Vinci Partners Investments (VINP) 26 Feb 222021 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Vinci Partners Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. now Investor hand Relations would to conference I Castro, Anna Manager. Instructions] like the to over [Operator Please go ahead.

Thank you, and good afternoon, everyone.

to Alessandro and quarter, uncertain available Relations; remind presentation and Joining forward-looking Private which on we outside you duty issued Financial today's not I'd are our are statements. website control Horta, financial include are release, Officer; today, Executive at today undertake slide press Bruno these call Officer. Equity Earlier Chairman Sergio statements Head and from Investor materially. our a firm's statements, the like which differ actual of and ir.vincipartners.com. Passos, Chief of may any Chief Zaremba, may for We update that and to results do the

the of that see our discussion results, please section of Risk XX-F. a affect some the could Factors of risks For

also We solicitation With an the that any fund. Also that, note refer measures Alessandro. reconciliations offer Vinci over the interest find I'll sell to non-GAAP this an in will to call and Partners purchase release. an constitutes offer to on some nothing in you'll turn call of or

Good you, joining call. all and you, our afternoon, for Thank Anna. thank

as pleased share, an Distributable as increase of We you are or year-over-year. first common per million quarter BRLX.XX totaled we to announce in our all BRLXX.X a extremely for today, earnings results company. join year listed the fourth XX%

per share. $X.XX Additionally, of Vinci announced quarterly a common dividend

in in expanded versus XX% the margin advisory a quarter results with XXX million strong our margin Fee totaled deliver to our We XXXX. in FRE XX% year points backed this by increase management continue all fourth year-over-year. FRE XX% and basis fees. We XXXX, segments by related earnings across and BRLXX

XX% became we been public AUM, and with in Vinci private driven XXXX, IP&S since pleased expansion, within BRLXX.X margin the coming our from we We has cost additional by gaining are We market this share billion year-end company. fund-raising, significant Brazilian ended year in as above with market primarily strategies. had almost market to alternatives BRLX billion XXXX a as absorb this XXXX.

XX% organically Our This in AUM grow alternative in accumulative in market CAGR rate. became XXXX this X%, In AUM. has been overall scenario, Brazilian capital and our XXXX interest in to the a XX% relative even compound Vinci's private faster fundraising our been represents on impact recent expanding of vintage, we a while policy. more This flagship year-end had without a only AUM growing since performance the we've comparison, cycle, the latest Even tailwind benefit at raise the fundraising monetary from rise than public of contribution the Brazilian the had the year, and annual private a platform stronger market to XX% of XXXX. XXXX, and raising fund. was able over prior a equity has impacted from growth In a benefit at rates market by by also highly markets. flagship significant expanded volatility

monetary sharp to of XXXX by XX.XX% from we eight defined The the a cycle just of interest tightening X.X% rise rates second in half months. was current when beginning saw the

from AUM. half to not additional second raised and, resilient did Our the that, extremely significant year of as has of the top we be AUM through on suffer proven outflows

our disposition this fiscal globally favorably second local adjustment, now solid asset XXXX, outflows first and surplus a Vinci was the the and the of Brazil billion already one already COVID we billion year done pandemic. face combination half the strong the with IP&S, raised to achieved associated BRLX.X these monetary the BRLXX platform's appreciation markets country the equity of over in the in in we classes. from performance, real Brazilian within tightening approximately markets. as while normalized strategies in markets this with year and remove began in liquid future of in Having stimulus the parameters the the the performance With see sharp the Corroborating and reflecting

outflows pension and of course, funds on base. in XX even most the international quarter with strategies built and XX% stickier perpetual capital strategies of fourth of the what hedge market in through of deliver years liquid of exposure investors to vehicles. public from net through AUM, are individuals. and is IP&S high The in banks distributors class regarding to from AUM I to food it believe products AUM platform, mostly funds rest the is and goals testimony platforms. across of institutional agreements open is in results challenging fact local macro AUM our and of private limited comes institutional an volatile retail distributable base that resilience which allocated business upon mandates Most power to our well X IP&S for with investor this platforms. same worth retail and very and with Our investors can vision the separate The distributors our retail long-term are and their And composed model a and equities asset lockups distributed institutional with most funds validating with investors investor is IP&S for only XX% of from locations. our in In distribution scenarios. long-term AUM investors

addressable revenues year. quarter, executed our broadens companies backed in and sets the from rounds, XXXX. core advise with BRLXX shareholders we from market. fourth a business in have fees, to time. be the million the fees net Advisory of results has performance advisory from We over example to of mandates by had of surprise top can a in at Vinci and the upside fees. results million contributing that, level management quarter continue important on pleasant with what funding And we team in of performing when same solid This early-stage full expect sides on BRLXX our in started different business combined their which The clear growth coming

Our year. advisory a business had banner

allow to in in mandates new difficult the future. replicate verticals short nation continue the term, organically our and we develop in will us business Although to in to the the believe growth

also positive coming We in private from funds. performance our impact had fees market some

This income company's investors quarter, sheet. a are successfully divested transmission from concessionaire in Infra Infrastructure to the in performance FIP Transmissao and Lest, fund the as considerable funds investment capital quarter power resulting upside with this fees from investors balance and we revenues in in returned

come stake To Infra capital IPO market raise Our investment funds GP the earnings before are should was the years this indication Partners. small power and FRE more XXXX the forward. as fees XX% by BRLXXX.X an market almost we have I in performance committing year-over-year to our them two private opportunities of already and in was also these believe Management when launches. investment our made started future divest synergistic deepening from the not IV, IPO. In And important is space. VIAS any GP with from grow we into Early going XX% an fees, flagship distributable for from fund in on BRLXXX.X for to a income private line. continue and our have and fund, to XXXX, launched, growth the penetration we that transformational us our this a so disclose benefit and strategies first Bruno start IPO advisory XXXX, over segments our coming which something we'll year million private and style is impact we performing. The expanded earnings perspective funds year assets, anticipated. equity our extremely did as give where in we income full is XX% in private totaled pool. are new infra, performance reached the a would had market my better a year-over-year on year to fee back are growth. amount XX% I finalize in several touch new to alternative of full strategies, few the equity expansion. million faster the than market, valuable and VFDL our in which quarter, and how go After-tax forward. We in VIR so detail year, final do total in our Vinci To but highlights vintage real performance estate able could from into in later that to accrued like have funds, remarks, year-over-year. to since we will of to we the going more launched products funds. sense did in investors coming deployed we revenues closing our the monitor

Strategic Partners, huge team closing markets we new view listed us fifth their VSP, property the allocation, on had the our focused term. end an on estate for is long real first in By Our a IP&S, urban IPO focused opportunity in strategy VINCI of which for commercial of the year, executed sector. a private or REIT the

to the more into expect flow capital through XXXX. of We first VSP half

Our listed VISC. increased in successful raising the capital kind also offers in VILG with year with the were back funds in half second market novel and follow-on traditional presented came These primary to combination VIGT, pain in early a of market volatility. three completed once the transaction

our been within were official Woman Directors. of the as Board have we an also pioneer of Independent Board Sonia the gaining initiatives a in Brazilian a part established on gender-balanced the institutions asset in committee independent all We Brazil. Director for fronts. by in presence chaired recognition receive manager ESG financial have to Our ESG Seal, our first Favaretto, ESG Vinci

impact Fund Award from private the VIR IV Environmental Year the won Finance. Our of from ESG equity

and the year company became one also neutralizing in a emissions carbon-neutral for officially of two our We scope XXXX. GHG

our the is investment. recap, close on asset most our and first-ever built Brazilian reputation values the marketing to campaign main Finally, valuable in reinforced campaign the on alternative space. launched asset, The best we the XXXX reputation our our pillar,

to launched gaining all content the and The alternative Brazil. outlets, is has we been as have responsible and brand been user very for The with million reaffirm encouraging our goal advertising been flow reached feedback. impressions investments Xx digital Our major over top-of-mind some more and ads. million for than increasing in Vinci X.X XX campaign far newspaper has so web over TV people in page in

is gains objective to strengthen past to share as leadership the over drive Our years. continue market and few have our we position

us. a medium- areas both pension long-term products, direct of on link addition, growth and see retail In to to and we extreme opportunities. interest Continue growth

we substantial equity, products that going private products few growth three will opportunity flagship billion in fundraising funds a moments. and XXXX go and target fundraising, about our for three status detail in represent infrastructure These BRLXX start will forward. in credit more fundraising Bruno have strategies. FRE these into We a

comes Another big upside from for position. our cash us

until are exposed allocations approximately cash fixed funds, funds our billion bonds. We our liquid called have mostly portfolio. BRLX.X by And in private to market our income

major a be interest With the in coming from rates, financial can to rise distributable revenues drive earnings. recent our income

upon set we investment underpenetrated Lastly, alternative in Brazil. market a highly

organic Vinci, continue platform, synergistic Here raise funds our to we and already in which continuous addition new comes are to constantly capital, will provide at and launching and strategies. established This growth. robust

we of them. opportunities advantage we well As have a of across pool into exciting move XXXX, positioned are the extremely and take firm, to we

day, Our your company you for I'd it to for grows turn like of our thank of all stronger ahead I to go over growth and for solid that, have over again, results. attending us. Bruno financial every ambitious and support. we With you, will plans to call our

on offerings subscriptions for of VIAS, the forwards quarter full the funds year, IV. VIUR, Alessandro, such highlights our in launch closing VFDL the afternoon, and capital Starting and as listed over you, final the XX, of Thank AUM Slide roll in market BRLX.X good follow-on for new VIR strategies IPO full vehicles, with and new go for in the accounted billion we Private everyone. year. the for and

to as highlights We also Transmissao million we Lest FIP in with sale the the investors in from fourth returned to the BRLXXX assets of Infra divested quarter.

second billion BRLXXX liquid witnessed within In confirming full AUM strategies In strategies with from the resiliency than exclusive elsewhere million net quarter, as and our represented fourth mandates into IBOVESPA the and liquid quarter-over-quarter, funds. segment. the inflows XXXX, the coming semester liquid period. in local funds in liquid after highlights following by the and notable correction appreciation strong outflows X% to our representing IP&S and the was depreciation decrease strong when fundraising to strong a credit outflows in in Index our in strategies XX% funds, year, our liquid funds dropped BRLX.X AUM flat had the our less we hedge Turning a Brazil. to in in compared during IP&S inflows market strong the

on Slide Moving XX. to

private this We cycle call. fundraising cover XXXX very are we'd starting detail on a like which strong in for more market in to funds,

flagship our AUM market. in VCP any not we XXXX do remarks, and cycle coming his the was to positively in XXXX, for In growth by have the mentioned fundraising Alessandro between As fund fundraising III. XXXX, impacted

organic markets AUM new we be important significant fundraising number next So XX driven by start launch case existing mandates. billion. This products our FRE carry for upside next three target spin-off we average growth and our was current of together represent fee year, funds of will fundraising total private than strategies efforts not our with for a exclusive they the will rate. have the from for This in months. to the synergistic BRLXX fees the can higher over XX years These funds our fundraising as to which management IP&S

XXXX. half coming currently show in back IV. in equity our close road the private of first first Our its We're strategy is for flagship VCP with vintage, fourth in

VCP VI backed sheet. reups and GP also from from commitment We a from VCP LPs successful by are confident existing Vinci's in close balance III first of

has great transaction marked dollars last XX% of XXXX. contract in quarter vintage IRR in the results, we the III are to committed, coming negotiations of at in seventh reals and a fund in VCP currently and days. presented advanced third XX% and the sign Our of XX% third as gross is

exceptional historical with in are assets. record fund allocation our power, we on an climate strategy launching impact energy core new renewable leveraging in in track Next, a a infrastructure,

we of product, half first For in expect this the XXXX. closing second

extremely our significant been We and suited as be that on half is with the contributor towards close see an leveraging there fund Brazil fund characteristics to XXXX. Also, are push this first team in of transition. very strong a commitment. weather invest this excited institutional new energy has makes and to transition credit us to will strategy well global coming new out GP infrastructure strategies our that second and This fundraising about with of geological fund strong has anchor has clean approved for debentures a the our energy incentivized the expected top investor a

We also strategies have our as products. opportunities such listed across our existing

five come funds which offerings. follow-on primaries have on kind market and to continue challenging. transactions REITs, listed markets for with We are fully as clean are eligible still deployed to back to work paying These

and However, strong XXXX, primary in conditions have noted, later markets as traditional been open Brazilian issuances in previously the could for year. up

at real We new two by go as and credit listed Vinci. to planned have funds co-managed estate to our market well, teams both

for on teams out the joint in an the a focused We with already of have a on the REIT process are putting Chrimata, venture signed new investment the sector focused agribusiness which company agribusiness sector.

and will initiative very BX, securities. leasing fund Securities This in successful real Credit Vinci move mortgage-backed to The perpetual second a is that estate or strategy before. capital VCS. was in our a a credit is have estate credit exciting fund teams the for for This real invest infra our very move

it. segment Strategic that constitute believe market private are We market early business, have underpenetrated focused And allocation big At in a funds. have long the an is in service we great very a or new we called strategy. very pension This the really first funds focused on the entirely plan stages, believe that it to allocations IP&S dedicated about Partners, our our effort market is Brazil. fund last, term. still capitalize we our VSP still a us for can extremely IP&S This Vinci fund in excited opportunity for reason, segment, VSP. is our in a we market is and in of private opportunity in on on

retirement strong and funds. to developed limited this We're more solutions and products most For have net alternatives strategies, seeing private towards to mostly in migration capital being pension long-term country type segment the is the individuals equities driven, bonds, federal high this for families. representing markets retail market exposure us, we very anticipate worth in and Today, Brazil. and in of allocation, same happening hedge exposed change for

receivable of or million currently to on depreciation increased Slide to driven that in increase performance go VCP primarily Performance fee by in We totals III BRLXXX XX% fourth total BRLXX.X market accrued year-over-year, XX. in fees over our Moving quarter, million a fees the fees. funds. performance in XX% private

will the Transmissao. performance Vinci Transmissao the During recognize in it's sheet. BRLXX statement. IFRS company's reversed fund highly fourth not XX. Infra Partners only be and FIP of income revenue The in Vinci as as in had Unrealized of the the that Infra fees booked BRLXX.X from unrealized million revenue the Infrastructure the when realized performance fourth the end probable FIP million to performance fees are quarter balance nearly coming performance of according XXXX recognized quarter,

segments. performance up towards coming Advisory BRLXXX private sheet. In year, eligible featured million when this year company's earnings coming from XX, totaled that for XX% periods. enter end the investment phase expenses revenues up Fee-related quarter by million Accrued for and year. fourth also performance the been to fees quarter fees XX% million funds related XX, our Slide and market represented next final for our Total branding year-over-year our in periods expenses performance following the for full We of a projects shown year. The XXXX impacted the outlets million quarters. in at present year-over-year. totaled earnings. these strong fees Slide XXX% XX% as market company. that content up $XX management as will can million further quarter fourth of for quarter across was to unrealized AUM divestment over was media BRLX costs to private the BRLXX.X XX% quarter, representing accounted and full we equalization Vinci performance and of billion as realizing up the the gain share, we operating quarter In the or an in end accrued go equity we we of in IP&S the X% in our in balance fees In fees increase the quarter expenses BRLX of year-over-year. fee-related year-over-year being BRLXX Management not in for had booked exclude have major in private our work the full of year-over-year. the few across XX, BRLXX Management in or per all funds million, continue full the from funds additional fourth advisory Slide BRLXX and million contribute Brazil. have public fundraising were of in still $X.XX

indicator we to with FRE the when margin, the fourth FRE XX% in XX%, management of XXXX. of X we and Our public chart, ended points Still, bridge branding been margin FRE of costs revenues we continues present the FRE FRE representing year, substantial in a from fees a project in the XX% would In be and margin, year-over-year. the have core just company breakdown year higher In year. the in advisory. one percentage expansion expenses. discount business than our of BRLXXX.X Comparable of FRE with quarter an upside growth increase and million, full coming was fee-related margins

liquid strategies severe Slide a XX, weaker BRLX.X year-on-year. was a liquid down PRE We performance in performance most with XX% the markets of BRLXX Next year, the in on public our quarter funds in charge million of year due the million to full in as half our second the in volatility in high-watermark. year the and had

the Slide as the in earnings. a realized we positive realizations coming year coming already investment hand, quarter private go Infra coming international company's in had totaled other which resulting portfolio funds, a in this in the BRLXX This funds, income in performance from to realized gains IP&S. Realized fees GP BRLXX quarter the from a the we the full from income realized $XX.X substantial income Total portfolio return PRE, in in our in impact financial the We distributable our Transmissao. in coming Realized the exclusive about capital market Infra the million GP our we amount for the proprietary in had In from primarily from realized unrealized in our sheet, neutral XX, FIP a our had income impact coming FIP liquid million year. a investments million for funds. was mandates in and full GP fees quarter, also over totaled co-investment financial fund in Shifting million on liquid market the position. full BRLXX company performance BRLXX.X in and On performance GP million booked income in had and balance accounted but investment year. year. private funds in of investment

from most as fixed income to the recent are We in to our expect income interest of increase products. financial cash benefit allocations rates exposed

with exceptional was in After Infra the XX. Turning and income were distributable up earnings fees, to the result the investment impact combined on BRLX.XX million performance from management the After-tax and XX% by Transmissao. or share full BRLX.XX year, FIP growth tax, the earnings year-over-year. advisory BRLXX.X realization fees per or distributable per in Slide up positive boosted share, GP of quarter XX% million BRLXXX in totaled year-over-year. This

show in we with finished investment and cash XX, or investments in approximately Slide We in the $X billion cash quarter share, cash position. per net per BRLXX.XX BRLX.X Finally, share fourth balance. our

half called market with the a of little million that company far, already funds committed been over by have into BRLXXX So funds. capital has private the

XX For it Slide I'll our see with to over go more this segments. that, And of please turn Sergio to through detail, presentation.

Bruno. you, Thank

to segment highlights. Turning our

level the IP&S strategies from diversification distributable As resilience highly earnings. segment our main private market of is followed to business. in with reflected contributor see our our our is XX% contributing and FRE by can with in XX%, liquid you with and The XX%. diversified, in that our Slide is of financial came XX, XX% advisory same of platform strategies, the XXXX

Slide in market and XX. the year-over-year fundraising up starting impact IV. REITs XX% grew and of and new our following VIGT strong private a final Moving closing of each the real FRE fourth estate follow-on VIR XX% strategies offerings to segments, fund quarter strategies the in within with AUM XXXX. on year-over-year, with infrastructure, in was our Total on

market year. faced resilient, a the half second were REITs of Our challenging in the

the closed exchange Our of challenging growth during in our the shopping shopping to swap market scenario. codes fund assuring transaction a REIT, share more pioneer deliver capability acquisition a for mall VISC malls, REITs four market, solid

launched announced first and throughout XXXX. sewage commitments segment investment, its do VIAS partnership Infrastructure raising million recently Our a with water strategy, BRLXXX capital its VIAS, new Brasil to in Aguas in of invest X, CEDAE's We this deploying the raised. public with is concession of Brazil. current XX% sector extensive concession the public the agenda capital in Block a opportunities believe with

Our closed-end and private Transmissao returns. III, XX% in market reals current infrastructure XX% at and IRR of XX% IRR funds dollars. gross outstanding is continue to in it's gross gross dollars. IRR deliver in a in XX% at VCP market FIP a marked

earlier of addressed in an the realized in Lest. on our sale FIP its the and income. and with we call, This impact Infra realized posted co-investment realizations performance Transmissao fees As quarter had investment the important GP

the revenue by up Moving year-over-year, XXXX, of positively with rate average basis of a the agreement driven driven on which depreciation mostly significant full down fee the the on impacted Investments FRE was in fee half second the to and were XX% of for year-over-year, year. end decrease strategies year Slide XX. XX% AUM in by beginning market sharing GAS Liquid XX points. primarily the management by AUM our also

mandate made as a of debt discussed in in which management co-allocation from equities we significant of BRLX.X sovereign wealth from Vinci volatile. one first we gains original The had did at get to from realization of does not a pay in in as As more the this started call is the not The XXXX, still the the the our was time. was mandate call, early markets we public under billion, management year outflow half in fees. suffer mentioned outflows and investor we

So the we revenues. not management on are our have By year-over-year. fee up did any impact fees contrary, XX%

XX% markets results million strategy, our in on liquid year-over-year, great recently. Still XX our year, Slide negatively fundraising the PRE had our over mandates. like by million, was in Much PRE outstanding IP&S across international a full business increase of the strategy. in last XX% was full Moving in fourth quarter. volatility we BRLXX totaled up FRE the months year, our full on vertical notable strong separate following year-over-year, showcasing the mandates local our in the impacted XX% the XX. year, VIE exclusive our up BRLXX.X driven Segment performance IP&S in trends to

XXXX. IP&S that is confident to repeat in are positioned well success We its

XX, of Slide quarter year excellent ending an in increase was our full another call. I BRLXX.X for basis. thank fourth reported questions. in call was open In financial quarter, XXX% to on would joining outstanding the year, XXX% With like the for a That's it we today's presentation. with Operator? million, FRE again, results. advisory would like FRE up you year-over-year. that, Finally, the Once to year-over-year the for

first from question Our Instructions] [Operator Tito line Sachs. the comes of Labarta with Goldman

think increase a this about A a as sustain your couple in think how that AUM there. if or of public to for bit would you saw public on you How the fees for question questions. year, the equities. that what should I guess, first And you on level, advisory mentioned. market we in AUM Curious healthy, to particularly the be you very second advisory normalize fees can continue if equity do ability has the been current environment? bit then XXXX? about under still pressure to

thank question. you much Alessandro. Tito, That's very for your

difficult this Vinci. starting think to question the we Just of first at But business with changed very adviser replicate conservative level to at be least, same this level adviser the for expect. it's fees about that fees. year, not we'll your sure, of with something We

same more before, and than of lot at a also engaged been year, banner of in more important higher I in mandates clients. able said time, number this been the fee-based the a have reach XXXX as especially type for With of we larger mandates. have And we to M&A advisory,

was tone. line level higher terms special XXXX specifically we in normalize this of year. a of expect a very business So this But revenues in to of year,

now level we coming from Talking for the the the sure, not business. the public for same about equities. revenues raising here advisory expect for So about our bar do XXXX. But we are

the of money institutional of accounts equity because a in our As terms you public market, and side very the especially from Vinci, saw, money of comes majority despite we investors. keeping in of the separate managed the course, good performance had, funds

not still are the seeing back money coming now right We from retail.

have very investors We activity a very, far. institutional so from thin

know, is what for public are seeing for last some translate international not a see this public now. If did -- not inflow country time, first public I growing important are private foreigners the so coming happening equities. coming a three We the in equities, at But strong translate from from not the it's for markets for least and in not we business that investors redemptions. will our case interest Vinci, right our this years, here is just inflow. an equities. don't in for, just very we This seeing, did in many at But for still not in interest

with we for in XXX. we see inflows, said, This than the say. seen I on last a give forward but on week, something prospects. mandates, three equity that and have that. specific also one more how Brazil, still call. is question had joining in around can think, from As just average coming last And the more early in macroeconomic also about I current much private going last clients. side, clients XX grew we it's than the clients time scenario years, have point first We from I more in we call us did, the this the will translate XXX for elections one market if interest public that about for the to international But you

So of this, a coming in for institutional Brazil from investors. growing foreign interest us, sign

on it any your of to this FRE have on expect that year kind right, growth very pressure follow-up, you see lower which But If the how to continues give can margin one FRE grow strongly. you margins. continues, margin XXXX? on evolve do just should some Maybe does IP&S, outlook or for the

No.

the expect continue, the same but to will the We this stay growth margin business. in

this it's two seeing now are the still, a little market in in with the We quarters, better. volatility last bit even

our interest institutional coming a seen have from We continuous business, investors. especially in IP&S

for in mandate will allocation, income to more, more steadily can allocation and conservative agree ideal park we migrate let's portfolio. conservative So that that growth in this money with continue we then slowly this the clients say, because fixed expect an the asset we portfolio, like always

Vinci this this margin, we So see the why done terms to But same that we saw at at we very before. mandates continue still the money being the stable continue flowing in to that's here level see and and of interest in.

mix Tito, 'XX a of year, just until continue We associated Alessandro. towards bit that This now, AUM had IP&S. in but since the more little the we years which to complement with on 'XX, the FRE expansion we was nice grow side the a of few was to saw business. AUM, expansion

an basis a our well average lot fee of got rate 'XX. in some has XXX on get moved So XXXX, We FRE 'XX. in the almost in margin as not did expansion although we traction points

expect the expansion feel will year, the the we fundraise little pronounced, expansion with in we movement 'XX, less FRE through margin to going have the throughout that likely stable And in For markets we margins 'XX. that then be that bit more in probably resume a private 'XX.

less looking more how profile at margin that's the going So or forward. we're

Pactual. the Buchpiguel question next BTG comes of with Our line from Ricardo

tax color comment but good appreciated. in be the P&L and any is please on for we you reason would results. the year, should Could in the the know of fees rate the quarter? a I that how lot the expect for flowing lower uncertainty there Congrats performance this slide,

the for Ricardo, question. you, Thank

mean, in that in the our obviously, performance, business. depend of on So a of are that perform, side are of short performance now how have the the funds terms the markets I term right? lot liquid accruing So on we we

particularly a or of that year So watermarks. our products the AUM. wasn't A have performance lot side XXXX in of high strong for

how markets really the on depends perform. local it So

side, the Brazil we year on side. liquid the started the positive on think in strong I

lot So to rate of we exchange a market the stock also had inflow better. stronger the The performing market. and is is

if have -- well, of Infra sale have year, some think I from the as we picture the that throughout the So of we fourth to a do the part in impact and that noted a better had we we in had from than Transmissao. side quarter, of we XXXX. probably continues that liquid extent, the What the will business FIP

to divesting that from rest the of fund. continue on We work

be So the divestment year. to conclude we through that expect able to

be impact the will And concluded 'XX. expect for the similar to the 'XX. fund We in what divestment be of we of that rest the to had in

the to to magnitude we're impact earnings in portfolio, going same another 'XX sell rest less number. more So of distributable the have if of the we're or able the

sale to In the impact neutral close tax, impact tax behind hoping rest it's year, a is that the be income. explanation and flow majority rate going the on the of into this this So had year. to distributable low we is the it to the the PRE we the regards of financial are sheet. because already a the to balance earnings, positive But

the impacts financial taxes. income statement, of So it our net income,

taxable a So it's not line.

already the pretax you at been the that when income, taxed. has So of part result look

that's the So going that continue income, of we than have rate statement, tax is the profile income extent is last same little that a the forward. realized had will the we course, mean, year. to to continue the what income to bit why realized And and flowing lower through rate have I tax

explanation the that's the So behind line. tax

Thank you. questions time. like I would this conference any for turn And Alessandro at to remarks. back showing further the no to I am And over further

in we questions, I could company, like support That happy that very to, the very and we you and thank you possible we Thank did our of much. XXXX. the and outstanding a for or would thought we IPO. really with again, results did, another are deliver what be we all the that very first in results the a year the as time can public during hope year deliver we will to was line like

like to next I much, on thank I to our and very hope you see So call. would you

for Thank participating. concludes This conference you call. today's

You now disconnect. may