EX-99.2 3 dp178486_ex9902.htm EXHIBIT 99.2

Exhibit 99.2

 


 

 

 

 

Vinci Partners Reports Second Quarter 2022 Results

 

Alessandro Horta, Chief Executive Officer, stated, “Vinci Partners reported solid results for the second quarter 2022. Adjusted Distributable Earningsi totaled R$61.1 million, or R$1.10 per common share, up 11% year-over-year. Since our IPO, Vinci has distributed US$1.00 per common share to shareholders as dividends, proving our resilience and ability to generate significant amounts of cash flow even in the most challenging macro scenarios. We continue to grow and expand our platform organically, ending the second quarter with R$60 billion in assets under management, and through strategic acquisitions, representing a R$62 billion Proforma AUM considering our recently announced transaction with SPS Capital.”

 

Dividend

 

Vinci Partners has declared a quarterly dividend of US$0.17 per share to record holders of common stock at the close of business on August 25, 2022. This dividend will be paid on September 9, 2022.

 

Second quarter 2022 Highlights

 

 

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About Vinci Partners

 

Vinci Partners is a leading alternative investment platform in Brazil, established in 2009.

 

Vinci Partners’ business segments include Private Markets (Private Equity, Real Estate, Infrastructure and Credit), Liquid Strategies (Public Equities and Hedge Funds), Investment products and Solutions, and Financial Advisory. As of June 30, 2022, the firm had R$60 billion of assets under management.

 

Webcast and Earnings Conference Call

 

Vinci Partners will host a conference call at 5:00pm EST on Thursday, August 11, 2022, to announce its second quarter 2022 results.

 

To access the 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.

 

To access the conference call through dial in, please register at 2Q22 VINP Earnings Dial In to obtain the conference number and access code.

 

Investor Contact

ShareholderRelations@vincipartners.com 

NY: +1 (646) 559-8040

RJ: +55 (21) 2159-6240

 

USA Media Contact 

Joele Frank, Wilkinson Brimmer Katcher

Nick Lamplough / Kate Thompson / Katie Villany 

+1 (212) 355-4449

 

Brazil Media Contact

Danthi Comunicações 

Carla Azevedo (carla@danthicomunicacoes.com.br)

 

+55 (21) 3114-0779

 

  

 

Segment Earnings

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY(%) 2Q'21 YTD 2Q'22 YTD ∆ YoY(%)
Net revenue from management fees 94,778 87,229 89,271 -6% 176,621 176,500 0%
Net revenue from advisory fees 6,378 3,674 6,659 4% 21,444 10,333 -52%
Total Fee Related Revenues 101,156 90,903 95,930 -5% 198,065 186,833 -6%
Segment personnel expenses (5,528) (6,549) (6,233) 13% (10,625) (12,782) 20%
Other G&A expenses (4,058) (4,503) (4,178) 3% (7,632) (8,681) 14%
Corporate center expenses (19,296) (18,761) (21,350) 11% (38,808) (40,111) 3%
Bonus compensation related to management and advisory (17,082) (17,272) (17,267) 1% (35,608) (34,539) -3%
Total Fee Related Expenses (45,964) (47,085) (49,028) 7% (92,674) (96,113) 4%
FEE RELATED EARNINGS (FRE)ii 55,192 43,818 46,902 -15% 105,391 90,720 -14%
FRE Margin (%) 54.6% 48.2% 48.9%   53.2% 48.6%  
FRE per shareiii (R$/share) 0.97 0.78 0.84   1.85 1.63  
Net revenue from performance fees 18,624 3,172 3,839 -79% 28,575 7,011 -75%
Performance based compensation (7,817) (1,032) (1,427) -82% (11,109) (2,459) -78%
PERFORMANCE RELATED EARNINGS (PRE) 10,807 2,140 2,412 -78% 17,466 4,552 -74%
PRE Margin (%) 58.0% 67.5% 62.8%   61.1% 64.9%  
(-) Unrealized performance fees (9,065) (636) – N/A (9,487) (636) -93%
(+) Unrealized performance compensation 2,980 225 – N/A 3,130 225 -93%
(+) Realized GP investment income 345 2,045 4,926 1,328% 457 6,971 1,425%
SEGMENT DISTRIBUTABLE EARNINGS 60,259 47,593 54,240 -10% 116,958 101,833 -13%
Segment DE Margin (%) 54.3% 49.8% 51.8%   1 1  
(+) Depreciation and amortization 926 984 976 5% 1,865 1,960 5%
(+) Realized financial income 14,239 24,996 20,001 40% 18,883 44,997 138%
(-) Leasing expenses (3,106) (2,472) (2,400) -23% (6,263) (4,872) -22%
(-) Other items (2,120) (1,136) 644 N/A (1,234) (492) -60%
(-) Non-recurring expenses – (5,109) (962)   – (6,071)  
(-) Income taxes (excluding related to unrealized fees and income) (15,417) (11,601) (12,064) -22% (28,232) (23,665) -16%
DISTRIBUTABLE EARNINGS (DE)iv 54,781 53,255 60,435 10% 101,976 113,690 11%
DE Margin (%) 43.7% 44.2% 48.5%   43.1% 46.4%  
DE per share (R$/share)v 0.97 0.95 1.09   1.79 2.04  
(+) Non-recurring expensesvi including income tax related to realized expense – 4,437 635 N/A – 5,072 N/A
ADJUSTED DISTRIBUTABLE EARNINGS 54,781 57,692 61,070 11% 101,976 118,762 16%
Adjusted DE Margin (%) 43.7% 47.9% 49.0%   43.1% 48.4%  
Adjusted DE per share (R$/share) 0.97 1.03 1.10   1.79 2.13  

 

Total Fee-Related Revenuesvii of R$95.9 million for the quarter ended June 30, 2022, compared to R$101.2 million for the quarter ended June 30, 2021, a decrease of 5% year-over year, primarily due to our successful capital return in FIP Energia PCH, which occurred in the first quarter of 2022, and the mark-to-market impact in liquid funds following strong corrections in the local markets during the quarter. Fee related revenues were up 6% quarter-over-quarter, a result of higher advisory fees and the fundraising across Private Market strategies at the end of the quarter. Fee-related revenues were R$186.8 million for the six months ended June 30, 2022, down 6% year-over-year, when compared to the six months ended June 30, 2021, due to a greater contribution from advisory fees in the 1Q’21, driven by the pre-IPO advisory for B3 listed company Espaço Laser.

 

Fee Related Earnings (“FRE”) of R$46.9 million (R$0.84/share) for the quarter ended June 30, 2022, compared to R$55.2 million for the quarter ended June 30, 2021, a decrease of 15% year-over-year, following the capital return of R$1.1 billion for FIP Energia PCH in 1Q’22, combined with the mark-to-market effect in our liquid strategies' AUM with the strong correction in local markets over the quarter. FRE quarter-over-quarter was up 7% quarter-over-quarter, following strong fundraising across Private market and IP&S strategies and a stronger contribution from advisory fees. FRE was R$90.7 million for the six months ended June 30, 2022, down 14% year-over-year, when compared to the six months

 

  

 

 

ended June 30, 2021, driven by substantially higher advisory fees in the first half of 2021.

 

FRE Marginviii was 48.9% for the quarter ended June 30, 2022, a decrease of 5.7 percentage points when compared to the quarter ended June 30, 2021, impacted partially by higher fixed costs following the rise in inflation rates over the last twelve months combined with the reduction in management fees as a consequence of capital returns and mark-to-market effect. On a comparable basis, 2Q’22 FRE margin disregarding our recently announced VRS segment, would be 50.7%.

 

Performance Related Earnings (“PRE”)ix of R$2.4 million for the quarter ended June 30, 2022, compared to R$10.8 million for the quarter ended June 30, 2021, a decrease of 78% year-over-year. PRE was R$4.6 million for the six months ended June 30, 2022, down 74% year-over-year, when compared to the six months ended June 30, 2021. In the 2Q'21 the platform was positively impacted by an extraordinary performance coming from international exclusive mandates in IP&S, that although unrealized, impacted PRE results. Liquid strategies' funds haven't been able to charge significant levels of performance fees during 2022, mostly due to their high-watermark clause and the strong correction in local markets during the period.

 

Segment Distributable Earningsx of R$54.2 million for the quarter ended June 30, 2022, compared to R$60.3 million for the quarter ended June 30, 2021, a decrease of 10% year-over-year. Segment Distributable Earnings were R$101.8 million for the six months ended June 30, 2022, down 13% year-over-year, when compared to the six months ended June 30, 2021.

 

Adjusted Distributable Earnings (“DE”) of R$61.1 million (R$1.10/share) for the quarter ended June 30, 2022, compared to R$54.8 million for the quarter ended June 30, 2021, an increase of 11% year-over-year, boosted by a greater contribution from financial income. Adjusted DE was R$118.8 million for the six months ended June 30, 2022, up 16% year-over-year, when compared to the six months ended June 30, 2021.

 

Adjusted DE Marginxi was 49.0% for the quarter ended June 30, 2022, a 5.3 percentage point increase compared to 43.7% for the quarter ended June 30, 2021. For the six months ended June, 2022, Adjusted DE Margin reached 48.4%, an increase of 5.3 percentage points year-over-year.

 

  

 

Segment Highlights

 

Private Market Strategies

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY (%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
Net revenue from management fees 49,407 46,759 47,654 -4% 95,988 94,413 -2%
Net revenue from advisory fees 2,641 467 275 -90% 3,146 741 -76%
Total Fee Related Revenues 52,048 47,226 47,929 -8% 99,134 95,154 -4%
Segment personnel expenses (2,722) (2,736) (2,923) 7% (5,160) (5,659) 10%
Other G&A expenses (2,907) (2,755) (2,411) -17% (5,232) (5,166) -1%
Corporate center expenses (9,792) (9,554) (10,827) 11% (20,376) (20,381) 0%
Bonus compensation related to management and advisory (7,568) (7,307) (7,426) -2% (15,299) (14,733) -4%
Total Fee Related Expenses (22,989) (22,352) (23,587) 3% (46,067) (45,939) 0%
FEE RELATED EARNINGS (FRE) 29,059 24,874 24,342 -16% 53,067 49,215 -7%
FRE Margin (%) 55.8% 52.7% 50.8%   53.5% 51.7%  
Net revenue from performance fees 1,792 640 1,719 -4% 2,254 2,359 5%
Realized performance fees 715 4 1,719 140% 755 1,723 128%
Unrealized performance fees 1,077 636 – N/A 1,499 636 -58%
Performance based compensation (570) (226) (609) 7% (731) (835) 14%
PERFORMANCE RELATED EARNINGS (PRE) 1,222 414 1,110 -9% 1,523 1,524 0%
PRE Margin (%) 68.2% 64.7% 64.6%   67.6% 64.6%  
(-) Unrealized performance fees (1,077) (636) – N/A (1,499) (636) -58%
(+) Unrealized performance compensation 382 225 – N/A 532 225 -58%
(+) Realized GP investment income 345 2,045 4,926 1328% 457 6,971 1425%
SEGMENT DISTRIBUTABLE EARNINGS 29,931 26,922 30,377 1% 54,079 57,299 6%
Segment DE Margin (%) 56.4% 54.6% 55.7%   53.9% 55.2%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 20,762 21,041 23,998 16% 20,762 23,998 16%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 18,873 19,192 20,722 10% 18,873 20,722 10%
AVERAGE MANAGEMENT FEE RATE (%) 0.99% 0.92% 0.90%   0.98% 0.91%  
FULL TIME EMPLOYEES 50 50 46 -8% 50 46 -8%

 

Fee related earnings (FRE) of R$24.3 million for the quarter ended June 30, 2022, a decrease of 16% year-over-year, driven by a combination of FIP Energia's capital return in the first quarter of 2022 and a one-off advisory fee contribution in Real Estate during the 2Q'21. FRE was R$49.2 million over the six months ended June 30, 2022, down 7% when compared to the six months ended June 30, 2021.

 

Segment Distributable Earnings of R$30.4 million for the quarter ended June 30, 2022, up 1% year-over-year. Segment DE was R$57.3 million over the six months ended June 30, 2022, up 6% when compared to the six months ended June 30, 2021, boosted by a higher contribution from GP investment income.

 

AUM of R$24.0 billion at the end of the 2Q’22, an increase of 16% year-over-year, driven by strong fundraising across Private Equity and Credit strategies. These fundraisings occurred in the latter part of the quarter and will start to impact management fee revenues from the third quarter onwards.

 

  

 

Liquid Strategies

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY (%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
Net revenue from management fees 23,020 20,573 20,210 -12% 43,003 40,783 -5%
Net revenue from advisory fees – – – N/A – – N/A
Total Fee Related Revenues 23,020 20,573 20,210 -12% 43,003 40,783 -5%
Segment personnel expenses (1,387) (1,384) (1,394) 1% (2,680) (2,778) 4%
Other G&A expenses (681) (676) (780) 15% (1,305) (1,456) 12%
Corporate center expenses (4,196) (4,203) (4,592) 9% (8,689) (8,795) 1%
Bonus compensation related to management and advisory (3,893) (3,948) (3,922) 1% (7,312) (7,871) 8%
Total Fee Related Expenses (10,157) (10,212) (10,688) 5% (19,986) (20,900) 5%
FEE RELATED EARNINGS (FRE) 12,863 10,361 9,522 -26% 23,017 19,883 -14%
FRE Margin (%) 55.9% 50.4% 47.1%   53.5% 48.8%  
Net revenue from performance fees 6,451 2,325 1,300 -80% 8,460 3,625 -57%
Realized performance fees 6,451 2,325 1,300 -80% 8,460 3,625 -57%
Unrealized performance fees – – – N/A – – N/A
Performance based compensation (4,015) (722) (459) -89% (4,718) (1,181) -75%
PERFORMANCE RELATED EARNINGS (PRE) 2,436 1,603 841 -65% 3,742 2,444 -35%
PRE Margin (%) 37.8% 68.9% 64.7%   44.2% 67.4%  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS 15,299 11,963 10,363 -32% 26,759 22,327 -17%
Segment DE Margin (%) 51.9% 52.2% 48.2%   52.0% 50.3%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 14,124 12,243 9,845 -30% 14,124 9,845 -30%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 13,965 12,104 9,708 -30% 13,965 9,708 -30%
AVERAGE MANAGEMENT FEE RATE (%) 0.73% 0.74% 0.78%   0.70% 0.76%  
FULL TIME EMPLOYEES 24 21 22 -8% 24 22 -8%

 

Fee related earnings (FRE) of R$9.5 million for the quarter ended June 30, 2022, down 26% year-over-year. FRE was R$19.9 million over the six months ended June 30, 2022, a decrease of 14% when compared to the six months ended June 30, 2021, driven by the mark-to-market effect in liquid strategies' AUM during the second quarter, impacting management fee revenues.

 

Performance related earnings (PRE) of R$0.8 million for the quarter ended June 30, 2022, down 65% year-over-year. PRE was R$2.4 million over the six months ended June 30, 2022, a decrease of 35% when compared to the six months ended June 30, 2021. Liquid strategies' funds haven't been able to charge performance fees, mostly due to their high-watermark clause and the strong correction in local markets during the period.

 

Segment Distributable Earnings of R$10.4 million for the quarter ended June 30, 2022, down 32% year-over-year. Segment DE was R$22.3 million over the six months ended June 30, 2022, a decrease of 17% when compared to the six months ended June 30, 2021.

 

AUM was R$9.8 billion at the end of the 2Q’22. Liquid strategies' AUM has not suffered from significant outflows in the quarter when compared to the outflows seen in the Brazilian asset manager industry during the quarter. Most of the decrease seen in liquid funds' AUM year-over-year comes from the mark-to-market effect following the depreciation in local markets.

 

  

 

Investment Products and Solutions

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY (%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
Net revenue from management fees 22,349 19,897 21,407 -4% 37,629 41,304 10%
Net revenue from advisory fees 20 7 7 -65% 39 14 -65%
Total Fee Related Revenues 22,369 19,904 21,414 -4% 37,668 41,317 10%
Segment personnel expenses (1,008) (1,827) (1,078) 7% (1,979) (2,905) 47%
Other G&A expenses (344) (600) (450) 31% (809) (1,050) 30%
Corporate center expenses (4,343) (4,065) (4,864) 12% (7,782) (8,929) 15%
Bonus compensation related to management and advisory (3,927) (4,156) (3,557) -9% (7,595) (7,712) 2%
Total Fee Related Expenses (9,622) (10,648) (9,948) 3% (18,166) (20,596) 13%
FEE RELATED EARNINGS (FRE) 12,747 9,255 11,466 -10% 19,502 20,721 6%
FRE Margin (%) 57.0% 46.5% 53.5%   51.8% 50.2%  
Net revenue from performance fees 10,382 208 820 -92% 17,863 1,028 -94%
Realized performance fees 2,394 208 820 -66% 9,875 1,028 -90%
Unrealized performance fees 7,988 – – N/A 7,988 – N/A
Performance based compensation (3,233) (84) (360) -89% (5,660) (444) -92%
PERFORMANCE RELATED EARNINGS (PRE) 7,149 124 460 -94% 12,203 584 -95%
PRE Margin (%) 68.9% 59.5% 56.1%   68.3% 56.8%  
(-) Unrealized performance fees (7,988) – – N/A (7,988) – N/A
(+) Unrealized performance compensation 2,599 – – N/A 2,599 – N/A
SEGMENT DISTRIBUTABLE EARNINGS 14,507 9,379 11,926 -18% 26,316 21,305 -19%
Segment DE Margin (%) 58.6% 46.6% 53.6%   55.4% 50.3%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 21,966 23,394 25,659 17% 21,966 25,659 17%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 21,812 23,258 25,545 17% 21,812 25,545 17%
AVERAGE MANAGEMENT FEE RATE (%) 0.45% 0.37% 0.38%   0.40% 0.38%  
FULL TIME EMPLOYEES 14 14 16 14% 14 16 14%

 

Fee related earnings (FRE) of R$11.5 million for the quarter ended June 30, 2022, down 10% year-over-year due to a retroactive revenue recognition in the 2Q'21. FRE was up 24% on a quarter-over-quarter basis. FRE was R$20.7 million over the six months ended June 30, 2022, an increase of 6% when compared to the six months ended June 30, 2021, driven by the growth in management fees following notable fundraising over the last six months.

 

Performance related earnings (PRE) of R$460 thousand for the quarter ended June 30, 2022, down 94% year-over-year. In the 2Q'21 the platform was positively impacted by an extraordinary performance coming from international exclusive mandates in IP&S, that although unrealized, impacted PRE results. PRE over the six months ended June 30, 2022 was R$584 thousand, a decrease of 95% when compared to the six months ended June 30, 2021.

 

Segment Distributable Earnings of R$11.9 million for the quarter ended June 30, 2022, down 18% year-over-year, mainly due to a higher contribution from PRE in the 2Q’21. Segment DE was R$21.3 million over the six months ended June 30, 2022, a decrease of 19% when compared to the six months ended June 30, 2021.

 

AUM of R$25.7 billion, up 17% year-over-year, following the strong fundraising from our pension plan products in the second quarter.

 

  

 

Financial Advisory

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY (%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
Net revenue from management fees – – – N/A – – N/A
Net revenue from advisory fees 3,718 3,201 6,378 72% 18,259 9,578 -48%
Total Fee Related Revenues 3,718 3,201 6,378 72% 18,259 9,578 -48%
Segment personnel expenses (411) (505) (530) 29% (806) (1,035) 28%
Other G&A expenses (126) (209) (165) 31% (307) (374) 22%
Corporate center expenses (965) (938) (1,067) 11% (1,939) (2,006) 3%
Bonus compensation related to management and advisory (1,694) (908) (1,350) -20% (5,401) (2,208) -59%
Total Fee Related Expenses (3,196) (2,560) (3,112) -3% (8,454) (5,623) -33%
FEE RELATED EARNINGS (FRE) 522 640 3,265 525% 9,805 3,956 -60%
FRE Margin (%) 14.1% 20.0% 51.2%   53.7% 41.3%  
SEGMENT DISTRIBUTABLE EARNINGS 522 640 3,265 525% 9,805 3,956 -60%
Segment DE Margin (%) 14.1% 20.0% 51.2%   53.7% 41.3%  
               
FULL TIME EMPLOYEES 8 11 10 25% 8 10 25%

 

Fee related earnings (FRE) of R$3.3 million for the quarter ended June 30, 2022, up 525% year-over-year. FRE was R$4.0 million over the six months ended June 30, 2022, a decrease of 60% when compared to the six months ended June 30, 2021, due to a greater contribution from advisory fees in the 1Q’21, when the Advisory team closed the pre-IPO advisory for B3 listed company Espaço Laser.

 

Segment Distributable Earnings over the six months ended June 30, 2022 were R$4.0 million, a decrease of 60% year-over-year when compared to the six months ended June 30, 2021.

 

  

 

Retirement Services

 

(R$ thousands, unless mentioned)/ 2Q'21 1Q'22 2Q'22 ∆ YoY (%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
Net revenue from management fees – – – – – – –
Net revenue from advisory fees – – – – – – –
Total Fee Related Revenues – – – – – – –
Segment personnel expenses – (97) (308) – – (405) –
Other G&A expenses – (263) (372) – – (635) –
Corporate center expenses – – – – – – –
Bonus compensation related to management and advisory – (1,002) (1,012) – – (2,014) –
Total Fee Related Expenses – (1,362) (1,692) – – (3,054) –
FEE RELATED EARNINGS (FRE) – (1,362) (1,692) – – (3,054) –
FRE Margin (%) – – –   – –  
Net revenue from performance fees – – – – – – –
    Realized performance fees – – – – – – –
    Unrealized performance fees – – – – – – –
Performance based compensation – – – – – – –
PERFORMANCE RELATED EARNINGS (PRE) – – – – – – –
PRE Margin (%) – – –   – –  
(-) Unrealized performance fees – – – – – – –
(+) Unrealized performance compensation – – – – – – –
SEGMENT DISTRIBUTABLE EARNINGS – (1,362) (1,692) – – (3,054) –
Segment DE Margin (%) – – –   – –  
               
ASSETS UNDER MANAGEMENT (AUM R$millions) – – – – – – –
FULL TIME EMPLOYEES – 3 5 – – 5 –

 

Fee Related Earnings (FRE) of negative R$1.7 million for the quarter ended June 30, 2022. FRE was negative R$3.1 million to the six months ended June 30, 2022.

 

VRS is within investment period and products are expected to be launched in 2023. We are separating this segment from others because we believe it could be a relevant tech enabled vertical in the future.

 

  

 

Income Statement

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 ∆ YoY(%) 2Q'21 YTD 2Q'22 YTD ∆ YTD (%)
REVENUES              
Net revenue from management fees 94,778 87,229 89,271 -6% 176,621 176,500 0%
Net revenue from performance fees 18,624 3,172 3,839 -79% 28,575 7,011 -75%
    Realized performance fees 9,559 2,536 3,839 -60% 19,088 6,375 -67%
    Unrealized performance fees 9,065 636 – N/A 9,487 636 -93%
Net revenue from advisory 6,378 3,674 6,659 4% 21,444 10,333 -52%
Total net revenues from services rendered 119,780 94,075 99,769 -17% 226,640 193,844 -14%
EXPENSES              
Bonus related to management and advisory (17,082) (17,272) (17,267) 1% (35,608) (34,539) -3%
Performance based compensation (7,817) (1,032) (1,427) -82% (11,109) (2,459) -78%
    Realized (4,837) (807) (1,427) -71% (7,979) (2,234) -72%
    Unrealized (2,980) (225) – N/A (3,130) (225) -93%
Total compensation and benefitsxii (24,899) (18,303) (18,694) -25% (46,717) (36,998) -21%
Segment personnel expenses (5,528) (6,549) (6,233) 13% (10,625) (12,782) 20%
Other general and administrative expenses (4,058) (4,503) (4,178) 3% (7,632) (8,681) 14%
Corporate center expenses (19,296) (18,761) (21,350) 11% (38,808) (40,111) 3%
Total expenses (53,781) (48,116) (50,455) -6% (103,783) (98,571) -5%
Operating profit 65,999 45,959 49,314 -25% 122,857 95,273 -22%
OTHER ITEMS              
GP Investment income (5,206) (4,169) (7,211) 39% (4,045) (11,380) 181%
    Realized gain from GP investment income 345 2,045 4,926 1328% 457 6,971 1425%
    Unrealized gain from GP investment income (5,551) (6,214) (12,137) 119% (4,502) (18,351) 308%
Financial income 14,152 24,708 21,193 50% 18,649 45,901 146%
    Realized gain from financial income 14,239 24,996 20,001 40% 18,883 44,997 138%
    Unrealized gain from financial income (87) (288) 1,192 N/A (234) 904 N/A
Leasing expenses (3,106) (2,472) (2,400) -23% (6,263) (4,872) -22%
Other items (2,120) (1,136) 644 N/A (1,234) (492) -60%
Share Based Plan (1,642) (736) (2,468) 50% (1,642) (3,204) 95%
Nonrecurring expenses – (5,109) (962) N/A – (6,071) N/A
Total Other Items 2,078 11,086 8,796 323% 5,465 19,882 264%
Profit before income taxes 68,077 57,045 58,109 -15% 128,322 115,154 -10%
(-) Income taxes (14,671) (11,739) (11,711) -20% (27,903) (23,450) -16%
NET INCOME 53,406 45,306 46,398 -13% 100,419 91,704 -9%
(+) Non-recurring expenses including income tax related to realized expense – 4,437 635 N/A – 5,072 N/A
ADJUSTED NET INCOME 53,406 49,742 47,033 -12% 100,419 96,776 -4%

 

Total net revenues from services rendered of R$99.8 million for the quarter ended June 30, 2022, compared to R$119.8 million for the quarter ended June 30, 2021, a decrease of 17% year-over-year, impacted by significant mark-to-market correction this quarter, which has a negative impact on Liquid Strategies’ AUM and performance fees. Net revenues for the six months ended June 30, 2022, were R$193.8 million, down 14% year-over-year, when compared to the six months ended June 30, 2021. Net revenues for the quarter-over-quarter ended June 30, 2022, were up 6%, when compared to the quarter ended March 31, 2022, due to relevant fundraising in Private Markets and IP&S during the 2Q’22.

 

·Management fee revenues of R$89.3 million for the quarter ended June 30, 2022, compared to R$94.8 million for the quarter ended June 30, 2021, a decrease of 6% year-over-year, primarily due to our successful capital return in FIP Energia PCH, which occurred in the first quarter of 2022, and impacted by significant mark-to-market correction this quarter, which has a negative impact on Liquid Strategies’ AUM. Management fee revenues for

 

  

 

the six months ended June 30, 2022, were R$176.5 million, in line, when compared to the six months ended June 30, 2021.

 

·Performance fee revenues of R$3.8 million for the quarter ended June 30, 2022, compared to R$18.6 million for the quarter ended June 30, 2021, a decrease of 79% year-over-year. In the 2Q'21 the platform was positively impacted by an extraordinary performance coming from international exclusive mandates in IP&S. Performance fee revenues were R$7.0 million for the six months ended June 30, 2022, down 75% year-over-year, when compared to the six months ended June 30, 2021. Liquid strategies' funds haven't been able to charge significant levels of performance fees, mostly due to their high-watermark clause and the strong correction in local markets during the period.

 

·Advisory fee revenues of R$6.7 million for the quarter ended June 30, 2022, compared to R$6.4 million for the quarter ended June 30, 2021, an increase of 4% year-over-year. Advisory revenues for the six months ended June 30, 2022, were R$10.3 million, down 52% when compared to the six months ended June 30, 2021, due to a greater contribution from advisory fees in the 1Q’21, when the Advisory team closed the pre-IPO advisory for B3 listed company Espaço Laser.

 

Total expenses for the quarter ended June 30, 2022, of R$50.5 million, compared to R$53.8 million for the quarter ended June 30, 2021, a decrease of 6% year-over-year. Total expenses for the six months ended June 30, 2022, were R$98.6 million, down 5% when compared to the six months ended June 30, 2021.

 

·Bonus related to management and advisory feesxiii of R$17.3 million for the quarter ended June 30, 2022, compared to R$17.1 million for the quarter ended June 30, 2021, an increase of 1% year-over-year. Bonus related to management and advisory was R$34.5 million for the six months ended June 30, 2022, down 3% year-over-year, when compared to the six months ended June 30, 2021.

 

·Performance based compensationxiv of R$1.4 million for the quarter ended June 30,2022, compared to R$7.8 million for the quarter ended June 30, 2021. Performance based compensation for the six months ended June 30, 2022, was R$2.5 million, a decrease of 78% year-over-year, when compared to the six months ended June 30, 2021.

 

·Segment personnel expensesxv of R$6.2 million for the quarter ended June 30, 2022, compared to R$5.5 million for the quarter ended June 30, 2021, an increase of 13% year-over-year. Segment personnel expenses for the six months ended June 30, 2022, was R$12.8 million, up 20% year-over-year, when compared to the six months ended June 30, 2021, primarily due to higher inflation in the period affecting fixed costs.

 

·Corporate center expensesxvi of R$21.4 million for the quarter ended June 30, 2022, compared to R$19.3 million for the quarter ended June 30, 2021, an increase of 11% year-over-year. Corporate center expenses were up year-over-year due to higher inflation in the period and the return of travel expenses to the same levels experienced before COVID-19 pandemic. Corporate center expenses for the six months ended June 30, 2022, were R$40.1 million, up 3% year-over-year, when compared to the six months ended June 30, 2021.

 

·Other general and administrative expensesxvii of R$4.2 million for the quarter ended June 30, 2022, compared to

 

  

 

R$4.1 million for the quarter ended June 30, 2021, an increase of 3% year-over-year. Other G&A expenses for the six months ended June 30, 2022, were R$8.7 million, up 14% year-over-year, when compared to the six months ended June 30, 2021.

 

Operating Profit of R$49.3 million for the quarter ended June 30, 2022, compared to R$66.0 million for the quarter ended June 30, 2021, a decrease of 25% year-over-year. Operating profit for the six months ended June 30, 2022, was R$95.3 million, down 22% year-over-year, when compared to the six months ended June 30, 2021.

 

GP Investment incomexviii, a result of the company’s GP investments in its proprietary private market funds, was negative R$7.2 million for the quarter ended June 30, 2022, compared to negative R$5.2 million for the quarter ended June 30, 2021, due to the mark-to-market effect over listed REITs’ quotas in the B3. GP Investment income for the six months ended June 30, 2022, was negative R$11.4 million compared to negative R$4.0 million for the six months ended June 30, 2021.

 

Financial Incomexix of R$21.2 million for the quarter ended June 30, 2022, compared to R$14.2 million for the quarter ended June 30, 2021, an increase of 50% year-over-year, a result of financial gains from the company’s cash allocation. Financial income for the six months ended June 30, 2022, was R$45.9 million, up 146% year-over-year, when compared to the six months ended June 30, 2021.

 

Leasing Expensesxx of R$2.4 million for the quarter ended June 30, 2022, compared to R$3.1 million for the quarter ended June 30, 2021, a decrease of 23% year-over-year.

 

Share Based Plan expensesxxi of R$2.5 million for the quarter ended June 30, 2022. In the six months ended June 30, 2022, share based plan expenses accounted for R$3,2 million.

 

Nonrecurring expensesxxii of R$962 thousands for the quarter ended June 30, 2022. Non-recurring expenses are composed by expenses related to professional services to matters related to M&A.

 

Profit before income taxes of R$58.1 million for the quarter ended June 30, 2022, compared to R$68.1 million for the quarter ended June 30, 2021, a decrease of 15% year-over-year. Profit before income taxes for the six months ended June 30, 2022, was R$115.2 million, down 10% year-over-year, when compared to the six months ended June 30, 2021.

 

Income Taxesxxiii of R$11.7 million for the quarter ended June 30, 2022, which represented an effective tax rate for the quarter of 20%, compared to R$14.7 million for the quarter ended June 30, 2021, which represented an effective tax rate of 22%.

 

Adjusted Net Income of R$47.0 million for the quarter ended June 30, 2022, compared to R$53.4 million for the quarter ended June 30, 2021, a decrease of 12% year-over-year. Adjusted Net Income was R$96.8 million for the six months ended June 30, 2022, down 4% year-over-year, when compared to the six months ended June 30, 2021.

 

  

 

Supplement Details

 

Assets Under Management (AUM)xxiv Rollforward – R$ millions

 

For the Three Months Ended June 30, 2022

 

 

Private

Equity

Public

Equities

 IP&S Infrastructure Real Estate Credit

Hedge

Funds

 Total
Beginning balance 11,025 9,333 23,394 1,493 5,317 3,206 2,910 56,677
(+/-) Capital Subscription / (capital return) 1,888 – – 11 (113) 958 – 2,744
(+) Capital Subscription 1,898 – – 11 – 994 – 2,904
(-) Capital Return (11) – – – (113) (36) – (160)
(+/-) Net Inflow / (outflow) – (646) 2,448 – 16 29 (116) 1,731
(+/-) Appreciation / (depreciation) 100 (1,622) (182) (45) (12) 124 (14) (1,651)
Ending Balance 13,013 7,064 25,659 1,460 5,208 4,318 2,781 59,502

 

 

For the Twelve Months Ended June 30, 2022

 

 

Private

Equity

Public

Equities

 IP&S Infrastructure

Real

Estate

 Credit

Hedge

Funds

 Total
Beginning balance 10,851 10,861 21,966 2,363 5,087 2,461 3,263 56,852
(+/-) Capital Subscription / (capital return) 2,103 – 203 (900) 296 1,053 – 2,755
(+) Capital Subscription 2,116 – 203 288 619 1,160 – 4,386
(-) Capital Return (13) – – (1,188) (323) (107) – (1,631)
(+/-) Net Inflow / (outflow) – (1,289) 3,658 – 123 499 (498) 2,492
(+/-) Appreciation / (depreciation) 58 (2,508) (168) (3) (298) 305 16 (2,597)
Ending Balance 13,013 7,064 25,659 1,460 5,208 4,318 2,781 59,502

  

 

Fee Earning Assets Under Management (FEAUM) Rollforward – R$ millions

 

For the Three Months Ended June 30, 2022

 

 

Private

Equity

Public

Equities

 IP&S Infrastructure Real Estate Credit

Hedge

Funds

 Total
Beginning balance 9,236 9,267 23,258 1,433 5,317 3,206 2,838 54,553
(+/-) Capital Subscription / (capital return) 593 – – 11 (113) 958 – 1,449
(+) Capital Subscription 603 – – 11 – 994 – 1,609
(-) Capital Return (11) – – – (113) (36) – (160)
(+/-) Net Inflow / (outflow) – (643) 2,468 – 16 29 (116) 1,755
(+/-) Appreciation / (depreciation) (31) (1,622) (181) (45) (12) 124 (16) (1,783)
Ending Balance 9,797 7,002 25,545 1,399 5,208 4,318 2,706 55,975

 

 

For the Twelve Months Ended June 30, 2022

 

 

Private

Equity

Public

Equities

 IP&S Infrastructure

Real

Estate

 Credit

Hedge

Funds

 Total
Beginning balance 9,066 10,765 21,812 2,259 5,087 2,461 3,200 54,650
(+/-) Capital Subscription / (capital return) 808 – 203 (850) 296 1,053 – 1,510
(+) Capital Subscription 821 – 203 288 619 1,160 – 3,091
(-) Capital Return (13) – – (1,138) (323) (107) – (1,581)
(+/-) Net Inflow / (outflow) – (1,285) 3,686 – 123 499 (502) 2,520
(+/-) Appreciation / (depreciation) (77) (2,479) (155) (10) (298) 305 8 (2,706)
Ending Balance 9,797 7,002 25,545 1,399 5,208 4,318 2,706 55,975

 

Accrued Performance Fees – Private Market Funds

 

(R$ mm) 1Q’22 Unrealized Performance Fees Realized Distributions 2Q'22
Private Equity 84.6 41.5 - 126.1
Infrastructure 20.0 (0.2) - 19.9
Real Estate 0 0.1 - 0.1
Total 104.6 41.5 - 146.1

 

Vinci Partners recognizes the performance revenue according to IFRS 15. Unrealized performance fees are recognized only when is highly probable that the revenue will not be reversed in the Income Statement.

 

The fund FIP Infra Transmissão in Infrastructure had R$19.9 million as of the end of the second quarter of 2022 booked as unrealized performance fees in the company´s balance sheet.

 

Accrued performance fees shown for Private Equity funds of R$126.1 million and for Real Estate funds of R$0.1 million as of the end of the second quarter of 2022 have not been booked as unrealized performance fees in the company´s balance sheet.

 

  

 

Investment Records – IP&S, Liquid Strategies, Credit and Listed REIT

 

Fund Segment

NAVxxv

(R$ millions)

 2Q22 YTD 12 M 24 M Market Comparison Index Rate
Vinci Multiestratégia FIM Hedge Funds 490.5 2.2% 5.4% 7.7% 9.2% CDI4 CDI4
Atlas Strategy² Hedge Funds 490.2 0.5% 4.8% 0.4% 0.9% CDI4 CDI4
Vinci Total Return Hedge Funds 241.0 -12.5% -4.5% -10.5% 33.2% IPCA5 + Yield IMA-B7 IPCA5 + Yield IMA-B7
Mosaico Strategy Public Equities 951.1 -18.5% -8.9% -24.6% -3.0% IBOV5 IBOV5
Vinci Gas Dividendos FIA Public Equities 469.9 -15.1% -1.9% -15.5% 7.5% IBOV5 IBOV5
Vinci Valorem FIM IP&S 3,066.5 2.9% 7.3% 9.7% 15.4% IMA-B 57 IMA-B 57
Equilibrio Strategy³ IP&S 2,070.7 2.7% 7.4% 8.9% 15.9% IPCA6   -
Vinci Selection Equities FIA IP&S 634.3 -13.7% -5.6% -21.6% 0.3% IBOV5 IBOV5
Vinci Crédito Imobiliário I Credit 257.1 3,16% 7.79% 7,79% 16,39% IPCA6   IPCA6 +7.785%
Vinci Crédito Imobiliário II Credit 636.9 1,55% 4.71% 4,52% 11,52% IPCA6   IPCA6+ 6%
Vinci Crédito Estruturado Multiestrategia Plus FIC FIM Credit 125.0 3,36% 6.16% 11,00% 16,43% CDI4 CDI4
Vinci Energia Sustentável Credit 614.0 2,33% 1.30% 3,58% 13,55% IPCA6   IPCA6 + 6%
Vinci Crédito Multiestratégia Credit 308.2 3,35% 6.80% 12,91% - CDI4 IPCA6 + 5%
VISC11 Real Estate (listed REIT) 1,774.9 3.2% 1.8% 1.9% 9.3% IFIX8 IPCA6 + 6%
VILG11 Real Estate (listed REIT) 1,421.8 -2.1% -5.7% -5.3% -9.4% IFIX8 IPCA6 + 6%
VINO11 Real Estate (listed REIT) 725.4 -9.9% -18.7% -17.5% -8.8% IFIX8 IPCA6 + 6%
VIFI11 Real Estate (listed REIT) 55.6 -1.9% -4.6% -9.3% -17.1% IFIX8 IFIX8
VIUR11 Real Estate (listed REIT) 191.3 0.5% -2.7% -12.6%  - IFIX8 IPCA6 + 6%
VIGT11 Infrastructure (listed) 595.5 -4.7% -6.4% -4.0% -22.7% - -
VINCI FOF IMOBILIARIO FIM CP Real Estate (REIT) 11.0 2.0% 3.8% -  -  IFIX8 IFIX8

 

 

Benchmark 2Q22 YTD 12 M 24 M
IBOV -18.1% -6.0% -22.3% 3.7%
CDI 3.0% 5.4% 8.7% 11.1%
IMA-B 5 2.7% 6.6% 10.1% 16.7%
IPCA + Yield IMA-B 4.2% 7.4% 16.0% 28.6%
IPCA 2.3% 5.5% 11.9% 21.2%
IFIX -0.9% -0.3% -2.3% 11.5%

  

 

Investment Records – Closed End Private Markets fundsxxvi

 

Fund

Segment 

 Vintage year  

Committed Capital 

(R$mm)

Invested Capital 

(R$mm)

Realized or Partially

Realized

(R$mm)

Unrealized 

(R$mm)

Total

Value

  (R$mm)

Gross MOICxxvii 

(BRL)

Gross

MOIC

  (USD)

Gross

IRRxxviii

 (BRL)

Gross IRR

 (USD)

Fund 1 Private Equity 2004 1,415 1,206 5,058 229 5,287 4.4x 4.0x 71.5% 77.2%
VCP II Private Equity 2011 2,200 1,805 1,844 2,390 4,234 2.3x 1.2x 12.6% 2.8%

VCP III

 

 Private Equity 2018 4,000 1,825 34 2,910 2,944 1.6x 1.6x 48.6% 42.0%
VCP Strategyxxix Private Equity   7,615 4,835 6,936 5,529 12,465 2.6x 2.3x 64.8% 70.3%
NE Empreendedor Private Equity 2003 36 13 26 – 26 2.1x 2.6x 22.0% 30.5%
Nordeste III Private Equity 2017 240 134 75 139 214 1.6x 1.4x 20.7% 13.5%
VIR IV Private Equity 2020 1,000 189 4 202 205 1.1x 1.2x 14.1% 37.5%
VIR Strategyxxx Private Equity   1,276 336 105 340 446 1.3x 1.2x 22.1% 27.8%
FIP Transmissãoxxxi Infrastructure 2017 211 104 241 161 401 3.9x 3.0x 69.4% 53.5%
VIASxxxii Infrastructure 2021 386 350 – 350 350 1.0x 1.1x NM NM
VFDLxxxiii Real Estate 2021 422 83 – 103 103 1.2x 1.8x 44.5% 46.5%

 

Shareholder Dividends

 

($ in thousands) 1H21 3Q'21 4Q'21 1Q’22  2Q’22
Distributable Earnings (R$) 101,976 61,743 68,515 53,255 60,435
Distributable Earnings (US$)xxxiv 19,397 11,377 13,637 10,615 11,795
DE per Common Share (US$)xxxv 0.34  0.20 0.24 0.19 0.21
Actual Dividend per Common Sharexxxvi  0.30  0.16 0.20 0.17 0.17
Record Date September 01,2021 December 01,2021 March 10, 2022          May 24, 2022 August 25, 2022
Payable Date  September 16, 2021 December 16,2021 March 24, 2022 June 08, 2022  September 09,2022

 

Vinci Partners generated R$1.09 or US$0.21 of Distributable Earnings per common share for the second quarter of 2022.

 

The company declared a quarterly dividend of US$0.17 per common share to record holders as of August 25, 2022; payable on September 09, 2022.

 

Share Summary

 

VINP Shares 1Q'21 2Q'21 3Q'21 4Q'21 1Q’22 2Q'22
Class B 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239
Class A – Partnership Units 27,175,861 27,175,861 27,175,861 27,175,861 27,175,861 27,175,861
Class A - Public Float 15,271,488 15,094,833 14,921,318 14,513,477 14,187,216 13,936,856
Common Shares Outstanding 56,913,588 56,736,933 56,563,418 56,155,577 55,829,316 55,578,956

  

 

Common Shares Outstanding as of quarter end of 55,578,956 shares.

 

·Repurchased 250,306 common shares in the quarter, with an average share price of US$11.7.

 

·Repurchased 1,334,632 common shares since the announcement of the first share repurchase plan, with an average share price of US$12.5.

 

·Available authorization remaining was R$56.4 million on June 30, 2022.

 

GP Commitment in Private Market funds

 

(R$ millions,  unless mentioned) Fund Segment 2Q’22  Commitments Total  Capital Committed 2Q’22 Capital Called Total Capital Called Capital Returned/ Dividends Payed (2Q’22) Accumulated Capital Returned/ Dividends  Payed Fair value  of  investments  
 
 
Nordeste III Private Equity – 5.0 0.0 3.1 – 1.3 2.8  
VCP III Private Equity – 3.1 0.4 2.1 – – 2.9  
VIR IV Private Equity – 11.1 0.2 3.1 0.0 0.1 2.8  
VCP IV Private Equity 350.0 350.0 – – – – –  
FIP Infra Transmissão  (co- investment)i Infrastructure – 29.5 – 8.9 – 19.7 12.6  
FIP Infra Transmissãoii Infrastructure – 10.5 – 3.4 – 6.2 3.6  
VIAS Infrastructure – 50.0 – 27.8 – – 27.0  
Vinci Transporte e Logística II Infrastructure 15.0 15.0 – – – – –  
Vinci Transporte e Logística I Infrastructure 11.4 11.4 6.3 6.3 – – 6.3  
VFDL Real Estate – 70.0 3.5 17.5 – – 20.3  
VIUR Real Estate – 67.3 – 67.3 1.5 6.1 48.3  
VINO Real Estate – 50.0 – 50.0 0.9 1.6 40.0  
Vinci FOF Imobiliário Real Estate – 10.0 – 10.0 – – 7.0  
VCRIiii Credit – 80.0 – 80.0 2.5 2.5 79.1  
Vinci Crédito Agro Imobiliário Credit 16.0 16.0 16.0 16.0 – – 16.3  
Vinci Crédito Infra Institucional Credit 100.0 100.0 – – – – –  
VSP IP&S 45.0 50.0 2.2 2.2 – – 10.0  
Total   537.4 928.9 28.6 297.6 4.9 37.5 278.9  

 

 

  

 

Reconciliation and Disclosures

 

Non-GAAP Reconciliation

 

(R$ thousands, unless mentioned) 2Q'21 1Q'22 2Q'22 2Q'21 YTD 2Q'22 YTD
           
OPERATING PROFIT 65,999 45,959 49,314 122,857 95,273
(-) Net revenue from realized performance fees (9,559) (2,536) (3,839) (19,088) (6,375)
(-) Net revenue from unrealized performance fees (9,065) (636) – (9,487) (636)
(+) Compensation allocated in relation to performance fees 7,817 1,032 1,427 11,109 2,459
FEE RELATED EARNINGS (FRE) 55,192 43,818 46,902 105,391 90,720
           
OPERATING PROFIT 65,999 45,959 49,314 122,857 95,273
(-) Net revenue from management fees (94,778) (87,229) (89,271) (176,621) (176,500)
(-) Net revenue from advisory (6,378) (3,674) (6,659) (21,444) (10,333)
(+) Bonus related to management and advisory 17,082 17,272 17,267 35,608 34,539
(+) Personnel expenses 5,528 6,549 6,233 10,625 12,782
(+) Other general and administrative expenses 4,058 4,503 4,178 7,632 8,681
(+) Corporate center expenses 19,296 18,761 21,350 38,808 40,111
PERFORMANCE RELATED EARNINGS (PRE) 10,807 2,140 2,412 17,466 4,552
           
OPERATING PROFIT 65,999 45,959 49,314 122,857 95,273
(-) Net revenue from unrealized performance fees (9,065) (636) – (9,487) (636)
(+) Compensation allocated in relation to unrealized performance fees 2,980 225 – 3,130 225
(+) Realized gain from GP investment income 345 2,045 4,926 457 6,971
SEGMENT DISTRIBUTABLE EARNINGS 60,259 47,593 54,240 116,958 101,833
           
NET INCOME 53,406 45,306 46,398 100,419 91,704
(-) Net revenue from unrealized performance fees (9,065) (636) – (9,487) (636)
(+) Income tax from unrealized performance fees 124 73 – 173 73
(+) Compensation allocated in relation to unrealized performance fees 2,980 225 – 3,130 225
(-) Unrealized gain from GP investment income 5,551 6,214 12,137 4,502 18,351
(+) Income tax on unrealized gain from GP investment income (838) – (55) (422) (55)
(-) Unrealized gain from financial income 87 288 (1,192) 234 (904)
(+) Income tax on unrealized gain from financial income (32) 65 (65) (80) –
(+) Depreciation and amortization 926 984 976 1,865 1,960
(+) Share Based Plan 1,642 736 2,468 1,642 3,204
(-) Income Taxes on Share Based Plan – – (233) – (233)
(+) Non-recurring expenses including income tax related to realized expense – 4,437 635 – 5,072
ADJUSTED DISTRIBUTABLE EARNINGS 54,781 57,692 61,070 101,976 118,762
           
TOTAL NET REVENUE FROM SERVICES RENDERED 119,780 94,075 99,769 226,640 193,844
(-) Net revenue from realized performance fees (9,559) (2,536) (3,839) (19,088) (6,375)
(-) Net revenue from unrealized performance fees (9,065) (636) – (9,487) (636)
NET REVENUE FROM MANAGEMENT FEES AND ADVISORY 101,156 90,903 95,930 198,065 186,833

  

 

Effective Tax Rate Reconciliation

 

 (R$ thousands, unless mentioned) 2Q'21 2Q'22 2Q'21 YTD 2Q'22 YTD  
Profit (loss) before income taxes, not-including Dividends to partners 68,077 58,109 128,322 115,154  
Combined statutory income taxes rate - % 34% 34% 34% 34%  
Income tax benefit (Expense) at statutory rates (23,146) (19,757) (43,629) (39,152)  
Reconciliation adjustments:          
Expenses not deductible (4) (9) (56) (27)  
Tax benefits 33 30 47 65  
Share based payments (166) (70) (166) (156)  
Effect of presumed profit of subsidiaries¹ 8,739 7,951 15,831 15,665  
Other additions (exclusions), net (127) 144 70 155  
Income taxes expenses (14,671) (11,711) (27,903) (23,450)  
Current (16,704) (12,886) (30,900) (25,557)  
Deferred 2,033 1,175 2,997 2,107  
Effective tax rate 22% 20% 22% 20%  

  

 

Balance Sheet Results

 

Assets 3/31/2022 6/30/2022
Current assets    
Cash and cash equivalents 38,516 57,780
Cash and bank deposits 9,109 10,532
Financial instruments at fair value through profit or loss 29,407 47,248
Financial instruments at fair value through profit or loss 1,324,292 1,290,972
Trade receivables 41,453 45,324
Sub-leases receivable 1,500 1,500
Taxes recoverable 3,214 4,541
Other assets 7,136 10,689
Total current assets 1,416,111 1,410,806
     
Non-current assets    
Financial instruments at fair value through profit or loss 9,235 5,701
Trade receivables 20,042 20,042
Sub-leases receivable 2,256 1,960
Taxes recoverable 61 62
Deferred taxes 6,057 6,226
Other receivables 1,851 1,543
  39,502 35,534
     
Property and equipment 13,591 13,087
Right of use - Leases 63,159 60,632
Intangible assets 1,156 1,600
Total non-current assets 117,408 110,853
     
     
TOTAL 1,533,519 1,521,659

  

 
Liabilities and equity 3/31/2022 6/30/2022
Current liabilities    
Trade payables 366 313
Deferred Revenue 17,504 –
Leases 22,755 23,218
Accounts payable 6,909 6,941
Labor and social security obligations 25,023 44,038
Taxes and contributions payable 14,838 17,990
Total current liabilities 87,395 92,500
     
Non-current liabilities    
Accounts payable – –
Leases 59,581 55,724
Labor and social security obligations – 274
Deferred taxes 5,209 4,203
  64,790 60,201
     
Total liabilities 152,185 152,701
     
Equity    
Share capital 15 15
Additional paid-in capital 1,382,038 1,382,038
Treasury shares                             (73,815) (88,425)
Retained Earnings 59,315 58,227
Other reserves 13,747 17,067
  1,381,300 1,368,922
     
Non-controlling interests in the equity of subsidiaries 34 36
     
Total equity 1,381,334 1,368,958
     
Total liabilities and equity 1,533,519 1,521,659

  

 

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.

 

  

 

i Adjusted Distributable Earnings is calculated as Distributable Earnings less non-recuring expenses.

 

ii 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.

 

iii FRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Last six months values are calculated as the sum of the last four quarters.

 

iv 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.

 

v Adjusted DE per share is calculated considering the number of outstanding shares at the end of the current quarter. Last six months values are calculated as the sum of the last four quarters.

 

vi For the six months ended June 30, 2022, non-recurring expenses are composed by expenses related to professional services to matters related to M&A and our international corporate organization.

 

vii 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.

 

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

 

ix “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 and advisory, less (b) operating expenses, such as segment personnel, G&A, corporate center and bonus related to management and advisory.

 

x 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.

 

xi Adjusted DE Margin is calculated as adjusted 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.

 

xii “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 for our partners.

 

xiii Bonus compensation related to management and advisory includes Dividends to Partners related to management and advisory, distributed by the company to its original partners before the company turned public in 2021.

 

xiv Performance based compensation includes Dividends to Partners related to performance fees, distributed by the company to its original partners before the company turned public in 2021.

 

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

 

xvi “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.

 

xvii “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.

 

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

 

xix “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.

 

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

 

xxi “Share Based Plan” is the composition of two benefit programs: SOP (Stok Option Plan) and RSU (Restricted Stock Units). In Stock Option Plan the company concedes to an employee the option to buy stock in the company with stated fixed price. The Restricted Stock Units concedes company shares to an employee through a vesting plan in which RSUs are assigned a fair market value.

 

xxii Non-recurring expenses for the second quarter of 2022 are composed by expenses related to professional services to matters related to M&A. For the six months ended June 30, 2022, non-recurring expenses include expenses related to professional services to matters related to our international corporate organization.

 

xxiii 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.

 

xxiv 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.

 

xxv NAV is the net asset value of each fund. For listed vehicles, the NAV represents the Market valuation of the fund.

 

xxvi 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.

 

xxvii “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.

 

xxviii “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.

 

xxix Total commitments for VCP III include R$1.3 billion in co-investments. Track record presented for the VCP strategy as of 1Q’22, due to fund’s administrator timeline to disclose the quarterly markup of the fund.

 

xxx Track record for VIR strategy is presented as of 1Q’22, due to fund’s administrator timeline to disclose the quarterly markup of the fund.

 

xxxi Track record for FIP Infra is presented as of 2Q’22.

 

xxxii Track record for VIAS is presented as of 2Q’22.

 

xxxiii Track record for VFDL is presented as of 2Q’22.

 

xxxiv US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 5.1239 as of August 09, 2022, when dividends were approved by our Board of Directors.

 

xxxv Per Share calculations are based on end of period Participating Common Shares.

 

xxxvi Actual dividends per common share are calculated considering the share count as of the applicable record date.

 

xxxvii The remaining capital committed in FIP Infra Transmissão co-investment will not be called by the fund, which is already in divestment period.

 

xxxviii The remaining capital committed in FIP Infra Transmissão will not be called by the fund, which is already in divestment period.