Vinci Compass Investments Ltd. · NASDAQ:VINP
Vinci Compass Investments — Vinci Partners Investments — Investor Presentation (February 2024)
64 slides from Vinci Compass Investments's investor presentation, Feb 22, 2024
Slide 1: Investor Presentation February 2024
Investor Presentation February 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 4Q’23. Vinci Partners is a leading, full - service alternative asset manager Business Strategies 10 Distribution Channels 5 Capital committed for 5+ years¹ 54% Vinci operates on a highly visible and integrated recurring revenue business model, founded on diversification across busine
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: Our AUM is highly diversified across different segments
6 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 strategies, while our revenue pro
Slide 7: Our AUM funding base primarily relies on our proprietary distribution channels
7 47% 42% 5% 5% 38% 20% 20% 11% 10% Local Institutional¹ HNWI² Institutional Offshore³ Allocators & Distributors Public market vehicles 50% 34% 15% 26% 25% 22% 16% 11% Notes: ¹Local Institutional covers Brazilian pension funds (public and private), insurance companies, large and mid - size corpora t
Slide 8: Our proven resilient AUM withstands challenges even in tougher macro scenarios
8 17 18 20 19 21 24 35 50 57 63 69 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 AUM (R$bn) 5.7% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Long-term Real Interest Rate (NTNB 2045²) We stand at the beginning of an easing interest rate cycle, having doubled the number of existing strategies employed in t
Slide 9: Private Markets fundraising cycle: our near-term focus
9 Private Markets fundraising cycle: our near - term focus 8.2 6.8 15 2022 - 2023 YE2024 Total Fundraising PM (2022 - YE24) Year - end 2024 Target 55% Raised until 4Q23 Vinci entered a new cycle for capital raising within Private Markets funds, ending 2023 with R$8.2 billion in new capital subscript
Slide 10: What is yet to come?
What is yet to come?
Slide 11: We have multiple growth drivers
11 We have multiple growth drivers Projections and forward - looking statements are not reliable indicators of future events and there is no guarantee that such acti vities will occur as expected or at all. Fore more information on forward - looking statements, please refer to the disclaimer on slid
Slide 12: Well positioned to take advantage of growth opportunities in the market
12 Projections and forward - looking statements are not reliable indicators of future events and there is no guarantee that such acti vities will occur as expected or at all. Fore more information on forward - looking statements, please refer to the disclaimer on slide 2. We are well - positioned to
Slide 13: Key takeaways
13 Key takeaways 6 Our business model is structured to drive strong growth during favorable market conditions and to remain resilient during tougher scenarios 6 Our partnership with Ares will accelerate our platform’s growth in Latin America and collaborate on distribution, new products and other st
Slide 14: Financial Highlights
Financial Highlights VINCI partners VINP | Nasdaq Listed
Slide 15: Fourth Quarter & Full Year 2023 Financial Highlights
15 Vinci Partners Fourth Quarter & Full Year 2023 Financial Highlights R$ 69 bn R$ 4.2 bn Capital Subscriptions FY’23 FRE 4Q’23 R$ 1.07 FRE/share 4Q’23 Adj. DE 4Q’23 Quarterly Dividend AUM 4Q’23 + 9% YoY R$ 57.3 mm R$ 63.6 mm US$ 0.20 + 14% YoY R$ 1.18 Adj. DE/share 4Q’23 + 17% YoY US$ 2.10 Dividend
Slide 16: Fee Related Revenues and Total Expenses
16 23 30 23 21 6 7 5 7 56 65 4Q'22 4Q'23 Bonus compensation Corporate center Segment Personnel expenses Other G&A 372 393 22 40 393 433 FY'22 FY'23 100 100 4 19 104 119 4Q'22 4Q'23 Management fees Advisory fees Fee Related Revenues and Total Expenses + 16% Fee Related Revenues are primarily derived
Slide 17: Accrued Performance Fees
17 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 in Infrastructure had R$14.4 million as of the end
Slide 18: GP and Financial Income
18 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 Liquid Strategies and IP&S segments with long - term lockups; Financial income is income generated through investments made with our cash a
Slide 19: Fee Related Earnings (FRE) and Distributable Earnings (DE)
19 248 246 FY'22 FY'23 56 64 4Q'22 4Q'23 192 208 FY'22 FY'23 51 57 4Q'22 4Q'23 Notes: Per share values are calculated considering the number of outstanding shares at the end of the current quarter. Year - to - d ate values are calculated as the sum of the last three quarters; ¹Adjusted after tax Dis
Slide 20: Fourth Quarter & Full Year 2023 Segment Earnings
20 Notes: Per share values are calculated considering the number of outstanding shares at the end of the current quarter. Full y ear values are calculated as the sum of the last four quarters; ¹Other financial results include financial income and expenses related to strategic transactions. Interest
Slide 21: Appendix – I Business Overview
Appendix – I Business Overview
Slide 22: Building up Vinci Partners: a history of growth and diversification
22 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 23: Vinci's ecosystem sets us apart from competition
23 Vinci’s ecosystem sets us apart from competition Private Markets Liquid Strategies 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 se
Slide 24: Our ESG approach is a fundamental value
24 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 25: And Brazil is a perfect fit for advancing this agenda
25 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 26: Vinci is primed to capitalize on secular trends…
Vinci is primed to capitalize on secular trends…
Slide 27: The alternative market continues to grow on a global scale
27 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 28: Substantial inflows from institutional investors into alternatives
28 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 29: Brazilian investors are shifting focus toward products with superior returns
29 48% 23% 17% 9% 3% 2015 Fixed Income Liquid Strategies¹ Pension Funds Private Markets² Others³ R $2.9 tn AUM R$8.1 tn AUM 38% 26% 17% 13% 6% 2023 Source : ANBIMA See notes and definitions at end of document Brazilian investors are shifting focus toward products with superior returns, but still rel
Slide 30: Brazilian Complementary Pension Industry allocation concentrated in fixed income
30 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 31: Appendix – II Segment Summaries
Appendix – II Segment Summaries
Slide 32: Financials by segment
32 Financials by segment 63% 14% 16% 7% Private Markets IP&S Liquid Strategies Corporate Advisory 61% 15% 16% 8% ▪ Fee Related Earnings (FRE), disregarding Vinci Retirement Services segment, were R$218.1 million in the FY’23, with 61% of FR E c oming from Private Markets, followed by Liquid Strategi
Slide 33: Complete and diversified platform: Private Equity and Real Estate
33 We offer a complete and diversified platform for alternative investments Private Equity – R$14.6bn AUM (44%) Real Estate – R$7.0bn AUM (21%) PRIVATE MARKETS R$ 33 BILLION AUM The real estate strategy invests through two subs - strategies : Listed Perpetual Funds : The real estate strategy current
Slide 34: Infrastructure and Vinci SPS
34 We offer a complete and diversified platform for alternative investments Infrastructure – R$3.9bn AUM (12%) Vinci SPS – R$2.0bn AUM (6%) The Vinci SPS strategy invests across three core sub - strategies : 1 ) Corporate : • Primary Market Funding : New money provided through structured credit solu
Slide 35: Private Markets
35 Private Markets Private Equity 44% Real Estate 21% Credit 17% Infrastructure 12% Vinci SPS 6% Private Markets' AUM (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 ∆ YoY (%) FY'22 FY'23 ∆ YoY (%) Net revenue from management fees 59,699 68,323 66,363 11% 207,061 250,960 21% Net revenue from advi
Slide 36: Investment Products & Solutions: International, Commingled Funds, Pension Plans
36 International – R$1.5bn AUM (6%) Within our IP&S segment we have an offshore allocation service, or international exclusive mandates, managed by a team in our New York office . We provide tailored made investment solutions for local institutional investors and nigh net worth individuals that are
Slide 37: Investment Products & Solutions
37 Investment Products & Solutions Separate Mandates 72% Pension Plans 13% International 6% Commingled Funds 9% IP&S AUM (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 ∆ YoY (%) FY'22 FY'23 ∆ YoY (%) Net revenue from management fees 20,119 17,435 16,448 (18)% 83,114 70,462 (15)% Net revenue from
Slide 38: Established liquid strategies platform
38 We have an established and widely recognized liquid strategies platform LIQUID STRATEGIES R$12 BILLION AUM Vinci Partners has a long track record and deep experience investing in public equities in Brazil . We focus on holding positions in companies for three to five years following deep analysis
Slide 39: Liquid Strategies
39 Liquid Strategies Public Equities 77% Hedge Funds 23% Liquid Strategies' AUM (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 ∆ YoY (%) FY'22 FY'23 ∆ YoY (%) Net revenue from management fees 19,823 18,950 17,046 (14)% 81,325 71,780 (12)% Net revenue from advisory fees – – – N/A – – N/A Total Fe
Slide 40: We have a leading corporate advisory business
40 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 41: Corporate Advisory
41 Corporate Advisory ▪ Fee related earnings (FRE) of R$9.4 million in the quarter. ▪ FRE was R$17.5 million in the FY’23, a 113% increase comparing to the FY’22. ▪ Segment Distributable Earnings in the FY’23 were R$17.5 million in the FY’23, a 113% increase comparing to the FY’22. ▪ Solid results p
Slide 42: Retirement Services
42 Retirement Services (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 ∆ YoY (%) FY'22 FY'23 ∆ YoY (%) Net revenue from management fees – 38 119 N/A – 166 N/A Net revenue from advisory fees – – – N/A – – N/A Total Fee Related Revenues – 38 119 N/A – 166 N/A Segment personnel expenses (334) (582)
Slide 43: Appendix – III Financial Statements
Appendix – III Financial Statements
Slide 44: How to analyze Vinci Partners' financial model
44 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 45: Financials - Income Statement
45 See notes and definitions at end of document Financials - Income Statement (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 ∆ YoY (%) FY'22 FY'23 ∆ YoY (%) REVENUES Net revenue from management fees 99,640 104,745 99,976 0% 371,501 393,367 6% Net revenue from performance fees 7,558 2,058 6,468 (
Slide 46: Financials - Non-GAAP Reconciliation
46 Financials - Non - GAAP Reconciliation (R$ thousands, unless mentioned) 4Q'22 3Q'23 4Q'23 FY'22 FY'23 OPERATING PROFIT 55,321 52,466 60,151 199,616 219,047 ( - ) Net revenue from realized performance fees (9,241) (2,058) (7,510) (18,218) (22,296) ( - ) Net revenue from unrealized performance fees
Slide 47: Income tax reconciliation
47 (R$ thousands, unless mentioned) 4Q'22 4Q'23 FY'22 FY'23 Profit (loss) before income taxes, not - including Dividends to partners 76,381 78,210 271,814 269,385 Combined statutory income taxes rate - % 34% 34% 34% 34% Income tax benefit (Expense) at statutory rates (25,970) (26,591) (92,417) (91,5
Slide 48: General and Administrative Expenses
48 General and Administrative Expenses 16.0 19.0 3.6 8.1 1.8 3.8 3.9 4Q 2022 (R$mm) 4Q 2023 (R$mm) Lease and condominium Other Personnel Bonus related to Mgmt. and Adv. fees Performance based compensation Third party expenses D&A R$56.3 mm Personnel Bonus related to Mgmt. and Adv. fees Performance b
Slide 49: Balance Sheet
49 Balance Sheet Assets 9/29/2023 12/29/2023 Current assets Cash and cash equivalents 184,215 660,305 Cash and bank deposits 38,042 15,896 Financial instruments at fair value through profit or loss 146,173 173,300 Financial instruments at amortized cost - 471,109 Financial instruments at fair value
Slide 50: Supplemental Details
Supplemental Details VINCI partners VINP | Nasdaq Listed
Slide 51: AUM and Fee-Earning AUM Rollforward
51 AUM and Fee - Earning AUM Rollforward Assets Under Management (AUM) – R$ million Fee - Earning Assets Under Management (FEAUM) – R$ million For the Three Months Ended December 29, 2023 For the Three Months Ended December 29, 2023 For the Twelve Months Ended December 29 , 2023 For the Twelve Month
Slide 52: Investment records – IP&S, Liquid Strategies, Private Credit and Listed Funds
52 See notes and definitions at end of document Investment records – IP&S, Liquid Strategies, Private Credit and Listed Funds Fund Segment NAV¹ (R$ million) 4Q’23 YTD 12 M 24 M Market Comparison Index Rate Vinci Multiestratégia FIM Hedge Funds 290.3 2.8% 12.6% 12.6% 25.9% CDI 7 CDI 7 Atlas Strategy²
Slide 53: Investment records – Closed End Private Markets funds
53 See notes and definitions at end of document Pro Forma Historical Portfolio Performance - Excluding PIPE Investments¹ Investment records – Closed End Private Markets funds Fund Segment Vintage year Committed Capital Invested Capital Realized or Unrealized Total Value Gross MOIC Gross MOIC Gross I
Slide 54: Distributable Earnings and Dividends per Share
54 ($ in thousands) 1H21 3Q ' 21 4Q'21 1Q'22 2Q'22 3Q’22 4Q’22 1Q’23 2Q’23 3Q'23 4Q’23 Distributable Earnings (R$) 101,976 61,743 68,515 53,255 60,435 72,842 55,792 60,006 70,369 51,820 62,010 Distributable Earnings (US$)¹ 19,397 11,377 13,637 10,615 11,795 14,281 10,618 11,994 14,290 10,647 12,500
Slide 55: VINP Shares and Share Summary
55 VINP Shares 1Q ' 21 2Q ' 21 3Q ' 21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q23 2Q’23 3Q'23 4Q’23 Class B 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 14,466,239 14,466,239 14,466,239 Class A¹ 42,447,349 42,270,694 42,097,179 41,689,338 41,363,077 41,1
Slide 56: GP Commitment in Vinci Partners funds
56 Notes: ¹The remaining capital committed in FIP Infra Transmissão and FIP Infra Transmissão co - investment will not be called by the fund, which is already in divestment period. GP Commitment in Vinci Partners funds (R$ million, unless mentioned) Segment 4Q’23 Commitments Total Capital Committed
Slide 57: Significant exposure to performance fee-eligible AUM
57 57% 18% 25% Private Markets IP&S Liquid Strategies See notes and definitions at end of document Significant exposure to performance fee - eligible AUM PERFORMANCE FEE ELIGIBLE AUM (PEAUM) Segment/Fund AUM R$mm Index type Index Rate Status VCP III - Onshore 1,349 Preferred Return w/ Catch - Up² IP
Slide 58: Notes and Definitions
58 Notes and Definitions Notes to page 30: (1) Liquid Strategies are comprised of Public Equities and Hedge Funds. (2) Private Markets are comprised of REITs, Credit rights investment funds and Private Equity (excluding non - discretionary manag ers). (3) Others are comprised of non - discretionary
Slide 59: Notes and Definitions
59 Notes and Definitions (10) IMAB is composed by government bonds indexed to IPCA. IMAB 5 also includes government bonds indexed to IPCA with up to 5 Ye ars in duration. (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%,
Slide 60: Notes and Definitions
60 Notes and Definitions (4) Funds with preferred return must return 100% of invested capital corrected by the preferred return rate to its limited pa rtn ers in order to charge performance fees. (5) IPCA is a broad consumer price index measured by the IBGE. (6) IMAB 5 is composed by government bond
Slide 61: Notes and Definitions
61 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 or investment income. We calculate FRE as operating profit less (a) net revenue from realized performance
Slide 62: Notes and Definitions (cont'd.)
62 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 63: Funds/strategies' descriptions
63 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 64: Office locations and contacts
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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