EX-99.2 3 dp211019_ex9902.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

 

 

 

 

Vinci Partners Reports First Quarter 2024 Results

 

Alessandro Horta, Chief Executive Officer, stated, “Vinci posted another quarter with double digit growth in Fee Related Earnings, pushed by strong fundraising across Private Markets products over the last twelve months and advisory fees in the first quarter. Despite the challenges posed by a turbulent global market, marked by uncertainties in interest rates impacting asset performance and fundraising opportunities across various strategies, we have demonstrated resilience and patience, performing well across the board."

 

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 May 23, 2024. This dividend will be paid on June 07, 2024.

 

First Quarter 2024 Highlights

 

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

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 Private Credit), Public Equities, Investment Products and Solutions, Corporate Advisory and Retirement Services. As of March 28, 2024, the firm had R$69 billion of assets under management.

 

Webcast and Earnings Conference Call

 

Vinci Partners will host a conference call at 5:00pm ET on Thursday, May 09, 2024, to announce its first quarter 2024 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.

 

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 1Q24 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

Kate Thompson

+1 (212) 355-4449

 

Brazil Media Contact

Danthi Comunicações

Carla Azevedo (carla@danthicomunicacoes.com.br)+55 (21) 3114-0779

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Segment Earnings

 

(R$ thousands, unless mentioned) 1Q'23 4Q'23 1Q'24 ∆ YoY(%) 1Q'23 LTM 1Q'24 LTM ∆ YoY(%)
Net revenue from management fees 95,877 99,976 96,455 1% 380,149 393,945 4%
Net revenue from advisory fees 4,468 18,998 10,359 132% 22,788 45,690 101%
Total Fee Related Revenues[ii] 100,345 118,974 106,814 6% 402,937 439,635 9%
Segment personnel expenses (7,164) (7,462) (7,337) 2% (26,069) (29,859) 15%
Other G&A expenses (3,458) (6,573) (5,996) 73% (17,338) (22,961) 32%
Corporate center expenses (22,606) (21,499) (21,087) (7)% (88,615) (89,105) 1%
Bonus compensation related to management and advisory (18,062) (26,143) (18,748) 4% (74,108) (84,686) 14%
Total Fee Related Expenses (51,290) (61,677) (53,168) 4% (206,130) (226,611) 10%
FEE RELATED EARNINGS (FRE)[iii] 49,055 57,297 53,646 9% 196,807 213,024 8%
FRE Margin (%)[iv] 48.9% 48.2% 50.2%   48.8% 48.5%  
FRE per share[v] (R$/share) 0.90 1.07 1.01 12% 3.57 3.96 11%
Net revenue from performance fees 1,963 6,468 2,273 16% 13,391 21,564 61%
Performance based compensation (733) (3,614) (1,009) 38% (6,255) (10,916) 75%
PERFORMANCE RELATED EARNINGS (PRE)[vi] 1,230 2,854 1,264 3% 7,136 10,648 49%
PRE Margin (%)[vii] 62.7% 44.1% 55.6%   53.3% 49.4%  
(-) Unrealized performance fees – 1,042 – N/A 4,254 1,042 (76)%
(+) Unrealized performance compensation – (369) – N/A (1,503) (369) (75)%
(+) Realized GP investment income 5,881 4,451 4,406 (25)% 24,007 17,735 (26)%
SEGMENT DISTRIBUTABLE EARNINGS[viii] 56,166 65,275 59,316 6% 230,701 242,080 5%
Segment DE Margin (%) 51.9% 49.9% 52.3%   51.9% 50.4%  
(+) Depreciation and amortization 1,778 1,858 1,891 6% 5,780 7,423 28%
(+) Realized financial income 20,089 22,046 12,362 (38)% 82,051 76,618 (7)%
(-) Leasing expenses (2,631) (2,267) (2,216) (16)% (9,518) (9,394) (1)%
(-) Other items[ix] (3,900) (6,446) (9,236) 137% (8,482) (24,155) 185%
(-) Non-operational expenses[x] – (1,924) (1,333) N/A (1,485) (3,257) N/A
(-) Income taxes (excluding related to unrealized fees and income) (11,496) (16,532) (12,487) 9% (49,972) (56,819) 14%
DISTRIBUTABLE EARNINGS (DE)[xi] 60,006 62,010 48,297 (20)% 249,075 232,496 (7)%
DE Margin (%)[xii] 46.8% 40.5% 38.4%   47.3% 41.8%  
DE per share (R$/share) 1.10 1.15 0.91 (17)% 4.52 4.32 (4)%
(+) Non-operational expenses (including Income Tax effect) – 1,631 1,308 N/A 988 2,939 197%
ADJUSTED DISTRIBUTABLE EARNINGS[xiii] 60,006 63,641 49,605 (17)% 250,063 235,435 (6)%
Adjusted DE Margin (%)[xiv] 46.8% 41.6% 39.4%   47.5% 42.3%  
Adjusted DE per share (R$/share) [xv] 1.10 1.18 0.93 (15)% 4.53 4.38 (3)%

 

Total Fee-Related Revenues of R$106.8 million for the quarter ended March 28, 2024, compared to R$100.3 million for the quarter ended March 31, 2023, an increase of 6% year-over year. This growth was propelled by a strong quarter for the Corporate Advisory segment. Management fees for the quarter remained flat on a year-over-year basis. Although Private Markets revenues continue to grow pushed by strong fundraising, the pension plans strategy within IP&S encountered headwinds caused by volatile markets. Fee-related revenues were R$439.6 million for the last twelve months ended March 28, 2024, up 9% when compared to the last twelve months ended March 31, 2023. This growth was driven by strong fundraising across Private Markets' products and a higher level of advisory fees.

 

Fee Related Earnings (“FRE”) of R$53.6 million (R$1.01/share) for the quarter ended March 28, 2024, up 9% year-over-year on an absolute basis and 12% year-over-year on an FRE per share basis when compared the quarter ended March 31, 2023, driven by a higher level of advisory fees in the 1Q’24. FRE of R$213.0 million (R$3.96/share) for the last twelve months ended March 28, 2024, up 8% when compared to the last twelve months ended March 31, 2023 on an absolute basis and 11% on an FRE per share basis, driven by stronger management and advisory fees.

 

FRE Margin was 50.2% for the quarter ended March 28, 2024, an increase of 1.3 percentage point year-over-year, following our cost efficiency orientation to contain expenses growth.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Performance Related Earnings (“PRE”) of R$1.3 million for the quarter ended March 28, 2024, up 3% year-over-year. PRE was R$10.6 million (R$0.20/share) for the last twelve months ended March 28, 2024, an increase of 49% when compared to the last twelve months ended March 31, 2023. Most of our open-end funds charge performance fees semiannually, recognizing revenues in June and December, thus it's typical for the first and third quarters to exhibit lower performance levels for domestic open-ended funds.

 

Segment Distributable Earnings of R$59.3 million for the quarter ended March 28, 2024, compared to R$56.2 million for the quarter ended March 31, 2023, up 6% year-over-year. Segment Distributable Earnings were R$242.1 million for the last twelve months ended March 28, 2024, up 5% year-over-year, when compared to the last twelve months ended March 31, 2023.

 

Adjusted Distributable Earnings (“DE”) of R$49.6 million (R$0.93/share) for the quarter ended March 28, 2024, compared to R$60.0 million (R$1.10/share) for the quarter ended March 31, 2023, down 17% year-over-year on an absolute basis and 15% year-over-year on an Adjusted DE per share basis, due to a weaker quarter for the Financial Income, following a challenging macroeconomic environment that has negatively impacted our liquid portfolio in the quarter. Adjusted DE was R$235.4 million (R$4.38/share) for the last twelve months ended March 28, 2024, down 6% when compared to the last twelve months ended March 31, 2023, on an absolute basis and down 3% on an Adjusted DE per share basis.

 

Adjusted DE Margin was 39.4% for the quarter ended March 28, 2024, a 7.4 percentage point decrease compared to 46.8% for the quarter ended March 31, 2023, due to a weaker quarter for financial income, that carry a lower income tax bracket. For the last twelve months ended March 28, 2024, Adjusted DE Margin reached 42.3%, a decrease of 5.2 percentage points compared to the last twelve months ended March 31, 2023.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Segment Highlights

 

Private Market Strategies

 

(R$ thousands, unless mentioned) 1Q'23 4Q'23 1Q'24 ∆ YoY (%) 1Q'23 LTM 1Q'24 LTM ∆ YoY (%)
Net revenue from management fees 58,432 66,363 62,519 7% 218,734 255,046 17%
Net revenue from advisory fees 275 1,648 554 102% 2,865 2,751 (4)%
Total Fee Related Revenues 58,706 68,011 63,073 7% 221,598 257,798 16%
Segment personnel expenses (3,509) (3,616) (3,707) 6% (12,630) (14,727) 17%
Other G&A expenses (1,438) (2,378) (2,856) 99% (8,592) (10,609) 23%
Corporate center expenses (13,018) (13,502) (12,937) (1)% (47,922) (54,511) 14%
Bonus compensation related to management and advisory (9,111) (12,963) (8,978) (1)% (35,955) (40,867) 14%
Total Fee Related Expenses (27,076) (32,459) (28,478) 5% (105,100) (120,714) 15%
FEE RELATED EARNINGS (FRE) 31,630 35,552 34,595 9% 116,499 137,084 18%
FRE Margin (%) 53.9% 52.3% 54.8%   52.6% 53.2%  
Net revenue from performance fees 7 1,983 8 8% 2,826 4,983 76%
Realized performance fees 7 3,025 8 8% 7,080 6,024 (15)%
Unrealized performance fees – (1,042) – N/A (4,254) (1,042) (76)%
Performance based compensation (3) (970) (3) 34% (1,165) (2,297) 97%
PERFORMANCE RELATED EARNINGS (PRE) 5 1,014 4 (7)% 1,661 2,686 62%
PRE Margin (%) 64.6% 51.1% 55.8%   58.8% 53.9%  
(-) Unrealized performance fees – 1,042 – N/A 4,254 1,042 (76)%
(+) Unrealized performance compensation – (369) – N/A (1,503) (369) (75)%
(+) Realized GP investment income 5,881 4,451 4,406 (25)% 24,007 17,735 (26)%
SEGMENT DISTRIBUTABLE EARNINGS 37,516 41,689 39,005 4% 144,918 158,178 9%
Segment DE Margin (%) 58.1% 55.2% 57.8%   57.4% 56.2%  
               
ASSETS UNDER MANAGEMENT (AUM[xvi] R$ millions) 28,198 32,956 33,018 17% 28,198 33,018 17%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 24,825 29,706 29,763 20% 24,825 29,763 20%
AVERAGE MANAGEMENT FEE RATE (%) 0.87% 0.89% 0.80%   0.88% 0.88%  

 

Fee related earnings (FRE) of R$34.6 million for the quarter ended March 28, 2024, up 9% year-over-year. This growth was driven by the strong fundraising in 2023 across Private Equity, Infrastructure and Real Estate. FRE was R$ 137.1 million for the last twelve months ended March 28, 2024, an increase of 18% when compared to the last twelve months ended March 31, 2023.

 

Segment Distributable Earnings of R$39.0 million for the quarter ended March 28, 2024, up 4% when compared to the quarter ended March 31, 2023, driven primarily by a higher Fee Related Earnings in the quarter. Segment DE was R$158.2 million over the last twelve months ended March 28, 2024, up 9% when compared to the last twelve months ended March 31, 2023, boosted by growth in FRE and PRE.

 

AUM of R$33.0 billion at the end of the first quarter, a 17% year-over-year increase propelled by robust fundraising across VCP IV, in Private Equity, VICC, in Infrastructure and VISC, in Real Estate.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Investment Products and Solutions

 

(R$ thousands, unless mentioned) 1Q'23 PF[xvii] 4Q'23 PF 1Q'24 ∆ YoY (%) 1Q'23 LTM PF 1Q'24 LTM PF ∆ YoY (%)
Net revenue from management fees 22,817 19,349 19,814 (13)% 98,635 80,451 (18)%
Net revenue from advisory fees 7 8 8 13% 28 32 14%
Total Fee Related Revenues 22,825 19,357 19,822 (13)% 98,664 80,483 (18)%
Segment personnel expenses (1,832) (1,801) (1,627) (11)% (6,614) (7,244) 10%
Other G&A expenses (1,292) (1,816) (1,008) (22)% (4,916) (4,972) 1%
Corporate center expenses (5,084) (3,937) (4,100) (19)% (21,951) (17,241) (21)%
Bonus compensation related to management and advisory (5,255) (4,011) (3,952) (25)% (21,774) (17,371) (20)%
Total Fee Related Expenses (13,462) (11,564) (10,687) (21)% (55,253) (46,826) (15)%
FEE RELATED EARNINGS (FRE) 9,362 7,793 9,135 (2)% 43,410 33,657 (22)%
FRE Margin (%) 41.0% 40.3% 46.1%   44.0% 41.8%  
Net revenue from performance fees 790 1,995 9 (99)% 6,334 3,913 (38)%
Realized performance fees 790 1,995 9 (99)% 6,334 3,913 (38)%
Unrealized performance fees – – – N/A – – N/A
Performance based compensation (316) (994) (4) (99)% (3,244) (1,948) (40)%
PERFORMANCE RELATED EARNINGS (PRE) 474 1,001 4 (99)% 3,089 1,965 (36)%
PRE Margin (%) 60.0% 50.2% 50.0%   48.8% 50.2%  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS 9,837 8,793 9,139 (7)% 46,500 35,621 (23)%
Segment DE Margin (%) 41.7% 41.2% 46.1%   44.3% 42.2%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 26,599 25,426 25,756 (3)% 26,599 25,756 (3)%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 26,288 25,179 25,507 (3)% 26,288 25,507 (3)%
AVERAGE MANAGEMENT FEE RATE (%) 0.37% 0.33% 0.34%   0.40% 0.34%  

 

This quarter, we executed a strategic realignment across our segments. In response to the evolving dynamics of our funds and the strategic vision of our management team, we reassigned a portion of our Hedge Funds business to IP&S (R$2.3 billion).

 

Fee related earnings (FRE) of R$9.1 million for the quarter ended March 28, 2024, down 2% year-over-year. FRE was R$33.7 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 22% when compared to the last twelve months ended March 31, 2023 Pro Forma. This decrease is attributed to outflows, especially within our pension funds strategy, which carries higher fees.

 

Performance related earnings (PRE) was R$2.0 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 36% when compared to the last twelve months ended March 31, 2023 Pro Forma.

 

Segment Distributable Earnings of R$9.1 million for the quarter ended March 28, 2024, down 7% year-over-year. Segment DE was R$35.6 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 23% when compared to the last twelve months ended March 31, 2023 Pro Forma, that posted higher contribution from FRE and PRE.

 

AUM of R$25.8 billion, down 3% year-over-year.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Public Equities

 

(R$ thousands, unless mentioned) 1Q'23 PF 4Q'23 PF 1Q'24 ∆ YoY (%) 1Q'23 LTM PF 1Q'24 LTM PF ∆ YoY (%)
Net revenue from management fees 14,628 14,145 13,964 (5)% 62,780 58,124 (7)%
Net revenue from advisory fees – – – N/A – – N/A
Total Fee Related Revenues 14,628 14,145 13,964 (5)% 62,780 58,124 (7)%
Segment personnel expenses (931) (875) (889) (4)% (3,401) (3,576) 5%
Other G&A expenses (280) (315) (344) 23% (1,695) (1,430) (16)%
Corporate center expenses (3,259) (2,878) (2,890) (11)% (13,972) (12,454) (11)%
Bonus compensation related to management and advisory (2,074) (1,798) (2,004) (3)% (9,703) (8,263) (15)%
Total Fee Related Expenses (6,544) (5,866) (6,126) (6)% (28,771) (25,722) (11)%
FEE RELATED EARNINGS (FRE) 8,084 8,279 7,838 (3)% 34,008 32,403 (5)%
FRE Margin (%) 55.3% 58.5% 56.1%   54.2% 55.7%  
Net revenue from performance fees 1,166 2,491 2,257 94% 4,232 12,670 199%
Realized performance fees 1,166 2,491 2,257 94% 4,232 12,670 199%
Unrealized performance fees – – – N/A – – N/A
Performance based compensation (415) (1,651) (1,001) 141% (1,845) (6,672) 262%
PERFORMANCE RELATED EARNINGS (PRE) 751 840 1,255 67% 2,386 5,997 151%
PRE Margin (%) 64.4% 33.7% 55.6%   56.4% 47.3%  
(-) Unrealized performance fees – – – N/A – – N/A
(+) Unrealized performance compensation – – – N/A – – N/A
SEGMENT DISTRIBUTABLE EARNINGS 8,835 9,119 9,093 3% 36,395 38,398 6%
Segment DE Margin (%) 55.9% 54.8% 56.1%   54.3% 54.2%  
               
ASSETS UNDER MANAGEMENT (AUM R$ millions) 7,434 10,055 9,910 33% 7,434 9,910 33%
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) 7,374 10,005 9,859 34% 7,374 9,859 34%
AVERAGE MANAGEMENT FEE RATE (%) 0.83% 0.64% 0.60%   0.84% 0.68%  

 

This quarter, we executed a strategic realignment across our segments. In response to the evolving dynamics of our funds and the strategic vision of our management team, we reassigned a portion of our Hedge Funds business to Public Equities (R$ 533.6 million).

 

Fee related earnings (FRE) of R$7.8 million for the quarter ended March 28, 2024, down 3% year-over-year. FRE was R$32.4 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 5% when compared to the last twelve months ended March 31, 2023 Pro Forma.

 

Performance related earnings (PRE) of R$1.3 million for the quarter ended March 28, 2024, up 67% year-over-year. PRE was R$6.0 million over the last twelve months ended March 28, 2024 Pro Forma, an increase of 151% when compared to the last twelve months ended March 31, 2023 Pro Forma.

 

Segment Distributable Earnings of R$9.1 million for the quarter ended March 28, 2024, up 3% year-over-year. Segment DE was R$38.4 million over the last twelve months ended March 28, 2024 Pro Forma, an increase of 6% when compared to the last twelve months ended March 31, 2023 Pro Forma, due to higher contributions from PRE.

 

AUM was R$9.9 billion at the end of the first quarter, up 33% year-over-year.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Corporate Advisory

 

(R$ thousands, unless mentioned) 1Q'23 4Q'23 1Q'24 ∆ YoY (%) 1Q'23 LTM 1Q'24 LTM ∆ YoY (%)
Net revenue from management fees – – – N/A – – N/A
Net revenue from advisory fees 4,186 17,343 9,797 134% 19,894 42,907 116%
Total Fee Related Revenues 4,186 17,343 9,797 134% 19,894 42,907 116%
Segment personnel expenses (471) (574) (553) 17% (1,975) (2,143) 8%
Other G&A expenses (74) (723) (170) 130% (408) (1,363) 234%
Corporate center expenses (1,130) (1,075) (1,054) (7)% (4,449) (4,455) 0%
Bonus compensation related to management and advisory (1,023) (5,598) (3,093) 202% (4,054) (14,049) 247%
Total Fee Related Expenses (2,698) (7,970) (4,870) 80% (10,885) (22,010) 102%
FEE RELATED EARNINGS (FRE) 1,487 9,373 4,926 231% 9,009 20,897 132%
FRE Margin (%) 35.5% 54.0% 50.3%   45.3% 48.7%  
SEGMENT DISTRIBUTABLE EARNINGS 1,487 9,373 4,926 231% 9,009 20,897 132%
Segment DE Margin (%) 35.5% 54.0% 50.3%   45.3% 48.7%  

 

Fee related earnings (FRE) of R$4.9 million for the quarter ended March 28, 2024. FRE was R$21.0 million over the last twelve months ended March 28, 2024, an increase of 132% when compared to the last twelve months ended March 31, 2023, due to a pickup in deal activity over the last twelve months.

 

Segment Distributable Earnings over the last twelve months ended March 28, 2024 were R$21.0 million, an increase of 132% year-over-year when compared to the last twelve months ended March 31, 2023.

 

Deal activity has been notably increasing since the latter part of 2023, propelled by the easing cycle for interest rates in Brazil. This environment allows great opportunities in M&A, complemented by a broader sector diversification by our Corporate Advisory strategy aimed for reducing risk exposure across various economic cycles and asset profiles.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Retirement Services

 

(R$ thousands, unless mentioned)/ 1Q'23 4Q'23 1Q'24 ∆ YoY (%) 1Q'23 LTM 1Q'24 LTM ∆ YoY (%)
Net revenue from management fees – 119 158 N/A – 324 N/A
Net revenue from advisory fees – – – N/A – – N/A
Total Fee Related Revenues – 119 158 N/A – 324 N/A
Segment personnel expenses (422) (596) (561) 33% (1,450) (2,168) 50%
Other G&A expenses (374) (1,341) (1,618) 333% (1,724) (4,589) 166%
Corporate center expenses (115) (107) (105) (8)% (322) (446) 38%
Bonus compensation related to management and advisory (598) (1,773) (721) 21% (2,622) (4,136) 58%
Total Fee Related Expenses (1,509) (3,818) (3,006) 99% (6,119) (11,338) 85%
FEE RELATED EARNINGS (FRE) (1,509) (3,699) (2,847) 89% (6,119) (11,014) 80%
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 (1,509) (3,699) (2,847) 89% (6,119) (11,014) 80%
Segment DE Margin (%) N/A N/A N/A   N/A N/A  
               
ASSETS UNDER MANAGEMENT (AUM R$millions) – 88 147 N/A – 147 N/A
AVERAGE MANAGEMENT FEE RATE (%) – 0.72% 0.58% N/A – 0.86% N/A

 

Fee Related Earnings (FRE) of negative R$2.8 million for the quarter ended March 28, 2024. FRE was negative R$11.0 million over the last twelve months ended March 28, 2024.

 

VRS started to contribute to AUM numbers and management fee revenues in 2023. In February 2024, VRS was officially presented to the general public with an article in a major newspaper in Brazil. The product is now fully accessible to the public through dedicated apps and website and prepared to accept allocations from all investors through our newly launched platform called Mio.

 

VRS reached close to R$ 150 million in AUM by the end of the first quarter.

 

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Income Statement

 

(R$ thousands, unless mentioned) 1Q'23 4Q'23 1Q'24 ∆ YoY (%) 1Q'23 LTM 1Q'24 LTM ∆ LTM (%)
REVENUES              
Net revenue from management fees 95,877 99,976 96,455 1% 380,149 393,945 4%
Net revenue from performance fees 1,963 6,468 2,273 16% 13,391 21,564 61%
    Realized performance fees 1,963 7,510 2,273 16% 17,645 22,606 28%
    Unrealized performance fees – (1,042) – N/A (4,254) (1,042) (76)%
Net revenue from advisory 4,468 18,998 10,359 132% 22,788 45,690 101%
Total net revenues from services rendered 102,308 125,442 109,087 7% 416,328 461,199 11%
EXPENSES              
Bonus related to management and advisory (18,062) (26,143) (18,748) 4% (74,108) (84,686) 14%
Performance based compensation (733) (3,614) (1,009) 38% (6,255) (10,916) 75%
    Realized (733) (3,983) (1,009) 38% (7,759) (11,285) 45%
    Unrealized – 369 – N/A 1,503 369 (75)%
Total compensation and benefits[xviii] (18,795) (29,757) (19,757) 5% (80,363) (95,602) 19%
Segment personnel expenses (7,164) (7,462) (7,337) 2% (26,069) (29,859) 15%
Other general and administrative expenses (3,458) (6,573) (5,996) 73% (17,338) (22,961) 32%
Corporate center expenses (22,606) (21,499) (21,087) (7)% (88,615) (89,106) 1%
Total expenses (52,023) (65,291) (54,177) 4% (212,385) (237,527) 12%
Operating profit 50,285 60,151 54,910 9% 203,943 223,672 10%
OTHER ITEMS              
GP Investment income (20,200) 14,914 13,509 N/A (9,727) 59,727 N/A
    Realized gain from GP investment income 5,881 4,451 4,406 (25)% 24,007 17,735 (26)%
    Unrealized gain from GP investment income (26,081) 10,463 9,103 N/A (33,734) 41,992 N/A
Financial income 20,089 22,046 12,362 (38)% 83,251 76,618 (8)%
    Realized gain from financial income 20,089 22,046 12,362 (38)% 82,051 76,618 (7)%
    Unrealized gain from financial income – – – N/A 1,200 (0) N/A
Leasing expenses (2,631) (2,267) (2,216) (16)% (9,518) (9,394) (1)%
Other items 151 (10,461) (14,992) N/A 9,540 (48,468) N/A
Share Based Plan (2,107) (4,249) (6,148) 192% (15,647) (19,008) 21%
Non-operational expenses – (1,924) (1,333) N/A (1,485) (3,257) 119%
Total Other Items (4,698) 18,059 1,182 N/A 56,414 56,218 (0)%
Profit before income taxes 45,587 78,210 56,092 23% 260,356 279,890 8%
(-) Income taxes (12,881) (14,826) (10,384) (19)% (53,555) (47,429) (11)%
NET INCOME 32,706 63,384 45,708 40% 206,801 232,461 12%
(+) Non-operational expenses including income tax related to realized expense – 1,631 1,308 N/A 988 2,939 197%
(-)Earn-out Adjust (2,674) 2,691 3,799 N/A (11,895) 16,949 N/A
ADJUSTED NET INCOME 30,032 67,706 50,815 69% 195,894 252,349 29%

 

Total net revenues from services rendered of R$109.1 million for the quarter ended March 28, 2024, up 7% year-over-year. This growth was driven by stronger advisory fees in the period. Net revenues for the last twelve months ended March 28, 2024, were R$461.2 million, representing an 11% increase when compared to the last twelve months ended March 31, 2023, a result from higher advisory, management and performances fees in the period.

 

·Management fee revenues of R$96.5 million for the quarter ended March 28, 2024, flat year-over-year. Although Private Markets revenues continue to grow and push FRE for the platform, IP&S have suffered headwinds in the pension plans strategy propelled by tougher macro conditions. Management fees of R$393.9 million over the last twelve months ended March 28, 2024, up 4% when compared to the last twelve months ended March 31, 2023, due to a strong fundraising across Private Markets products.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

·Performance fee revenues of R$2.3 million for the quarter ended March 28, 2024, up 16% year-over-year. Performance fee revenues of R$21.6 for the last twelve months ended March 28, 2024, an increase of 61% when compared to the last twelve months ended March 31, 2023.

 

·Advisory fee revenues of R$10.4 million for the quarter ended March 28, 2024, compared to R$4.5 million for the quarter ended March 31, 2023, an increase of 132% year-over-year. Advisory revenues for the last twelve months ended March 28, 2024, were R$45.7 million, up 101% when compared to the last twelve months ended March 31, 2023, due to a pickup in deal activity.

 

Total expenses for the quarter ended March 28, 2024, of R$54.2 million, compared to R$52.0 million for the quarter ended March 31, 2023, an increase of 4% year-over-year. Total expenses for the last twelve months ended March 28, 2024, were R$237.5 million, up 12% when compared to the last twelve months ended March 31, 2023. Disregarding bonus compensation, total operating expenses summed R$141.9 million, up 8% year-over-year, following our cost efficiency orientation to contain expenses growth.

 

·Bonus related to management and advisory fees of R$18.7 million for the quarter ended March 28, 2024, compared to R$18.1 million for the quarter ended March 31, 2023, a 4% increase year-over-year. Bonus related to management and advisory was R$84.7 million for the last twelve months ended March 28, 2024, up 14% year-over-year, when compared to the last twelve months ended March 31, 2023.

 

·Performance based compensation of R$1.0 million for the quarter ended March 28, 2024, compared to R$0.7 million for the quarter ended March 31, 2023, an increase of 38% year-over-year. Performance based compensation for the last twelve months ended March 28, 2024, was R$11.0 million, an increase of 75% when compared to the last twelve months ended March 31, 2023.

 

·Segment personnel expenses[xix] of R$7.3 million for the quarter ended March 28, 2024, compared to R$7.2 million for the quarter ended March 31, 2023, an increase of 2% year-over-year. Segment personnel expenses for the last twelve months ended March 28, 2024, was R$29.9 million, up 15% when compared to the last twelve months ended March 31, 2023.

 

·Corporate center expenses[xx] of R$21.1 million for the quarter ended March 28, 2024, compared to R$22.6 million for the quarter ended March 31, 2023, a decrease of 7% year-over-year. Corporate center expenses for the last twelve months ended March 28, 2024, were R$89.1 million, up 1% year-over-year, when compared to the last twelve months ended March 31, 2023.

 

·Other general and administrative expenses[xxi] of R$6.0 million for the quarter ended March 28, 2024, compared to R$3.5 million for the quarter ended March 31, 2023, an increase of 73% year-over-year. Other G&A expenses for the last twelve months ended March 28, 2024, were R$23.0 million, up 32% when compared to the last twelve months ended March 31, 2023.

 

Operating Profit of R$54.9 million for the quarter ended March 28, 2024, compared to R$50.3 million for the quarter ended March 31, 2023, an increase of 9% year-over-year. Operating profit for the last twelve months ended March 28, 2024, was R$223.7 million, up 10% when compared to the last twelve months ended March 31, 2023.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

GP Investment income[xxii], a result of the company’s GP investments in its proprietary private market funds, was R$13.5 million for the quarter ended March 28, 2024, compared to negative R$20.2 million for the quarter ended March 31, 2023, following the appreciation of our proprietary position in private markets funds, a result of mark-to-market appreciation of REITs and annual mark-up of closed-end funds. GP Investment income for the last twelve months ended March 28, 2024, was R$59.7 million compared to negative R$9.7 million for the last twelve months ended March 31, 2023.

 

Financial Income[xxiii] of R$22.0 million for the quarter ended March 28, 2024, compared to R$20.1 million for the quarter ended March 31, 2023. Financial income for the last twelve months ended March 28, 2024, was R$76.6 million, down 8% when compared to the last twelve months ended March 31, 2023.

 

Leasing Expenses[xxiv] of R$2.2 million for the quarter ended March 28, 2024, compared to R$2.6 million for the quarter ended March 31, 2023, down 16% year-over-year.

 

Other Items of negative R$15.0 million for the quarter ended March 28, 2024. Other items comprise the income/(loss) generated by contingent consideration adjustment and financial income/(expenses) related to SPS acquisition and Ares investment and other financial expenses.

 

Share Based Plan expenses[xxv] of R$6.1 million for the quarter ended March 28, 2024. Over the last twelve months ended March 28, 2024, share based plan expenses accounted for R$19.0 million.

 

Profit before income taxes of R$56.1 million for the quarter ended March 28, 2024, compared to R$45.6 million for the quarter ended March 31, 2023, an increase of 23% year-over-year. Profit before income taxes for the last twelve months ended March 28, 2024, was R$279.9 million, an increase of 8% when compared to the last twelve months ended March 31, 2023.

 

Income Taxes[xxvi] of R$10.4 million for the quarter ended March 28, 2024, which represented an effective tax rate for the quarter of 19%, compared to R$12.9 million for the quarter ended March 31, 2023, which represented an effective tax rate of 28%, representing a decrease of 9.7 percentage points year-over-year.

 

Non-operational expenses of R$1.3 million for the quarter ended March 28, 2024. Non-operational expenses are comprised of expenses related to professional services rendered in connection with acquisitions.

 

Contingent consideration adjustment related to acquisitions, after tax, of R$3.8 million for the quarter ended March 28, 2024. 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$50.8 million for the quarter ended March 28, 2024, compared to R$30.0 million for the quarter ended March 31, 2023, an increase of 69% year-over-year. Adjusted Net Income was R$252.3 million for the last twelve months ended March 28, 2024, up 29% when compared to the last twelve months ended March 31, 2023.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Supplement Details

 

Assets Under Management (AUM) Rollforward – R$ millions

 

For the Three Months Ended March 28, 2024

 

  Private Public IP&S Infrastructure Real Estate Credit Hedge Retirement Services Vinci SPS Total
Equity Equities Funds
Beginning balance 14,593 9,537 23,149 3,943 7,049 5,406 2,795 88 1,964 68,525
Managerial Adjustment – 518 2,277 – – – (2,795) – – –
Beginning balance 14,593 10,055 25,426 3,943 7,049 5,406 – 88 1,964 68,525
(+/-) Capital Subscription / (capital return) – – 544 (20) (70) (5) – – (86) 363
(+) Capital Subscription – – 548 – 71 66 – – 2 687
(-) Capital Return – – (4) (20) (141) (71) – – (88) (324)
(+/-) Net Inflow / (outflow) – (26) (985) – 49 49 – 58 – (855)
(+/-) Appreciation / (depreciation) (176) (120) 772 24 33 8 – 1 255 797
Ending Balance 14,417 9,910 25,756 3,947 7,061 5,459 – 147 2,133 68,831

 

 

For the Twelve months Ended March 28, 2024

 

  Private Public IP&S Infrastructure Real Estate Credit Hedge Retirement Services Vinci SPS Total
Equity Equities Funds
Beginning balance 13,587 7,095 24,216 2,361 5,137 4,964 2,723 – 2,149 62,232
Managerial Adjustment – 339 2,384 – – – (2,723) – – –
Beginning balance 13,587 7,434 26,599 2,361 5,137 4,964 – – 2,149 62,232
(+/-) Capital Subscription / (capital return) 600 – 571 1,377 760 (135) – – (376) 2,798
(+) Capital Subscription 937 – 576 1,497 1,251 66 – – 5 4,332
(-) Capital Return (337) – (4) (119) (491) (201) – – (381) (1,534)
(+/-) Net Inflow / (outflow) – 101 (3,896) – 58 195 – 143 – (3,399)
(+/-) Appreciation / (depreciation) 229 2,375 2,481 209 1,106 435 – 4 360 7,200
Ending Balance 14,417 9,910 25,756 3,947 7,061 5,459 – 147 2,133 68,831

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

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

 

For the Three Months Ended March 28, 2024

 

  Private Public IP&S Infrastructure Real Estate Credit Hedge Retirement Services Vinci SPS Total
Equity Equities Funds
Beginning balance 11,392 9,487 23,055 3,894 7,049 5,406 2,642 88 1,964 64,977
Managerial Adjustment – 518 2,123 – – – (2,642) – – –
Beginning balance 11,392 10,005 25,179 3,894 7,049 5,406 – 88 1,964 64,977
(+/-) Capital Subscription / (capital return) – – 544 (20) (70) (5) – – (86) 363
(+) Capital Subscription – – 548 – 71 66 – – 2 687
(-) Capital Return – – (4) (20) (141) (71) – – (88) (324)
(+/-) Net Inflow / (outflow) – (26) (985) – 49 49 – 58 – (855)
(+/-) Appreciation / (depreciation) (152) (121) 770 (4) 33 8 – 1 255 791
Ending Balance 11,240 9,859 25,507 3,870 7,061 5,459 – 147 2,133 65,277

 

 

For the Twelve months Ended March 28, 2024

 

  Private Public IP&S Infrastructure Real Estate Credit Hedge Retirement Services Vinci SPS Total
Equity Equities Funds
Beginning balance 10,262 7,040 24,048 2,313 5,137 4,964 2,574 – 2,149 58,487
Managerial Adjustment – 339 2,235 – – – (2,574) – – –
Beginning balance 10,262 7,379 26,283 2,313 5,137 4,964 – – 2,149 58,487
(+/-) Capital Subscription / (capital return) 595 – 571 1,377 760 (135) – – (376) 2,793
(+) Capital Subscription 887 – 576 1,497 1,251 66 – – 5 4,282
(-) Capital Return (292) – (4) (119) (491) (201) – – (381) (1,489)
(+/-) Net Inflow / (outflow) – 101 (3,822) – 58 195 – 143 – (3,325)
(+/-) Appreciation / (depreciation) 382 2,380 2,474 180 1,106 435 – 4 360 7,322
Ending Balance 11,240 9,859 25,507 3,870 7,061 5,459 – 147 2,133 65,277

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Accrued Performance Fees – Private Market Funds

 

(R$ mm) 4Q'23 Unrealized Performance Fees Realized Distributions 1Q'24
Private Equity 255.8 (10.1) - 245.7
Infrastructure 22.5 (1.5) - 21.0
Credit 0.2 (0.0) - 0.2
Vinci SPS - 27.5 - 27.5
Total 278.6 (11.6) - 266.9

 

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$14.4 million as of the end of the first quarter of 2024 booked as unrealized performance fees in the company´s balance sheet.

 

Accrued performance fees shown for Private Equity funds of R$245.7 million, for the Credit fund VCM of R$ 0.2 million, for the Vinci SPS fund SPS III of R$ 27.4 million and for the Infrastructure fund VIAS of R$6.6 million as of the end of the first quarter of 2024 have not been booked as unrealized performance fees in the company´s balance sheet.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Investment Records – IP&S, Public Equities, Private Credit and Listed REIT

 

Fund Segment

NAV[xxvii]

(R$ millions)

 1Q’24 YTD 12 M 24 M Market Comparison Index Rate
Vinci Multiestratégia FIM IP&S 257.1 2.0% 2.0% 11.2% 24.6% CDI4 CDI4
Atlas Strategy[xxviii] IP&S 359.7 1.0% 1.0% 9.1% 14.7% CDI4 CDI4
Total Return Strategy[xxix] Public Equities 372.7 (3.2)% (3.2)% 26.0% 16.0% IPCA5 + Yield IMA-B7 IPCA5 + Yield IMA-B7
Mosaico Strategy[xxx] Public Equities 887.0 (1.7)% (1.7)% 30.7% 4.9% IBOV5 IBOV5
Vinci Gas Dividendos FIA Public Equities 551.5 (3.7)% (3.7)% 24.8% 8.8% IBOV5 IBOV5
Valorem Strategy[xxxi] IP&S 1,483.8 1.5% 1.5% 9.0% 19.6% IMA-B 57 IMA-B 57
Equilibrio Strategy[xxxii] IP&S 2,052.2 1.6% 1.6% 9.3% 19.1% IPCA6 -
Vinci Retorno Real FIM IP&S 184.6 0.5% 0.5% 7.1% 20.8% IMA-B7 IMA-B7
Vinci Crédito Imobiliário II Private Credit 814.0 1.1% 1.1% 12.7% 23.8% IPCA6 IPCA6+ 6%
Vinci Crédito Estruturado Multiestrategia Plus FIC FIM Private Credit 100.1 3.2% 3.2% 14.6% 29.2% CDI4 CDI4
Vinci Energia Sustentável Private Credit 593.4 2.5% 2.5% 14.6% 20.4% IPCA6 IPCA6 + 6%
Vinci Crédito Multiestratégia Private Credit 373.5 2.2% 2.2% 14.7% 21.2% CDI4 IPCA6 + 5%
VISC11 Real Estate (listed REIT) 3,534.7 0.6% 0.6% 33.4% 48.2% IFIX8 IPCA6 + 6%
VILG11 Real Estate (listed REIT) 1,396.3 (5.0)% (5.0)% 13.8% 10.1% IFIX8 IPCA6 + 6%
VINO11 Real Estate (listed REIT) 643.6 3.0% 3.0% 7.5% (7.8)% IFIX8 IPCA6 + 6%
VIFI11 Real Estate / Private Credit (listed REIT) 67.5 4.1% 4.1% 24.1% 15.0% IFIX8 IFIX8
VIUR11 Real Estate (listed REIT) 205.9 (1.0)% (1.0)% 25.7% 3.9% IFIX8 IPCA6 + 6%
VCRI11 Real Estate / Private Credit (listed REIT) 153.2 4.5% 4.5% 18.7% - IFIX8 IPCA6 + X9%
VICA11 Real Estate / Private Credit (REIT) 375.7 0.3% 0.3% 0.4% - IFIX8 CDI4 + 1%
VINCI FOF IMOBILIARIO FIM CP Real Estate (REIT) 66.0 2.3% 2.3% 22.3% 27.1% IFIX8 IFIX8
VIGT11 Infrastructure (listed) 612.4 (5.6)% (5.6)% 19.4% 22.4% - -

 

 

Benchmark 1Q’24 YTD 12 M 24 M
IBOV (4.5)% (4.5)% 25.7% 6.8%
CDI 2.6% 2.6% 12.4% 27.3%
IMA-B 5 2.1% 2.1% 9.6% 21.0%
IPCA + Yield IMA-B 3.0% 3.0% 10.1% 23.0%
IPCA 1.4% 1.4% 3.9% 8.8%
IFIX 2.9% 2.9% 23.4% 22.6%

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Investment Records – Closed End Private Markets funds[xxxiii]

 

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 MOIC[xxxiv]

(BRL)

 

Gross

MOIC

  (USD)

 

Gross

IRR[xxxv]

 (BRL)

 

Gross IRR

 (USD)

 

Fund 1 Private Equity 2004 1,415 1,206 5,065 137 5,202 4.3x 4.0x 71.5% 77.2%
VCP II Private Equity 2011 2,200 2,063 1,909 2,250 4,159 2.0x 1.1x 10.1% 1.5%
VCP III Private Equity 2018 4,000 2,330 53 4,449 4,502 1.9x 1.9x 30.9% 28.6%
VCP IV Private Equity 2022 2,205 325 – 455 455 1.4x 1.4x – –
VCP Strategy[xxxvi] Private Equity   9,820 5,924 7,027 7,291 14,318 2.4x 2.2x 64.6% 70.2%
NE Empreendedor[xxxvii] Private Equity 2003 36 13 26 – 26 2.1x 2.6x 22.0% 30.5%
Nordeste III Private Equity 2017 240 135 95 163 257 1.9x 1.6x 20.2% 14.2%
VIR IV Private Equity 2020 1,000 424 154 422 576 1.3x 1.4x 25.4% 31.5%
VIR Strategy[xxxviii] Private Equity   1,276 571 275 585 859 1.5x 1.5x 22.2% 28.2%
SPS I Vinci SPS 2018 128 191 250 90 340 1.8x 1.6x 26.0% 19.9%
SPS II Vinci SPS 2020 671 1,005 789 723 1,512 1.5x 1.6x 24.9% 27.3%
SPS III Vinci SPS 2021 1,070 787 131 949 1,080 1.4x 1.6x 37.7% 41.5%
SPS Strategy[xxxix] Vinci SPS   1,869 1,983 1,170 1,762 2,932 1.5x 1.6x 27.5% 28.1%
FIP Transmissão[xl] Infrastructure 2017 211 104 261 116 377 3.6x 2.8x 58.2% 43.5%
VIAS[xli] Infrastructure 2021 386 350 – 409 409 1.3x 1.4x 28.5% 32.9%
VICC[xlii] Infrastructure 2023 1,566 – – – – – – 0.0% 0.0%
VFDL[xliii] Real Estate 2021 422 238 10 271 281 1.2x 1.2x 14.8% 16.4%
Vinci Credit Infra[xliv] Private Credit 2022 1,460 538 – 587 587 1.2x 1.2x NM NM

 

 

Shareholder Dividends

 

($ in thousands) 1Q’22  2Q’22 3Q'22 4Q’22 1Q’23 2Q'23
Distributable Earnings (R$) 53,255 60,435 72,842 55,792 60,006 70,369
Distributable Earnings (US$)[xlv] 10,615 11,795 14,281 10,618 11,994 14,290
DE per Common Share (US$)[xlvi] 0.19 0.21 0.26 0.19 0.22 0.26
Actual Dividend per Common Share[xlvii] 0.17 0.17 0.20 0.17 0.16 0.20
Record Date     May 24, 2022 Aug 25, 2022 Nov 23, 2022 Mar 01, 2023 May 25, 2023 Aug 24, 2023
Payable Date Jun 08, 2022  Sep 09,2022 Dec 08, 2022 Mar 15, 2023 Jun 09, 2023 Sep 08, 2023
             
($ in thousands) 3Q’23 4Q’23 1Q’24  
Distributable Earnings (R$) 51,820 62,010 48,297  
Distributable Earnings (US$) 10,647 12,500 9,543  
DE per Common Share (US$) 0.20 0.23 0.18  
Actual Dividend per Common Share 0.17 0.20 0.17  
Record Date Nov 22, 2023 Feb 22, 2024 May 23, 2024  
Payable Date Dec 07, 2023 Mar 07, 2024 Jun 07, 2024  
             

 

Vinci Partners generated R$0.91 or US$0.18 of Distributable Earnings per common share for the first quarter of 2024. The company declared a quarterly dividend of US$0.17 per common share to record holders as of May 23, 2024; payable on June 07, 2024.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Share Summary

 

VINP Shares 1Q'22 2Q'22 3Q'22 4Q'22 1Q23 2Q’23 3Q'23 4Q’23 1Q'24
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
Class A[xlviii] 41,363,077 41,112,717 40,892,619 40,614,497 40,247,461 39,730,720 39,405,827 39,312,578 38,778,597
Common Shares Outstanding 55,829,316 55,578,956 55,358,858 55,080,736 54,713,700 54,196,959 53,872,066 53,778,817 53,244,836

 

Common Shares Outstanding as of quarter end of 53,244,836 shares.

 

·Repurchased 533,981 common shares in the quarter, with an average share price of US$10.6.

 

·Repurchased 4,090,985 common shares since the announcement of the first share repurchase plan, with an average share price of US$10.7.

 

·A new share repurchase plan was approved on February 07, 2024, to buy back up to R$60.0 million of the company’s outstanding shares.

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

GP Commitment in Vinci Partners funds

 

 

(R$ millions,

unless mentioned)

Fund

Segment

 

1Q’24 Commitments

 

Total Capital Committed

 

1Q’24 Capital Called

 

Total

Capital Called

 

Capital Returned/ Dividends Paid (1Q’24)

 

Accumulated Capital Returned/

Dividends Paid

Fair value

of investments

Nordeste III Private Equity – 5.0 – 3.2 – 1.6 3.4
VCP III Private Equity – 3.1 – 2.8 – – 4.3
VIR IV Private Equity – 11.1 0.2 5.6 – 1.7 4.9
VCP IV Private Equity – 350.0 – – – – –
FIP Infra Transmissão (co- investment)[i] Infrastructure – 29.5 – 8.9 – 20.9 10.3
FIP Infra Transmissão[ii] Infrastructure – 10.5 – 3.4 – 6.6 2.9
VIAS Infrastructure – 50.0 – 37.5 – – 50.7
Vinci Transporte e Logística II Infrastructure – 15.0 – – – – –
Vinci Transporte e Logística I Infrastructure – 11.4 – 11.3 – – 19.1
VICC Infrastructure – 100.0 1.6 1.6 – – 0.2
VFDL Real Estate – 70.0 6.0 52.0 – – 59.2
VIUR Real Estate – 67.3 – 67.3 1.4 16.2 51.5
VINO Real Estate – 50.0 – 50.0 0.8 7.5 35.2
Vinci FOF Imobiliário Real Estate – 16.9 – 16.9 – 0.5 22.5
VCRI Real Estate / Private Credit – 80.0 – 80.0 2.1 20.6 71.9
Vinci Crédito Agro Fiagro-Imobiliário Real Estate / Private Credit – 23.0 – 23.0 0.8 4.7 22.9
Vinci Crédito Infra Institucional Private Credit – 100.0 – 44.2 – – 47.4
VSP FIM IP&S – 50.0 0.2 12.5 0.1 0.9 14.65
Vinci PIPE FIA Public Equities – 25.0 – 25.0 – 0.0 23.8
Vinci US Real Estate Real Estate 34.8 34.8 34.8 34.8 – – 35.0
FDIRS Infrastructure 15.0 15.0 15.0 15.0 – – 15.3
Total   49.8 1,117.6 57.8 495.0 5.1 81.2 495.0

 

IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM

 

 

 

 

Reconciliation and Disclosures

 

Non-GAAP Reconciliation

 

(R$ thousands, unless mentioned) 1Q'23 4Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM
           
OPERATING PROFIT 50,285 60,151 54,910 203,943 223,672
(-) Net revenue from realized performance fees (1,963) (7,510) (2,273) (17,645) (22,606)
(-) Net revenue from unrealized performance fees – 1,042 – 4,254 1,042
(+) Compensation allocated in relation to performance fees 733 3,614 1,009 6,255 10,916
FEE RELATED EARNINGS (FRE) 49,055 57,297 53,646 196,807 213,024
           
OPERATING PROFIT 50,285 60,151 54,910 203,943 223,672
(-) Net revenue from management fees (95,877) (99,976) (96,455) (380,149) (393,945)
(-) Net revenue from advisory (4,468) (18,998) (10,359) (22,788) (45,690)
(+) Bonus related to management and advisory 18,062 26,143 18,748 74,108 84,686
(+) Personnel expenses 7,164 7,462 7,337 26,069 29,859
(+) Other general and administrative expenses 3,458 6,573 5,996 17,338 22,961
(+) Corporate center expenses 22,606 21,499 21,087 88,615 89,106
PERFORMANCE RELATED EARNINGS (PRE) 1,230 2,854 1,264 7,136 10,648
           
OPERATING PROFIT 50,285 60,151 54,910 203,943 223,672
(-) Net revenue from unrealized performance fees – 1,042 – 4,254 1,042
(+) Compensation allocated in relation to unrealized performance fees – (369) – (1,503) (369)
(+) Realized gain from GP investment income 5,881 4,451 4,406 24,007 17,735
SEGMENT DISTRIBUTABLE EARNINGS 56,166 65,275 59,316 230,701 242,080
           
NET INCOME 32,706 63,384 45,708 206,801 232,461
(-) Net revenue from unrealized performance fees – 1,042 – 4,254 1,042
(+) Income tax from unrealized performance fees – (120) – (490) (120)
(+) Compensation allocated in relation to unrealized performance fees – (369) – (1,503) (369)
(-) Unrealized gain from GP investment income 26,081 (10,463) (9,103) 33,734 (41,992)
(+) Income tax on unrealized gain from GP investment income – 119 283 (369) 458
(-) Unrealized gain from financial income – (0) – (1,200) –
(+) Income tax on unrealized gain from financial income – – – (65) –
(-) Contingent consideration (earn-out) gain (loss), after-tax (2,674) 2,691 3,799 (11,895) 16,949
(+) Depreciation and amortization³ 1,778 1,858 1,891 5,780 7,423
(+) Share Based Plan 2,107 4,188 6,148 15,647 17,642
(-) Income Taxes on Share Based Plan 8 (320) (429) (1,620) (998)
(+) Non-operational expenses including income tax related to realized expense – 1,631 1,308 988 2,939
ADJUSTED DISTRIBUTABLE EARNINGS 60,006 63,641 49,605 250,063 235,435
           
TOTAL NET REVENUE FROM SERVICES RENDERED 102,308 125,442 109,087 416,328 461,199
(-) Net revenue from realized performance fees (1,963) (7,510) (2,273) (17,645) (22,606)
(-) Net revenue from unrealized performance fees – 1,042 – 4,254 1,042
NET REVENUE FROM MANAGEMENT FEES AND ADVISORY 100,345 118,974 106,814 402,937

439,635

 

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Effective Tax Rate Reconciliation

 

 (R$ thousands, unless mentioned) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM  
Profit (loss) before income taxes 45,587 56,092 260,356 279,890  
Combined statutory income taxes rate - % 34% 34% 34% 34%  
Income tax benefit (Expense) at statutory rates (15,500) (19,071) (88,522) (95,162)  
Reconciliation adjustments:          
Expenses not deductible (62) (99) (258) (917)  
Tax benefits 35 37 282 192  
Share based payments (29) (338) (240) (825)  
Tax loss                                            -    (918)                               -    (2,973)  
Effect of presumed profit of subsidiaries[li]and offshore subsidiaries 2,662 9,981 35,168 52,152  
Other additions (exclusions), net 13 24 15 104  
Income taxes expenses (12,881) (10,384) (53,555) (47,429)  
Current (12,517) (12,871) (52,990) (58,920)  
Deferred (364) 2,487 (565) 11,491  
Effective tax rate 28% 19% 21% 17%  

  

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Balance Sheet Results

 

Assets 12/29/2023 3/28/2024
Current assets    
Cash and cash equivalents 660,305 531,988
   Cash and bank deposits 15,896 45,738
   Financial instruments at fair value through profit or loss 173,300 85,649
   Financial instruments at amortized cost                                           471,109 400,601
Financial instruments at fair value through profit or loss 1,168,355 1,221,642
Accounts receivable 101,523 89,701
Sub-leases receivable 4,071 3,601
Taxes recoverable 2,219 1,630
Other assets 19,109 25,169
Total current assets 1,955,582 1,873,731
     
Non-current assets    
Financial instruments at fair value through profit or loss 7,146 57,965
Accounts receivable 16,638 16,412
Sub-leases receivable 1,467 1,079
Taxes recoverable 325 1,139
Deferred taxes 13,487 16,395
Other assets 19,427 19,556
  58,490 112,546
     
Property and equipment 12,591 11,924
Right of use - Leases 58,308 55,917
Intangible assets 214,748 215,527
Total non-current assets 344,137 395,914
     
Total Assets 2,299,719 2,269,645

 

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Liabilities and equity 12/29/2023 3/28/2024
Current liabilities    
Trade payables 1,869 348
Deferred Revenue – 10,419
Leases 24,381 25,104
Accounts payable 6,020 6,052
Labor and social security obligations 101,506 27,325
Loans and obligations 76,722 78,138
Taxes and contributions payable 24,853 18,618
Total current liabilities 235,351 166,004
     
Non-current liabilities    
Leases 48,431 43,188
Labor and social security obligations 5,357 6,784
Loans and Obligations 540,369 554,452
Deferred taxes 3,883 4,303
Retirement plans liabilities 85,554 144,782
  683,594 753,509
     
Total liabilities 918,945 919,513
     
Equity    
Share capital 15 15
Additional paid-in capital 1,408,438 1,408,438
Treasury shares (172,863) (201,165)
Retained Earnings 111,444 104,244
Other reserves 31,876 37,185
  1,378,910 1,348,717
     
Non-controlling interests in the equity of subsidiaries 1,864 1,415
     
Total equity 1,380,774 1,350,132
     
Total liabilities and equity 2,299,719 2,269,645

 

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Forward-Looking Statements

 

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

 

 

[i] Considers assets under management and advisory as of March 2024.

 

[ii] “Net revenue from Fund Management and Advisory” is a 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.

 

[iii] “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, investment income and expenses that do not arise from our normal course of operations. FRE is calculated as operating profit, less (a) net revenue from realized performance fees, less (b) net revenue from unrealized performance fees, plus (c) share-based payments plus (d) compensation allocated in relation to performance fees plus (e) non-operational expenses, which are comprised of expenses relating to professional services rendered in connection with acquisitions and our international corporate organization.

 

[iv] “FRE Margin” is calculated as FRE divided by the sum of net revenue from fund management and net revenue from advisory services.

 

[v] “FRE per share” is calculated considering the number of outstanding shares at the end of the current quarter. Full year values are calculated as the sum of the last three quarters.

 

[vi] “Performance Related Earnings”, or “PRE”, is a performance measure that we use to assess our ability to generate profits from revenue that relies on outcomes from funds above their respective benchmarks. We calculate PRE as operating profit less (a) net revenue from fund management, less (b) net revenue from advisory services, plus (c) personnel and profit-sharing expenses, plus (d) other general and administrative expenses, less (e) compensation in relation to performance fees.

 

[vii] “PRE Margin” is calculated as PRE divided by net revenue from performance fees.

 

[viii] “Segment Distributable Earnings” is Vinci Partners’ segment profitability measure used to make operating decisions

 

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and assess performance across the company’s five segments (Private Markets, Public Equities, Investment Products and Solutions, Retirement Services and Corporate 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.

 

[ix] “Other items” comprise the income/(loss) generated by financial income/(expenses) related to SPS acquisition and Ares investment and other financial expenses.

 

[x] “Non-operational expenses” are composed by expenses related to professional services to matters related to acquisitions.

 

[xi] “Distributable Earnings”, or “DE”, is used as a reference point by our board of directors to assess our performance and capabilities to distribute dividends to our shareholders. 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 investment income, plus (e) income taxes on unrealized gain from investment income, plus (f) share-based payments, plus (g) income taxes on share-based payments, plus (h) depreciation and amortization, except for depreciation and amortization relating to each segment’s investments, less (i) contingent consideration (earn-out) gain (loss) (after tax).

 

[xii] “DE Margin” is calculated as Distributable Earnings divided by sum of net revenue from fund management, net revenue from performance fees, net revenue from advisory services and realized gain from investment income.

 

[xiii] “Adjusted Distributable Earnings”, or “Adjusted DE”, is used as a reference point by our board of directors for determining the amount of earnings available to distribute to shareholders as dividends. Adjusted Distributable Earnings is calculated as Distributable Earnings, less non-operational expenses, which are comprised of expenses relating to professional services rendered in connection with acquisitions and our international corporate organization.

 

[xiv] “Adjusted DE Margin” is calculated as Adjusted Distributable Earnings divided by the sum of net revenue from fund management, net revenue from performance fees, and net revenue from advisory services and realized gain from investment income.

 

[xv] “Adjusted DE per share” is calculated considering the number of outstanding shares at the end of the current quarter. Full year values are calculated as the sum of the last three quarters.

 

[xvi] “AUM” refers to assets under management. Our AUM equals the sum of: (1) the fair market value of all funds and management accounts managed by Vinci Partners, across Private Equity, Real Estate, Infrastructure, Vinci SPS, Credit, IP&S, Public Equities and Retirement Services; (2) the capital that we are entitled to call from investors in funds pursuant to the terms of their capital commitments to those funds; and (3) 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. 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.

 

[xvii] In the First Quarter of 2024, Vinci Partners executed a strategic realignment across our segments, reassigning R$2.3

 

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billion in AUM from our Hedge Funds business to IP&S, while allocating the remainder R$534 million in AUM to our Public Equities division. Pro Forma numbers for past quarters and last twelve months reflect the retroactive adjustment for this managerial reassignment.

 

[xviii] “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.

 

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

 

[xx] “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.

 

[xxi] “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.

 

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

 

[xxiii] “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.

 

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

 

[xxv] “Share Based Plan” is the composition of two benefit programs: SOP (Stock 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.

 

[xxvi] 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.

 

[xxvii] NAV is the net asset value of each fund. For listed vehicles, the NAV represents the Market valuation of the fund ex-dividends.

 

[xxviii] Atlas strategy includes the funds Atlas FIC FIM, Atlas Institucional FIC FIM and Vinci Potenza.

 

[xxix] Total Return Strategy includes the funds Total Return FIC FIM and Total Return Institucional FIA.

 

[xxx] Mosaico Strategy includes the funds Mosaico, Mosaico Institucional and Mosaico Advisory FIA.

 

[xxxi] Valorem Strategy includes the funds Valorem FIM and Valorem Advisory.

 

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

 

[xxxiii] 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.

 

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[xxxiv] “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.

 

[xxxv] “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.

 

[xxxvi] Total commitments for VCP III include R$1.3 billion in co-investments. Track record presented for the VCP strategy as of 4Q’23, due to fund’s administrator timeline to disclose the quarterly markup of the fund, which are presented as of 1Q’24.

 

[xxxvii] Performance information for Nordeste Empreendedor (“NE I”) comprises only the four (out of seven) investments invested, managed and divested by a team led by Jose Pano (collectively, the ”Participating Investments”) while they were employed by NE I’s manager (the “NE I Manager”), an entity not affiliated with the manager or Vinci Partners. Information herein pertaining to any investments made by NE I manager has not been prepared by NE I manager and NE I manager assumes no responsibility for the accuracy or completeness of any such information.

 

[xxxviii] Track record for VIR strategy is presented as of 4Q’23, due to fund’s administrator timeline to disclose the quarterly markup of the fund.

 

[xxxix] Track record for Vinci SPS strategy is presented as of 1Q’24.

 

[xl] Track record for FIP Infra is presented as of 4Q’23.

 

[xli] Track record for VIAS is presented as of 4Q’23.

 

[xlii] Total Commitments for VICC are presented as of 1Q’24.

 

[xliii] Track record for VFDL is presented as of 1Q’24.

 

[xliv] Track record for Vinci Credit Infra is presented as of 1Q’24.

 

[xlv] US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 5.061 as of May 07, 2024, when dividends were approved by our Board of Directors.

 

[xlvi] Per Share calculations are based on end of period Participating Common Shares.

 

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

 

[xlviii] As of March 28, 2024, Public Float was comprised of 12,510,083 Class A common shares.

 

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

 

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

 

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[li] 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.

 

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