EX-99.2 3 dp198281_ex9902.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

 

2Q23 Earnings Release

 

August 10th, 2023

 

ir.vincipartners.com

 

IR

 

 

 

 

 

Vinci Partners Reports Second Quarter 2023 Results

 

Alessandro Horta, Chief Executive Officer, stated, “Our second quarter 2023 results resonate the growth seen across the platform through the last twelve months. AUM reached R$65 billion, up 9% year-over-year, and our Adjusted Distributable Earningsi totaled R$70 million in the quarter, or R$1.30 per share, an increase of 18% in our cash earnings per share year-over-year. As we enter a new easing cycle for interest rates, momentum is appealing for all our strategies. Vinci is very well positioned to take the most out of the market opportunity and we could not be more excited about the future ahead.”

 

Dividend

 

Vinci Partners has declared a quarterly dividend of US$0.20 per share to record holders of common stock at the close of business on August 24, 2023. This dividend will be paid on September 08, 2023.

 

Second Quarter 2023 Highlights

 

 

 

 

 

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, Special Situations and Credit), Liquid Strategies (Public Equities and Hedge Funds), Investment products and Solutions, Financial Advisory and Retirement Services. As of June 30, 2023, the firm had R$65 billion of assets under management.

 

Webcast and Earnings Conference Call

 

Vinci Partners will host a conference call at 5:00pm EST on Thursday, August 10, 2023, to announce its second quarter 2023 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 2Q23 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'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees 89,271 95,877 92,769 4% 176,500 188,646 7%
Net revenue from advisory fees 6,659 4,468 14,050 111% 10,333 18,518 79%
Total Fee Related Revenues 95,930 100,345 106,819 11% 186,833 207,164 11%
Segment personnel expenses (6,233) (7,164) (7,577) 22% (12,782) (14,741) 15%
Other G&A expenses (4,178) (3,458) (5,036) 21% (8,681) (8,494) (2)%
Corporate center expenses (21,350) (22,606) (22,410) 5% (40,111) (45,016) 12%
Bonus compensation related to management and advisory (17,267) (18,062) (21,049) 22% (34,539) (39,111) 13%
Total Fee Related Expenses (49,028) (51,290) (56,071) 14% (96,113) (107,361) 12%
FEE RELATED EARNINGS (FRE)i 46,902 49,055 50,748 8% 90,720 99,803 10%
FRE Margin (%) 48.9% 48.9% 47.5%   48.6% 48.2%  
FRE per shareii (R$/share) 0.84 0.90 0.94 11% 1.63 1.83 13%
Net revenue from performance fees 3,839 1,963 10,765 180% 7,011 12,728 82%
Performance based compensation (1,427) (733) (5,368) 276% (2,459) (6,101) 148%
PERFORMANCE RELATED EARNINGS (PRE) 2,412 1,230 5,397 124% 4,552 6,627 46%
PRE Margin (%) 62.8% 62.7% 50.1%   64.9% 52.1%  
(-) Unrealized performance fees – – – N/A (636) – N/A
(+) Unrealized performance compensation – – – N/A 225 – N/A
(+) Realized GP investment income 4,926 5,881 4,179 (15)% 6,971 10,060 44%
SEGMENT DISTRIBUTABLE EARNINGS 54,240 56,166 60,324 11% 101,833 116,490 14%
Segment DE Margin (%) 51.8% 51.9% 49.5%   50.9% 50.7%  
(+) Depreciation and amortization 976 1,778 2,028 108% 1,960 3,806 94%
(+) Realized financial income 20,001 20,089 30,183 51% 44,997 50,272 12%
(-) Leasing expenses (2,400) (2,631) (2,517) 5% (4,872) (5,148) 6%
(-) Other financial expensesiii 644 (3,900) (5,540) N/A (492) (9,440) 1,819%
(-) Non-operational expenses (962) – – N/A (6,071) – N/A
(-) Income taxes (excluding related to unrealized fees and income) (12,064) (11,496) (14,109) 17% (23,665) (25,605) 8%
DISTRIBUTABLE EARNINGS (DE)iv 60,435 60,006 70,369 16% 113,690 130,375 15%
DE Margin (%) 48.5% 46.8% 46.3%   46.4% 46.5%  
DE per share (R$/share) 1.09 1.10 1.30 19% 2.04 2.40 17%
(+) Non-operational expensesv (including Income Tax effect) 635 – – N/A 5,072 – N/A
ADJUSTED DISTRIBUTABLE EARNINGS 61,070 60,006 70,369 15% 118,762 130,375 10%
Adjusted DE Margin (%) 49.0% 46.8% 46.3%   48.4% 46.5%  
Adjusted DE per share (R$/share) vi 1.10 1.10 1.30 18% 2.13 2.40 12%

 

Total Fee-Related Revenuesvii of R$106.8 million for the quarter ended June 30, 2023, compared to R$95.9 million for the quarter ended June 30, 2022, an increase of 11% year-over year. This increase was attributed to a combination of organic and inorganic growth across Private Markets strategies over the last twelve months, as well as stronger advisory fees in the quarter. Fee-related revenues were R$207.2 million for the six months ended June 30, 2023, up 11% when compared to the six months ended June 30, 2022. This growth was driven by higher levels of both management and advisory fees.

 

Fee Related Earnings (“FRE”) of R$50.7 million (R$0.94/share) for the quarter ended June 30, 2023, up 8% year-over-year on an absolute basis and 11%-year-over-year on an FRE per share basis when compared the quarter ended June 30, 2022. The platform continues to see FRE expansion on a year-over-year basis driven by the growth across Private Markets and a higher contribution from advisory fees in the quarter. FRE of R$99.8 million (R$1.83/share) for the six months ended June 30, 2023, up 10% when compared to the six months ended June 30, 2022, on an absolute basis and 13% on an FRE per share basis. This increase is mainly attributed to the expansion of the Private Markets segment and revenues booked in the Financial Advisory segment in the second quarter.

 

FRE Marginviii was 47.5% for the quarter ended June 30, 2023, a decrease of 1.4 percentage point when compared to the quarter ended June 30, 2022.

 

 

 

 

Performance Related Earnings (“PRE”)ix of R$5.4 million for the quarter ended June 30, 2023, compared to R$2.4 million for the quarter ended June 30, 2022, up 124% year-over-year, driven by more favorable market conditions during the 2Q’23. PRE was R$6.6 million for the six months ended June 30, 2023, an increase of 46% when compared to the six months ended June 30, 2022.

 

Segment Distributable Earningsx of R$60.3 million for the quarter ended June 30, 2023, compared to R$54.2 million for the quarter ended June 30, 2022, up 11% year-over-year. Segment Distributable Earnings were R$116.5 million for the six months ended June 30, 2023, up 14% year-over-year, when compared to the six months ended June 30, 2022.

 

Adjusted Distributable Earnings (“DE”) of R$70.4 million (R$1.30/share) for the quarter ended June 30, 2023, compared to R$61.1 million for the quarter ended June 30, 2022, up 15% year-over-year on an absolute basis and 18% year-over-year on an Adjusted DE per share basis, boosted by a greater contribution from financial income, advisory and performance fees. Adjusted DE was R$130.4 million (R$2.40/share) for the six months ended June 30, 2023, up 10% when compared to the six months ended June 30, 2022, on an absolute basis and 12% on an Adjusted DE per share basis.

 

Adjusted DE Marginxi was 46.3% for the quarter ended June 30, 2023, a 2.7 percentage point decrease compared to 49.0% for the quarter ended June 30, 2022. For the six months ended June 30, 2023, Adjusted DE Margin reached 46.5%, a decrease of 1.9 percentage points.

 

 

 

 

Segment Highlights

 

Private Market Strategies

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees 47,654 58,432 57,842 21% 94,413 116,274 23%
Net revenue from advisory fees 275 275 275 – 741 549 (26)%
Total Fee Related Revenues 47,929 58,706 58,117 21% 95,154 116,823 23%
Segment personnel expenses (2,923) (3,509) (3,719) 27% (5,659) (7,228) 28%
Other G&A expenses (2,411) (1,438) (2,540) 5% (5,166) (3,978) (23)%
Corporate center expenses (10,827) (13,018) (13,205) 22% (20,381) (26,223) 29%
Bonus compensation related to management and advisory (7,426) (9,111) (8,817) 19% (14,733) (17,928) 22%
Total Fee Related Expenses (23,587) (27,076) (28,281) 20% (45,939) (55,357) 21%
FEE RELATED EARNINGS (FRE) 24,342 31,630 29,836 23% 49,215 61,466 25%
FRE Margin (%) 50.8% 53.9% 51.3%   51.7% 52.6%  
Net revenue from performance fees 1,719 7 2,528 47% 2,359 2,535 7%
Realized performance fees 1,719 7 2,528 47% 1,723 2,535 47%
Unrealized performance fees – – – N/A 636 – N/A
Performance based compensation (609) (3) (1,118) 84% (835) (1,121) 34%
PERFORMANCE RELATED EARNINGS (PRE) 1,110 5 1,410 27% 1,524 1,414 (7)%
PRE Margin (%) 64.6% 64.6% 55.8%   64.6% 55.8%  
(-) Unrealized performance fees – – – N/A (636) – N/A
(+) Unrealized performance compensation – – – N/A 225 – N/A
(+) Realized GP investment income 4,926 5,881 4,179 (15)% 6,971 10,060 44%
SEGMENT DISTRIBUTABLE EARNINGS 30,377 37,516 35,425 17% 57,299 72,940 27%
Segment DE Margin (%) 55.7% 58.1% 56.9%   56.1% 57.5%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 23,998 28,198 29,367 22% 23,998 29,367 22%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 20,722 24,825 26,076 26% 20,722 26,076 26%
AVERAGE MANAGEMENT FEE RATE (%) 0.90% 0.87% 0.85%   0.91% 0.86%  

 

Fee related earnings (FRE) of R$29.8 million for the quarter ended June 30, 2023, up 23% year-over-year, a combination of strong fundraising efforts over the last twelve months and the acquisition of Vinci SPS. In the 1Q’23, management fees received a boost from retroactive fees coming from commitments signed for VCP IV, which did not occur in the 2Q’23. This effect was partially offset by the commitments signed for VICC that started to contribute to management fees in the 2Q’23. FRE was R$61.5 million for the six months ended June 30, 2023, an increase of 25% when compared to the six months ended June 30, 2022.

 

Segment Distributable Earnings of R$35.4 million for the quarter ended June 30, 2023, up 17% when compared to the quarter ended June 30, 2022. Segment DE was R$72.9 million over the six months ended June 30, 2023, up 27% when compared to the six months ended June 30, 2022, boosted by growth in FRE.

 

AUM of R$29.4 billion at the end of the second quarter, an increase of 22% year-over-year, driven by strong fundraising across Private Equity, Credit, Infrastructure and the acquisition of Vinci SPS.

 

 

 

 

Investment Products and Solutions

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees 21,407 19,152 17,426 (19)% 41,304 36,579 (11)%
Net revenue from advisory fees 7 7 8 11% 14 15 9%
Total Fee Related Revenues 21,414 19,160 17,434 (19)% 41,317 36,594 (11)%
Segment personnel expenses (1,078) (1,154) (1,575) 46% (2,905) (2,729) (6)%
Other G&A expenses (450) (862) (580) 29% (1,050) (1,442) 37%
Corporate center expenses (4,864) (4,267) (3,978) (18)% (8,929) (8,245) (8)%
Bonus compensation related to management and advisory (3,557) (3,859) (3,551) (0)% (7,712) (7,410) (4)%
Total Fee Related Expenses (9,948) (10,142) (9,684) (3)% (20,596) (19,827) (4)%
FEE RELATED EARNINGS (FRE) 11,466 9,017 7,750 (32)% 20,721 16,767 (19)%
FRE Margin (%) 53.5% 47.1% 44.4%   50.2% 45.8%  
Net revenue from performance fees 820 790 1,490 82% 1,028 2,279 122%
Realized performance fees 820 790 1,490 82% 1,028 2,279 122%
Unrealized performance fees – – – N/A – – N/A
Performance based compensation (360) (316) (745) 107% (444) (1,061) 139%
PERFORMANCE RELATED EARNINGS (PRE) 460 474 745 62% 584 1,219 109%
PRE Margin (%) 56.1% 60.0% 50.0%   56.8% 53.5%  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS 11,926 9,491 8,495 (29)% 21,305 17,986 (16)%
Segment DE Margin (%) 53.6% 47.6% 44.9%   50.3% 46.3%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 25,659 24,216 24,041 (6)% 25,659 24,041 (6)%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 25,545 24,050 23,940 (6)% 25,545 23,940 (6)%
AVERAGE MANAGEMENT FEE RATE (%) 0.38% 0.35% 0.32%   0.38% 0.33%  

 

Fee related earnings (FRE) of R$7.8 million for the quarter ended June 30, 2023, down 32% year-over-year, a consequence of the shift in fundraising mix within the IP&S segment. Even though AUM remained stable year-over-year, the segment has been fundraising more significantly across the Separate Mandates strategy, which carries lower fees, contributing to the decrease in the average management fee rate. FRE was R$16.8 million over the six months ended June 30, 2023, a decrease of 19% when compared to the six months ended June 30, 2022.

 

Performance related earnings (PRE) of R$0.7 million for the quarter ended June 30, 2023, up 62% year-over-year. PRE over the six months ended June 30, 2023, was R$1.2 million, an increase of 109% when compared to the six months ended June 30, 2022.

 

Segment Distributable Earnings of R$8.5 million for the quarter ended June 30, 2023, down 29% year-over-year. Segment DE was R$18.0 million over the six months ended June 30, 2023, a decrease of 16% when compared to the six months ended June 30, 2022, that posted higher contribution from FRE.

 

AUM of R$24.0 billion, down 6% year-over-year.

 

 

 

 

Liquid Strategies

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees 20,210 18,293 17,492 (13)% 40,783 35,784 (12)%
Net revenue from advisory fees – – – N/A – – N/A
Total Fee Related Revenues 20,210 18,293 17,492 (13)% 40,783 35,784 (12)%
Segment personnel expenses (1,394) (1,608) (1,328) (5)% (2,778) (2,936) 6%
Other G&A expenses (780) (710) (861) 10% (1,456) (1,571) 8%
Corporate center expenses (4,592) (4,075) (3,993) (13)% (8,795) (8,069) (8)%
Bonus compensation related to management and advisory (3,922) (3,471) (3,244) (17)% (7,871) (6,714) (15)%
Total Fee Related Expenses (10,688) (9,864) (9,426) (12)% (20,900) (19,290) (8)%
FEE RELATED EARNINGS (FRE) 9,522 8,429 8,066 (15)% 19,883 16,494 (17)%
FRE Margin (%) 47.1% 46.1% 46.1%   48.8% 46.1%  
Net revenue from performance fees 1,300 1,166 6,747 419% 3,625 7,913 118%
Realized performance fees 1,300 1,166 6,747 419% 3,625 7,913 118%
Unrealized performance fees – – – N/A – – N/A
Performance based compensation (459) (415) (3,505) 664% (1,181) (3,920) 232%
PERFORMANCE RELATED EARNINGS (PRE) 841 752 3,242 285% 2,444 3,994 63%
PRE Margin (%) 64.7% 64.5% 48.0%   67.4% 50.5%  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS 10,363 9,180 11,308 9% 22,327 20,488 (8)%
Segment DE Margin (%) 48.2% 47.2% 46.7%   50.3% 46.9%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 9,845 9,818 11,472 17% 9,845 11,472 17%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 9,708 9,614 11,278 16% 9,708 11,278 16%
AVERAGE MANAGEMENT FEE RATE (%) 0.78% 0.78% 0.70%   0.76% 0.74%  

 

Fee related earnings (FRE) of R$8.1 million for the quarter ended June 30, 2023, down 15% year-over-year. This decrease can be attributed to a shift in the fee mix, as the macroeconomic landscape has been conductive to the expansion of Exclusive Mandates strategy, which carries lower fees. FRE was R$16.5 million over the six months ended June 30, 2023, a decrease of 17% when compared to the six months ended June 30, 2022.

 

Performance related earnings (PRE) of R$3.2 million for the quarter ended June 30, 2023, up 285% year-over-year. PRE was R$4.0 million over the six months ended June 30, 2023, an increase of 63% when compared to the six months ended June 30, 2022.

 

Segment Distributable Earnings of R$11.3 million for the quarter ended June 30, 2023, up 9% year-over-year, following higher contributions from performance fees. Segment DE was R$20.5 million over the six months ended June 30, 2023, a decrease of 8% when compared to the six months ended June 30, 2022, as consequence of reduction in contributions from FRE.

 

AUM was R$11.5 billion at the end of the second quarter, up 17% year-over-year. This growth was driven by favorable mark-to-market effects, which were concentrated in the latter part of the quarter. As a result, revenues are expected to benefit from the increased AUM throughout the next quarter.

 

 

 

 

Financial Advisory

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees – – – N/A – – N/A
Net revenue from advisory fees 6,378 4,186 13,768 116% 9,578 17,954 87%
Total Fee Related Revenues 6,378 4,186 13,768 116% 9,578 17,954 87%
Segment personnel expenses (530) (471) (525) (1)% (1,035) (996) (4)%
Other G&A expenses (165) (74) (241) 46% (374) (315) (16)%
Corporate center expenses (1,067) (1,130) (1,120) 5% (2,006) (2,251) 12%
Bonus compensation related to management and advisory (1,350) (1,023) (4,735) 251% (2,208) (5,758) 161%
Total Fee Related Expenses (3,112) (2,698) (6,622) 113% (5,623) (9,320) 66%
FEE RELATED EARNINGS (FRE) 3,265 1,487 7,146 119% 3,956 8,634 118%
FRE Margin (%) 51.2% 35.5% 51.9%   41.3% 48.1%  
SEGMENT DISTRIBUTABLE EARNINGS 3,265 1,487 7,146 119% 3,956 8,634 118%
Segment DE Margin (%) 51.2% 35.5% 51.9%   41.3% 48.1%  

 

Fee related earnings (FRE) of R$7.1 million for the quarter ended June 30, 2023, up 119% year-over-year. FRE was R$8.6 million over the six months ended June 30, 2023, an increase of 118% when compared to the six months ended June 30, 2022.

 

Segment Distributable Earnings over the six months ended June 30, 2023, were R$8.6 million, an increase of 118% year-over-year when compared to the six months ended June 30, 2022.

 

 

 

 

Retirement Services

 

(R$ thousands, unless mentioned)/ 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
Net revenue from management fees – 0 9 N/A – 9 N/A
Net revenue from advisory fees – – – N/A – – N/A
Total Fee Related Revenues – 0 9 N/A – 9 N/A
Segment personnel expenses (308) (422) (429) 39% (405) (851) 110%
Other G&A expenses (372) (374) (814) 119% (635) (1,188) 87%
Corporate center expenses – (115) (112) N/A – (227) N/A
Bonus compensation related to management and advisory (1,012) (598) (703) (31)% (2,014) (1,300) (35)%
Total Fee Related Expenses (1,692) (1,509) (2,058) 22% (3,054) (3,566) 17%
FEE RELATED EARNINGS (FRE) (1,692) (1,509) (2,049) 21% (3,054) (3,558) 16%
FRE Margin (%) N/A N/A N/A   N/A N/A  
Net revenue from performance fees – – – N/A – – N/A
    Realized performance fees – – – N/A – – N/A
    Unrealized performance fees – – – N/A – – N/A
Performance based compensation – – – N/A – – N/A
PERFORMANCE RELATED EARNINGS (PRE) – – – N/A – – N/A
PRE Margin (%) N/A N/A N/A   N/A N/A  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS (1,692) (1,509) (2,049) 21% (3,054) (3,558) 16%
Segment DE Margin (%) N/A N/A N/A   N/A N/A  
               
ASSETS UNDER MANAGEMENT (AUM R$millions) – – 15 N/A – 15 N/A

 

Fee Related Earnings (FRE) of negative R$2.0 million for the quarter ended June 30, 2023. FRE was negative R$3.6 million to the six months ended June 30, 2023.

 

VRS started to contribute to AUM numbers and management fee revenues this quarter.

 

 

 

 

Income Statement

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 ∆ YoY (%) 2Q'22 YTD 2Q'23 YTD ∆ YoY (%)
REVENUES              
Net revenue from management fees 89,271 95,877 92,769 4% 176,500 188,646 7%
Net revenue from performance fees 3,839 1,963 10,765 180% 7,011 12,728 82%
    Realized performance fees 3,839 1,963 10,765 180% 6,375 12,728 100%
    Unrealized performance fees – – – N/A 636 – N/A
Net revenue from advisory 6,659 4,468 14,050 111% 10,333 18,518 79%
Total net revenues from services rendered 99,769 102,308 117,584 18% 193,844 219,892 13%
EXPENSES              
Bonus related to management and advisory (17,267) (18,062) (21,049) 22% (34,539) (39,111) 13%
Performance based compensation (1,427) (733) (5,368) 276% (2,459) (6,101) 148%
    Realized (1,427) (733) (5,368) 276% (2,234) (6,101) 173%
    Unrealized – – – N/A (225) – N/A
Total compensation and benefitsxii (18,694) (18,795) (26,417) 41% (36,997) (45,212) 22%
Segment personnel expenses (6,233) (7,164) (7,577) 22% (12,782) (14,741) 15%
Other general and administrative expenses (4,178) (3,458) (5,036) 21% (8,681) (8,494) (2)%
Corporate center expenses (21,350) (22,606) (22,410) 5% (40,111) (45,016) 12%
Total expenses (50,455) (52,023) (61,439) 22% (98,571) (113,462) 15%
Operating profit 49,314 50,285 56,145 14% 95,273 106,430 12%
OTHER ITEMS              
GP Investment income (7,211) (20,200) 34,651 N/A (11,380) 14,451 N/A
    Realized gain from GP investment income 4,926 5,881 4,179 (15)% 6,971 10,060 44%
    Unrealized gain from GP investment income (12,137) (26,081) 30,472 N/A (18,351) 4,391 N/A
Financial income 21,193 20,089 30,183 42% 45,901 50,272 10%
    Realized gain from financial income 20,001 20,089 30,183 51% 44,997 50,272 12%
    Unrealized gain from financial income 1,192 – – N/A 904 – N/A
Leasing expenses (2,400) (2,631) (2,517) 5% (4,872) (5,148) 6%
Other itemsxiii 644 151 (11,573) N/A (492) (11,422) 2,222%
Share Based Plan (2,468) (2,107) (3,493) 42% (3,204) (5,600) 75%
Non-operational expenses (962) – – N/A (6,071) – N/A
Total Other Items 8,796 (4,698) 47,251 437% 19,882 42,553 114%
Profit before income taxes 58,109 45,587 103,396 78% 115,154 148,983 29%
(-) Income taxes (11,711) (12,881) (11,844) 1% (23,450) (24,725) 5%
NET INCOME 46,398 32,706 91,552 97% 91,704 124,258 35%
(+) Non-operational expenses including income tax related to realized expense 635 – – N/A 5,072 – N/A
(-) Contingent consideration adjustment related to acquisitionsxiv – (2,674) 4,804   – 2,130  
ADJUSTED NET INCOME 47,033 30,032 96,356 105% 96,775 126,388 31%

 

Total net revenues from services rendered of R$117.6 million for the quarter ended June 30, 2023, up 18% year-over-year, driven by a combination of organic and inorganic expansion of Private Markets segment, higher performance and advisory fees. Net revenues for the six months ended June 30, 2023, were R$219.9 million, representing a 13% increase when compared to the six months ended June 30, 2022.

 

·Management fee revenues of R$92.8 million for the quarter ended June 30, 2023, up 4% year-over-year, a result from the fundraising cycle across Private Markets funds and the acquisition of Vinci SPS.

 

·Performance fee revenues of R$10.8 million for the quarter ended June 30, 2023, compared to R$3.8 million for the quarter ended June 30, 2022, an increase of 180% year-over-year. The local market experienced favorable conditions during the 2Q’23, driving the performance of our funds with exposure to liquid assets. Performance fee revenues of R$12.7 for the six months ended June 30, 2023, an increase of 100% when compared to the six

 

 

 

 

months ended June 30, 2022.

 

·Advisory fee revenues of R$14.1 million for the quarter ended June 30, 2023, compared to R$6.7 million for the quarter ended June 30, 2022, an increase of 111% year-over-year, a result of revenues booked in the Financial Advisory segment in the 2Q’23. Advisory revenues for the six months ended June 30, 2023, were R$18.5 million, up 79% when compared to the six months ended June 30, 2022.

 

Total expenses for the quarter ended June 30, 2023, of R$61.4 million, compared to R$50.5 million for the quarter ended June 30, 2022, an increase of 22% year-over-year. Disregarding bonus compensation, total expenses totaled R$35.0 million, up 10% year-over-year. This increase was primarily driven by the incorporation of Vinci SPS, as our internal efforts to control costs effectively mitigated the inflationary pressure on fixed expenses. Total expenses for the six months ended June 30, 2023, were R$113.5 million, up 15% when compared to the six months ended June 30, 2022.

 

·Bonus related to management and advisory fees of R$21.0 million for the quarter ended June 30, 2023, compared to R$17.3 million for the quarter ended June 30, 2022, an increase of 22% year-over-year. Bonus related to management and advisory was R$39.1 million for the six months ended June 30, 2023, up 13% year-over-year, when compared to the six months ended June 30, 2022.

 

·Performance based compensation of R$5.4 million for the quarter ended June 30, 2023, compared to R$1.4 million for the quarter ended June 30, 2022, an increase of 276% year-over-year. Performance based compensation for the six months ended June 30, 2023, was R$6.1 million, an increase of 148% when compared to the six months ended June 30, 2022.

 

·Segment personnel expensesxv of R$7.6 million for the quarter ended June 30, 2023, compared to R$6.2 million for the quarter ended June 30, 2022, an increase of 22% year-over-year, primarily driven by the incorporation of Vinci SPS. Segment personnel expenses for the six months ended June 30, 2023, was R$14.7 million, up 15% when compared to the six months ended June 30, 2022.

 

·Corporate center expensesxvi of R$22.4 million for the quarter ended June 30, 2023, compared to R$21.4 million for the quarter ended June 30, 2022, an increase of 5% year-over-year. Corporate center expenses for the six months ended June 30, 2023, were R$45.0 million, up 12% year-over-year, when compared to the six months ended June 30, 2022.

 

·Other general and administrative expensesxvii of R$5.0 million for the quarter ended June 30, 2023, compared to R$4.2 million for the quarter ended June 30, 2022, an increase of 21% year-over-year. Other G&A expenses for the six months ended June 30, 2023, were R$8.5 million, down 2% when compared to the six months ended June 30, 2022.

 

Operating Profit of R$56.1 million for the quarter ended June 30, 2023, compared to R$49.3 million for the quarter ended June 30, 2022, an increase of 14% year-over-year. Operating profit for the six months ended June 30, 2023, was R$106.4 million, up 12% when compared to the six months ended June 30, 2022.

 

GP Investment incomexviii, a result of the company’s GP investments in its proprietary private market funds, was R$34.7 million for the quarter ended June 30, 2023, compared to negative R$7.2 million for the quarter ended June 30, 2022,

 

 

 

 

following the strong mark-to-market appreciation in local REITs during the current quarter. GP Investment income for the six months ended June 30, 2023, was R$14.5 million compared to negative R$11.4 million for the six months ended June 30, 2022.

 

Financial Incomexix of R$30.2 million for the quarter ended June 30, 2023, up 42% when compared to R$21.2 million for the quarter ended June 30, 2022, a result of financial gains from the company’s cash position, primarily allocated to funds exposed to federal fixed-income bonds. Financial income for the six months ended June 30, 2023, was R$50.3 million, up 10% when compared to the six months ended June 30, 2022.

 

Leasing Expensesxx of R$2.5 million for the quarter ended June 30, 2023, compared to R$2.4 million for the quarter ended June 30, 2022, up 5% year-over-year.

 

Other Items of negative R$11.6 million for the quarter ended June 30, 2023. Other items comprise the income/(loss) generated by contingent consideration adjustment and financial expenses related to acquisitions.

 

Share Based Plan expensesxxi of R$3.5 million for the quarter ended June 30, 2023. In the six months ended June 30, 2023, share based plan expenses accounted for R$5.6 million.

 

Profit before income taxes of R$103.4 million for the quarter ended June 30, 2023, compared to R$58.1 million for the quarter ended June 30, 2022, an increase of 78% year-over-year. Profit before income taxes for the six months ended June 30, 2023, was R$149.0 million, an increase of 29% when compared to the six months ended June 30, 2022.

 

Income Taxesxxii of R$11.8 million for the quarter ended June 30, 2023, which represented an effective tax rate for the quarter of 11%, compared to R$11.7 million for the quarter ended June 30, 2022, which represented an effective tax rate of 20%, representing a decrease of 8.7 percentage points year-over-year, a consequence of our strong financial result this quarter, backed by the mark-to-market appreciation effect across our balance sheet’s position in Listed REITs and financial gains from our liquid’s portfolio.

 

Contingent consideration adjustment related to acquisitions, after tax, of R$4.8 million for the quarter ended June 30, 2023. Contingent consideration adjustment related to Vinci SPS’ acquisition reflects the change in earn out’s fair value to be paid in 2027.

 

Adjusted Net Income of R$96.4 million for the quarter ended June 30, 2023, compared to R$47.0 million for the quarter ended June 30, 2022, an increase of 105% year-over-year. Adjusted Net Income was R$126.4 million for the six months ended June 30, 2023, up 31% when compared to the six months ended June 30, 2022.

 

 

 

 

Supplement Details

 

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

 

For the Three Months Ended June 30, 2023

 

Private

Equity

Public

Equities

 IP&S Infrastructure Real Estate Credit

Hedge

Funds

 VRS Vinci SPS Total
Beginning balance 13,587 7,095 24,216 2,361 5,137 4,964 2,723 – 2,149 62,232
(+/-) Capital Subscription / (capital return) (27) – 28 (21) (108) (33) – – (98) (260)
(+) Capital Subscription 34 – 28 – – – – – – 62
(-) Capital Return (61) – – (21) (108) (33) – – (98) (321)
(+) Acquisitions – – – – – – – – – –
(+/-) Net Inflow / (outflow) – 204 (884) – (4) 203 (36) 15 – (502)
(+/-) Appreciation / (depreciation) (50) 1,372 682 91 984 175 113 0 58 3,425
Ending Balance 13,511 8,672 24,041 2,431 6,008 5,308 2,800 15 2,108 64,895

 

For the Twelve months Ended June 30, 2023

 

Private

Equity

Public

Equities

 IP&S Infrastructure

Real

Estate

 Credit

Hedge

Funds

 VRS Vinci SPS Total
Beginning balance 13,013 7,064 25,659 1,460 5,208 4,318 2,781 – – 59,502
(+/-) Capital Subscription / (capital return) 587 – 55 867 (140) 453 – – (184) 1,639
(+) Capital Subscription 777 – 55 944 284 699 – – 47 2,806
(-) Capital Return (190) – (0) (77) (423) (246) – – (231) (1,167)
(+) Acquisitions – – – – – – – – 2,055 2,055
(+/-) Net Inflow / (outflow) – 191 (3,081) – (154) 263 (409) 15 – (3,175)
(+/-) Appreciation / (depreciation) (89) 1,417 1,408 105 1,095 275 428 0 237 4,875
Ending Balance 13,511 8,672 24,041 2,431 6,008 5,308 2,800 15 2,108 64,895

 

 

 

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

 

For the Three Months Ended June 30, 2023

 

Private

Equity

Public

Equities

 IP&S Infrastructure Real Estate Credit

Hedge

Funds

 VRS Vinci SPS Total
Beginning balance 10,262 7,040 24,048 2,313 5,137 4,964 2,574 – 2,149 58,487
(+/-) Capital Subscription / (capital return) (27) – 28 (21) (108) (33) – – (98) (260)
(+) Capital Subscription 34 – 28 – – – – – – 62
(-) Capital Return (61) – – (21) (108) (33) – – (98) (321)
(+) Acquisitions – – – – – – –   – –
(+/-) Net Inflow / (outflow) – 204 (826) – (4) 203 (26) 15 – (434)
(+/-) Appreciation / (depreciation) 33 1,379 690 91 984 175 108 0 58 3,517
Ending Balance 10,268 8,623 23,940 2,383 6,008 5,308 2,655 15 2,108 61,310

 

For the Twelve months Ended June 30, 2023

 

Private

Equity

Public

Equities

 IP&S Infrastructure

Real

Estate

 Credit

Hedge

Funds

 VRS Vinci SPS Total
Beginning balance 9,797 7,002 25,545 1,399 5,208 4,318 2,706 – – 55,975
(+/-) Capital Subscription / (capital return) 587 – 55 873 (140) 453 – – (184) 1,645
(+) Capital Subscription 765 – 55 944 284 678 – – 47 2,772
(-) Capital Return (178) – (0) (71) (423) (225) – – (231) (1,128)
(+) Acquisitions – – – – – – – – 2,055 2,055
(+/-) Net Inflow / (outflow) – 199 (3,025) – (154) 263 (463) 15 – (3,167)
(+/-) Appreciation / (depreciation) (116) 1,423 1,365 111 1,095 275 413 0 237 4,801
Ending Balance 10,268 8,623 23,940 2,383 6,008 5,308 2,655 15 2,108 61,310

 

Accrued Performance Fees – Private Market Funds

 

(R$ mm) 1Q’23 Unrealized Performance Fees Realized Distributions 2Q’23
Private Equity 137.5 26.2 - 163.7
Infrastructure 17.6 (0.7) - 16.9
Real Estate 0.1 (0.1) - -
Total 155.2 25.4 - 180.6

 

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$15.5 million as of the end of the second quarter of 2023 booked as unrealized performance fees in the company´s balance sheet.

 

Accrued performance fees shown for Private Equity funds of R$163.7 million and for others Infrastructure funds of R$1.4 million as of the end of the second quarter of 2023 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

NAVxxiv

(R$ millions)

 

 2Q23 YTD 12 M 24 M Market Comparison Index Rate
Vinci Multiestratégia FIM Hedge Funds 304.0 3.9% 7.3% 13.9% 22.8% CDIxxv CDI
Atlas Strategyxxvi Hedge Funds 384.8 3.9% 5.1% 8.5% 8.9% CDI CDI
Vinci Total Return Hedge Funds 241.7 19.1% 16.0% 25.4% 12.3% IPCAxxvii+ Yield IMA-Bxxviii IPCA + Yield IMA-B
Mosaico Strategyxxix Public Equities 896.1 19.3% 11.4% 16.6% (12.1)% IBOVxxx IBOV
Vinci Gas Dividendos FIA Public Equities 506.7 15.0% 7.3% 18.0% (0.3)% IBOV IBOV
Vinci Valorem FIM IP&S 1,734.1 3.6% 7.9% 10.4% 21.2% IMA-B 5 IMA-B 5
Equilibrio Strategyxxxi IP&S 2,787.6 3.7% 7.4% 9.9% 19.0% IPCA   -
Vinci Retorno Real FIM IP&S 219.4 5.1% 10.5% 12.7% 26.2% IMA-B IMA-B
Vinci Crédito Imobiliário I Credit 110.9 2.1% 5.8% 10.1% 18.7% IPCA   IPCA + 7.785%
Vinci Crédito Imobiliário II Credit 841.6 6.6% 11.0% 13.9% 23.0% IPCA   IPCA + 6%
Vinci Crédito Estruturado Multiestrategia Plus FIC FIM Credit 124.3 3.6% 5.3% 13.0% 25.4% CDI CDI
Vinci Energia Sustentável Credit 605.5 6.1% 8.4% 8.9% 17.6% IPCA   IPCA + 6%
Vinci Crédito Multiestratégia Credit 344.4 5.8% 4.5% 8.1% 22.1% CDI IPCA + 5%
VISC11 Real Estate (listed REIT) 2,209.5 20.1% 18.0% 29.3% 31.7% IFIXxxxii IPCA + 6%
VILG11 Real Estate (listed REIT) 1,654.2 28.0% 15.8% 26.4% 19.7% IFIX IPCA + 6%
VINO11 Real Estate (listed REIT) 772.9 21.8% 3.1% 16.1% (4.3)% IFIX IPCA + 6%
VIFI11 Real Estate / Credit (listed REIT) 64.8 23.6% 22.3% 29.6% 17.5% IFIX IFIX
VIUR11 Real Estate (listed REIT) 223.9 42.1% 12.5% 31.5% 14.9% IFIX IPCA + 6%
VCRI11 Real Estate / Credit (listed REIT) 153.1 9.6% 4.1% 8.6% 5.1% IFIX IPCA + Xxxxiii%
VICA11 Real Estate / Credit (REIT) 374.5 0.0% (0.3)% 1.3% 1.3% IFIX CDI + 1%
VINCI FOF IMOBILIARIO FIM CP Real Estate (REIT) 59.3 12.7% 12.6% 14.9% 26.8% IFIX IFIX
VIGT11 Infrastructure (listed) 656.0 16.4% 15.9% 25.3% 20.2% - -

 

Benchmark 2Q23 YTD 12 M 24 M
IBOV 15.9% 7.6% 19.8% (6.9)%
CDI 3.1% 6.5% 13.5% 23.4%
IMA-B 5 2.5% 7.0% 10.2% 21.3%
IPCA + Yield IMA-B 2.5% 6.2% 10.1% 29.5%
IPCA 0.8% 2.9% 3.2% 15.4%
IFIX 14.3% 10.1% 12.9% 14.5%

 

 

 

Investment Records – Closed End Private Markets fundsxxxiv

 

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 MOICxxxv 

(BRL)

Gross

MOIC

  (USD)

Gross

IRRxxxvi

 (BRL)

Gross IRR

 (USD)

Fund 1 Private Equity 2004 1,415 1,206 5,065 134 5,199 4.3x 4.0x 71.5% 77.2%
VCP II Private Equity 2011 2,200 1,880 2,044 2,146 4,190 2.2x 1.1x 11.3% 1.6%
VCP III Private Equity 2018 4,000 2,182 34 3,803 3,837 1.7x 1.6x 35.4% 28.0%
VCP IV Private Equity 2022 1,263 – – – – – – – –
VCP Strategyxxxvii Private Equity   8,878 5,268 7,143 6,083 13,226 2.5x 2.2x 64.7% 70.2%
NE Empreendedor Private Equity 2003 36 13 26 – 26 2.1x 2.6x 22.0% 30.5%
Nordeste III Private Equity 2017 240 135 93 144 237 1.8x 1.5x 20.3% 12.7%
VIR IV Private Equity 2020 1,000 314 151 273 424 1.4x 1.4x 30.2% 36.2%
VIR Strategyxxxviii Private Equity   1,276 461 270 417 687 1.5x 1.5x 22.7% 28.4%
SPS I Vinci SPS 2018 128 178 173 129 302 1.7x 1.4x 25.7% 19.6%
SPS II Vinci SPS 2020 671 1,003 599 838 1,436 1.4x 1.4x 27.6% 32.3%
SPS III Vinci SPS 2021 1,070 447 83 468 550 1.2x 1.4x 31.1% 44.4%
SPS Strategyxxxix Vinci SPS   1,869 1,628 855 1,434 2,289 1.4x 1.4x 27.6% 29.9%
FIP Transmissãoxl Infrastructure 2017 211 104 255 119 374 3.6x 2.7x 60.7% 45.1%
VIASxli Infrastructure 2021 386 350 – 409 409 1.2x 1.2x 27.9% 29.1%
VICCxlii Infrastructure 2023 944 – – – – – – – –
VFDLxliii Real Estate 2021 422 146 4 169 173 1.2x 1.3x 18.7% 27.5%
Vinci Credit Infraxliv Credit 2022 1,400 153 – 167 167 1.1x 1.1x NM NM

 

Shareholder Dividends

 

($ in thousands) 1H21 3Q'21 4Q'21 1Q’22  2Q’22 3Q'22 4Q’22 1Q’23 2Q'23
Distributable Earnings (R$) 101,976 61,743 68,515 53,255 60,435 72,842 55,792 60,006 70,369
Distributable Earnings (US$)xlv 19,397 11,377 13,637 10,615 11,795 14,281 10,618 11,994 14,290
DE per Common Share (US$)xlvi 0.34  0.20 0.24 0.19 0.21 0.26 0.19 0.22 0.26
Actual Dividend per Common Sharexlvii  0.30  0.16 0.20 0.17 0.17 0.20 0.17 0.16 0.20
Record Date Sep 01, 2021 Dec 01, 2021 Mar 10, 2022     May 24, 2022 Aug 25, 2022 Nov 23, 2022 Mar 01, 2023 May 25, 2023 Aug 24, 2023
Payable Date  Sep 16, 2021 Dec 16, 2021 Mar 24, 2022 Jun 08, 2022  Sep 09,2022 Dec 08, 2022 Mar 15, 2023 Jun 09, 2023 Sep 08, 2023

 

Vinci Partners generated R$1.30 or US$0.26 of Distributable Earnings per common share for the second quarter of 2023. The company declared a quarterly dividend of US$0.20 per common share to record holders as of August 24, 2023; payable on September 08, 2023.

 

 

 

 

Share Summary

 

VINP Shares 1Q'21 2Q'21 3Q'21 4Q'21 1Q’22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23
Class B 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239 14,466,239
Class Axlviii 42,447,349 42,270,694 42,097,179 41,689,338 41,363,077 41,112,717 40,892,619 40,614,497 40,247,461 39,730,720
Common Shares Outstanding 56,913,588 56,736,933 56,563,418 56,155,577 55,829,316 55,578,956 55,358,858 55,080,736 54,713,700 54,196,959

 

Common Shares Outstanding as of quarter end of 54,196,959 shares.

 

·Repurchased 558,349 common shares in the quarter, with an average share price of US$8.7.

 

·Repurchased 2,758,237 common shares since the announcement of the first share repurchase plan, with an average share price of US$10.9.

 

·The second share repurchase plan was replaced by a new share repurchase plan initiated on February 14th, 2023, limited to R$60 million.

 

·Available authorization remaining was R$47.8 million on June 30, 2023.

 

 

 

 

GP Commitment in Vinci Partners funds

 

(R$ millions,

unless mentioned)

Fund

 Segment

2Q23

Commitments

Total

Capital Committed

2Q23 Capital Called Total Capital Called

Capital Returned/

Dividends Paid (2Q23)

Accumulated Capital Returned/

Dividends

Paid

Fair value

of

investments

Nordeste III Private Equity – 5.0 0.0 3.1 – 1.6 2.6
VCP III Private Equity – 3.1 0.2 2.8 – – 3.8
VIR IV Private Equity – 11.1 0.8 4.7 0.7 1.7 3.6
VCP IV Private Equity – 350.0 – – – – –
FIP Infra Transmissão (co- investment)l Infrastructure – 29.5 – 8.9 – 20.9 10.2
FIP Infra Transmissãoli Infrastructure – 10.5 – 3.4 – 6.6 2.9
VIAS Infrastructure – 50.0 – 27.8 – – 33.9
Vinci Transporte e Logística II Infrastructure – 15.0 – – – – –
Vinci Transporte e Logística I Infrastructure – 11.4 5.0 11.3 – – 10.6
VICC Infrastructure – 100.0 – – – – –
VFDL Real Estate – 70.0 10.6 33.3 – – 36.6
VIUR Real Estate – 67.3 – 67.3 1.5 11.9 56.4
VINO Real Estate – 50.0 – 50.0 0.8 5.1 42.6
Vinci FOF Imobiliário Real Estate – 16.9 – 16.9 – 0.5 20.7
VCS (VCRI) Real Estate / Credit – 80.0 – 80.0 2.8 14.3 72.7
Vinci Crédito Agro Fiagro-Imobiliário Real Estate / Credit – 23.0 – 23.0 0.8 2.6 22.8
Vinci Crédito Infra Institucional Credit – 100.0 – 7.7 – – 8.4
VSP FIM IP&S – 50.0 1.2 8.8 – – 10.1
Vinci PIPE FIA Public Equities – 25.0 – 25.0 – – 24.3
Total   – 1,067.8 17.9 374.1 6.6 65.2 362.2

 

 

 

 

Reconciliation and Disclosures

 

Non-GAAP Reconciliation

 

(R$ thousands, unless mentioned) 2Q'22 1Q'23 2Q'23 2Q'22 YTD 2Q'23 YTD
           
OPERATING PROFIT 49,314 50,285 56,145 95,273 106,430
(-) Net revenue from realized performance fees (3,839) (1,963) (10,765) (6,375) (12,728)
(-) Net revenue from unrealized performance fees – – – (636) –
(+) Compensation allocated in relation to performance fees 1,427 733 5,368 2,459 6,101
FEE RELATED EARNINGS (FRE) 46,902 49,055 50,748 90,720 99,803
           
OPERATING PROFIT 49,314 50,285 56,145 95,273 106,430
(-) Net revenue from management fees (89,271) (95,877) (92,769) (176,500) (188,646)
(-) Net revenue from advisory (6,659) (4,468) (14,050) (10,333) (18,518)
(+) Bonus related to management and advisory 17,267 18,062 21,049 34,539 39,111
(+) Personnel expenses 6,233 7,164 7,577 12,782 14,741
(+) Other general and administrative expenses 4,178 3,458 5,036 8,681 8,494
(+) Corporate center expenses 21,350 22,606 22,410 40,111 45,016
PERFORMANCE RELATED EARNINGS (PRE) 2,412 1,230 5,397 4,552 6,627
           
OPERATING PROFIT 49,314 50,285 56,145 95,273 106,430
(-) Net revenue from unrealized performance fees – – – (636) –
(+) Compensation allocated in relation to unrealized performance fees – – – 225 –
(+) Realized gain from GP investment income 4,926 5,881 4,179 6,971 10,060
SEGMENT DISTRIBUTABLE EARNINGS 54,240 56,166 60,324 101,833 116,490
           
NET INCOME 46,398 32,706 91,552 91,704 124,258
(-) Net revenue from unrealized performance fees – – – (636) –
(+) Income tax from unrealized performance fees – – – 73 –
(+) Compensation allocated in relation to unrealized performance fees – – – 225 –
(-) Unrealized gain from GP investment income 12,137 26,081 (30,472) 18,351 (4,391)
(+) Income tax on unrealized gain from GP investment income (55) – 10 (55) 10
(-) Unrealized gain from financial income (1,192) – (0) (904) (0)
(+) Income tax on unrealized gain from financial income (65) – – – –
(-) Contingent consideration (earn-out) gain (loss), after-tax – (2,674) 4,804 – 2,130
(+) Depreciation and amortization³ 976 1,778 2,028 1,960 3,806
(+) Share Based Plan 2,468 2,107 2,248 3,204 4,355
(-) Income Taxes on Share Based Plan (233) 8 199 (233) 207
(+) Non-operational expenses including income tax related to realized expense 635 – – 5,072 –
ADJUSTED DISTRIBUTABLE EARNINGS 61,070 60,006 70,369 118,762 130,375
           
TOTAL NET REVENUE FROM SERVICES RENDERED 99,769 102,308 117,584 193,844 219,892
(-) Net revenue from realized performance fees (3,839) (1,963) (10,765) (6,375) (12,728)
(-) Net revenue from unrealized performance fees – – – (636) –
NET REVENUE FROM MANAGEMENT FEES AND ADVISORY 95,930 100,345 106,819 186,833 207,164

 

 

 

Effective Tax Rate Reconciliation

 

 (R$ thousands, unless mentioned) 2Q'22 2Q'23 2Q'22 YTD 2Q'23 YTD  
Profit (loss) before income taxes 58,109 103,396 115,154 148,983  
Combined statutory income taxes rate - % 34% 34% 34% 34%  
Income tax benefit (Expense) at statutory rates (19,757) (35,154) (39,152) (50,654)  
Reconciliation adjustments:          
Expenses not deductible (9) (2) (27) (64)  
Tax benefits 30 7 65 42  
Share based payments (70) (224) (156) (253)  
Effect of presumed profit of subsidiaries¹ and offshore subsidiarieslii 7,951 23,410 15,665 26,072  
Other additions (exclusions), net 144 119 155 132  
Income taxes expenses (11,711) (11,844) (23,450) (24,725)  
Current (12,886) (14,605) (25,557) (27,122)  
Deferred 1,175 2,761 2,107 2,397  
Effective tax rate 20% 11% 20% 17%  

 

 

 

Balance Sheet Results

 

Assets 3/31/2023 6/30/2023
Current assets    
Cash and cash equivalents 101,202 153,992
Cash and bank deposits 22,928 31,403
Financial instruments at fair value through profit or loss 78,274 122,589
Financial instruments at fair value through profit or loss 1,177,357 1,182,812
Trade receivables 60,352 66,312
Sub-leases receivable 1,587 3,909
Taxes recoverable 1,766 1,921
Other assets 20,150 14,505
Total current assets 1,362,414 1,423,451
     
Non-current assets    
Financial instruments at fair value through profit or loss 6,181 6,423
Trade receivables 17,116 16,904
Sub-leases receivable 1,080 3,149
Taxes recoverable 3,497 294
Deferred taxes 10,257 10,721
Other receivables 947 928
  39,078 38,419
     
Property and equipment 11,728 12,980
Right of use - Leases 67,165 60,054
Intangible assets 191,777 193,956
Total non-current assets 309,748 305,409
     
TOTAL 1,672,162 1,728,860

 

 

 

Liabilities and equity 3/31/2023 6/30/2023
Current liabilities    
Trade payables 521 438
Deferred Revenue 17,219 –
Leases 24,381 24,381
Accounts payable 6,201 7,338
Labor and social security obligations 25,228 52,689
Loans and Obligations 10,323 22,207
Taxes and contributions payable 16,110 19,292
Total current liabilities 99,983 126,345
     
Non-current liabilities    
Accounts payable – –
Leases 58,144 54,085
Labor and social security obligations 3,120 2,906
Loans and Obligations 158,908 158,206
Deferred taxes 9,720 7,423
Retirement plans liabilities   13,401
  229,892 236,021
     
Total liabilities 329,875 362,366
     
Equity    
Share capital 15 15
Additional paid-in capital 1,382,038 1,379,255
Treasury shares (132,966) (154,247)
Retained Earnings 65,032 113,122
Other reserves 25,186 25,556
  1,339,305 1,363,701
     
Non-controlling interests in the equity of subsidiaries 2,982 2,793
     
Total equity 1,342,287 1,366,494
     
Total liabilities and equity 1,672,162 1,728,860

 

 

 

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-operational 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. Year-to-date values are calculated as the sum of the last two quarters.

 

iv Other financial expenses include the interest related to Vinci SPS’ acquisition.

 

v 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.

 

vi Non-operational expenses are composed by expenses related to professional services to matters related to acquisitions and our international corporate organization.

 

vii Adjusted DE per share is calculated considering the number of outstanding shares at the end of the current quarter. Year-to-date values are calculated as the sum of the last two quarters.

 

viii 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.

 

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

 

x “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.

 

xi Segment Distributable Earnings is Vinci Partners’ segment profitability measure used to make operating decisions and assess performance across the company’s five segments (Private Markets, Liquid Strategies, Investment Products and Solutions, Retirement Services 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.

 

xii 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.

 

xiii “Total compensation and benefits” are the result of the profit sharing paid to our employees as (a) bonus compensation related to management advisory and (b) performance-based compensation.

 

 

 

 

xiv “Other Items” comprise the income/(loss) generated by contingent consideration adjustment and financial expenses related to acquisitions.

 

xv “Contingent consideration adjustment related to acquisitions”, after-tax, reflects the change in the earn out’s fair value to be paid in 2027. On June 30, 2023, Vinci revaluated the fair value of the obligation based on the economic conditions at the date, resulting in an increase of the contingent consideration fair value. The variation was recognized as a loss in the financial result.

 

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

 

xvii “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.

 

xviii “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.

 

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

 

xx “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.

 

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

 

xxii “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.

 

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 part of our subsidiaries is taxed based on deemed profit.

 

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

 

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

 

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

 

xxix 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.

 

xxx Mosaico strategy comprises Vinci Mosaico FIA, Vinci Mosaico Institucional FIA and Vinci Mosaico Advisory FIA.

 

xxxi IBOV is the Brazilian stock market most relevant index.

 

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

 

xxxiii IFIX is an index composed by listed REITs in the brazilian stock exchange.

 

xxxiv If IMAB 5 Average is: a) less or equal to 2%, X=3% per year; b) between 2%-4%, X= Average IMAB 5+1% per year; c) Between 4%-5%, X=5% per year; d) greater or equal to 5%, X= IMAB 5 Average.

 

xxxv 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.

 

xxxvi “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.

 

xxxvii “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.

 

xxxviii Total commitments for VCP III include R$1.3 billion in co-investments. Track record presented for the VCP strategy as of 1Q’23, due to fund’s administrator timeline to disclose the quarterly markup of the fund.

 

xxxix Track record for VIR strategy is presented as of 1Q’23, due to fund’s administrator timeline to disclose the quarterly markup of the fund.

 

xl Track record for Vinci SPS strategy is presented as of 2Q’23.

 

xli Track record for FIP Infra is presented as of 1Q’23.

 

xlii Track record for VIAS is presented as of 1Q’23.

 

xliii Track record for VICC is presented as of 1Q’23.

 

xliv Track record for VFDL is presented as of 2Q’23.

 

xlv Track record for Vinci Credit Infra is presented as of 2Q’23.

 

xlvi US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 4.9245 as of August 08, 2023, when dividends were approved by our Board of Directors.

 

 

 

 

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

 

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

 

xlix As of June 30, 2023, Public Float was comprised of 12,809,281 Class A common shares.

 

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

 

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

 

lii Brazilian tax law establishes that companies that generate gross revenues of up to R$ 78,000.00 in the prior fiscal year may calculate income taxes as a percentage of gross revenue, using the presumed profit income tax regime. The Entity's subsidiaries adopted this tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. 

 

 

 

 

 

 

RIO DE JANEIRO

55 21 2159 6000

Av. Bartolomeu Mitre, 336

Leblon - 22431-002

SÃO PAULO

55 11 3572 3700

Av. Brigadeiro Faria Lima, 2.277 – 14º andar

Jardim Paulistano - 01452-000

55 11 3230 2541 | Vinci SPS

Rua Iguatemi, 448 – CJ 601

Itaim Bibi - 01451-010

55 16 2101 4641 | Ribeirão Preto

Av. Presidente Vargas, 2.121 – Sala 106

Jardim América - 14020-260

RECIFE

55 81 3204 6811

Av. República do Líbano, 251 - Sala 301 - Torre A

Pina - 51110-160

NEW YORK

1 646 559 8000

780 Third Avenue, 25th Floor

10017

RIO DE JANEIRO

55 21 2159 6000

Av. Bartolomeu Mitre, 336

Leblon - 22431-002

SÃO PAULO

55 11 3572 3700

Av. Brigadeiro Faria Lima, 2.277 – 14º andar

Jardim Paulistano - 01452-000

55 11 3230 2541 | Vinci SPS

Rua Iguatemi, 448 – CJ 601

Itaim Bibi - 01451-010

55 16 2101 4641 | Ribeirão Preto

Av. Presidente Vargas, 2.121 – Sala 106

Jardim América - 14020-260

RECIFE

55 81 3204 6811

Av. República do Líbano, 251 - Sala 301 - Torre A

Pina - 51110-160

NOVA YORK

1 646 559 8000

780 Third Avenue, 25th Floor

10017