Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Q4 2020 Earnings Presentation
34 slides from Vinci Compass Investments's earnings presentation, Mar 17, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Presentation
Fourth Quarter and Full year 2020 Earnings Presentation March 17, 2021
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 subj
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: Business Overview
Busi n ess Overview
Slide 5: Vinci Partners has ~215 full time employees and a global LP footprint
Vinci Partners has ~215 full time employees in 4 offices and a global LP footprint 6 New York Recife Rio de Janeiro São Paulo Vinci Partners is a pioneer in ESG signatory since 2012 We have a proven fundraising track record with a broad fund base Our business is growing and profitable with integrate
Slide 6: We have scaled our platform significantly since our inception in 2009
We have scaled our platform significantly since our inception in 2009… Vinci Partners was founded in October 2009 by a group of seasoned and respected managers in the financial market Source: Company information, BCB ¹ AUM is calculated as consolidated with double counting, due to funds from one seg
Slide 7: We offer a complete portfolio of alternative investment products and solutions
We offer a complete portfolio of alternative investment products and solutions to both retail and institutional clients Proven ability to invest proprietary and third - party capital through different products yielding sustainable profitability across multiple verticals 7 Investor Relations, Support
Slide 8: Financial Highlights
Fina n cial Highlights
Slide 9: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights FINANCIAL MEASURES CAPITAL MET R ICS FINANCIAL PROFILE ▪ Adjusted Fee - Related Earnings (“FRE”)¹ of R$ 38 million in 4Q’20, up 76% year - over - year; and R$ 151 million in FY’20, up 54% year - over - year. ▪ Adjusted Distributable Earnings (“DE”)² of R$
Slide 10: AUM is growing across all strategies
15 17 10 14 10 16 35 48 2019 Private Markets 2020 Liquid Strategies I P &S AUM is growing across all strategies… 10 Fee - Earning AUM¹ EoP (R$ bn) Long - Term AUM¹ EoP (R$ bn) AUM¹ EoP (R$ bn) 16 19 10 14 10 16 37 50 4 Q 19 4 Q 20 Private Markets Liquid Strategies I P &S 2019 2020 +36% Increasing lo
Slide 11: Highly diversified across revenues, strategies and clients
31% 28% 22% 10% 9% 21% 3% 9% 5% 33% 24% 5% 30% 8% 9% 5% 18% 17% 5% 8% … and is highly diversified across revenues, strategies and clients Our AUM base favors alpha - driven strategies, while our revenue profile is management fee - centric 11 AUM¹ 2020 Net Re v enues 2020 Private Equity Infrastructur
Slide 12: AUM received strong boost from net flows and appreciation in 2020
App r e c i at i on/ Depreciation AUM received strong boost from net flows and appreciation in 2020 ¹ AUM 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 VIFI from Credit and Pension P
Slide 13: Robust fundraising across private market funds and liquid strategies
480 480 480 480 313 313 733 733 70 199 199 199 150 606 1 Q ' 2 0 2 Q ' 2 0 3 Q ' 2 0 4 Q ' 2 0 VI SC VI LG VI F I VI N O VIR IV Robust fundraising across private market funds and liquid strategies… ¹ Considers the accumulated capital subscriptions in each quarter of 2020 for the real estate and priv
Slide 14: We continue to see that trend in 2021
16 19 14 12 19 20 F Y ȼ 20 Feb ȼ 21 I P&S Liquid Strategies Private Markets … and we continue to see that trend in 2021 Strong fundraising in private market funds and investment products and solutions ¹AUM is calculated as consolidated with double counting, due to funds from one segment investing in
Slide 15: Our revenues are primarily derived from management fees
224 271 62 40 11 29 297 340 FY'19 Management Performance³ FY'20 Advisory Our revenues are primarily derived from management fees ¹ Average management fee rate per strategy is calculated considering gross revenues from management fees and average yearly AUM. ² Vinci Capital Partners’ private equity f
Slide 16: Management fees continue to show growth across all strategies
157 164 42 61 25 46 224 271 F Y '19 F Y '20 Private Markets Liquid Strategies IP&S Management fees continue to show growth across all strategies ¹ Average management fee rate per strategy is calculated considering gross revenues from management fees and average yearly AUM; ² Vinci Capital Partners’
Slide 17: Significant exposure to performance eligible AUM
Significant exposure to performance eligible AUM ¹ AUM 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 VIFI from Credit and Pension Products Co - managed with IP&S from Equities Perfor
Slide 18: Adjusted fee-related earnings
98 151 F Y '19 F Y '20 Adjusted fee - related earnings¹ ¹Adjusted FRE is calculated as FRE, less dividends to partners related to management and advisory; ² Adjusted FRE Margin is calculated as Adjusted FRE over total net management and advisory fees. 18 Adjusted FRE 1 (R$ mm) Adjusted FRE 1 (R$ mm)
Slide 19: Adjusted performance-related earnings
34 15 4Q ' 19 4Q ' 20 Adjusted performance - related earnings¹ ¹Adjusted PRE is calculated as PRE, less dividends to partners related to performance revenues; ² Adjusted PRE Margin is calculated as Adjusted PRE over performance related revenues, including realized and unrealized performance as per t
Slide 20: Adjusted Distributable Earnings continue to grow as the business scales
42 37 4Q ' 19 4Q ' 20 98 127 F Y '19 F Y '20 Adjusted Distributable Earnings¹ continue to grow as the business scales ¹Adjusted DE (Post – Tax) is calculated as DE less total dividends to partners, excluding dividends related to unrealized performance; ² Adjusted DE margin is calculated as Adjusted
Slide 21: Recent Updates
Recent Up d ates
Slide 22: GP Commitments and Dividend Policy
GP Commitments and Dividend Policy 22 GP Commitment ▪ We are using the IPO proceeds primarily to seed new private market funds to be launched in the next 2 years. We target a 4 - 5% GP commitment per fund. ▪ Deployment will take place in accordance with each private market fund’s capital subscriptio
Slide 23: Segment Highlights
Segment Highlights
Slide 24: Private Market Strategies
Private Market Strategies Liquid Strategies Investment Product & Solutions Financial Advisory Fi n a n ci a l Su mm ary (R$ million s, un l e ss m e n tio n e d ) 4 Q '19 Total gross revenue from services rendered 46 Total net revenue from services rendered 45 Net revenue from management fees Net re
Slide 25: Liquid Strategies
25 Private Market Strategies Liquid Strategies Investment Product & Solutions Financial Advisory Liquid Strategies ▪ Public Equities: Total AUM¹ of R$ 12 billion in 2020, up 36% year - over - year , even with outflows from the dissociation with GAS Investimentos in the 4Q’20. The termination of the
Slide 26: Investment Products & Solutions
Investment Products & Solutions 26 Private Market Strategies Liquid Strategies Investment Product & Solutions Financial Advisory ▪ Total AUM¹ of R$ 16 billion in 2020, up 61% year - over - year. ▪ Net inflows of R$ 793 million in 4Q’20 and of R$ 4.9 billion in FY’20. ▪ IP&S significant AUM increase
Slide 27: Financial Advisory Services
Financial Advisory Services Source: Company information 27 Private Market Strategies Liquid Strategies Investment Product & Solutions Financial Advisory Financial Summary (R$ millions, unless mentioned) 4 Q '19 Total gross revenue from services rendered (0) Total net revenue from services rendered (
Slide 28: Appendix
Appe n dix
Slide 29: Financials - IFRS Income Statement
Financials - IFRS Income Statement Source: Company information Note: (1) Adjusted Profit for the year and Adjusted Profit Margin are non - GAAP financial measures that we present for the convenience of investors. See “ — Non - GAAP Financial Measures” for a reconciliation of these measures to their
Slide 30: Fee-related and performance-related earnings summary
(R$ millions, unless mentioned) 4 Q' 1 9 4 Q' 2 0 FY ’19 FY ’20 Net revenue from management and advisory fees 57 82 235 300 Personnel expenses and profit sharing ( 18 ) ( 20 ) ( 59 ) ( 68 ) Other general and administrative expenses ( 14 ) ( 16 ) ( 51 ) ( 50 ) Fee - Related Earnings (FRE) 25 46 125 1
Slide 31: Financials - Non-GAAP Reconciliation
Financials - Non - GAAP Reconciliation 31 Source: Company information; (1) Depreciation and amortization is a non - cash expense that is being added back for our calculation of Distributable Earnings for the year ended December 31, 2020 and future periods. Our Distributable Earnings for the fourth q
Slide 32: Balance Sheet Results
Balance Sheet Results Source: Company Information 32 Assets 12/31/2020 12/31/2019 Liabilities and equity 12/31/2020 12/31/2019 Current assets Current liabilities Cash and cash equivalents 83 . 44 9 3 . 89 6 Trade payables 1 . 03 9 326 Cash and bank deposits 13 . 09 6 3 . 56 4 Leases 19 . 82 8 17 . 7
Slide 33: AUM and Fee-Earning AUM Rollforward
AUM and Fee - Earning AUM Rollforward Assets Under Management (AUM¹) – R$ million P r ivate E quity Public E quiti e s IP&S Infrastructure Real E s ta te C r ed i t Hedge F unds T o tal Beggining balance 10.591 12.759 14.892 1.579 4.274 2 . 20 5 2.379 48 . 67 9 (+/ - ) Capital Subscription / (capita
Slide 34: We have strong investment performance track record
We have strong investment performance track record Sources: Company information, Anbima ¹Gross IRRs from Private Equity funds are since inception and reported on a one - quarter lag (through September 30, 2020). 34 Fund return since inception Selected benchmark return in the same period Fund return
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