Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Q2 2024 Earnings Presentation
49 slides from Vinci Compass Investments's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation August 07, 2024 Exhibit 99.1
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: Presenters
3 Presenters Alessandro Horta Chief Executive Officer Sergio Passos Chief Operating Officer & Chief Financial Officer Bruno Zaremba Private Equity Chairman & Head of Investor Relations
Slide 4: Opening Remarks
Opening Remarks
Slide 5: Vinci Partners Second Quarter 2024 Highlights
5 Vinci Partners Second Quarter 2024 Highlights See notes and definitions at end of document Vinci Partners ended the second quarter with R$69 bn in AUM², a 7% growth year - over - year, led by R$5.1 billion in capital subscriptions over the last twelve months mostly across Private Markets funds. Vi
Slide 6: Financial Highlights
Financial Highlights
Slide 7: Second Quarter 2024 Segment Earnings (Unaudited)
7 Second Quarter 2024 Segment Earnings (Unaudited) See notes and definitions at end of document ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY(%) 2Q'24 1Q'24 2Q'23 (R$ thousands, unless mentioned) 12% 210,589 188,646 23% 114,134 96,455 92,769 Net revenue from management fees 18% 21,840 18,518 (18)% 11,481 10,3
Slide 8: Financial and Capital Metrics Highlights
8 ▪ Fee - related revenues of R$ 125 .6 million in the second quarter, up 18% year - over - year, driven by stronger management fees in the quarter. x Fee - related revenues of R$ 232 .4 million in the 2Q’24 YTD , up 12% year - over - year. Management fees were R$210.6 million in the 2Q’24 YTD , up
Slide 9: AUM 2Q'24 vs 2Q'23
9 AUM 2Q’24 vs 2Q’23 ( R$bn ) Long - Term AUM¹ 2Q’24 vs 2Q’23 ( R$bn ) Fee - Earning AUM 2Q’24 vs 2Q’23 ( R$bn ) We continue to expand AUM across the platform, with highlight to long - term products ▪ Total assets under management (AUM) of R$69 billion, up 7% year - over - year, driven by a combinat
Slide 10: Diversified platform by strategy and client channel
10 38% 21% 20% 11% 10% Local Institutional³ Institutional Offshore⁴ HNWI⁵ Allocators & Distributors⁶ Public market vehicles⁷ 61% 17% 14% 8% 50% 36% 14% AUM 2Q’24 Our AUM base favors alpha - driven strategies, while our revenue profile is management fee - centric Our platform is highly diversified ac
Slide 11: Gross Accrued Performance Fees – Private Market Funds
11 88% 7% 5% Private Equity Vinci SPS Infrastructure Vinci holds a strong long - term upside from realization of performance fees in private market funds Gross Accrued Performance Fees – Private Market Funds ▪ Accrued performance fees receivable of R$348.5 million in the 2Q’24, up 18% quarter - over
Slide 12: GP Commitments Overview
12 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 Eq uit y, Infrastructure, Credit and Real Estate. ▪ Realized investment gains are recognized quarterly as GP Inves
Slide 13: Fee Related Revenues
13 Fee Related Revenues ▪ Fee related revenues totaled R$125.6 million in the quarter, up 18% year - over - year. This increase was pushed by organic growth a cross Private Market strategies over the quarter and retroactive fees for VCP IV, following new closings with institutional investors both lo
Slide 14: Operating Expenses
14 Operating Expenses ▪ Total operating expenses of R$120.4 million during the 2Q’24 YTD, an increase of 6% when compared to the 2Q’23 YTD. Disregard ing Vinci Retirement Services, total operating expenses summed R$113.7 million, up 3% when compared to the 2Q’23 YTD, following our cost efficiency or
Slide 15: Fee Related Earnings (FRE)
15 51 62 2Q'23 2Q'24 100 116 2Q'23 YTD 2Q'24 YTD Fee Related Earnings (FRE) ▪ 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% y ear - over - year on an FRE per share¹ basis. This growth was primarily driven by a highe
Slide 16: Performance Related Earnings (PRE)
16 5 3 2Q'23 2Q'24 7 4 2Q'23 YTD 2Q'24 YTD Performance Related Earnings (PRE) ▪ Performance related earnings (PRE) of R$3.1 million in the quarter, down 42% year - over - year. Performance fees remain modest, lar gely because of the recent volatility in both global and local markets. Unlike 2Q’23, w
Slide 17: Realized GP Investment and Financial income
17 Realized GP Investment and Financial income ▪ Realized GP Investment¹ income reached R$12.4 million in the quarter, reflecting a 196% year - over - year increase. This growth was mostly driven by capital returned from the FIP Infra Transmissão fund and dividend distributions of the company’s prop
Slide 18: Adjusted Distributable Earnings (DE)
18 130 108 2Q'23 YTD 2Q'24 YTD 70 58 2Q'23 2Q'24 Adjusted Distributable Earnings (DE) ▪ Adjusted Distributable Earnings (DE)¹ of R$58.4 million (R$1.10/share) in the quarter, down 17% year - over - year on an absolute ba sis and 16% year - over - year on an Adjusted DE per share² basis. ▪ The declin
Slide 19: Share Repurchase Activity and Balance Sheet Highlights
19 2Q'24 1Q'24 Share Repurchase Activity (in R$ million, unless mentioned) 220,135 533,981 Total Shares Repurchased (number of shares) 12.7 28.0 Total Capital Used for Share Repurchases 19.0 32.0 Remaining Share Repurchase Plan Authorization 10.8 10.6 Average Price Paid Per Share (US$) 2Q'24 1Q'24 (
Slide 20: Segment Highlights
Segment Highlights
Slide 21: Financials by segment
21 67% 12% 14% 7% R$122 mm 71% 14% 15% 8% Private Markets IP&S Public Equities Corporate Advisory Financials by segment ▪ Fee Related Earnings (FRE), disregarding Vinci Retirement Services segment, were R$121.9 million in the 2Q’24 YTD, with 67% o f F RE coming from Private Markets, followed by IP&S
Slide 22: Private Markets
22 Private Equity 45% Real Estate 19% Credit 18% Infrastructure 11% Vinci SPS 7% Private Markets' AUM Private Markets R$35 bn AUM ▪ Fee related earnings (FRE) of R$47.5 million in the quarter, up 59% year - over - year. This growth was fueled by catch - up fees from strong Private Equity fundraising
Slide 23: Investment Products & Solutions
23 See notes and definitions at end of document Separate Mandates 74% Pension Plans 9% International 7% Commingled Funds 10% IP&S' AUM Investment Products & Solutions ▪ Fee related earnings (FRE) of R$7.4 million in the quarter, down 9% year - over - year. FRE was R$16.5 million in the 2Q’24 YTD, a
Slide 24: Public Equities
24 Mosaico Strategy 62% Dividends Strategy 32% Total Return 5% Others 1% Public Equities' AUM Public Equities ▪ Fee related earnings (FRE) of R$6.8 million in the quarter, down 12% year - over - year. FRE was R$14.6 million in the 2Q’24 YTD, a decrease of 7% compared to the 2Q’23 YTD Pro Forma¹. ▪ S
Slide 25: Corporate Advisory segment earnings
25 ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2Q'24 1Q'24 2Q'23 (R$ 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 9,797 13,768 Total Fee Related Revenues 17% (1,162) (
Slide 26: Vinci Retirement Services segment earnings
26 ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2Q'24 1Q'24 2Q'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 44% (1,222) (851) 54% (661) (561) (42
Slide 27: Supplement Details
Supplement Details
Slide 28: AUM and Fee-Earning AUM Rollforward
28 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 June 28, 2024 For the Three Months Ended June 28, 2024 For the Twelve Months Ended June 28 , 2024 For the Twelve Months Ended Ju
Slide 29: Investment records – IP&S, Public Equities, Private Credit and Listed Funds
29 Investment records – IP&S, Public Equities, Private Credit and Listed Funds See notes and definitions at end of document Index Rate Market Comparison 24 M 12 M YTD 2Q'24 NAV¹ (R$ millions) Segment Fund CDI 7 CDI 7 23.9% 8.7% 3.6% 1.6% 195.5 IP&S Vinci Multiestratégia FIM CDI 7 CDI 7 14.6% 5.4% 1.
Slide 30: Private Markets fund returns by vintage
30 Gross IRR Gross IRR Gross MOIC Gross MOIC Total Value Unrealized Realized or Invested Capital Committed Capital Vintage year Segment Fund Partially Realized (USD) (BRL) (USD) (BRL) ( R$mm ) ( R$mm ) ( R$mm ) ( R$mm ) (R$mm) 77.2% 71.5% 4.0x 4.3x 5,202 137 5,065 1,206 1,415 2004 Private Equity Fun
Slide 31: Shareholder Dividends
31 Shareholder Dividends 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 ($ in thousands) 58,401 49,605 63,641 51,820 70,369 60,006 55,792 73,195 Adjusted Distributable Earnings (R$) 10,331 9,801 12,829 10,647 14,290 11,994 10,618 14,350 Adjusted Distributable Earnings (US$)¹ 0.19 0.18 0.24 0.20 0.2
Slide 32: Share Summary
32 Share Summary ▪ Common Shares Outstanding as of quarter end of 53,245,448 shares. x Repurchased 220,135 common shares in the quarter, with an average share price of US$10.8. x Repurchased 4,311,120 common shares since the announcement of the first share repurchase plan, with an average share pric
Slide 33: GP Commitment in Vinci Partners funds
33 GP Commitment in Vinci Partners funds ▪ As of June 28, 2024, the company had R$1,149.2 million in capital commitments signed to proprietary funds. ▪ Total GP Investments marked at fair value of R$562.1 million as of June 28, 2024. See notes and definitions at end of document Fair value of investm
Slide 34: Significant exposure to performance fee-eligible AUM
34 59% 22% 19% Private Markets IP&S Public Equities Significant exposure to performance fee - eligible AUM ▪ Total Performance fee eligible AUM (PEAUM) of R$38.4 billion. ▪ Hurdle rate funds charge performance based on the fund’s return over its benchmark, generally with a high - watermark clause, e
Slide 35: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 36: Financials - Income Statement
36 Financials - Income Statement See notes and definitions at end of document ∆ YoY (%) 2Q'24 YTD 2Q'23 YTD ∆ YoY (%) 2Q'24 1Q'24 2Q'23 (R$ thousands, unless mentioned) REVENUES 12% 210,589 188,646 23% 114,134 96,455 92,769 Net revenue from management fees (38)% 7,886 12,728 (48)% 5,613 2,273 10,765
Slide 37: FRE and Distributable Earnings reconciliation
37 2Q'24 YTD 2Q'23 YTD 2Q'24 1Q'24 2Q'23 (R$ thousands, unless mentioned) 119,924 106,430 65,014 54,910 56,145 OPERATING PROFIT (11,369) (12,728) (9,096) (2,273) (10,765) ( - ) Net revenue from realized performance fees 3,483 – 3,483 – – ( - ) Net revenue from unrealized performance fees 3,512 6,101
Slide 38: Effective tax rate reconciliation
38 2Q'24 YTD 2Q'23 YTD 2Q'24 2Q'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 Reconciliation adjustments:
Slide 39: General and Administrative Expenses
39 17.8 21.1 5.4 8.7 2.0 3.2 3.2 18.1 23.4 2.5 11.1 3.3 3.0 4.8 General and Administrative Expenses 2Q’24 (R$mm) 2Q’23 (R$mm) Lease and condominium Other Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses D&A R$66.2 mm Personnel Bonus related to Mgmt.
Slide 40: Balance Sheet
40 06/28/2024 03/31/2024 Assets Current assets 592,308 531,988 Cash and cash equivalents 45,831 45,738 Cash and bank deposits 120,084 85,649 Financial instruments at fair value through profit or loss 426,393 400,601 Financial instruments at amortized cost 1,307,884 1,221,642 Financial instruments at
Slide 41: Notes and Definitions
41 Notes and Definitions ▪ Notes to page 5 (1) FRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Year to date val ues are calculated as the sum of the last two quarters. (2) AUM is calculated as consolidated with double counting, due to funds
Slide 42: Notes and Definitions (cont'd.)
42 Notes and Definitions (cont’d.) ▪ Notes to page 16 (1) PRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Year to date val ues are calculated as the sum of the last two quarters. ▪ Notes to page 17 (1) GP investment income comes from propri
Slide 43: Notes and Definitions (cont'd.)
43 Notes and Definitions (cont’d.) (2) Atlas strategy includes the funds Atlas FIC FIM, Atlas Institucional FIC FIM and Vinci Potenza. (3) Total Return Strategy includes the funds Total Return FIC FIM and Total Return Institucional FIA. (4) Mosaico Strategy includes the funds Mosaico, Mosaico Instit
Slide 44: Notes and Definitions (cont'd.)
44 Notes and Definitions (cont’d.) ▪ Notes to page 31 (1) US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 5.6528, as of August 06, 2024, wh en dividends were approved by our Board of Directors. (2) Per Share calculations are based on end of period Participa
Slide 45: Notes and Definitions (cont'd.)
45 Notes and Definitions (cont’d.) ( 3) Income taxes are comprised of taxes calculated over our corporate income tax and social contribution taxes. We are taxed o n a n actual taxable profit regime, while part of our subsidiaries are taxed based on deemed profit. (4) Contingent consideration adjustm
Slide 46: Notes and Definitions (cont'd.)
46 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, investment income and expenses that do not arise from our normal course of operations. FRE is
Slide 47: Notes and Definitions (cont'd.)
47 Notes and Definitions (cont’d.) ▪ “Net revenue from Fund Management and Advisory” is a measure that we use to assess our ability to generate profits from our f und management and advisory business without measuring for the outcomes from funds above their respective benchmarks. We calculate Net Re
Slide 48: Funds/strategies' descriptions
48 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 strateg
Slide 49: Office addresses
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 14 o andar Jardim Paulistano - 01452 - 000 Recife 55 81 3204 6811 Av. República do Líbano, 251 - Sala 301 Torre A - Pina - 51110 - 160 Nova York 1 646 559 8000 780
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