EX-99.1 2 dp151318_ex9901.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

 

 

 

VINCI PARTNERS REPORTS FIRST QUARTER 2021 EARNINGS RESULTS

 

Announcement of a R$ 85 million Share Repurchase Program

 

Vinci Partners announced today that its board of directors approved a program to buy back up to R$85.0 million of the Company’s Class A common shares. The program will commence immediately. Vinci Partners expects to finance the purchases with cash balances derived from its Distributable Earnings and does not expect the program to have a material impact on capital levels.

 

In making the announcement, Vinci Partners Chief Executive Officer and Director Alessandro Horta stated, "We are committed to delivering shareholder value, and this buyback program authorization reflects the board's confidence in our current prospects and long-term growth. We believe that the buyback program represents an opportunity to deploy cash from our results in a way that will benefit our shareholders."

 

Under the share buyback program, buybacks may be made from time-to-time in open market and negotiated purchases, effective immediately. These buybacks will be made in compliance with the SEC's Rule 10b-18, subject to market conditions, available liquidity, cash flow, applicable legal requirements and other factors. The specific prices, numbers of shares and timing of purchase transactions will be determined by the Company from time to time in its sole discretion. This program does not obligate the Company to acquire any particular amount of Class A common shares and the program may be suspended or discontinued at any time.

 

The Company had 42,447,349 Class A common shares and 14,466,238 Class B shares issued and outstanding as of May 19, 2021.

 

 

First Quarter 2021 Highlights

 

Fee-Related Earnings (“FRE”)i was R$ 50.2 million (R$ 0.88/share) for the quarter ended March 31, 2021, up 13% year-over-year.

 

After-tax Distributable Earnings (“DE”)ii was R$ 47.2 million (R$ 0.83/share) for the quarter ended March 31, 2021, up 41% year-over-year. DE Margin was 42.4% for the quarter ended March 31, 2021, up 1.3 percentage point versus 1Q20.

 

Assets Under Management (“AUM”)iii and Fee-Earning AUM (“FEAUM”) were R$ 55 billion and R$ 52 billion, up 45% and 48% year-over-year, respectively, as of March 31, 2021.

 

i Fee related earnings, or FRE, is a metric to monitor the baseline performance of, and trends in, our business, in a manner that does not include performance fees or investment income. We calculate FRE as operating profit less (a) net revenue from realized performance fees, less (b) net revenue from unrealized performance fees, plus (c) compensation allocated in relation to performance fees.

 

ii Distributable Earnings is used as a reference point by our board of directors for determining the amount of earnings available to distribute to shareholders as dividends. Distributable Earnings is calculated as profit for the year, less (a) net revenue from unrealized performance fees, plus (b) income taxes from unrealized performance fees, plus (c) compensation allocated in relation to unrealized performance fees, less (d) unrealized gain from GP investment income, less (e) unrealized gain from financial income, plus (f) income taxes on unrealized gain from GP investment income, plus (g) income taxes on unrealized gain from financial income.

 

iii “AUM” refers to assets under management. Our assets under management equal the sum of: (1) the fair market value of the investments held by funds plus the capital that we are entitled to call from investors in those funds pursuant to the terms of their capital commitments to those funds (plus the fair market value of co-investments arranged by us that were made or could be made by limited partners of our corporate private equity funds and portfolio companies of such funds); (2) the net asset value of our public equity funds, hedge funds and closed-end mutual funds; and (3) the amount of capital raised for our credit funds. AUM includes double counting related to funds from one segment that invest in funds from another segment. Those cases occur mainly due to (a) fund of funds of investment products and solutions segment, and (b) investment funds in general that invest part of their cash in credit segment and hedge fund segment funds in order to maintain liquidity and provide for returns on cash. Such amounts are eliminated on consolidation. The bylaws of the relevant funds prohibit double-charging fees on AUM across segments. Therefore, while our AUM by segment may double-count funds from one segment that invest in funds from another segment, the revenues for any given segment do not include revenue in respect of assets managed by another segment, which means there are no intercompany eliminations on revenues in our results of operations.

 

 

 1
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

Net cash and Investmentsiv totaled R$ 1,449 million or R$ 25.48 per common share as of March 31, 2021.

 

Alessandro Horta, Chief Executive Officer, stated, “Vinci Partners reported excellent results for the first quarter 2021, with great fundraising activity, ending the quarter with R$55 billion in assets under management. Our business continues to show strong growth and is highly profitable, with strong FRE and Distributable Earnings margins. We continue to deliver the best returns to our investors, translating into results to our shareholders.”

 

 

Webcast and Earnings Conference Call

 

Vinci Partners will host a conference call at 6:00pm EST on Wednesday, May 19, 2021, to announce its first quarter 2021 results.

 

To access the full detailed presentation and listen to the conference call via public webcast, please visit the Events & Presentations section of the Company's website at https://ir.vincipartners.com/news-and-events/events-and-presentations. For those unable to listen to the live broadcast, there will be a webcast replay on the same section of the website.

 

The conference call can also be accessed by dialing the following:

 

§+1 (833) 665-0595 (Domestic)

 

§+1 (661) 407-1609 (International)

 

§Conference ID: 8177839

 

iv Net Cash and Investments include cash and cash equivalents and the fair value of investments in liquid funds and GP Fund Investments. Cash and cash equivalents include cash, certificate of deposits, which are issued by Banco Bradesco (credit rating AAA evaluated by Fitch Ratings) with interest rates from 99.5% to 101% of CDI.

 

 

 2
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

 

Segment Earnings (Unaudited)

 

(R$ thousands, unless mentioned) 1Q'20 1Q'21 ∆ (%) LTM 1Q'20 LTM 1Q'21 ∆ (%)
Net revenue from management fees 62,898 81,843 30% 241,987 290,211 20%
Net revenue from advisory fees 15,972 15,066  (6%) 24,541 27.,936  14%
Total Fee Related Revenues 78,870 96,909  23% 266,528 318,147  19%
Personnel expenses (3,240) (5,097)  57% (13,516) (16,385)  21%
Other G&A expenses (2,098) (3,574) 70% (13,233) (15,728) 19%
Corporate center expenses (13,974) (19,512)  40% (57,599) (63,828)  11%
Bonus compensation related to management and advisory (14,990) (18,526) 24% (56,668) (65,167) 15%
Total Fee Related Expenses (34,302) (46,710)  36% (141,016) (161,086)  14%
FEE RELATED EARNINGS (FRE) 44,568 50,199 13% 125,512 157,061 25%
FRE Margin (%) 56.5% 51,8%   47.1% 49.4%  
FRE per share (R$/share) 0.78  0.88    2.21  2.76   
Net revenue from performance fees (3,976) 9.951 N/A 49,586 53,711 8%
Performance based compensation 1,442 (3,292)  N/A (14,453) (17,931)  24%
PERFORMANCE RELATED EARNINGS (PRE) (2,534) 6,659 N/A  35.133 35,780  2%
PRE Margin (%) - 66.9%   70.9% 66.6%  
(-) Unrealized performance fees 5,070 (422) N/A  (3,063) (15,410)  403%
(+) Unrealized performance compensation (1,842) 150 N/A 1,044 5,959 471%
(+) Realized GP investment income 38 112 (4%) 5,867 140 (98%)
SEGMENT DISTRIBUTABLE EARNINGS 45,300 56,699 25% 164,493 183,530 12%
Segment DE Margin (%) 56.9% 57.5%   62.6% 58.7%  
(+) Depreciation and amortization - 939  N/A - 4,290  N/A
(+) Realized financial income 1,036 4,644 348% 3,664 6,165 68%
(-) Leasing expenses (3,065) (3,157) 3%  (12,267) (12,301)  0%
(-) Other items 396 886 124% 713 820 15%
(-) Income taxes (excluding related to unrealized fees and income) (10,278) (12,815)  25% (36,806) (42,728)  16%
DISTRIBUTABLE EARNINGS (DE) 33,389 47,195 41% 119,798 139,776 17%
DE Margin (%) 41.2% 42.4%   37.1% 38.5%  
DE per share (R$/share)  0.59 0.83     2.10 2.46   

 

Total Fee-Related Revenuesi were R$ 96.9 million for the quarter ended March 31, 2021, compared to R$ 78.9 million for the quarter ended March 31, 2020, an increase of 23% year-over year. Fee-related revenues were R$ 318.1 million for the last twelve months ended March 31, 2021, up 19% year-over-year, or 31% year-over-year, if adjusted by VCP III Catch-up effectii in 2019.

 

Fee Related Earnings (“FRE”) was R$ 50.2 million for the quarter ended March 31, 2021, compared to R$ 44.6 million for the quarter ended March 31, 2020, an increase of 13% year-over-year. FRE was R$ 157.1 million for the last twelve months ended March 31, 2021, up 25% year-over-year.

 

FRE Marginiii was 51.8% for the quarter ended March 31, 2021, compared to 56.5% for the quarter ended March 31, 2020, a decrease of 4.7 percentage points year-over-year. This decrease was primarily due to new recurring costs related to becoming a public company in 2021, which impacted FRE Margin in 3.4 percentage points. 1Q’20 FRE Margin was positively impacted by a season effect, which substantially reduced third-party expenses in the quarter.

 

Performance Related Earnings (“PRE”)iv was R$ 6.7 million for the quarter ended March 31, 2021, compared to loss of R$ 2.9 million for the quarter ended March 31, 2020. PRE was R$ 35.8 million for the last twelve months ended March 31, 2021, up 2% year-over-year.

 

i Net revenue from Fund Management and Advisory is a performance measure that we use to assess our ability to generate profits from our fund management and advisory business without measuring for the outcomes from funds above their respective benchmarks. We calculate Net Revenue from Fund Management and Advisory as net revenue from services rendered less (a) net revenue from realized performance fees and less (b) net revenue from unrealized performance fees.

 

ii “VCP III Catch-up Adjustment”: Vinci Capital Partners’ private equity fund catch-up, which is a one-time fee relating to multiple closings of the fund happening after the initial 2017 closing, in which investors that entered the fund in the later rounds paid a one-time management fee equivalent to the amount that each limited partner would have paid if such limited partner has been invested in the fund since the initial round of funding.

 

iii FRE Margin is calculated as FRE over total net management and advisory fees.

 

iv Performance Related Earnings, or PRE, is a performance measure that we use to assess our ability to generate profits from revenue that relies on outcome from funds above their respective benchmarks. We calculate PRE as operating profit, less (a) net revenue from fund management, less (b) compensation allocated in relation to performance fees.

 

 

 3
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

 

Segment Distributable Earningsi were R$ 56.7 million for the quarter ended March 31, 2021, compared to R$ 45.3 million for the quarter ended March 30, 2020, an increase of 25% year-over-year. Segment Distributable Earnings was R$ 183.5 million for the last twelve months ended March 31, 2021, up 11% year-over-year.

 

Distributable Earnings (“DE”) was R$ 47.2 million (R$ 0.83/share) for the quarter ended March 31, 2021, compared to R$ 33.4 million for the quarter ended March 31, 2020, an increase of 41% year-over-year, driven primarily by the growth in management fee revenues and financial income, as a result from the cash allocation of the IPO proceeds. DE was R$ 139.8 million for the last twelve months ended March 31, 2021, up 17% year-over-year.

 

DE Marginii was 42.4% for the quarter ended March 31, 2021, a 1.3 percentage point increase compared to 41.2 % for the quarter ended March 31, 2020.

 

i Segment Distributable Earnings is Vinci Partners’ segment profitability measure used to make operating decisions and assess performance across the company’s four segments (Private Markets, Liquid Strategies, Investment Products and Solutions and Financial Advisory). Segment Distributable Earnings is calculated as operating profit less (a) net revenue from unrealized performance fees, plus (b) compensation allocated in relation to unrealized performance fees, plus (c) realized gain from GP investment income.

 

ii DE Margin is calculated as DE over the sum of management and advisory fee related revenues, realized performance revenue, realized GP investment income and realized financial income, net of revenue tax.

 

 

 4
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

IFRS Income Statement (Unaudited)

 

(R$ thousands, unless mentioned) 1Q'20 1Q'21   ∆ (%)   LTM 1Q'20 LTM 1Q'21   ∆ (%)
REVENUES                  
Net revenue from management fees 62,898 81,843   30%   241,987 290,211   20%
Net revenue from performance fees (3,976)  9,951    N/A    49,586  53,711    8%
Realized performance fees 1,094 9,529   771%   46,523 30,301   (18%)
Unrealized performance fees (5,070)   422    N/A    3,063  15,410    403%
Net revenue from advisory 15,972 15,066   (6%)   25,541 27,936   14%
Total net revenues from services rendered  74,894  106,860    43%    316,114  371,858   18% 
EXPENSES                  
Bonus related to management and advisory (14,990) (18,526)   24%   (56,668) (65,167)   15%
Performance based compensation 1,442   (3,292)    N/A    (14,453)  (17,931)    24%
Realized (400) (3,142)   685%   (13,409) (11,972)   (11%)
Unrealized  1,842  (150)    N/A    (1,044)  (5,959)    471%
Total compensation and benefitsi  (13,548)  (21,818)    61%    (71,121)  (83,098)   17% 
Segment personnel expenses  (3,240)  (5,097)    57%    (13,516)  (16,385)    21%
Other general and administrative expenses (2,098) (3,574)   70%   (13,233) (15,728)   19%
Corporate center expenses  (13,974)  (19,512)    40%    (57,599)  (63,8)    11%
Total expenses  (32,860)  (50,002)    52%    (155,469)  (179,017)    15%
Operating profit  42,034  56,858    35%    160,645  192,841    20%
OTHER ITEMS                  
GP Investment income 825 1,161   41%   9,189 6,590   (28%)
Realized gain from GP investment income 38 112   195%   5,867 140   (98%)
Unrealized gain from GP investment income 787 1,049   33%   3,322 6,450   94%
Financial income 64 4,497   6927%   2,687 7,011   161%
Realized gain from financial income 1,036 4,644   348%   3,664 6,165   68%
Unrealized gain from financial income (972) (147)   (85%)   (977) 846   N/A
Leasing expenses  (3,065)  (3,157)    3%    (12,267)  (12,301)    0%
Other items 396 886   124%   713 820   15%
Total Other Items  (1,780)  3,387    N/A    322  2,120    558%
Profit before income taxes 40,254 60,245   50%   160,967 194,961   21%
(-) Income taxes  (9,630)  (13,232)   37%    (37,956)  (47,048)    24%
NET INCOME  30,624  47,013    54%    123,011  147,913    20%

 

Total net revenues from services rendered were R$ 106.9 million for the quarter ended March 31, 2021, compared to R$ 74.9 million for the quarter ended March 31, 2020, an increase of 43% year-over-year. Over the last twelve months ended March 31, 2021 total net revenues were R$ 371.9 million, up 18% year-over-year.

 

§Management fee revenues were R$ 81.8 million for the quarter ended March 31,2021, compared to R$ 62.9 million for the quarter ended March 31, 2021, an increase of 30% year-over-year. This increase was primarily driven by the growth in Fee-paying AUM year-over-year.

 

§Performance fee revenues were R$ 9.9 million for the quarter ended March 31, 2021, compared to (R$ 3.9) million for the quarter ended March 31, 2020, an increase of R$13.9 million year-over-year. This is increase is primarily due to a bigger contribution from performance fees from the IP&S segment, in the international mandates. Additionally, performance fees in the first quarter of 2020 were impacted by a reversion effect, since we had provisioned performance fees as negative unrealized performance in the quarter.

 

 

i “Total compensation and benefits” is the result of the profit sharing paid to our employees as (a) bonus compensation related to management advisory and (b) performance based compensation. Total compensation and benefits include Dividends to Partners, distributed by the company to its original partners before the public turned public in 2021. In accordance with the by-laws of Vinci Brazil, dividends have historically been distributed based on the resolution of the partners. Therefore, dividends could be distributed on a non-proportional basis among quotaholders, which are comprised by the partners of Vinci Brazil. After the company’s IPO, Vinci Partners changed its compensation structure, from a dividend distribution policy to a profit-sharing scheme our partners.

 

 5
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

§Advisory fee revenues were R$ 15.1 million for the quarter ended March 31, 2021, compared to R$ 15.9 million for the quarter ended March 31, 2020, a decrease of 6% year-over-year.

 

Total expenses for the quarter ended March 31, 2021 were R$ 50.0 million, compared to R$ 32.9 million for the quarter ended March 31, 2020, primarily driven by (i) new recurring costs related to becoming a public company and (ii) the change in the company’s compensation structure after the IPO. Both accounted for R$ 3.3 million in additional expenses for the quarter.

 

§Bonus related to management and advisory fees was R$ 18.5 million for the quarter ended March 31, 2021, compared to R$ 14.9 million for the quarter ended March 31, 2020, an increase of 24% year-over-year, in line with the growth in fee related revenues year-over-year.

 

§Performance based compensation expense was R$ 3.3 million for the quarter ended March 31, 2021, compared to a positive R$ 1.4 million for the quarter ended March 31, 2020. Performance based compensation is a direct function of performance fee revenues generated in the period.

 

§Segment personnel expensesi were R$ 5.1 million for the quarter ended March 31, 2021, compared to R$ 3.2 million for the quarter ended March 31, 2020, an increase of 57% year-over-year. This increase is primarily due to the change in Vinci Partners’ compensation structure after becoming a public company in 2021, which accounted for R$ 0.6 million in additional expenses for the quarter.

 

§Corporate center expensesii were R$ 19.5 million for the quarter ended March 31, 2021, compared to R$ 13.9 million for the quarter ended March 31, 2020, an increase of 40% year-over-year. This increase was primarily due to (i) the previously mentioned change in the company’s compensation structure, (ii) new hirings after the company became public (new hirings for the board of directors and support teams, such as financial reporting and shareholder relations), and (iii) third-party expenses, such as Auditor and Nasdaq listing fees. These additional costs accounted for R$ 2.7 million in corporate center expenses for the quarter. Corporate center expenses for the quarter ended March 31, 2021 were also impacted by a R$ 1.6 million expense for a new branding project for the company, that will take place throughout the year.

 

i “Segment personnel expenses” are composed of the salary-part compensation paid to employees and partners of our funds’ management teams.

 

ii “Corporate center expenses” are composed by the salary-compensation paid to employees and partners of our support teams and other expenses, such as research, risk, legal & compliance, investor relations, operations and ESG.

 

 

 6
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

§Other general and administrative expensesi were R$ 3.5 million for the quarter ended March 31, 2021, compared to R$ 2.1 million for the quarter ended March 31, 2020.

 

Operating Profit was R$ 56.9 million for the quarter ended March 31, 2021, compared to R$ 42.0 million for the quarter ended March 31, 2020, an increase of 35% year-over-year. Operating profit was R$ 192.8 million for the last twelve months ended March 31, 2021, up 20% year-over-year.

 

GP Investment incomeii was R$ 1.2 million for the quarter ended March 31, 2021, up 41% year-over-year, due to the appreciation in fair market value of GP commitments in the company’s private market funds.

 

Financial incomeiii was R$ 4.5 million for the quarter ended March 31, 2021, up 6927% year-over-year. This increase represents the financial income generated from cash allocations of the IPO proceeds.

 

Leasing expensesiv were R$ 3.2 million for the quarter ended March 31, 2021, compared to R$ 3.1 million for the quarter ended March 31, 2020.

 

Profit before income taxes was R$ 60.2 million for the quarter ended March 31, 2021, compared to R$ 40.3 million for the quarter ended March 31, 2020.

 

Income taxesv were R$ 13.2 million for the quarter ended March 31, 2021, which represented an effective tax rate for the quarter of 22%, compared to R$ 9.6 million for the quarter ended March 31, 2020, which represented an effective tax rate for the quarter of 20%.

 

Net Income was R$ 47.0 million for the quarter ended March 31, 2021, compared to R$ 30.6 million for the quarter ended March 31, 2020, an increase of 54% year-over-year. Net Income was R$ 147.9 million for the last twelve months ended March 31, 2021, up 20% year-over-year.

 

i “Other general and administrative expenses” is made up of third-party expenses, depreciation and amortization, travel and representation, marketing expenses, administrative fees, non-operating taxes, third-party consultants’ fees, such as legal and accounting, and office consumables.

 

ii “GP investment income” is income from proprietary investments made by us in our own Private Markets’ funds, used as GP Commitments.

 

iii “Financial income” is income generated through the investments made with our cash and cash equivalents in cash and bank deposits, certificate of deposits and proprietary investments in our Liquid Funds from our public equities and hedge funds’ segments and listed REITs from our real estate segment.

 

iv “Leasing expenses” include costs from the company’s sub-leasing activities.

 

v Income taxes is comprised of taxes on our corporate income tax and social contribution taxes. We are taxed on an actual taxable profit regime, while our subsidiaries are taxed based on deemed profit. Dividends to partners distributed by the company to its original partners before turned public in 2021 are not included in actual taxable regime.

 

 

 7
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

Reconciliation of IFRS to Non-GAAP Measures

 

(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 allocated in relation to performance fees (1,442) 3,292 14,453 17,931
FEE RELATED EARNINGS (FRE) 44,568 50,199 125,512 157,061
         
OPERATING PROFIT 42,034 56,858 160,645 192,841
(-) Net revenue from management fees (62,898) (81,843) (241,987) (290,211)
(-) Net revenue from advisory (15,972) (15,066) (24,541) (27,936)
(+) Bonus related to management and advisory 14,990 18,526 56,668 65,167
(+) Personnel expenses 3,240 5,097 13,516 16,385
(+) Other general and administrative expenses 2,098 3,574 13,233 15,707
(+) Corporate center expenses 13,974 19,512 57,599 63,828
PERFORMANCE RELATED EARNINGS (PRE) (2,534) 6,659 35,133 35,780
         
OPERATING PROFIT 42,034 56,858 160,645 192,841
(-) Net revenue from unrealized performance fees 5,070 (422) (3,063) (15,410)
(+) Compensation allocated in relation to unrealized performance fees (1,842) 150 1,044 5,959
(+) Realized gain from GP investment income 38 112 5,867 140
SEGMENT DISTRIBUTABLE EARNINGS 45,300 56,699 164,493 183,530
         
         
NET INCOME 30,624 47,013 123,011 147,913
(-) Net revenue from unrealized performance fees 5,070 (422) (3,063) (15,410)
(+) Income tax from unrealized performance fees (585) 49 353 1,778
(+) Compensation allocated in relation to unrealized performance fees (1,842) 150 1,044 5,959
(-) Unrealized gain from GP investment income (787) (1,049) (3,322) (6,450)
(+) Income tax on unrealized gain from investment income 268 416 1,129 2,542
(-) Unrealized gain from financial income 972 147 977 (846)
(+) Income tax on unrealized gain from financial income (330) (48) (322) 0
(+) Depreciation and amortization - 939 - 4,290
DISTRIBUTABLE EARNINGS (DE) 33,389 47,195 119,798 139,776
         
         
         
TOTAL NET REVENUE FROM SERVICES RENDERED 74,894 106,860 316,114 371,858
(-) 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)
NET REVENUE FROM MANAGEMENT FEES AND ADVISORY 78,870 96,909 266,528 318,147

 

 

 8
Investor Relations Contact 
ShareholderRelations@vincipartners.com 
+55 21 2159-6240 
www.ir.vincipartners.com 

 

 

 

Reconciliation of Effective Tax Rate

 

 (R$ thousands, unless mentioned) 1Q'20 1Q'21
Profit (loss) before income taxes, including Dividends to partners 40,254 60,245
(+) Dividends to Partners 6,758 0
Profit before income taxes, after Dividends to partners 47,012 60,245
Combined statutory income taxes rate - % 34% 34%
Income tax benefit (Expense) at statutory rates (15,984) (20,483)
Reconciliation adjustments:    
Expenses not deductible (38) (52)
Tax benefits 0 14
Effect of presumed profit of subsidiaries¹ 6,532 7,092
Other additions (exclusions), net (140) 197
Income taxes expenses (9,630) (13,232)
Current (10,866) (14,196)
Deferred 1,236 964
Effective tax rate 20% 22%

 

 

 

Segment Earnings (Unaudited)

 

Private Market Strategies

 

(R$ millions, 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 general and administrative expenses (953) (2,325)   144%
Corporate center expenses (7,881) (10,584)   34%
Total Fee Related Expenses (16,691) (23,078)   38%
FEE RELATED EARNINGS (FRE)        21,099        24,008   14%
FRE Margin (%) 55.8% 50.0%    
Net revenue from performance fees (3,114) 462   N/A
Realized performance fees 3 40   1218%
Unrealized performance fees (3,117) 422   N/A
Performance based compensation 1,131 (162)   N/A
PERFORMANCE RELATED EARNINGS (PRE) (1,983)            300   N/A
PRE Margin (%) - 65.0%    
(-) Unrealized performance fees 3,117 (422)   N/A
(+) Unrealized performance compensation (1,133) 150   N/A
(+) Realized GP investment income 38 112   N/A
SEGMENT DISTRIBUTABLE EARNINGS        21,139        24,148   14%
Segment DE Margin (%) 55.9% 55.1%    
         
ASSETS UNDER MANAGEMENT (AUM)        17,845        21,352   20%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM)        15,728        19,336   23%
AVERAGE MANAGEMENT FEE RATE (%) 0.92% 0.98%    
FULL TIME EMPLOYEES              41              50   22%

 

 

§Fee related earnings (FRE) in 1Q’21 was R$ 24.0 million, an increase of 14% year-over-year, driven by the growth in fee earning AUM.

 

§Segment Distributable Earnings were R$ 24.1 million, an increase of 14% year-over-year.

 

§Total AUM of R$ 21.4 billion at the end of the quarter, an increase of 20% year-over-year, with highlights for fundraisings in listed REITs (such as VILG, VINO and VIFI) and the first closing for VFDL in the Real Estate segment; fundraising for VIR IV in Private Equity and the follow-on offering for VIGT and first closing for VIAS in Infrastructure.

 

§Total Fee-Earning AUM of R$ 19.3 billion, an increase of 23% year-over-year.

 

 

 9
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Liquid Strategies

 

(R$ millions, unless mentioned) 1Q'20 1Q'21   ∆ (%)
Net revenue from management fees 16,748 19,983   19%
Net revenue from advisory fees 0 0   N/A 
Total Fee Related Revenues 16,748 19,983   19%
Bonus related to management and advisory (2,882) (3,420)   19%
Personnel expenses (658) (1,293)   96%
Other general and administrative expenses (661) (624)   -5%
Corporate center expenses (3,493) (4,492)   29%
Total Fee Related Expenses (7,693) (9,829)   28%
FEE RELATED EARNINGS (FRE) 9,054        10,154   12%
FRE Margin (%) 54.1% 50.8%    
Net revenue from performance fees (1,169) 2,009   N/A
Realized performance fees 727 2,009   176%
Unrealized performance fees (1,896) 0    N/A
Performance based compensation 423 (703)   N/A
PERFORMANCE RELATED EARNINGS (PRE) (746)          1,306   N/A
PRE Margin (%) - 65.0%    
(-) Unrealized performance fees 1,896 0    N/A
(+) Unrealized performance compensation (689) 0   N/A
SEGMENT DISTRIBUTABLE EARNINGS 9.515 11.460    
Segment DE Margin (%) 54.5% 52.1%    
         
ASSETS UNDER MANAGEMENT (AUM)          9,293        12,962   39%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM)          9,192        12,840   40%
AVERAGE MANAGEMENT FEE RATE (%) 0.72% 0.65%    
FULL TIME EMPLOYEES              17              24   41%

 

 

§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 for FRE and FEAUM reflects the fundraising in 2020 for the sovereign wealth mandate, that does not pay management fees.

 

§Performance related earnings (PRE) in 1Q’21 was R$ 1.3 million, an increase of R$ 2.1 million year-over-year, driven primarily by a reversion effect in the 1Q’20 for which we had booked unrealized performance.

 

§Segment Distributable Earnings in 1Q’21 were R$ 11.5 million, an increase of 20% year-over-year.

 

§Total AUM of R$ 13 billion, an increase of 39% year-over-year.

 

 

 10
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Investment Products & Solutions

 

(R$ millions, unless mentioned) 1Q'20 1Q'21   ∆ (%)
Net revenue from management fees 9,085 15,280   68%
Net revenue from advisory fees 47 19   -60%
Total Fee Related Revenues 9,133 15,299   68%
Bonus related to management and advisory (686) (971)   42%
Personnel expenses (419) (465)   11%
Other general and administrative expenses (1,905) (3,439)   81%
Corporate center expenses (2,183) (3,669)   68%
Total Fee Related Expenses (5,193) (8,544)   65%
FEE RELATED EARNINGS (FRE) 3,940  6,755    71% 
FRE Margin (%) 43.1% 44.2%    
Net revenue from performance fees 307 7,481   2334%
Realized performance fees 364 7,481   1954%
Unrealized performance fees (57) 0          N/A
Performance based compensation (113) (2,427)   2057%
PERFORMANCE RELATED EARNINGS (PRE) 195 5,054   2493%
PRE Margin (%) 63.4% 67.6%    
(-) Unrealized performance fees 57  0   N/A 
(+) Unrealized performance compensation (21) 0   N/A
SEGMENT DISTRIBUTABLE EARNINGS  4,171  11,809    183% 
Segment DE Margin (%) 43.9% 51.8%    
         
ASSETS UNDER MANAGEMENT (AUM)        10,697        20,449   91%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM)        10,534        20,299   93%
AVERAGE MANAGEMENT FEE RATE (%) 0.37% 0.35%    
FULL TIME EMPLOYEES                9              13   44%

 

 

 

 11
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§Fee related earnings (FRE) in 1Q’21 was R$ 6.8 million, an increase of 71% year-over-year, driven by the growth in fee earning AUM.

 

§Performance related earnings (PRE) in 1Q’21 was R$ 5.1 million, up 2493% year-over-year. This increase was primarily due to a contribution of performance fees from international mandates.

 

§Segment Distributable Earnings in 1Q’21 were R$ 11.8 million, an increase of 183% year-over-year.

 

§Total AUM of R$ 20.5 billion, an increase of 91% year-over-year, driven primarily by net inflows for our separate local and international mandates.

 

 

 

Financial Advisory

 

(R$ millions, unless mentioned) 1Q'20 1Q'21   ∆ (%)
Net revenue from management fees - -   N/A
Net revenue from advisory fees 15,200 14,541   -4%
Total Fee Related Revenues 15,200 14,541   -4%
Bonus related to management and advisory (189) (395)   109%
Personnel expenses (66) (181)   175%
Other general and administrative expenses (699) (975)   39%
Corporate center expenses (3,770) (3,707)   -2%
Total Fee Related Expenses (4,724) (5,258)   11%
FEE RELATED EARNINGS (FRE)        10,476          9,283   -11%
FRE Margin (%) 68.9% 63.8%    
SEGMENT DISTRIBUTABLE EARNINGS        10,476          9,283   -11%
Segment DE Margin (%) 68.9% 63.8%    
         
FULL TIME EMPLOYEES 6  9    50% 

 

§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 EspaçoLaser’s initial public offering in the Brazilian stock exchange (B3) which was the first beauty services company to public list its shares in the B3.

 

§Fee related earnings (FRE) in 1Q’21 was R$ 9.3 million, a decrease of 11% year-over-year.

 

§Segment Distributable Earnings in 1Q21 were R$ 9.3 million, a decrease of 11% year-over-year.

 

 

 12
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Operating Metrics (R$ thousands)

 

For the Three Months Ended March 31, 2021
Assets Under Management (AUM) 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)i  372    –    –    657    837   (17)  –    1,848  
(+/-) Net Inflow / (outflow)ii  -   (1,448)  3,095    -    3    33    458    2,141  
(+/-) Appreciation / (depreciation)iii  322   (315)  925    265   (186) (49) (31)  931  
Ending Balance  11,442    10,016    20,449    2,455    5,125    2,330    2,946    54,763  
Increase YoY 6% -15% 24% 59% 15% -1% 17% 10%
                 
Fee-Earning Assets Under Management (FEAUM) Private
 Equity		 Public
Equities		 IP&S Infrastructure Real Estate Credit Hedge
Funds		 Total
Beggining Balance  8,921    11,700    16,267    1,449    4,470    2,363    2,458    47,628  
(+/-) Capital Subscription / (capital return)  372    –    –    657    837   (17)  –    1,848  
(+/-) Net Inflow / (outflow)  –   (1,445)  3,106    –    3    33    457    2,154  
(+/-) Appreciation / (depreciation)  237   (300)  926    245   (186) (49) (31)  843  
Ending Balance  9,530    9,955    20,299    2,351    5,125    2,330    2,884    52,474  
Increase YoY 7% -15% 25% 62% 15% 1% 17% 10%

 

 
For the Twelve Months Ended March 31, 2021
Assets Under Management (AUM) Private
 Equity		 Public
Equities		 IP&S Infrastructure Real Estate Credit Hedge
Funds		 Total
Beggining Balance  10,947    7,574    10,697    1,467    3,288    2,142    1,718    37,835  
(+/-) Capital Subscription / (capital return)  973    –    6    634    1,486    109    –    3,208  
(+/-) Net Inflow / (outflow)  –   (2,112)  7,073    –    3   (57)  1,128    6,035  
(+/-) Appreciation / (depreciation) (478)  4,554    2,674    353    347    135    101    7,686  
Ending Balance  11,442    10,016    20,449    2,455    5,125    2,330    2,946    54,763  
Increase YoY 5% 32% 91% 67% 56% 9% 71% 45%
                 
Fee-Earning Assets Under Management (FEAUM) Private
 Equity		 Public
Equities		 IP&S Infrastructure Real Estate Credit Hedge
Funds		 Total
Beggining Balance  8,887    7,531    10,534    1,410    3,288    2,142    1,661    35,454  
(+/-) Capital Subscription / (capital return)  973    –    6    634    1,486    109    –    3,208  
(+/-) Net Inflow / (outflow)  –   (2,108)  7,082    –    3   (57)  1,124    6,045  
(+/-) Appreciation / (depreciation) (330)  4,532    2,678    306    347    135    99    7,767  
Ending Balance  9,530    9,955    20,299    2,351    5,125    2,330    2,884    52,474  
Increase YoY 7% 32% 93% 67% 56% 9% 74% 48%

 

 

 

i “Capital Subscription / (capital return)” represents the net capital commitments and capital returns from our Private Markets’ closed end and listed funds.

 

ii “Net Inflows / (outflows)” represent the net inflows and outflows from our liquid funds from our liquid strategies, IP&S and credit segments.

 

iii “Appreciation / (depreciation)” represents the net capital appreciation/depreciation from our funds, which refers to the increase or decrease of the funds’ investment’s value.

 

 

 13
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Balance Sheet – 1Q21 (R$ thousands)

 

Assets   12/31/2020   03/31/2021
Current assets        
Cash and cash equivalents   83,449   854,002
Cash and bank deposits   13,096   25,379
Financial instruments at fair value through profit or loss   70,353   828,623
Financial instruments at fair value through profit or loss   8,253   556,043
Trade receivables   47,978   42,612
Sub-leases receivable   2,963   2,334
Taxes recoverable   1,153   1,250
Other assets   12,383   5,755
Total current assets   156,179   1,461,996
         
Non-current assets        
Financial instruments at fair value through profit or loss   31,596   39,861
Trade receivables   27,545   27,992
Sub-leases receivable                     -      -
Taxes recoverable   134   106
Deferred taxes   4,568   6,144
Other receivables   1,540   527
    65,383   74,630
         
Property and equipment   15,043   15,831
Right of use - Leases   90,478   88,329
Intangible assets   1,441   1,216
    172,345   180,006
         
         
TOTAL   328,524   1,642,002

 

Liabilities and equity   12/31/2020   03/31/2021
Current liabilities        
Trade payables   1,039   488
Deferred Revenue   0   19,678
Leases   19,828   19,926
Accounts payable   125,795   8,720
Labor and social security obligations   40,724   28,655
Taxes and contributions payable   22,878   17,634
Total current liabilities   210,264   95,101
         
Non-current liabilities        
Accounts payable   33   33
Leases   86,371   84,490
Deferred taxes   12,620   13,257
    99,024   97,780
         
Equity        
Share capital   8,730   15
Additional paid-in capital   0   1,390,709
Earnings reserves   0   47,013
Other reserves   10,491   11,340
    19,221   1,449,077
         
Non-controlling interests in the equity of subsidiaries   15   44
         
Total equity   19,236   1,449,121
         
Total liabilities and equity   328,524   1,642,002

 

 

 14
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Investment Records

 

IP&S, Liquid Strategies, Credit and Listed funds

 

Fund Segment NAV (R$ Million) 1Q21 YTD 12 M 24 M Benchmark
Vinci Multiestratégia FIM Hedge Funds 1.038,09 -0,10% -0,10% 2,00% 9,30% CDI
Atlas Strategyi Hedge Funds 680,27 -1,40% -1,40% 1,80% 18,00% CDI
Vinci Moisaco FIA Public Equities 1.628,60 -2,30% -2,30% 53,90% 38,90% IBOV
Vinci Gas Dividendos FIA Public Equities 766,78 -3,90% -3,90% 41,90% 27,70% IBOV
Vinci Total Return Public Equities 86,98 6,70% 6,70% 57,50% - IPCA + Yield IMA-B
Vinci Valorem FIM IP&S 2.775,87 0,40% 0,40% 7,30% 18,10% IMA-B 5
Equilibrio Strategyii IP&S 1.612,54 0,30% 0,30% 8,00% 13,70% IPCA  
Vinci Selection Equities FIA IP&S 587,46 -2,50% -2,50% 51,30% 32,80% IBOV
Vinci Crédito Imobiliário I Credit 319,73 1,30% 1,30% 12,20% 20,10% CDI
Vinci Crédito Estruturado Multiestrategia Plus FIC FIM Credit 53,12 0,80% 0,80% 4,00% 10,80% CDI
VISC11 Listed REIT 1.574,52 -3,30% -3,30% 16,60% 16,20% IFIX
VILG11 Listed REIT 1.769,54 -4,60% -4,60% 19,30% 40,10% IFIX
VINO11 Listed REIT 783,12 -4,00% -4,00% 26,00% - IFIX
VIFI11 Listed REIT 280,6 -0,90% -0,90% - - IFIX
VIGT11 Listed Infrastructure 740,56 -12,00% -12,00% 5,30% - -

 

 

 

i Atlas strategy comprises Atlas FIC FIM and Atlas Institucional FIC FIM.

 

ii Equilibrio Strategy comprises IP&S Family of pension plans.

 

 

 15
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Benchmark     1Q21 YTD 12 M 24 M
IBOVi     -2,00% -2,00% 59,70% 22,20%
CDIii     0,50% 0,50% 2,20% 7,80%
IMA-B 56     -0,10% -0,10% 8,50% 18,60%
IPCA[iii] + Yield IMA-Biv     2,80% 2,80% 8,20% 15,60%
IPCA     2,10% 2,10% 6,10% 9,60%
IFIXv     -0,80% -0,80% 14,10% 14,70%

 

 

Closed end Private Market fundsvi

 

Fund Segment Committed Capital  (R$ mm) Invested Capital  (R$ mm) Realized (R$ mm) Unrealized  (R$ mm)

Total Value

(R$ mm)

 Gross MOICvii (BRL) Gross MOIC  (USD) Gross IRRviii  (BRL) Gross IRR (USD)
Fund 1 Private Equity 1,415 1,206 5,058 276 5,334 4.4x 4.0x 71.5% 77.2%
VCP II Private Equity 2,200 1,805 1,896 3,167 5,062 2.8x 1.4x 16.9% 4.7%
VCP III Private Equity 4,000 1,065 0 1,505 1,505 1.4x 1.2x 47.7% 25.5%
VCP Strategy Private Equity 7,615 4,075 6,953 4,948 11,902 2.9x 2.3x 65.0% 70.3%
NE Empreendedor Private Equity 36 13 26 0 26 2.1x 2.6x 22.0% 30.5%
Nordeste III Private Equity 240 127 42 142 184 1.5x 1.2x 23.7% 10.0%
VIR IV Private Equity 1,000 - - - - - - - -
VIR Strategyix Private Equity 276 139 68 142 210 1.5x 1.4x 22.4% 28.6%
FIP Transmissão Infrastructure 211 104 112 251 363 3.5x 2.7x 89.3% 66.1%
VIAS Infrastructure 381 - - - - - - - -
VFDL Real Estate 256 - - - - - - - -

 

 

 

About Vinci Partners

 

Vinci Partners is a leading alternative investment platform in Brazil, established in 2009. Vinci Partners' business segments include private equity, public equities, real estate, credit, infrastructure, hedge funds, and investment products and solutions, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a financial advisory business, focusing mostly on pre-initial public offering, or pre-IPO, and merger and acquisition, or M&A, advisory services for Brazilian middle-market companies.

 

 

 

i Brazil stock market most relevant index.

 

ii CDI is an average of interbank overnight rates in Brazil (daily average for the period).

 

iii IPCA is a broad consumer price index measured by the IBGE.

 

iv IMAB is composed by government bonds indexed to IPCA. IMAB 5 also comprises government bonds indexed to IPCA but only the one´s with up to 5 Years duration.

 

v IFIX is an index composed by listed REITs in Brazil.

  

vi Track record information is presented throughout this release on a pro forma basis and in local currency, excluding PIPE investments, a strategy that will be discontinued in VCP III. Past performance of investments described herein is provided for illustrative purposes only and is not necessarily indicative of VCP II or VCP III’s future investment results.

 

vii “MOIC” means multiple on invested capital, a ratio intended to represent how much value an investment has returned, and is calculated as realized value plus unrealized value, divided by the total amount invested, gross of expenses and fees.

 

viii “IRR” means the internal rate of return, which is a discount rate that makes the net present value of all cash flows equal to zero in a discounted cash flow analysis.

 

ix VIR Strategy does not include VIR IV’s track record since it was not yet been released for investors.

 

 

 16
Investor Relations Contact 
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Forward-Looking Statements

 

This earnings release 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 subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside of our control. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. The forward-looking statements included herein speak only as at the date of this press release and we do not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, neither we nor our affiliates, officers, employees and agents undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time.

 

 

Contact Information

 

USA Media Contact

Nick Lamplough / Kate Thompson / Katie Villany

Joele Frank, Wilkinson Brimmer Katcher

+1 (212) 355-4449

 

Brazil Media Contact

Danthi Comunicações

Carla Azevedo (carla@danthicomunicacoes.com.br)

+55 (21) 3114-0779

 

Investor Contact

ShareholderRelations@vincipartners.com

NY: +1 (646) 559-8040

RJ: +55 (21) 2159-6240

 

 

 

 17
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www.ir.vincipartners.com