Vinci Partners Investments (VINP) 14 Feb 232022 Q4 Earnings call transcript

Good afternoon and welcome to the Vinci Partners Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded. I would now like to turn the conference over to Anna Castro, Investor Relations Manager. Please go ahead, Anna.

Thank you and good afternoon everyone.

Horta, Head Officer; Sergio of Financial Alessandro Equity Zaremba, Passos, are Officer. and Chairman Investor today Chief Bruno Executive Private Chief Joining Relations; and

actual financial release, we are on to available uncertain materially. statements, not the today’s statements. at results to of presentation a call today, like website the firm’s press and undertake I’d may you Earlier in which outside issued our differ our do control which remind duty statements ir.vincipartners.com. are may for quarter, forward-looking from slide We and any that these include update

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

Also offer non-GAAP purchase call to also We Partners note and to will nothing release. certain measures constitutes in solicitation interest on Fund. to sell this offer will of an find or an you Vinci refer any that an reconciliations the in

will Alessandro. turn to the over With that, I call

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

We to join full today the Vinci results the all are of million very announce posted in fourth and XXXX. of BRLXX.X year quarter. pleased distributable as for earnings quarter we adjusted you

BRLXXX.X year an earnings full the compared per earnings BRLX.XX million our totaling XXXX share, adjusted per when common For full increase or in year distributable the X% for of of cash XXXX. share of

amounts to with our substantial while more FRE turbulent through contribution generate from navigating cash and by has resilience Vinci portfolio. model liquid its business markets. was proven added Our able again once flow an uncertain investment predictable of backed

while on dollar full $X.XX undergo drive quarter shareholders. to a for cycle the in significant can dividend a company per meaningful growth yield As quarterly common fundraising we following year, compelling to totaling distribution the able share $X.XX the a announced the maintain dividend a years. the a result, of We that representing in its will be fourth dividend

of SPS, the by driven close fundraising under in year, in billion fourth for of long-term in year-over-year, the up Vinci. the will these which drive BRLX funds margins of alongside cycle capital as to and the Vinci. we cycle the billion to blended growth Vinci market a subscriptions expected rate In with new acquisition push raising management, acquisition of than BRLXX started higher market roughly XX% fundraising XXXX, the This AUM in BRLX higher quarter second across products to billion year. ended SPS half fee represented average long-term assets private private allow Vinci new for the for and is fee funds carry us over current fundraising a

And that, and our that on of stability predictability. to earnings directly top fee-related contribute lockups long-term

climate investors as in extremely important Vinci’s locally. of alternatives. exposure as institutional given that to increase going their and that choice institutional players Brazil one-stop shop trend of These forward are institutional half first an anticipated the BRLX BRLXXX we BRLXXX This another infrastructure fund fund player our commitments institutional from in debentures quarter, credit, call, for local in million we billion change in for from activated and VICC, had as anchor partner be to reinforce alternatives position believe our signed relevant in for continue should last XXXX. commitment a being still million already Credit an infrastructure in players VINCI earnings investments BNDS We our which the to Infra, under-allocated

market existing also opportunities fundraising products our two environment a a cycle following while on leverage tightening interest better our across to products, us increasing two BRLXXX and raise despite rate were Brazil, we REITs challenging diversification Moving launching approximately capabilities. million fundraising sharp to to additional facing and in able allowing tackle

window rely experienced position new ourselves of tougher a REITs. in while environment, to to continue team for our highly creative a will We we on opportunities be in

between we trend billion the raised at only roughly time. REITs XXXX, and across at If BRLX you the X XXXX look

worldwide, X only room not across in of segments, global market an pursuing conditions central important with diversification can banks real vast over growth rates. for year, a faced quarters. contributor raises. next of cycle in rates be Brazil, being now to favorable encounter that This we primary around curve easing Brazil, have REITs interest and but have the when benefit tightening a capital challenges, world credit the In few we several the estate market the we with our more We our ahead AUM for

face numbers. also a top that of However, volatile environment on our throughout year public markets in we still AUM impacted the effects mark-to-market harsh for fundraising

equity a In XXXX. its already invested. performance strategy, its anticipate fifth VIR, the are stake private market Nonetheless, strong to leading pipeline we originally of continue exceptional IV and strategy, is in deploy XXXX a to the our Arklok, a enter exciting In investment we opportunity capital VIR company strategies. has an impact is XXXX our base investment, controlling may flagship to an our of VCP led This half an IV investment investment in been its platform. Brazil. several experiencing vintage with pipeline equity, new across to of private as first opportunities Hardware-as-a-Service back our favorable vintage have its this vintage in for deployment seeing of XX% from in quarter, capital fourth we within exciting announced aligned

X so to over with capital compelling vintages continue strong thrilled its vertical deliver outcome called and is has performance third year transaction the this deploy to the Another Vinci already capital from and in its SPS room far. are one-third SPS of vintage inception. little of with than we commitments

the fund-raising fourth of of beginning vintage to and expect the between XXXX its XXXX. end We start

recently fees credit to Infra portfolio to as capital risk-adjusted quality on position start Vinci Finally, now increased this light a spreads have capital. in the deploying of Credit build accruing allowing fee superior a and is only tighter fund conditions, management charges fund Credit in of returns. good invested

focused platform. regarding firm our its outlook market-leading our to aim the our improve business we our view and to on our have skewing performance Since our been able ultimately develop what growth continue development. turn becoming drive We to several risk-adjusted capabilities across these accomplished have the and on developing now of objectives a we new of company. public me proud with we driving platform have Let products, been are to hit team since and IPO, believe we and strong

against BRLXX figure. rates time BRLXX had of in expansion the of At backdrop in almost against historical markets. rise our the a XX% This local IPO, a of total year-end we in interest billion achieved global a billion volatile AUM is

with to be our will of margins. the Now in focusing deliver the strong benefit growth our investments platform, focus on reaping efficiency

aware We experience how macro and could they our business. also of acutely are affect

this Given looking worldwide the interest and to across are enhancing increased productivity rates, level our drive higher with challenges of consciousness on and efficiency cost focusing platform. inflation year, we

business we growing and keep on and we both inorganic While focusing efficiency bets. our in active still organic productivity, in are

number of firms around seeing the raising capital a make all in And are value way environment. would We generation for high-quality partnerships headwinds, for allow conversations a challenging should that the facing involved. a this parties

new with cash with Our XXXX. strong around also balance our structuring was transaction the as in SPS case adds flexibility

client cash expansion, potential on deployment sourcing our have market our are opportunities room on into corporate proprietary of and can product acquisitions, grow an we base different looking top managers interesting very which are is private can FRE offering. We macro current to CEDAE smaller private by FRE growth and environment, to to believe under active a focusing M&A in We for to acquiring that front funds. believe our be highly recurring on capital the several this synergistic significant especially in be which there scale perpetual market-oriented tougher location complement products,

open-ended let finalize press of insurance, the life been VRS. superintendency for we on we In start plans To launch was our Brazil. to the end announcing our SUSEP, our time are November, approval set that release milestone by SUSEP’s fundraising. has published spend my and an for and retirement Vinci into Brazilian approved important as in service to new pension update me some VRS operate and a an remarks, product provide private now vertical, insurance efforts

billion would to why into pension we like our are increasing characteristics, platform, BRLX.X product cover industry. our Solutions the plans to have within we going the we Currently, Before investment Investment pension active fund, partner and regulated under product, of insurance product manager a the of company. which distributed our this plan remains the as In products. are stamped custody we is which

With VRS, the fundraise of to increasing our custodian this allowing become with have current access another from opportunity this the clients our pension addition we will contact and main are believe capital. to to access to to three will ability fees. of provide of service assets VRS there thus us also pool the market. We plan funds, pool reasons and our in points

years. AUM more than a it’s growth market First, with over last BRLX and in double-digit sizable the trillion addressable

outflows, in have markets open-ended of another year liquid While struggled plans with pension the inflows posted XXXX.

plays a from open-end and of insurers. lack number XX% connection consolidated The requirements has players. to barriers number hands significant been offering industry we by is of a decentralization and only to the of are there of independent banks has of plans Vinci from Brazil, a restructuring in of This position the the low market caused to SUSEP sizable by is has capital pension of seeing traditional independent of is numbers single-digit plans. incumbent attested has can This requirements. this in industry. the Currently, relevant direct close the in Vinci’s opportunities, which capture banks. address, expertise as relevant Second, alternative number a portability recent And portion entries pension of players players growth incumbent several one banks. to number a a flows third, unique a that’s

Aligned market strong our advantages with our from setup positions a of competitive offering opportunity, competition. that to approach been differentiated with VRS assure the that product vast has

and our a etcetera solid allocation retirement including VRS annual factors, by clients. mechanism assist as tech it one-of-a-kind developed appetite, Moreover, and goals, a have user-friendly customized evolve will tolerance and priorities our based lifetime. provide may for algorithm through clients a a technological a To by We supported digital developed full experience risk for have review backed enhance our individuals’ objectives, platform lifecycle metrics. an asset to offering on investors’ we risk tailor-made the is many customers, targets adviser to and

two a to ultimately outcomes complex for have process The pension goal have most users. positive on experience for best simplify is that based will solution which the beneficiaries. the suitability product Our we industry, is the customized in

investment individual shrink different on also as volatility It of increase worth to part the will to passive second, matrix. offer preferences. base, selected through investors’ a the focusing will the proprietary which tailor-made net condition type has low-cost pension to and product’s it returns. be will addressable as expanding current results start the driver should our capital diminishes funds reduce over depending allocate efficiency capital gap and cost fundraising long-term billion a funds our quarter of of And client’s customers’ ultimately on expectation leveraging We addition opportunity. we BRLXXX large approach between asset over First, in growth corporate allocation pool, segment a market tremendous investor next of will efforts, impact as portfolio plans, short-term and high a a market, the with

updating and our We new investors remarks, to apart achieved. milestones as are following: will the I evolves on business competition. calls ourselves the the in that my we stress keep challenging quarterly environments set would finalize it’s like from To

to market. product capital offering in and platform, us provide to raising results client the diversified deliver highly challenging solid stability both still in base a Our continue

this position to capture We long-term continue excited and our are the platform to about potential opportunity. growth

With will results. to that, Bruno it I to our turn financial over go over

in good Thank AUM quarter XX% XX, trends year year-over-year. up Slide Vinci you, AUM, afternoon cover full with and ended everyone. Starting quarter XXXX. we for the will and billion on fourth the BRLXX.X Alessandro

who so our strategy fund launch long-term Here, the on the credits strong far. growing with by oriented by we focused infrastructure structure. BRLX.X compared its in new driven debentures demand end has strategy, from of of a Credit The new institutional strategy post when shown was growth the credit Vinci to great AUM XXXX. committed growth The Infra our XX% investors to in billion

product this throughout We will continue XXXX. for fundraise to

BNDES change operations two and the REITs the in million MBS and fund, new instruments. from In XXXX development and new partnership real two new the first kind quarter investment fund including mall our teams, estate perpetual of further [indiscernible] were the and focused agribusiness highlight BRLXXX launching we on raised signed of to perpetual economy a broaden VICC an commitments, one with in a REITs, to the year Combining this market capital the continue of first sector, its vehicles. These our a funds year. to in offering REITs able product environment to Another credit climate leading perpetual expected exposed our and capital offices between for two hold million. anchor raise in creative infrastructure, approximately our [indiscernible], listed Brazilian through was raise sector these tough throughout other VICC shopping first XXXX. in is BRLXXX close the

fees The earn and accrue fund will close beginning to following fees. capital should first management retroactively at start the raises

to adding fees. a SPS acquisition capital new Capital, a revenue AUM, year, AUM our predictable in was of end management capital At the more the of Another for important the contributor our in in growth resulting vertical XX% long-term long-term to platform. of comprised over XXXX stream

it opportunities or long-term keep inorganic. will organic to actively pursuing We AUM, our to be add capital

million end private market increase fourth BRLXXX.X in fees, BRLXX accrued Performance on funds fees The quarter-over-quarter. as Vinci performance representing future Slide Moving these market crude can strategy Still divestment the their fees. go XX% an X% currently receivable for upside XX. accounts an period in enter performance of to At eligible accrued VCP that coming roughly billion further performance contribute appealing of over from the periods. our funds. We in quarter, our an increased funds. fee performance fees to AUM to performance the investment quarter, had private

credit in quarters next capital impact our advisory cover the management SPS We in our X% raises should new Turning the BRLXXX see year-over-year. Vinci deployment the BRLXXX million fees for were year, up Both of reduction following and advisory products to XXXX. fundraising fee-related in capital this private the fees BRLXXX.X the third few This across closed revenues in Revenues in to million and quarter. and year. will our from year-over-year over acquisition dry the aligned the have the we for a strategies allocate in in was a powder continuing quarter, accounted million positive Slide X% XX, significant SPS in in fees Total with a trend full Vinci down the revenues. roughly coming year. markets, fee-related market to the result Management with quarter of year increase of infra. experienced private closed-end totaled due

when for compared As full were they management fees, of X% the up to by XXXX. year

In quarter down BRLXX.X total expenses we X% down expenses In expenses million present year-over-year. year-over-year. in Slide the the million, BRLXXX.X full quarter, accounted for our XX, the for year, and operating X% year. Total full were

investments variable for expenses X% full following Excluding VRS. year-over-year on increased the fixed bonus and compensation, pressures fixed year inflationary in costs and our

ROPs. more more and maintaining our to efficiency. mentioned opportunities environments expenses As be consciousness, revenues superior the even to said, once service believe protecting paid our enhance that margins market We operating by well Alessandro, will XXXX, we have accelerating overall our With to firm, leverage focusing require in cost challenging productive we while across while on accelerate. attention remain a

on Moving XX. Slide to

in remains XXXX year-over-year $X.XX due as to mind business advisory in the and BRLXX.X We stellar significant share calls. per will quarter growing. fee-related will quarter. for our trends down or FRE in quarter, our fourth for Bear go that highlighted a times totaled over the our a with earnings amount million healthy vertical. we fees earnings few of previous healthy a carry Advisory seasonality X% core

monetary stronger higher market currently In cash policy. in in returns rates looser offset periods is transaction capital being of role as usually M&A interest and our also grow activities a addition, balance. characteristic play by This in

exist and the of to FRE fourth core in compared posted quarter VRS, excluding for we our an FRE which only Management from acceleration of XX% XXXX. did our investments to an asset year-over-year, when the back FRE increase XXXX, management we If rest in Coming the consider not in Asset business. segment, advisory the

also have we as the top in carries SPS full regard been XXXX, quarter As throughout not Vinci Advisory investments, FRE. full prior year-on-year the expected was in fundraises XXXX, private present in on year. of accelerate a segment we back comparison which the the the year given gained market had performance In an outstanding VRS the defect growth communicating, XXXX, to the half to had and of traction impact

we the some business mentioned previously due As growth our quarters, key next see to to quarter, last core over FRE continue for factors. should

will to private some in fee rates cases, carry than higher fund we continue fees and These throughout platform, and the have retroactive of fee for average market funds funds. the raise First, funds the we rate VICC year. start such as the IV, VCP of to

funds higher charge as have Vinci such capital we and Vinci over Credit fees Infra. funds Second, SPS that invested

to increment powder As increase capital have of should still they significant fees. an their Both the we dry deploy. during allocation year, see amount in

capital Alessandro, should and AUM for revenues run by are coming from the next as in offset covered segments. the already to new Third, cost raise This see we this rate the VRS should quarters. segment to starting for begin few

working We and opportunities further combination of SPS-IV M&A XXXX, funds. to productivity half focus Vinci potentially are in finally, irrespective significant launch ‘XX, FRE potential The of current factors creates develop the vintage growth FRE and market capital on a now these possibility and big also drivers. with in a conditions. how solid And company-wide of the could for allocation base also improvement of present expansion of efficiency anticipating the a for opportunity additional on depending back VIR V

up X year. last Moving margin on percentage compared to XX% same the was to margins. FRE point in quarter, the period when

was we prior year XX% year. the also VRS, the full XX% When FRE adjust year, full would for the For in for margin to have investment margin been the margin XX%. FRE disregarding with compared

this income XXXX. occurred in year-over-year Infra we and Vinci to down the our million go quarter FIP fourth had quarter, in of Transmissão BRLXX.X GP Financial income. and Financial realized realizations Shifting Investment XX, Slide due GP that realized to in over XX%

rates financial a a last to which traction quarter, This fourth with portfolio. liquid quarter. local third due widening market environment the resulted our had quarter we the anticipated our results faced we challenging stronger-than-usual when over quarter. third in in impacted more future As result in a In results with interest compare the performance markets the considerably modest we positive financial quarter, more we

are As which rate the of for returns liquid highlighted IPO. see since our been of in XX% in return long-term the the at past, CDI we and portfolio, average our cyclical has return these movements least should

with called. markets As deploy of called a commitment of the these across as be fourth reminder will The commitments private billion been of over products quarter, time already reached GP Vinci to total closed-end one-third and BRLX.X capital. close funds

continue to balance our will We markets. to cash leverage private new raise across products

as mentioned, value monitoring Alessandro M&A to our Non-etheless, FRE opportunistic closely to growth, shareholders. we’re transactions accelerate adding

also our an delivering Our plan share shares. concluded first have of the strong Since of of flow in ‘XX, quarter important our we played free the to substantial second shareholders announcement value through X.X the cash role repurchases. million repurchase buyback

BRLXX We million, in Board’s are in cash an and additional shareholders. the benefit will cash company’s reflects long-term by growth that announcing which of our prospects program way earnings today deploying confidence buyback our the a from

Turning BRLX.XX, totaled the which share XXXX. when or to earnings up XX, Adjusted to percentage or year, compared X% full totaled X% adjusted to increase BRLX.XX year. XX% down in the in points an Transmissão DE of compared BRLXX.X DE by full Adjusted driven million year, realizations X.X occurred was million last through earnings. year. year-over-year in margin will distributable last in BRLXXX.X Adjusted our basis a of the go quarter FIP Slide last on the Infra per we distributable on basis. a

of platform such results bottom line. acquisitions, continue distributable Capital, fundraisings time growth SPS AUM the a value our as through earnings with organic inorganic and through combination our transaction across as drive to ultimately, FRE expanding over We and shareholder expect by the to add expansion

it And through segments. Sergio that, over to our I’ll to with turn go

Bruno. Thank you,

Turning segment to our highlights.

level of you segment, As the see remains IP&S XX%, distributable our resilience diversification in XX% believe of of XXXX with X%. FRE full advisory is year be the XX, in market The earnings. contributor our Slide the we the financial strategies which and with Disregarding platform private followed over from XX% VRS in can same with highly our segment investments main to by to business. made reflected came our diversified, liquid the contributing our strategies,

markets Moving on private segments, our with on Vinci the signing activated fundraising Infra market biggest FRE to year-over-year, the million commitments. Credit investment achievement BRLX the up BNDES XX. strong strategies The in by incorporation BRLXX.X VICC this across fee have impact on XXXX. year SPS. management each Slide quarter, a of we starting were but quarter fourth revenues over in Vinci totaled and start XX% the in billion of and quarter, was totaling in to private capital the investments driven will the positive of Both the the in

see tailwinds predicted advance private an As started previous earnings quarter, continuous the over an and increase we experience to fundraising rates deployment management full million as were quarters. X% average fee distributable markets in FRE we of on We the in management year, increase fee capital Segment to of year-over-year, the SPS. we next BRLXX.X strategies in in private IV boosted fundraising by average of across rate. two should Total growth. AUM strong previously our the the the market vintage our before. strategy, from had contribution Vinci flagship VCP year for end up BNDES, mentioned for private billion all the throughout XX% fourth acquisition driven contributions year-over-year, Adding equity also by quarter, to and BRLXXX.X was

high more the to facing real estate million BRLXXX our rates, exposure an two launching environment with between are success REITs this was to the year. our interest due transactions, factors: credit were with capital and over environment. reach credit appealing which close resilient in and raise Lastly, the to raised behind partnership first, although nominal private groups, The

necessarily the in access asset a has market, kind to transactions having AUM which can primary Second, valuable tougher market we proven raise without scenarios. paying be for which to

when strategies. quarter year. earnings the to for year-over-year. million, over FRE results of the Slide up Fee-related in down XX% to over XX% on compared million, BRLX.X Moving go year-to-date totaled XX. liquid last We BRLXX.X

end for the a public With base compared investor liquid experienced inflow continue AUM strategies. of in strategies to rely Total revenues we Meanwhile, industry year on As to being stability pickup will XXXX. an was steak redemptions the in resilient provide Brazilian we throughout of should limited the standpoint. with our beginning impacted billion at in Brazil, management to fee and BRLXX.X that the the still a AUM of see quarter markets to of intra-quarter consequence AUM from our earnings. equity improving depreciation

Moving on our IP&S on BRLX.X in FRE Slide on to the up quarter, a year-over-year. in segment million year-over-year XX. totaled the million up XX% X% business BRLXX.X totaled basis. quarter,

Over the year, segment mandates XXXX. in DE was BRLXX million, year down XX% performance international for due revenues to to the exclusive stronger contributing

advisory financial financial quarters, several certain advisory predict, markets for Slide This they to due we reaccelerate. as improve advisory of decrease of for previously should full when seasonality revenues and a Turning for FRE in BRLX.X although XXXX to cover and the representing a a XX% XX, uncertainty financial post year. results a over discussed to was carry activity impactful level business, results of record compared resume our advisory. million XXXX, result for was year last the

to XX. million, Retirement We over year, on moving segments. Services the for Fee-related negative BRLX.X negative go and for BRLX the quarter earnings Finally, a Slide was represented the million. over results

mentioned year, cost the vertical. offset this to see starting we this Therefore, setup at revenue quarter. Alessandro should the start some product earlier, we launch for contribution As point should to our

of keep prospect as the business with excited and optimistic develops very updating investors the and we our will the through are VIS, year. We

to for open like we’d call joining that, again, our call. you like questions. Operator? Once for the for to it today’s thank With That’s I’d presentation.

Please question Our first is from Buchpiguel BTG Instructions] microphone comes open. Ricardo, your Ricardo Mr. Pactual. from [Operator

and guys couple here. on results. have questions of I a morning Good congrats the

see was types are a First, you specific want that you related please a if How class on today? results that positive M&As contingents on new can what of mix about have like adjustments believe eventual please bit the or you segments asset And we that another concentrating found non-recurring you would area looking also, in you you class, and believe that? asset into. interested terms a you And develop pipeline talk about considerations. you do of in your little be – something to guys the how impact if there too you talk finally, to and you can

on adjustments provide you color more can what these Thank So, please are? you.

Ricardo. two to will you, pick Alessandro here. the I leave answer first and to That’s Bruno questions, will Thank up the I adjustment.

terms important we very to that continue diversification. In of believe we have classes, asset already a

So, that public doing we asset have we have, have a time that the stressing we as company. continue on been classes focus been will to we the

Of course, on AUM, them. class movements over another in the we terms one of will of but changes the we time, all to that growth believe grow asset

forward. As should a we infrastructure private that and around private come our But going investment that ago, these we fundraising will we classes concentrate recently, and we for that believe saw pickup of you important terms of asset a way. private more activity still go in have being in very diversification in saw we in equity, of classes, but asset markets, our A and saw credit. few quarters solutions,

terms as before, of being see big that easy that not the as transactions. for of we in with we long-term an M&A now, But environment have and are we in we and pipeline the Right long-term. market are quality with fundraise. lot teams pipeline, perpetual a type firms of lockup very more we very so focusing mentioned have M&A to capital opportunity of we Second, or products the today, a conditions market, seeing good

M&A right the are And we market the on to leave private side. Bruno now activity to focused So, answer. I last question will on more

hear Good from question, for Thanks to Carlo. you. the

the has the an earnings attached net mentioned the impacted impact for non-recurring is the number that transaction. SPS adjustment you that that quarter was on obligation our So, that to have we

a of is transaction, issuances. there to which stock portion that So, linked is

deal. at quarter an of based that by We two last revenue and have equity had generated company. an regarding in on additional component, we components closing So, in third a component which is the year, we had earn-out the cash

in price was earn-out So, for in of stock quarter the adjusted change the fourth that Vinci.

impact the mentioned. that that’s you So, that we the had, one

Very clear. you. Thank

Abreu microphone open. your Our comes Ms. from from Goldman question Sachs. Beatriz, is next Please Beatriz

me everyone. Hi or? you hear Can well

ahead. go Beatriz, Yes.

guess I first everyone. evening. the Hi there the I Good that was taking question. noticed be, in outflow IP&S quarter. my would Thanks for an question

bit talk expect expectations could question around and VRS. If was quarters? about you the around would color few the forward? you us maybe If your more that, And going some that the segment little next for give any a second quarter be this or in what outflows

as mention kind expect Do to that you Thank levels ‘XX. And breakeven when of you expect this of expectations in to fee you what in you. from quarter, So, now VRS? have segment? management of you terms also, launch quarter first expecting did any are of you

the This is for thanks questions. Beatriz Bruno. Okay.

So, the and first Alessandro is I tackle am going the to to second one. question, going answer

one to – So, a segment. the bit in portfolio our which why that basically lower assets, in we the our reason liquid third was was the the And little reason quarter, have in fourth had in that the widening in we outflow sorry, regards return coming fund in interest same rates. quarter was IP&S, of in concentrated the

nominal months to fund that fourth And widening months ran saw that on we bonds. to the depending a is rates very three two But is on a fund duration carries the duration in usually of short-term the the or this the increase portfolio, So, quarter, has months short and of fund fund positioned It’s markets. led with rates interest quasi-fixed or below the couple looking duration it the in redemptions. in or a the views that that shorten income bonds. some usually, CDI

had same of real which a couple that was monthly prints due deflation in the a short-term duration the we effect to also hurt the think we quarter, rate third reason, of interest prints, different had I but bonds. that

of terms fourth was saw performance. very in the quarters quarter different fund. fund on We let’s in redemptions hit, focused So, this for reasons are some that we couple this a of say,

CDI quarter, the we already first in running above in are Now this fund.

of performance couple first the of So, above is months, CDI. XXX% the

that have online So, we should expect some and next months, to And regarding have a effect also few to immaterial. also to to mandates do new we impact. eventually the expect now in IP&S, those become come positive

transferred are merits us funds the to few – a the won months. have We next be going are those to going that few to be in

couple next IP&S a of in expect quarters, we positive have inflows that happen. the So, that should impact to in probably

question. ask So the – cover and then Alessandro second I to will

Hi you your for Beatriz. Thank question.

launch said, clients. we said that, our but near means and high clients corporate. of have start we we wholesale more type of VRS, massive with we of especially through net as worth also will very that – later, instead selected will of with kind more the with product, that start are going Regarding Having the clients through we

idea in XXXX, our of idea we of breakeven of the that, platform. in view, a systems, in is to the be said running make slowly technology start and unit in ready to more Having transactions the XXXX, have in use all start maybe it everything breakeven standalone. our test to will as So, beginning our will to already terms more to a the VRS

Perfect. And just if may. a follow-up on that I

to level are Thanks. terms something client you fee in base? guys to closer given thinking of liquid management an if something Just or closer IP&S the strategies

we of have funds that will itself two income, That’s on have are good depend inside will different that very will have and the The okay. VRS, insurance mandate sources we insurance we question. today already fee scheme company That part a type an the being in the related the with that’s of charged plans. because management on of pension the the company, also

have we revenues. two of So, type these

course, the of will the like depend company one will asset type on the mandate. and one itself And insurance be that an with another more Of related management.

external carry ETF we the of to will a And overall have more we carry, But this. technically flexibility maybe different higher use you products something we have products fees. more a also components build will a of alternatives that portfolio IP&S. as as could portfolio of the compose client that like similar and We so of kind more said, to lot something to and own have traditional that our to towards

related you to If of you you the view, that. IP&S. we allocate more more But alternatives, in like with liquid and fees like the some more the allocation have point client like go more on will an go higher for asset stuff if direction wants

very Thank you. clear. That’s Perfect.

question from next William, Our BBA. open. your Mr. comes Itau Please Barranjard microphone from is William

good and night. the for you Thank opportunity

So, here. I have questions two

one regarding for fees first of the realization is performance The XXXX.

is us year later And second you year? here expect half can raise. this question also the capital second evolve So, of share – do and to you how the regarding it earlier then with

that, the being view long-term or should and how which with part easier you AUM overall the So, mainly grow the capital business? I to raise products understand this be by like we and year, increase would if expect should That’s to in harder pushed of the questions.

Thank you for the questions, Bruno. William. is This

we funds for reaffirm expected have side, in balance booked an there made of assets we our PRE of a infra is And in that already to private our expected of the remaining statement comment – is So, side, that the Infra realization realization. expectation I on Transmissão, the which sheet, is the asset side. exits FIP just think the which that ‘XX in past is that in our income the in I have, and sorry, the one in

the sheet. We potential also particular In have the we and in that GP performance also shows that this in asset, future balance investments. fees the slide have

lines. assets the case we the an first of impact in asset was as will both that second So, ‘XX, the realized have in

have So, we are asset. around demand an million investments. to in for GP impact million, earnings. going is That to impact be our impacts There significant impact for should two the also the realize PRE in combined and BRLXX distributable BRLXX an

getting We are we by have for inbounds assets regulatory be the strategic received approved the finalizing licenses but already from to required fully body, players. the

coming should market have In asset we private having So, ‘XX. past move for easily, fundraising in from be quite discussed happen quarters, the the able the the in from our that’s in confident XXXX regulatory we to to target regards to funds. feel we the expected that and approval fundraising, body, few

in have of market all the have that the them We ones today, mentioned. we

have fund, VICC. we So, the we credit have

despite on of all. very that we fact This today We That a We globally, we in investors strong Vinci today, markets. market private at haven’t view lot interest equity the in V of eventually been bit all most is a have anticipation LPs VRE a also of what an has IV. is demand of climate the seeing funds, for private SPS. that theme that global from area My pullback transition theme the basis, really have the should are effect are these little funds. we is seeing a seen and VCP a that of between

funds. looking So, still people really are strongly quite climate into transition

is still In right. thing there this view, advantage under-allocation this globally. Brazil, a severe think in competitive to a our has to I answer of question, part

country. renewable very, peer, very good in natural Brazil, very a for resources your they the load if you American to factors compare have differentiated you are factor. when geological We load The factors, in even energy look at load and

So, in we way. efficient can Brazil much operate renewable more energy in a

So, this funds has we been more the seeing one were that of traction.

IV. well The are as about Vinci is other one SPS excited that we very

So, we partnership are happy with with the Capital team. the SPS very

We fund to market. a as seeing IV. about to are regarding to investors from will lot receive wants Vinci of SPS local funds. We to well when Everybody us the regards inbounds come in talk anticipation fund the the

that investing, that’s product AUM. we and to we online our impact favorable So, another potential once have we that impact, have it feel available for also

in we second of see the I year. right. That’s half half think a from for ‘XX, private last markets, second to we of going case ‘XX, saw the are of was what the as protagonist

to fundraise that as these very to of in think the of well we We market the still going likely I that was we billion. few continue in see size ‘XX are quarters from target ‘XX. of funds funds, to private going pursue BRLXX last sheer case have the that of as it’s are Given protagonism the

are getting ‘XX. think target a are of we hit standpoint, the through halfway seeing but probably market from I what halfway to little going through, kind from we of with through. end a the halfway demand kind less by that bit are Now, we And than of

the say, improved the and a outlook we that number we REITs money about in portfolio our the as And BRLX.X that market, equities eventually. conditions in well. us So, will be on have when we areas improve. about for billion to we of right, for I half also a side. obviously, that’s what an strong a call continue fundraising couple engine opportunity That an the in REITs, where that And quarters, names for raised that talked first we we if It’s fundraising positive had the liquid market we think IP&S in a feel talking products for was are see of group ‘XX. to The we of raised. raise open hold, let’s that today. the

So, have and it’s we we today. – than had fewer REITs

in more have available we we did today, products fundraising for So that have ‘XX.

basis environment when interest hopefully, lower This next So, and we rate or year group a of quite fundraising from an the meaningfully expect interest interest a on more the have from start end of a us. by be firm year can contributor on we once ongoing be basis, an standpoint. this coming has rates benign can down, relevant And that ongoing contribute it the AUM an products for rates, a the market of standpoint. for can

That is for clear. thanks answer. Bruno very the

like Thank remarks. Mr. for Mr. Please, over you. can the proceed. the would you That’s turn call to for to Alessandro today. Alessandro, I final now all

for provide public a from all dividend and to continue that I we our expect So, to like company. very and derives yield. years like I a share X your at to time, that would we model have since you same tested profitability thank our the grow, good would become support And the confidence in optimism very last to resilient

So, to night and you good you all. thank

presentation. for Vinci Partners conference you today’s call has now concluded. attending Thank

a You may have day. disconnect now and great