 76 5 ) ( - ) Net revenue from realized perfor
Slide 50: Income tax reconciliation
50 2Q'24 YTD 2Q'23 YTD 2 Q ' 24 2 Q ' 23 (R$ thousands, unless mentioned) 96 , 118 148 , 983 40 , 026 103 , 396 Profit (loss) before income taxes 34% 34% 34% 34% Combined statutory income taxes rate - % ( 32 , 680) ( 50 , 654) ( 13 , 609) ( 35 , 154) Income tax benefit (Expense) at statutory rates R
Slide 51: General and Administrative Expenses
51 General and Administrative Expenses 17 .8 21 .1 5 .4 8 .7 2 .0 3 .2 3 .2 2Q’24 (R$mm) 2Q’23 (R$mm) Lease and c ondominium O th e r P e rs onn e l Bonus related to Mgmt. and Adv. fees Performance based c omp e n s a tion Third party expenses D &A R$66.2 mm P e rs onn e l Bonus related to Mgmt. and
Slide 52: Liabilities and equity
52 06 / 28 / 202 4 03 / 28 / 2024 Liabilities and equity Current liabilities 1 , 495 348 Trade payables – 10 , 419 Deferred Revenue 24 , 919 25 , 104 Leases 6 , 276 6 , 052 Accounts payable 55 , 721 27 , 325 Labor and social security obligations 76 , 346 78 , 138 Loans and Financing 22 , 780 18 , 61
Slide 53: Supplemental Details
Supplemental Details VINCI partners VINP | Nasdaq Listed
Slide 54: AUM and Fee-Earning AUM Rollforward
54 AUM and Fee - Earning AUM Rollforward Assets Under Management (AUM) – R$ millions For the Three Months Ended June 28, 2024 For the Three Months Ended June 28, 2024 For the Twelve Months Ended June 28 , 2024 For the Twelve Months Ended June 28 , 2024 Real Es t a te Cr e d i t Retirement Vinci SPS
Slide 55: Investment records – IP&S, Liquid Strategies, Private Credit and Listed Funds
55 24 M 12 M YTD 2 Q ' 24 Benchmark 25 . 7 % 4 . 9 % (7.7)% ( 3 . 3 )% IBOV 5 26 . 8 % 11 . 7 % 5.2% 2 . 5 % CDI 4 19 . 3 % 8 . 2 % 3.3% 1 . 2 % IMA - B 5 7 21 . 3 % 10 . 2 % 5.7% 2 . 6 % IPCA 6 + Yield IMA - B 7 7 . 5 % 4 . 2 % 2.5% 1 . 1 % IPCA 6 19 . 7 % 6 . 1 % 1.1% ( 1 . 8 )% IFIX 8 See notes a
Slide 56: Private Equity fund track record
56 Gross IRR Gross IRR Gross MOIC Gross MOIC Total Value U n r ea li ze d Realized or Invested Capital Committed Capital Vintage year S e g me nt Fund Partially Realized (U SD) (B RL) (U SD) (B RL) ( R $mm ) ( R $mm ) ( R $mm ) ( R $mm ) ( R $ mm) 77 . 2 % 71 . 5 % 4 . 0 x 4 . 3 x 5 , 20 2 13 7 5 ,
Slide 57: Shareholder Dividends
57 Notes: ¹US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 5.6528, as of August 06, 2024, when dividends were approved by our Board of Directors; ²Per Share calculations are based on end of period Participating Common Shares; ³Actual dividends per common sh
Slide 58: Share Summary
58 2 Q ' 24 1 Q ' 24 4 Q ' 23 3 Q ' 23 2 Q ' 23 1 Q ' 23 4 Q ' 22 3 Q ' 22 2 Q ' 22 VINP Shares 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 14 , 466 , 239 Class B 38 , 779 , 209 38 , 778 , 597 39 , 312 , 578 39 , 405 , 827 3
Slide 59: Fair value of investments
59 Fair value of i n v es t m e n ts Accumulated Capital Returned/Dividends Paid Capital Returned/Dividends Paid (2Q'24) Total Capital Called 2Q'24 Capital Called Total Capital Committed 2Q'24 Commitments Segment (R$ millions, unless mentioned) 3 . 4 1 . 6 – 3 . 2 0 . 0 5 . 0 – Private Equity Nordes
Slide 60: Significant exposure to performance fee-eligible AUM
60 See notes and definitions at end of document Significant exposure to performance fee - eligible AUM R$38 bn ver its SWF m m e n t PERFORMANCE FEE ELIGIBLE AUM (PEAUM) Status Index Rate Index type AUM R$mm Strategy/Fund Currently generating performance IPCA 5 + 8% Preferred Return w/ Catch - Up² 1
Slide 61: Notes and Definitions
Notes and Definitions Notes to page 32: (1) Private Markets are comprised of REITs, Credit rights investment funds and Private Equity (excluding non - discretionary managers). (2) Others are comprised of non - discretionary Private Equity managers (79%), Offshore (10%), ETF (10%) and foreign exchang
Slide 62: Notes and Definitions
Notes and Definitions (11) IFIX is an index composed by listed REITs in the Brazilian stock Market. (12) If IMAB 5 Average is: i. less or equal to 2%, X=3% per year; ii. between 2% - 4%, X= Average IMAB 5+1% per year; iii. Between 4% - 5%, X=5% per year; IV. greater or equal to 5%, X= IMAB 5 Average
Slide 63: Notes and Definitions
63 Notes and Definitions (3) Hurdle Rate is the minimum return the fund must achieve before it can charge performance fees. In most cases, funds with hurdle rate also are under a high - water mark clause. (4) Funds with preferred return must return 100% of invested capital corrected by the preferred
Slide 64: Notes and Definitions
64 Notes and Definitions ▪ “Fee related earnings”, or “FRE”, is a metric to monitor the baseline performance of, and trends in, our business, in a manner that does not include performance fees, investment income and expenses that do not arise from our normal course of operations. FRE is calculated a
Slide 65: Notes and Definitions (cont'd.)
65 Notes and Definitions (cont’d.) ▪ “Net revenue from Fund Management and Advisory” is a performance measure that we use to assess our ability to generate profits from our fund management and advisory business without measuring for the outcomes from funds above their respective benchmarks. We calcu
Slide 66: Funds/strategies' descriptions
66 Funds/strategies’ descriptions ▪ Vinci Multiestratégia: The fund seeks to achieve long - term returns by investing in fixed income assets, through strategies that imply interest rates and currency risks. ▪ Vinci Atlas: The fund seeks to achieve long - term returns by investing across all strategi
Slide 67: RIO DE JANEIRO 2159 6000 Av. Bartolomeu Mitre, Leblon – 22431 - 002 SÃO
RIO DE JANEIRO 55 21 2159 6000 Av. Bartolomeu Mitre, 336 Leblon – 22431 - 002 SÃO PAULO 55 11 3572 3700 Av. Brigadeiro Faria Lima, 2.277 - 14º andar Jardim Paulistano – 01452 - 000 RIBEIRÃO PRETO 55 16 2101 4641 Av. Presidente Vargas, 2.121 – Sala 106 Jardim América - 14020 - 260 RECIFE 55 81 3204 6
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