Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Investor Presentation (May 2022)
56 slides from Vinci Compass Investments's investor presentation, May 12, 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 2022
Slide 2: Disclaimer
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 subje
Slide 3: Business Overview
Business Overview VINCI partners
Slide 4: Leading full-service alternative asset manager in Brazil
We are a leading, full - service alternative asset manager in Brazil We have a high visibility and integrated recurring revenues business model 81% Of you net revenues come from mgmt. Fees 4 Our business is profitable and growing , with strong operating leverage Dividends since IPO US$0.83 Per share
Slide 5: We have scaled our platform significantly since 2009
2 6 11 15 17 18 20 19 21 24 35 48 54 53 50 57 57 39 61 76 88 76 95 142 121 145 137 196 221 221 217 - 50 100 150 200 250 0 10 20 30 40 50 60 70 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 AUM (R$bn) AUM DC¹ (R$bn) Brazil Interest Rates AUM/FTE Vinci Partners was founded in O
Slide 6: Proven ability to invest through different products across multiple verticals
Proven ability to invest proprietary and third - party capital through different products yielding sustainable profitability acros s multiple verticals We offer a complete portfolio of alternative investment products and solutions to both retail and institutional clients Investor Relations, Support,
Slide 7: Platform built on four key pillars
Our platform is built on four key pillars: people, diversification, performance and distribution Strong “Partnership Culture” reinforcing our mission, vision, and values with partners having worked together for over 20 years People Well - established robust “One - stop Shop” AAM platform diversified
Slide 8: First-class management team with proven execution capabilities
First - class management team with proven execution capabilities and long - term alignment of interests Our long - standing partnership model drives our success Strong Fundraising Capabilities Unique Expertise in Capital Allocation Solid Execution Translating into Returns + + 29 years experience 29
Slide 9: AUM base favors alpha-driven strategies; revenue is management fee-centric
24% 11% 4% 6% 22% 15% 7% 11% Private Equity Real Estate Credit Infrastructure IP&S Public Equities Hedge Funds Advisory 19% 9% 6% 3% 41% 17% 5% 36% 23% 23% 9% 9% Local Institutional HNWI Institutional Offshore Allocators & Distributors Public market vehicles Our AUM base favors alpha - driven strate
Slide 10: AUM funding base built on proprietary distribution channels
Our AUM funding base is mostly built upon our proprietary distribution channels Private Markets 1Q’22 AUM Liquid Strategies 1Q’22 AUM IP&S 1Q’22 AUM Private Markets’ AUM base favors long - term to perpetual capital commitments 93% of Liquid Strategies’ AUM is distributed across proprietary relations
Slide 11: ESG approach permeates our investment strategies
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 VIR IV - launched with dual mandate
Slide 12: Risk management committee and compliance
Risk management committee composed and supervised by senior executives including the addition of Julya Wellish as a partner and head of Legal & Compliance (Previously Chief Prosecutor at CVM 1 ) We place a strong emphasis on risk management, taking the utmost care of our clients ’ capital ▪ Mandator
Slide 13: Leader in Brazilian alternative asset management with competitive advantages
We are a leader in Brazilian alternative asset management with strong competitive advantages AUM CAGR 2018 – 1Q22 ~30% 45% of Net Revenues come from Private Market Strategies ~50% of AUM committed for over 5 years Diversified business model 9 business units Partnership model: 35 partners Vinci Partn
Slide 14: Financial Highlights
Financial Highlights
Slide 15: Starting a strong fundraising cycle in Private Markets in 2022
/ We are starting in 2022 a strong cycle for fundraising in Private Markets Vinci Capital Partners IV (VCP IV) Vinci Impact Climate Change (VICC) Vinci Debêntures Infra - Credit We have a target fundraising of R$10 billion for our Private Markets’ closed - end funds… ▪ VCP IV is the fourth vintage o
Slide 16: Resilient business model with high management fee centricity
147 224 271 361 6 62 40 38 20 11 29 67 172 297 340 465 2018 2019 2020 2021 Management Performance Advisory 290 366 54 31 28 5 372 453 1Q'21 LTM 1Q'22 LTM We have a resilient business model with high management fee centricity Vinci’s revenue is primarily derived from management fees (R$ mm) Total Exp
Slide 17: Position for future realization of performance fees
81% 19% Private Equity Infrastructure Vinci holds a strong position for future realization of performance fees in private market funds ▪ Performance fee receivable increased to R$104.6 million in the 1Q’22, a 3% increase quarter - over - quarter, driven mostly by appre ciation in the VCP III strateg
Slide 18: Additional gains from GP Investments and financial income
…and additional gains from our GP Investments and financial income ▪ Realized GP Investment¹ and Financial income² of R$27.0 million in the 1Q ’ 22, up 469% year - over - year, driven by realized gains in our liquid funds' portfolio. ▪ Realized GP Investment income of R$2.0 million in the quarter, c
Slide 19: Highly visible growth and profitability profile
138 243 1Q'21 LTM 1Q'22 LTM 47 58 1Q'21 1Q'22 157 216 1Q'21 LTM 1Q'22 LTM 50 44 1Q'21 1Q'22 31 98 127 232 2018 2019 2020 2021 Which translates to a highly visible growth and profitability profile Fee - Related Earnings (FRE) – R$mm Adjusted After - tax Distributable Earnings¹ (DE) – R$mm 42% FRE Mar
Slide 20: Key Takeaways
Key Takeaways 73 % FRE as % DE 1Q ’ 22 LTM We operate a highly predictable business model with recurring revenues coming primarily from management fees 1 We see a relevant upside coming from potential future realization of performance fees R$104.6 m illion in accrued performance fees in Private Mark
Slide 21: Appendix – I Segment summaries
Appendix – I Segment summaries
Slide 22: Financials by segment
49% 20% 18% 13% Financials by segment ▪ Fee Related Earnings (FRE) were R$216.1 million over the 1Q’22 LTM, with 49% of FRE coming from Private Markets, followed by Liq uid Strategies accounting for 20%, IP&S for 18% and Financial Advisory for 13%. ▪ Segment Distributable Earnings were R$255.9 milli
Slide 23: Complete and diversified platform for alternative investments
We offer a complete and diversified platform for alternative investments The private equity strategy invests through two sub - strategies : Vinci Capital Partners : VCP focuses on control and co - control investments, executing across growth equity transactions, greenfield investments, buyouts and t
Slide 24: Private Markets segment results
▪ Fee related earnings (FRE) of R$24.9 million in the quarter, up 4% year - over - year. FRE was R$106.8 million over the 1Q’22 LTM, a n increase of 21% when compared to the 1Q’21 LTM, driven by the strong fundraising over the last twelve months. ▪ Segment Distributable Earnings of R$26.9 million in
Slide 25: Liquid strategies platform
We have an established and widely recognized liquid strategies platform LIQUID STRATEGIES R$12 BILLION AUM Vinci Partners has a long track record and deep experience investing in public equities in Brazil . We focus on holding positions in companies for three to five years following deep analysis an
Slide 26: Liquid Strategies financial table
(R$ thousands, unless mentioned) 1Q'21 1Q'22 ∆ (%) 1Q'21 LTM 1Q'22 LTM ∆ (%) Net revenue from management fees 19,983 20,573 3% 64,679 87,376 35% Net revenue from advisory fees - - N/A - - N/A Total Fee Related Revenues 19,983 20,573 3% 77,324 87,376 13% Segment personnel expenses (1,293) (1,384) 7%
Slide 27: Investment Products & Solutions
We are market leaders in providing investment solutions to our clients In our separate exclusive mandates, we provide investment solutions to institutional investors, such as small to medium - sized foundations, pension funds and financial institutions in Brazil, and high net worth individuals . Our
Slide 28: IP&S AUM and financial table
Separate Mandates 66% Commingled Funds 12% International 12% Pension Plans 10% IP&S AUM (R$ thousands, unless mentioned) 1Q'21 1Q'22 ∆ (%) 1Q'21 LTM 1Q'22 LTM ∆ (%) Net revenue from management fees 15,280 19,897 30% 52,335 84,416 61% Net revenue from advisory fees 19 7 - 64% 96 42 - 56% Total Fee Re
Slide 29: Leading financial advisory business
We have a leading financial advisory business About our Financial Advisory team Our financial 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 Bra
Slide 30: Financial Advisory results
Financial Advisory (R$ thousands, unless mentioned) 1Q'21 1Q'22 ∆ (%) 1Q'21 LTM 1Q'22 LTM ∆ (%) Net revenue from management fees - - N/A - - N/A Net revenue from advisory fees 14,541 3,201 - 78% 27,055 49,708 84% Total Fee Related Revenues 14,541 3,201 - 78% 27,055 49,708 84% Segment personnel expen
Slide 31: Retirement Services results
Retirement Services (R$ thousands, unless mentioned)/ 1Q'21 1Q'22 ∆ (%) 1Q'21 LTM 1Q'22 LTM ∆ (%) Net revenue from management fees - - N/A - - N/A Net revenue from advisory fees - - N/A - - N/A Total Fee Related Revenues - - N/A - - N/A Segment personnel expenses - (97) N/A - (97) N/A Other G&A expe
Slide 32: Appendix – II Financial statements
Appendix – II Financial statements
Slide 33: How to analyze Vinci Partners' financial model
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 financial advisory and management teams ( - ) Operat
Slide 34: Quarterly fee-related and segment results
Quarterly Year - to - date (R$ thousands, unless mentioned) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q’22 1Q’21 LTM 1Q’22 LTM Net revenue from management fees 60,826 71,517 76,025 81,843 94,778 92,855 91,594 87,229 290,211 366,456 Net revenue from advisory fees 6,479 330 6,061 15,066 6,378 25,163
Slide 35: Quarterly revenues and expenses
Quarterly Year - to - date (R$ thousands, unless mentioned) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q’22 1Q’21 LTM 1Q’22 LTM REVENUES Net revenue from management fees 60,826 71,517 76,025 81,843 94,778 92,855 91,594 87,229 290,211 366,456 Net revenue from performance fees 19,537 1,697 22,526 9,95
Slide 36: FRE and DE reconciliation
Quarterly Year - to - date (R$ thousands, unless mentioned) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q’22 1Q’21 LTM 1Q’22 LTM OPERATING PROFIT 45,855 37,494 52,634 56,858 65,999 66,924 56,349 45,959 192,841 235,231 ( - ) Net revenue from realized performance fees (7,743) (3,375) (17,654) (9,529) (
Slide 37: Effective tax rate reconciliation
Effective tax rate reconciliation See notes and definitions at end of document (R$ thousands, unless mentioned) 1Q'21 1Q'22 1Q’21 LTM 1Q’22 LTM Profit (loss) before income taxes, not - including Dividends to partners 60,245 57,045 225,833 254,642 Combined statutory income taxes rate - % 34% 34% 34%
Slide 38: General and Administrative Expenses
13.1 18.5 3.3 8.7 0.9 2.4 3.0 15.2 17.3 1.0 8.4 1.0 2.6 2.7 General and Administrative Expenses 1 Q 2021 (R$mm) 1 Q 2022 (R$mm) Lease and condominium Other Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses D&A R$50.0 mm Personnel Bonus related to Mgmt
Slide 39: Balance Sheet Results
Balance Sheet Results Assets 12/31/2021 3/31/2022 Current assets Cash and cash equivalents 102,569 38,516 Cash and bank deposits 21,679 9,109 Financial instruments at fair value through profit or loss 80,890 29,407 Financial instruments at fair value through profit or loss 1,372,926 1,324,292 Trade
Slide 40: Supplement Details
Supplement Details
Slide 41: AUM and Fee-Earning AUM Rollforward
AUM and Fee - Earning AUM Rollforward Assets Under Management (AUM) – R$ millions Fee - Earning Assets Under Management (FEAUM) – R$ millions For the Three Months Ended March 31, 2022 For the Three Months Ended March 31, 2022 For the Twelve Months Ended March 31, 2022 For the Twelve Months Ended Mar
Slide 42: Investment records – liquid and listed funds
Investment records – IP&S, Liquid Strategies, Credit and Listed Funds Fund Segment NAV¹ (R$ millions) 1Q22 YTD 12 M 24 M Market Comparison Index Rate Vinci Multiestratégia FIM Hedge Funds 503.1 3.1% 3.1% 5.9% 8.1% CDI4 CDI4 Atlas Strategy² Hedge Funds 542.4 4.2% 4.2% 1.4% 3.2% CDI4 CDI4 Vinci Total
Slide 43: Investment records – closed-end Private Markets funds
Pro Forma Historical Portfolio Performance - Excluding PIPE Investments¹ Investment records – Closed End Private Markets funds Fund Segment Vintage year Committed Capital (R$mm) Invested Capital (R$mm) Realized or Partially Realized (R$mm) Unrealized (R$mm) Total Value (R$mm) Gross MOIC (BRL) Gross
Slide 44: Shareholder Dividends
Shareholder Dividends ($ in thousands) 1H21 3Q ' 21 4Q'21 1Q'22 Distributable Earnings (R$) 101,976 61,743 68,515 53,255 Distributable Earnings (US$)³ 19,397 11,377 13,637 10,615 DE per Common Share (US$)¹ 0.34 0.20 0.24 0.19 Actual Dividend per Common Share² 0.30 0.16 0.20 0.17 Record Date Septembe
Slide 45: Share Summary
Share Summary ▪ Common Shares Outstanding as of quarter end of 55,829,316 shares. x Repurchased 326,261 common shares in the quarter, with an average share price of US$12.3. x Repurchased 1,084,272 common shares since the announcement of the share repurchase plan, with an average share price of US$1
Slide 46: GP Commitment in Private Market funds
GP Commitment in Private Market funds ▪ As of March 31, 2022, the company had R$451.4 million in capital commitments signed to proprietary Private Markets funds. ▪ During the first quarter of 2022, the company signed R$269.0 million in capital commitments to proprietary Private Markets fu nds . ▪ To
Slide 47: Significant exposure to performance fee-eligible AUM
Significant exposure to performance fee - eligible AUM ▪ Total Performance fee eligible AUM (PEAUM) of R$34.9 billion. ▪ Hurdle rate funds charge performance based on the fund’s return over its benchmark, generally with a high - watermark clause, except for the SWF mandate in Public Equities. ▪ With
Slide 48: Notes and Definitions
▪ Notes to page 4 (1) AUM is calculated as consolidated with double counting, due to funds from one segment investing in other segments and it ´ s eliminated on consolidation and excluding VIFI from Credit and Pension Products Co - managed with IP&S from Equities. (2) CAGR is calculated considering
Slide 49: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) (4) Hedge funds include JPG, Bahia, Verde and others. (5) Incumbent banks include Banco do Brasil, ITAU Unibanco, Bradesco, Santander, and Caixa. ▪ Notes to page 16 (1) Public company new recurring costs include personnel expenses such as changes made in the company’s
Slide 50: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) ▪ Notes to page 35 (1) Bonus compensation related to management and advisory includes Dividends to Partners related to management and advisory, dis tributed by the company to its original partners before the company turned public in 2021. (2) Performance based compensa
Slide 51: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) (6) IPCA is a broad consumer price index measured by the IBGE. (7) IMAB is composed by government bonds indexed to IPCA (inflation rate) plus a fixed interest rate. IMAB 5 also includes go ver nment bonds indexed to IPCA with up to 5 Years in duration. (8) IFIX is an i
Slide 52: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) (7) IBOV is the Brazilian stock market's most relevant index; (8) FTSE is London's stock market most relevant index. (9) IFIX is an index composed by listed REITs in the brazilian stock exchange. (10) The CDI rate is a result of the average interbank overnight rates in
Slide 53: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) ▪ “Fee related earnings”, or “FRE”, is a metric to monitor the baseline performance of, and trends in, our business, in a manne r t hat does not include performance fees or investment income. We calculate FRE as operating profit less (a) net revenue from realized perfo
Slide 54: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) ▪ Net Cash and Investments include cash and cash equivalents and the fair value of investments in liquid funds and GP Fund Inve stm ents. Cash and cash equivalents include cash, certificate of deposits, which are issued by Banco Bradesco (credit rating AAA evaluated by
Slide 55: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) ▪ “Capital Subscription / (capital return)” represents the net capital commitments and capital returns from our Private Markets ’ c losed end and listed funds. ▪ “Net Inflows / (outflows)” represent the net inflows and outflows from our liquid funds from our liquid str
Slide 56: Notes and Definitions (cont'd)
Notes and Definitions (cont’d) ▪ 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 strategies
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