Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Q1 2021 Earnings Presentation
42 slides from Vinci Compass Investments's earnings presentation, May 19, 2021
Slide 1: First Quarter 2021 Earnings Presentation
First Quarter 2021 Earnings Presentation May 19, 2021 1 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer 2 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: Presenters
Presenters 3 Alessandro Horta Chief Executive Officer Bruno Zaremba Head of Private Equity & Investor Relations Sergio Passos Chief Operating Officer & Chief Financial Officer
Slide 4: Opening Remarks
Opening Remarks 4
Slide 5: Strong and continuous growth in AUM and profitability in 1Q'21
2 6 11 15 17 18 20 19 21 24 35 48 52 50 55 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 AUM (R$bn) AUM DC¹ (R$bn) Vinci Partners has ~231 full time employees in 4 offices and a global LP footprint New York Recife Rio de Janeiro São Paulo AUM reached R$55bn in 1Q’21, a 45% increas
Slide 6: Local macro trends remain supportive for alternative investments
Fixed Income 37% Hedge Funds 23% Public Equities 9% Others³ 31% 1,175 1,535 1,871 1,937 802 918 993 1,003 428 602 714 774 2,405 3,055 3,577 3,713 2018 2019 2020 1Q2021 Brazilian AUM ex - Fixed Income (R$ bn) 4 Liquid Strategies Pension Plans Private Markets Local macro trends remain supportive for a
Slide 7: Financial Highlights
Financial Highlights 7
Slide 8: First Quarter 2021 Segment Earnings (Unaudited)
First Quarter 2021 Segment Earnings (Unaudited) Source: Company information; ¹Bonus compensation related to management and advisory includes Dividends to Partners related to ma nagement and advisory, distributed by the company to its original partners before the company turned public in 2021; ² Perf
Slide 9: First Quarter 2021 Highlights
First Quarter 2021 Highlights Financial Measures Capital Metrics Share Repurchase Program ▪ Fee - related revenues (management and advisory fees) were R$ 96.9 million in 1Q’21, up 23% year - over - year. x Fee related revenues were R$ 318.1 million over the LTM 1Q’21, up 19% year - over - year, or 3
Slide 10: AUM received strong boost from Private Markets and IP&S inflows
AUM received strong boost from Private Markets and IP&S inflows 10 AUM Rollforward – From 4Q’20 to 1Q’21 (R$ bn) AUM 4Q’20 Net Capital Subscription/ Returns Inflows Appreciation/ Depreciation AUM 1Q’21 49.8 4.2 Commentary Inflows Outflows Capital subscription/ Returns Appreciation (2.1) 1.9 0.9 54.7
Slide 11: Notable quarter for private market strategies' fundraising
Notable quarter for private market strategies’ fundraising R$1.9 billion in high quality capital raised, with long term to perpetual lockups in five different strategies R$ 394 mm R$ 861 mm R$ 660 mm Private Equity Real Estate Infrastructure R$1.9 bn raised VIR IV Largest ESG Impact focused Privat
Slide 12: AUM is growing across all our main verticals
14 19 1 2 3 7 19 27 1Q'20 1Q'21 Perpetual or quasi-perpetual 10+ years 5-10 years 16 19 11 20 9 13 35 52 1Q'20 1Q'21 Private Markets IP&S Liquid Strategies AUM is growing across all our main verticals… Increasing lock up periods for new AUM especially around private market strategies ¹ Long - term A
Slide 13: Highly diversified across different strategies and clients
27% 6% 8% 3% 21% 16% 4% 14% 21% 4% 9% 4% 37% 18% 5% 33% 24% 24% 10% 9% … and is highly diversified across different strategies and clients Our AUM base favors alpha - driven strategies, while our revenue profile is management fee - centric ¹ Long term products include funds with former lockups super
Slide 14: Significant exposure to performance fee-eligible AUM
Significant exposure to performance fee - eligible AUM ¹International mandates have several diferente benchmarks across all its vehicles .; ²Preferred Return w/ Catch - up is considered when the vehicle must pay back invested capital plus the preferred return for the investor before it can charge pe
Slide 15: Fee related revenues are expanding alongside AUM growth
63 82 16 15 79 97 1Q'2020 1Q'2021 Management fees Advisory fees Fee related revenues are expanding alongside AUM growth Management fees have been the main contributor to revenues, accounting for 78% of total net revenues in the LTM 1Q’21 ¹ Vinci Capital Partners’ private equity fund catch - up, whic
Slide 16: Expenses increased due to new recurring public company costs
14 22 14 17 3 4 2 4 3 33 50 1Q'20 1Q'21 Public company new recurring costs Other G&A Segment personnel Corporate center Bonus Compensation Expenses increased in the quarter due to new recurring costs after becoming a public company We continue to expect strong operating leverage as our business scal
Slide 17: Fee Related Earnings (FRE)
Fee Related Earnings (FRE) ¹ Public company new recurring costs include personnel expenses such as changes made in the company’s compensation structure aft er the IPO, new hirings for our board of directors, support teams such as Investor Relations and Financial Reporting, and oth er expenses such a
Slide 18: Performance Related Earnings (PRE)
- 3 7 1Q'2020 1Q'2021 Performance Related Earnings (PRE) Performance revenues have been an interesting upside to the business, accounting for 14% of total net revenues over the LTM 1 Q’2 1 ¹For comparison purposes, PRE per share was calculated considering the same number of outstanding shares post -
Slide 19: GP Investment and Financial income
GP Investment and Financial income ¹GP investment income is income from proprietary investments made by us in our own Private Markets’ funds, used as GP Commitm ent s; ² Financial income is income generated through the investments made with our cash and cash equivalents in cash and bank deposits, ce
Slide 20: Distributable Earnings continues to grow as the business scales
Distributable Earnings continues to grow as the business scales ¹ For comparison purposes, DE per share was calculated considering the same number of outstanding shares post - IPO of 56,913,588. 20 Distributable Earnings (DE) 1Q’21 vs 1Q’20 ( R$mm ) 37% 39% 41% 42% ▪ Distributable Earnings (DE) was
Slide 21: Balance Sheet Highlights
(in R$ millions, unless mentioned) 4Q'20 1Q'21 Cash and cash equivalents¹ 83.4 854.0 Net Investments 39.9 595.9 Liquid funds² 8.3 556.0 GP Fund Investments³ 31.6 39.9 Cash and Net Investments 123.3 1,449.9 Cash and Net Investments per share 4 (R$/share) 2.17 25.48 Balance Sheet Highlights ¹ Include
Slide 22: Segment Highlights
Segment Highlights 22
Slide 23: Financials by Segment
43% 20% 21% 16% Private Markets Liquid Strategies IP&S Advisory 48% 20% 13% 18% Financials by Segment 23 R$ 50.2 mm Fee Related Earnings (FRE) 1Q’21 by Segment R$ 56.7 mm ▪ Fee Related Earnings (FRE) was R$ 50.2 million in the quarter, with 48% of FRE coming from Private Markets’ strategies, follo w
Slide 24: Private Market Strategies
(R$ thousands, unless mentioned) 1Q'20 1Q'21 ∆ (%) Net revenue from management fees 37,065 46,581 26% Net revenue from advisory fees 725 505 - 30% Total Fee Related Revenues 37,790 47,086 25% Bonus related to management and advisory (6,152) (7,731) 26% Personnel expenses (1,706) (2,438) 43% Other ge
Slide 25: Liquid Strategies
Public Equities 77% Hedge Funds , 23% Liquid Strategies 25 Private Market Strategies Liquid Strategies Investment Product & Solutions Financial Advisory ▪ Fee related earnings (FRE) in 1Q’21 was R$ 10.2 million, an increase of 12% year - over - year. The difference in the growth rate fo r FRE and FE
Slide 26: Investment Products & Solutions
Separate Mandates 65% Commingled Funds 15% International 12% Pension Plans 8% Investment Products & Solutions 26 Private Market Strategies Liquid Strategies Investment Products & Solutions Financial Advisory R$20 bn AUM IP&S’ AUM (R$ thousands, unless mentioned) 1Q'20 1Q'21 ∆ (%) Net revenue from ma
Slide 27: Financial Advisory
Financial Advisory 27 Private Market Strategies Liquid Strategies Investment Products & Solutions Financial Advisory ▪ Net revenue from advisory fees in 1Q’21 was R$ 14.5 million, a decrease of 4% year - over - year. ▪ During the quarter, the Advisory team acted as the exclusive advisor for EspaçoLa
Slide 28: Appendix
Appendix 28
Slide 29: Financials - IFRS Income Statement (Unaudited)
Financials - IFRS Income Statement (Unaudited) ¹Bonus compensation related to management and advisory includes Dividends to Partners related to management and advisory, dis tri buted by the company to its original partners before the company turned public in 2021; ²Performance based compensation inc
Slide 30: FRE and PRE reconciliation
(R$ thousands, unless mentioned) 1Q'20 1Q'21 LTM 1Q'20 LTM 1Q'21 OPERATING PROFIT 42,034 56,858 160,645 192,841 ( - ) Net revenue from realized performance fees (1,094) (9,529) (46,523) (38,301) ( - ) Net revenue from unrealized performance fees 5,070 (422) (3,063) (15,410) (+) Compensation allocate
Slide 31: Effective tax rate reconciliation
Effective tax rate reconciliation ¹ Brazilian tax law establishes that companies that generate gross revenues of up to R$ 78,000 in the prior fiscal year may c alc ulate income taxes as a percentage of gross revenue, using the presumed profit income tax regime. The Entity's subsidiaries adopted this
Slide 32: General and Administrative Expenses
General and Administrative Expenses 32 11.1 18.5 3.3 5.8 3.1 0.9 1.6 3.3 2.3 Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses Lease and condominium D&A Branding project Public company new costs Other R$ 50.0 mm 8.5 15.0 3.4 2.7 1.3 3.4 Personnel Bonu
Slide 33: Balance Sheet Results
Balance Sheet Results In R$ thousands Source: Company Information 33 Assets 12/31/2020 03/31/2021 Liabilities and equity 12/31/2020 03/31/2021 Current assets Current liabilities Cash and cash equivalents 83,449 854,002 Trade payables 1,039 488 Cash and bank deposits 13,096 25,379 Deferred Revenue 0
Slide 34: AUM and Fee-Earning AUM Rollforward
AUM and Fee - Earning AUM Rollforward Private Equity Public Equities IP&S Infrastructure Real Estate Credit Hedge Funds Total Beggining balance 10,749 11,779 16,430 1,533 4,470 2,363 2,519 49,843 (+/ - ) Capital Subscription / (capital return) 372 – – 657 837 (17) – 1,848 (+/ - ) Net Inflow / (outfl
Slide 35: Investment records - IP&S, Liquid Strategies, Credit and Listed Funds
Investment records – IP&S, Liquid Strategies, Credit and Listed Funds ¹NAV is the net asset value of each fund. For listed vehicles the NAV represents the Market valuation of the fund. ²Atlas strategy includes the funds Atlas FIC FIM and Atlas Institucional FIC FIM.; ³Equilibrio Strategy incudes the
Slide 36: Investment records - Closed End Private Markets funds
Investment records – Closed End Private Markets funds Pro Forma Historical Portfolio Performance - Excluding PIPE Investments¹ ¹ Track record information is presented throughout this presentation on a pro forma basis and in local currency, excluding PI PE investments, a strategy that will be discont
Slide 37: GP Commitment in Private Market funds
GP Commitment in Private Market funds 37 Fund Segment Capital Committed (R$ mm) Capital called (R$ mm) Fair value of investments (R$ mm) FIP Infra Coinvestimento Infrastructure 29.5 8.9 22.0 FIP Infra Transmissão Infrastructure 10.5 3.4 6.3 Nordeste III Private Equity 5.0 3.1 2.8 VCP III Private Equ
Slide 38: Notes and Definitions
Notes and Definitions 38 ▪ “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 performance
Slide 39: Notes and Definitions (cont'd.)
Notes and Definitions (cont’d.) 39 ▪ 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 evaluate
Slide 40: Notes and Definitions (cont'd.)
Notes and Definitions (cont’d.) 40 ▪ “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
Slide 41: Funds/strategies' descriptions
Funds/strategies’ descriptions 41 ▪ 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 42: 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 N ew York 1 646 559 8000 780 Third Avenue, 25 th Floor 10017 Recife 55 81 3204 6811 Av. República do Líbano, 251 - Sala
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