Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Q1 2024 Earnings Presentation
65 slides from Vinci Compass Investments's earnings presentation, May 16, 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 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: Vinci Partners is a leading, full-service alternative asset manager
4 Notes: ¹As of 1Q’24; ²Considers assets under management and advisory as of March 2024. Vinci Partners is a leading, full - service alternative asset manager Business Strategies 10 Distribution Channels 5 Capital committed for 5+ years¹ 55% Vinci operates on a highly visible and integrated recurrin
Slide 5: We offer a 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 ´ 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 diversified, revenue management fee-centric
6 57% 18% 15% 9% 48% 38% 14% Notes: ¹Long - term AUM includes funds with lockups for at least five years to quasi - perpetual capital commitments; ²Private marke ts strategies include Private Equity, Real Estate, Private Credit, Vinci SPS and Infrastructure. Our AUM base favors alpha - driven strate
Slide 7: Our AUM funding base relies on proprietary distribution channels
7 38% 21% 20% 11% 10% Local Institutional³ HNWI Institutional Offshore Allocators & Distributors Public market vehicles ³ ² ¹ 54% 33% 13% 26% 25% 21% 16% 12% Notes: ¹Local Institutional covers Brazilian pension funds (public and private), insurance companies, large and mid - size corpora tions and t
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 March 2024. 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 N etwork of Relationships with LatAm L
Slide 10: Consolidating Vinci's Position as Gateway to Alternative Investments in Latin America
10 Consolidating Vinci's Position As The Gateway to Alternative Investments In Latin America Notes: 1 As of FY2023 Compass’ offices Vinci Partners’ offices +600 Employees 1 +2,500 LPs Global to Local Local to Global Local to Local Global to Regional +25 Years Providing Investment Solutions in LatAm
Slide 11: Acquisition of MAV Capital
11 Vinci Partners to expand agribusiness footprint with the acquisition of MAV Capital Vinci brand recognition 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 pr
Slide 12: Private Markets fundraising cycle: our near-term focus
12 Private Markets fundraising cycle: our near - term focus 1H’24 2H’24 We will continue to have contributions from our ongoing fundraisings… ...with additional commitments coming from new and existing strategies As a pioneer and leading player in the Brazilian private equity space, we are in the fi
Slide 13: Key takeaways
13 Key takeaways 6 Our business model is structured to drive strong growth during favorable market conditions and to remain resilient during tougher scenarios 6 Expansion of Vinci’s geographic footprint intro a true Pan - regional platform through strategic partnerships and acquisitions 6 The altern
Slide 14: Financial Highlights
Financial Highlights VINCI partners VINP | Nasdaq Listed
Slide 15: First Quarter 2024 Financial Highlights
15 Vinci Partners First Quarter 2024 Financial Highlights R$ 69 bn R$ 4.3 bn Capital Subscriptions 1Q’24 LTM FRE 1Q’24 R$ 1.01 FRE/share¹ 1Q’24 Adj. DE 1Q’24 Quarterly Dividend AUM 1Q’24 + 11% YoY R$ 53.6 mm R$ 49 .6 mm US$ 0.17 + 12% YoY R$ 0.93 Adj. DE/share² 1Q’24 6.6% Dividend Yield 1Q’24 LTM FR
Slide 16: Fee Related Revenues and Total Expenses
16 Fee Related Revenues and Total Expenses + 4% Fee Related Revenues are primarily derived from management fees (R$ mm) % Mgmt. fees ▪ Fee related revenues totaled R$440 million in the 1Q'24 LTM, up 9% when compared to the 1Q'23 LTM, driven by strong fundraisi ng across Private Markets' products and
Slide 17: Accrued Performance Fees
17 84% 7% 9% Private Equity Infrastructure Vinci SPS Notes: Vinci Partners recognizes the performance revenue according to IFRS 15. Unrealized performance fees are recognized onl y w hen is highly probable that the revenue will not be reversed in the Income Statement. The fund FIP Infra Transmissão
Slide 18: Our GP Commitments are a long-term strong value creator
18 Our GP Commitments are a long - term strong value creator ▪ As of 1Q’24, Vinci Partners had R$1.1 billion in capital commitments signed to proprietary funds mostly across Private Equity , I nfrastructure, Credit and Real Estate. ▪ Realized investment gains are recognized quarterly as GP Investmen
Slide 19: GP and Financial Income
19 Notes: ¹GP investment income comes from proprietary investments made by Vinci Partners in its own Private Markets’ funds and oth er 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 an
Slide 20: Fee Related Earnings (FRE) and Distributable Earnings (DE)
20 Notes: Per share values are calculated considering the number of outstanding shares at the end of the current quarter. Last t wel ve months values are calculated as the sum of the last four quarters; ¹Adjusted after tax Distributable Earnings is calculated as Distributable Earnings excluding non
Slide 21: First Quarter 2024 Segment Earnings
21 Notes: ¹FRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Last twel ve months values are calculated as the sum of the last four quarters.; ² Other items comprise the income/(loss) generated by financial income/(expenses) related to SPS acq
Slide 22: Appendix – I Business Overview
Appendix – I Business Overview
Slide 23: Building up Vinci Partners: a history of growth and diversification
23 Notes: Starting from 2020, our official AUM is calculated on a consolidated basis, accounting for double counting resulting from fun ds from one segment investing in other segments and excluding double counting from co - managed funds between our segments. Source : Vinci Partners Building up Vinc
Slide 24: Vinci's ecosystem sets us apart from competition
24 Vinci’s ecosystem sets us apart from competition Private Markets Public Equities IP&S Retirement Services Corporate Advisory Asset Origination Leverage from a robust platform with a broad spectrum of strategies to maximize investment opportunities Networking With +40 partners and a number of seni
Slide 25: Our ESG approach is a fundamental value
25 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 26: Brazil is a perfect fit for advancing this agenda
26 And Brazil is a perfect fit for advancing this agenda As of December 29, 2023, unless otherwise stated. Source : ¹ Prequin ; 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
Slide 27: Vinci is primed to capitalize on secular trends
Vinci is primed to capitalize on secular trends…
Slide 28: The alternative market continues to grow on a global scale
28 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 v ola tility Propelled by declining real
Slide 29: Substantial inflows from institutional investors into alternatives
29 As of December 30, 2022, unless otherwise stated Source : UBS Global, Public Pension Plans Tilt Toward Alternatives ; ¹Thinking Ahead Institute The alternative industry has experienced substantial inflows from institutional investors in recent years 57% 43% 34% 23% 9% 34% 2002 2003 2004 2005 2006
Slide 30: Brazilian investors shifting toward products with superior returns
30 48% 23% 17% 9% 3% 2015 R $2.9 tn AUM R$8.1 tn AUM 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 m
Slide 31: Brazilian pension industry concentrated in fixed income
31 87% 13% Fixed Income Other asset classes 79% 21% Brazilian Complementary Pension Industry allocation is still heavily concentrated toward fixed income products As of June 30, 2023. Source: ¹Fenaprevi; ²Abrapp Sizeable opportunity for growth in alternatives coming from institutional investors, esp
Slide 32: Appendix – II Segment Summaries
Appendix – II Segment Summaries
Slide 33: Financials by segment
33 Financials by segment Segment Distributable Earnings 1Q'24 LTM by Segment Fee Related Earnings (FRE) 1Q'24 LTM by Segment R$253 mm ▪ Fee Related Earnings (FRE), disregarding Vinci Retirement Services segment, were R$224.0 million in the 1Q'24 LTM, with 61% o f F RE coming from Private Markets, fo
Slide 34: Private Equity and Real Estate platform
34 We offer a complete and diversified platform for alternative investments Private Equity – R$14.4bn AUM (44%) Real Estate – R$7.1bn AUM (21%) PRIVATE MARKETS R$ 33 BILLION AUM The real estate strategy invests through two subs - strategies : Listed Perpetual Funds : The real estate strategy current
Slide 35: Infrastructure and Vinci SPS
35 We offer a complete and diversified platform for alternative investments Infrastructure – R$3.9bn AUM (12%) Vinci SPS – R$2.1bn AUM (6%) The Vinci SPS strategy invests across three core sub - strategies : 1 ) Corporate : • Primary Market Funding : New money provided through structured credit solu
Slide 36: Private Markets segment results
36 Private Markets Private Equity 44% Real Estate 21% Credit 17% Infrastructure 12% Vinci SPS 6% Private Markets' AUM ∆ YoY (%) 1Q'24 LTM 1Q'23 LTM ∆ YoY (%) 1Q'24 4Q'23 1Q'23 (R$ thousands, unless mentioned) 17% 255,046 218,734 7% 62,519 66,363 58,432 Net revenue from management fees (4)% 2,751 2,8
Slide 37: IP&S: International, Commingled Funds, Pension Plans
37 International – R$1.5bn AUM (6%) Within our IP&S segment we have an offshore allocation service, or international exclusive mandates, managed by a team in our New York office . We provide tailored made investment solutions for local institutional investors and nigh net worth individuals that are
Slide 38: Investment Products & Solutions results
38 Separate Mandates 73% Pension Plans 11% International 6% Commingled Funds 11% IP&S' AUM Investment Products & Solutions ∆ YoY (%) 1Q'24 LTM PF¹ 1Q'23 LTM PF¹ ∆ YoY (%) 1Q'24 4Q'23 PF¹ 1Q'23 PF¹ (R$ thousands, unless mentioned) (18)% 80,451 98,635 (13)% 19,814 19,349 22,817 Net revenue from manage
Slide 39: Established public equities platform
39 We have an established and widely recognized public equities platform PUBLIC EQUITIES R$10 BILLION AUM Vinci Partners has a long track record and deep experience investing in public equities in Brazil . We focus on holding positions in companies for three to five years following deep analysis and
Slide 40: Public Equities results
40 Mosaico Strategy 61% Dividends Strategy 33% Total Return 5% Others 1% Public Equities' AUM Public Equities ∆ YoY (%) 1Q'24 LTM PF¹ 1Q'23 LTM PF¹ ∆ YoY (%) 1Q'24 4Q'23 PF¹ 1Q'23 PF¹ (R$ thousands, unless mentioned) (7)% 58,124 62,780 (5)% 13,964 14,145 14,628 Net revenue from management fees N/A –
Slide 41: Leading corporate advisory business
41 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 42: Corporate Advisory results
42 Corporate Advisory ∆ YoY (%) 1Q'24 LTM 1Q'23 LTM ∆ YoY (%) 1Q'24 4Q'23 1Q'23 (R$ thousands, unless mentioned) N/A – – N/A – – – Net revenue from management fees 116% 42,907 19,894 134% 9,797 17,343 4,186 Net revenue from advisory fees 116% 42,907 19,894 134% 9,797 17,343 4,186 Total Fee Related R
Slide 43: Retirement Services
43 ▪ Fee Related Earnings (FRE) of negative R$2.8 million in the quarter. FRE was negative R$11.0 million in the 1Q'24 LTM. ▪ VRS started to contribute to AUM numbers and management fee revenues in 2023. In February, VRS was officially presented to th e g eneral public with an article in a major new
Slide 44: Appendix – III Financial Statements
Appendix – III Financial Statements
Slide 45: How to analyze Vinci Partners' financial model
45 How to analyze Vinci Partners’ financial model Fee Related Earnings (FRE) (+) Management fees: our main source of revenues, derived from fees charged over our Fee - Earning AUM (+) Advisory fees: fees charged over advisory services provided by our corporate advisory and management teams ( - ) Ope
Slide 46: Financials - Income Statement
46 See notes and definitions at end of document Financials - Income Statement ∆ LTM (%) 1Q'24 LTM 1Q'23 LTM ∆ YoY (%) 1Q'24 4Q'23 1Q'23 (R$ thousands, unless mentioned) REVENUES 4% 393,945 380,149 1% 96,455 99,976 95,877 Net revenue from management fees 61% 21,564 13,391 16% 2,273 6,468 1,963 Net re
Slide 47: Financials - Non-GAAP Reconciliation
47 Financials - Non - GAAP Reconciliation 1Q'24 LTM 1Q'23 LTM 1Q'24 4Q'23 1Q'23 (R$ thousands, unless mentioned) 223,672 203,943 54,910 60,151 50,285 OPERATING PROFIT (22,606) (17,645) (2,273) (7,510) (1,963) ( - ) Net revenue from realized performance fees 1,042 4,254 – 1,042 – ( - ) Net revenue fr
Slide 48: Income tax reconciliation
48 1Q'24 LTM 1Q'23 LTM 1Q'24 1Q'23 (R$ thousands, unless mentioned) 279,890 260,356 56,092 45,587 Profit (loss) before income taxes 34% 34% 34% 34% Combined statutory income taxes rate - % (95,162) (88,522) (19,071) (15,500) Income tax benefit (Expense) at statutory rates Reconciliation adjustments:
Slide 49: General and Administrative Expenses
49 General and Administrative Expenses 1 Q’24 ( R$mm ) 1 Q’23 ( R$mm ) Lease and condominium Other Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses D&A Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses
Slide 50: Balance sheet
50 3/28/2024 12/29/2023 Liabilities and equity Current liabilities 348 1,869 Trade payables 10,419 – Deferred Revenue 25,104 24,381 Leases 6,052 6,020 Accounts payable 27,325 101,506 Labor and social security obligations 78,138 76,722 Loans and Financing 18,618 24,853 Taxes and contributions payable
Slide 51: Supplemental Details
Supplemental Details VINCI partners VINP | Nasdaq Listed
Slide 52: AUM and Fee-Earning AUM Rollforward
52 AUM and Fee - Earning AUM Rollforward Assets Under Management (AUM) – R$ million Fee - Earning Assets Under Management (FEAUM) – R$ million Total Vinci SPS Retirement Services Hedge Credit Real Estate Infrastructure IP&S Public Private Funds Equities Equity 58,487 2,149 – 2,574 4,964 5,137 2,313
Slide 53: Investment records – IP&S, Liquid Strategies, Private Credit and Listed Funds
53 24 M 12 M YTD 1Q'24 Benchmark 6.8% 25.7% (4.5)% (4.5)% IBOV 5 27.3% 12.4% 2.6% 2.6% CDI 4 21.0% 9.6% 2.1% 2.1% IMA - B 5 7 23.0% 10.1% 3.0% 3.0% IPCA 6 + Yield IMA - B 7 8.8% 3.9% 1.4% 1.4% IPCA 6 22.6% 23.4% 2.9% 2.9% IFIX 8 See notes and definitions at end of document Investment records – IP&S,
Slide 54: Private Equity fund track record
54 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 55: Distributable Earnings and dividends
55 ▪ Vinci Partners generated R$0.91 or US$0.18¹ of Distributable Earnings per common share for the first quarter of 2024. ▪ The company declared a quarterly dividend of US$0.17² per common share to record holders as of May 23, 2024; payable on June 07 , 2024. 1Q'24 4Q’23 3Q'23 2Q’23 1Q’23 4Q’22 3Q’
Slide 56: Share Summary
56 1Q'24 4Q’23 3Q'23 2Q’23 1Q23 4Q'22 3Q'22 2Q'22 1Q'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 38,778,597 39,312,578 39,405,827 39,730,720 40,247,461 40,614,497 40,892,619 41,112,717 41,363,077 Class A¹ 53,244,836 53,778
Slide 57: GP commitments and investments
57 ▪ As of March 28, 2024, the company had R$1.1 billion in capital commitments signed to proprietary funds. ▪ Total GP Investments marked at fair value of R$495.0 million as of March 28, 2024. Fair value of investments Accumulated Capital Returned/Dividends Paid Capital Returned/Dividends Paid (1Q'
Slide 58: Performance fee eligible AUM
58 ▪ Total Performance fee eligible AUM (PEAUM) of R$39.3 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. ▪ Within our Private Market strategies, R$9 billion in AUM
Slide 59: Notes and Definitions
59 Notes and Definitions Notes to page 31: (1) Private Markets are comprised of REITs, Credit rights investment funds and Private Equity (excluding non - discretionary manag ers). (2) Others are comprised of non - discretionary Private Equity managers (79%), Offshore (10%), ETF (10%) and foreign exc
Slide 60: Notes and Definitions
60 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. g reater or equal to 5%, X= IMAB 5 Av
Slide 61: Notes and Definitions
61 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 hur dle rate also are under a high - water mark clause. (4) Funds with preferred return must return 100% of invested capital corrected by the preferre
Slide 62: Notes and Definitions
62 Notes and Definitions ▪ “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 calculated
Slide 63: Notes and Definitions (cont'd.)
63 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 profit s f rom our fund management and advisory business without measuring for the outcomes from funds above their respective benchmarks. We cal
Slide 64: Funds/strategies' descriptions
64 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 65: 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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