Vinci Partners Investments (VINP) 7 Aug 242024 Q2 Earnings call transcript

Good afternoon and welcome to the Vinci Partners Second Quarter 2024 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.

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

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

We and certain find will nothing BRL of measures, reconciliations or million, Vinci record interest an solicitation non-GAAP on quarter quarterly in August share, call over that, share, or an per BRL per million, any that XX.X purchase or the BRL XX. With offer as in XXXX. this common X.XX results, adjusted refer generated note to dividend We call of Vinci also fee-related to distributable turn to funds. On of BRL and second shareholders an to share, sell earnings I'll of declared the you'll Xth release. on offer a to constitutes for Also Partners $X.XX of earnings XX.X Alessandro. the of X.XX of September per payable

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

XXXX. pleased you are results today of join second to quarter We for very as we the announce

fee-related earnings year-over-year start we a a that posted, growth saying on Let in by again, me once basis. double-digit

Private of progress asset over fixed-income Brazil. quarter fronts. We global increase despite for new past capital a in for Private remarkable notable is nearly challenges outside IV private results products. end has into institutional our both to fundraising for are second Market IV management fundraising funds, from successfully our share growth capital through excited reais, the VCP quarter, for This same subscriptions investments size for continues raising performance achieved the a past one closed-end market. we international exceptional industry raising our these secured equity, the private the in to VCP VCP quarter the environment conditions in we most efforts, class investors. By Despite accomplished worldwide this the in to significant, Delving challenging challenging This and several III equity traditional Market Brazilian tough basis. across the the during was facing per largely share a of Strategies resilience decade. more Vinci's which capital milestones significant to million significant the navigating in XXX in on even BRL asset as quarters, deliver in close highlight reached attributed XX% fundraising These local

our of extremely are the which We our are over but with proprietary with distribution since also the we and LPs affirm have our relationships cultivated private results, not the years, equity only the testimony a pleased from of these performance effectiveness inception. solid channels solid strategy

of IV since We IV are Moreover, The mindset in by gradual highlights in local for largest in terms commitments pursue. in strategy that deployment us to the opportunities as promising very vintage the will Fund Fund stands the enable the a out private remains IPO. been favor. Brazilian moving This have considerable our margin. a shift investments, markets stating we what with market underpenetrated for highly our excited

interest asset and for and globally. classes We markets rates have of private locally unfold backdrop seen this both trend our high a several of

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our investor In Credit milestone Fund. on, in announce significant a this credit private the an to segment. institutional for international pleased July, Infra I segment first we am Vinci Moving for commitment secured from our

third our While exciting in shareholders this share AUM our commitment figures now. reflect only will wanted in we quarter, the with development to this

interests now continues raising distribution While efforts international and was infrastructure, in Today, capital to estate, pace. local the our equities, offshore investors investor have international VCP also we to credit. public a alternative we private international team are part attracted grow, with equity, equity the only invest us with we of our international from real successfully began promising LPs. at business, private investors, private and distribution products advancing was fund When across

strong Our a even further. Compass enduring a and capital enhance the is robust relationship potential with will from building Latin strategies in off, our paying ongoing our America with in flow platform local providers corner, clearly investment

area, The growth. Brazil impact by underserved the remains adding a leading management sector strengthen under to over investment assets industry, expertise further establishing XXX to of lockups. agribusiness will approximately country's Additionally, in Capital, GDP, we making which the in it could promising contribution our opportunity closing segment, medium with have agribusiness acquisition million private MAV announced the its of in position significant in this a to MAV's the despite the BRL the instrumental sector credit in be long-term for long substantial term.

transaction with our announced Moving Compass. to on recent

We The third are closing progressing targeting date in is quarter somewhere smoothly. to integration the process quarter. a fourth late early between

smooth Vinci maximize a the to At business. a a in under strong BRL XXX mapped been simultaneously we us second call, an this are IP&S workstreams engaged end Compass's our This gains synergies IP&S truly teams potential billion continued of this one we merger. Compass the the very year XX the in synergy brainstorm of project a concluded closing and effort, liquid consulting management and way at far map of with companies throughout firm a earnings near from having across quarter, almost during mentioned the strategy across an As is to XXXX, has the position project. integrated was had XX BRL the run dedicated day reaching excellent and to the since fundraising in being strong transition, billion into capturing and support working increase raising we flows of strong to date assets with the assure time, last with Compass The company-wide the global reflecting making strides. the ahead into billion, has by segment. market driven X year so and products BRL both approximately XXXX, good

the billion focused investor with seen experienced Additionally, also strategy alternatives the the on exceeding year-to-date. with Compass inflows traction has credit Brazilian vertical, interest over fund, has In good attracting within its fundraising substantial IP&S months. BRL strategy X.X recent significant

Compass' network strong place in Vinci has LatAm, teams. with already Private investment Markets commercial taking addition, to roadshows also with In their leverage teams our distribution started and

to Mexico host strategies Vinci third In in American clients. all potential quarter present Chile and available events during currently within the the will addition, we investment platform to Latin

and As period are been very time. wasting productive, mentioned, preclosing not we this has

have this aggressively expect tackling fruits been low-hanging once We and additional transaction opportunities closes.

on the a to the like remarks, to will September X.X%, X.X% growth positive. where in is in is possibility their at rates the Compass at still the unemployment meeting. The to expected X.X%. excited week, year Latin economy be and a countries still cutting with across would the interest of take still for cutting about unemployment not will our macroeconomic of start next rate discuss rates will months. To continue work potential several slow and I of Fed moment conclude are We hikes. is next with hinted Last The the moment Growth environment. to we the natural both American pricing my the curve the rate likely interest at is within but platforms Fed down below levels. In work leverage as prospects to American recessionary currently Brazil, in economy rate merger necessarily integration very

see or of would However, consider liquids with Brazil's an platform This for through even by Vinci rates, a the growth, elimination might Fed the market subject the hikes following Brazilian important in short-to-medium curve. initiatives the translate interest closing, drive our as capabilities. underway the to in In environment to from businesses. In adjustment better is help inflows reduction the which expectations to could we deliver message. stabilize multiple anticipated a rates performance, convey strategies, Market across rate for these highly-diversified distribution to platform. our expect supported like Private further growth REITs robust in we I and and fundraising term, its would continues lowering with

the more as anticipate momentum in environment becomes the coming favorable and our global segments liquids we macroeconomic Additionally, quarters. IP&S gaining over

of our a M&A dimension the merger which investment opportunities looking view remain for diligently asset in our region. capabilities added now us, management demand across we regional I and aim both shareholders, spaces in expansion. With landscape assets that, turn investors on call With Bruno. to might over position greater effort, partnerships capitalizing strengthen blank and on the value also enhance front, clear team potential active to possible fill on we and very has acquisitions. to drive to alternative the inorganic is product like on through regional to very the the is basis would solution expansion our We as The to which offerings LatAm Latin regional America. The this gateway Compass to local the Brazil another a our across evolving and alternative deliver and to to into where

Markets. start I'll our fundraising and Alessandro, in good you, by Thank efforts Private everyone. covering afternoon,

BRL anticipated we for had both this Private by we IV. Alessandro, for fundraising strategy, by the VCP institutional international Backed ] a investors, raised [ IV nearly VCP Equity vintage in quarter As and flagship fourth our commitments in quarter. stellar successfully billion X.X local

we the from income for continue build towards long-term virtually predecessor alternative commitment of we've investors away Excluding wrap largest To are with becoming products funds. co-investments, as to closing from institutional by explore since substantial work traditional inception. This with end aligns we IV capital from institutional the seen Fund investors vintage, investors. local for additional diversify has Brazilian our final strategy this their VCP, investments this for VCP year, for they fund to international the interest as local Moreover, about need the IV allocations. matched raised up a and discussions ongoing its primarily we've of aiming commitments fixed the

significant Additional impact fund. a been could management have continue start contributor fees when year. of the we and retroactive commitments the fundraising This quarter a second has the trigger later the the in finalize fees in will significant from to to

to credits. on private Moving

Fund, exceeded BRL We the client class and from for this assets under from established the local Vinci see continue successfully now base. for initial fund that investments secured to The investors, asset has in management. billion this we Credit have commitments institutional Infra X.X which strong demand came

Credit channels. Infra. securing from a significant capital are achieved expanding efforts we July, an by fundraising our Vinci subscription However, investor milestone international institutional now first In other across for distribution our

international In the Vinci multiple to also third distribution commitments and distributors summary, the channels. across are we from to fund Infra is in addition attract demand allocators In investors, channel witnessing Credit the set for quarter. robust

for will continue and Credit XXXX. our through into of efforts We Vinci the fundraising Infra XXXX early end

Now, let's Markets. delve our quarters in into upcoming for Private the pipeline

First, opportunistic is our the strategy. throughout investors just the year. to investors, capital the international notable quarter the IV international by of initial reups we primarily anticipate traction we secure institutional from as previous from worth of vintage significant commitments commitments and high fourth expect end solutions investors third SPS have also net gaining with launched from We vintages. local

which important quarters, primarily have SPS predecessor, connections from billion. It's new raised vintage be considerably raised III exceptionally well, local previous in highlighted As expect this than and joining that vintages BRL the team Fund partners. X Vinci, before note larger we to leveraging to performed earlier its senior the

access efforts with raising have expand we the capabilities our broader of will the for to platforms, of full which capital capital, Fund pools IV. Now,

This return are in the the very target coming of constructive first for fund initial of more half at will that the has We conference above progress quarter next the environment. a The investments levels has pipeline in final returns robust given investment and funds, and details our pipeline anticipate on a infrastructure, for signed a the call. In has closing the fund of year. we quarters. fundraising during already provide made VICC the earnings its latter been

logistics capital for fund's continue target commitments for of interesting deployment Markets key short-term we expect reach We highlights opportunities VICC Private have and fundraising BRL to efforts, X to billion. These and our the the also such next but are for V, VFDL pipeline. strategy II, This equity strategies Vintage and the a VIR strong impact in and second real as estate. private medium-term the our return strategy, vintage in development includes

early fundraising these success strategy funds addition, a expected commence to [ or as are to improve. with XXXX ] XXXX. Besides after new our conditions development All are in In working are soon we as REITs to allocated fully these market new initiatives back on residential late fund fund in ready market issuances for funds, strong XXXX. our in for close-end come novel and the

year were of BRL last with shopping constructive what REIT, that recall our clear example to able in should we more mall span. in billion environment. X-month You a we a a than raise VISCXX, accomplish can more This X is

and We investors would to working about following. IPO, close informed medium-term I Private our expanded like will other actively on. To our keep initiatives and Markets, have reinforce we Private are we Since Market across effort these on long-term the in strategies, comprises Capital. high-quality capital both organically, This various inorganically, like with through ongoing that with MAV is new SPS vintages and a strategies, commitments. resulting acquisitions platform

into quarter, from recent Private nearly Vinci's examining not much strategies. following Private than expansion, fee-related generated was effort Market first quality strategies. from enhanced Private strategy stable, quarter resulted resilient, case business The quarter last XX% earnings XX Vinci's of more of the diversified now in and only the came our the over fee-related also the the and Vinci In but of expanding XXXX, our Market significantly listing developing first most earnings presents past Market were months, at XX% our a the IPO. in example, model has revenues. For AUM

remarkably public highlights resilient, Turning strong segments recent neutral institutional to environment segments, face and in continue a flows proven higher rates and client and relationship for IP&S sensitive challenging both base, equities public and market our essentially over Both equity recent areas. to to stability interest real are our volatility enduring to challenges, the nominal be This our Despite quarters. which particularly Brazil. has with very remained has resilient. with we

in interest starting given are equities. local see institutional the increase we from in business market our lead level investors to could in SME addition, which In valuations, of current to attractiveness

in segment to new outflows that allow positive segment same the we experience weeks, results will second the and quarter, are redemptions, In our the in note, trends recent our dedicated allocators a might existing We working continued seeing seen term. million and moderation with distributors raising channel. pension contrast, private relationships seen promising is that in show IP&S fundraising roughly pension short BRL hopefully some flows more us start the from in particularly as structured, to being Last fundraising. In strategies strong year, ]. continued we within in quartile, both were have in these funds funds, our have overall our plan and year performance, allocators and to date, lead this credit in strategy and dragged Multimercado these launched market well performing [ to the better despite weekly a which XXX redemptions the in with period has funds distributors future flow channel. quarters. On witnessed top within massive more are to and

to of moderation in May the of in which raise the This performance with over to credit strong we well, the the performance improvement credit local plans allocators are within inflow through platform from Compass very though our were fixed on that, of and a to income and recovery seeing continue with The avoiding Vinci riskier it in weakest with distributors, distributors pension what We past in asset months strong flows capital focus short-term notable Sergio outflows our as has third-party combination related turn go fundraising weeks, platform. on and at an credit led the the currently channel the a the side. Encouragingly, marks and X I'll in entire assets to classes. with results. June, across IP&S mirrors year. And to

Thank Bruno. you,

advisory XX% an covering on basis. in million revenues Now, the fees. BRL Fee-related up totaled let's by year-over-year quarter, XXX and management start

remarkable by on more we products. saw management significant growth, year-over-year a Market increase, even fundraising Private an specifically fees, Focusing XX% our with driven robust across

net million the a benefited quarter in This quarter. resulted XX.X IV, with X capital Private management in BRL the fees also excluding for in the revenue by from supported fees, VCP new worth associated trend, still retroactive fees. Markets. years' retroactive positive approximately commitments in additional which raise included an When of show fees This

although half the the retroactive new in during positively include second from the funds fundraising from clauses, we IV as half generate fund's commitments for growth VICC in and earlier. continued inception, Both asset revenues IP&S year. ongoing of mentioned expect we in could note products VCP so Please numbers the fees continue to ahead, infrastructure and fees challenges, this Looking that Bruno face our will continue the later class, liquid which year. will impact of

Turning to had advisory nearly strong in advisory we corporate momentum segment. the in fees, million revenues net XX fees, quarter. Year-to-date, our BRL advisory accumulated have highlighting from another we

year, For closing. transactions XX the million advisory we that over are the second in BRL fees of signed from already have half pending

opportunities a upon. have we of pipeline to Additionally, robust execute

net We are revenue, market, our and has be challenging annual advisory confident market of with potential delivered We as well-positioned conditions million impact our corporate in segment. in for IPO results. improve, will to this even conditions Despite believe target BRL XX achieving that excellent upside. advisory in business an we muted make market a greater

FRE FRE the totaled a XX% share basis. to year-over-year second million, In representing per a XX quarter, per or BRL BRL increase results. share, Turning X.XX on

Private XXX million, the FRE Market at a share, grow, Looking continues up pushed per-share products. to figures, X.XX FRE basis. XX% or reached per on BRL strong year-to-date BRL fundraising by for

an our commitments impact robust projection I advisory services. including the As This last Private earnings the quarter fees, is call, trajectory. short-term Markets, for pipeline factors, the FRE, supported mentioned in new when retroactive expect several of we upwards considering by in and

expectations our aiming margins for earnings significant our basis to a We modest the XXXX, have period Year-to-date, we anticipate but the from not are for changes same expansion. by with compared aligns points year, do expenses. XXX discuss let's call. which in improved Now, last margins previous

investment our we substantial VRS strategy, Excluding have been would made the past where over FRE the margin XX%. quarters,

For XX%. VRS, when our also year the were in comparison purposes, full there margin investments XXXX, for was no

become our fundraisings continues margins The maintain market conditions FRE of and diligent the growth result is positioned healthy past and DE the to cost Market have X cost accelerate Private focused resilience of a in direct favorable. Our practicing business to By management. efforts of show success years. conditions ourselves core and when to X the product control, challenging we despite our more

investors XX our quarter, that currently Before and this there more our we MAV and some aspects the nonrecurrence the engaged of nonoperation proceed, are are expenses incurred want go prioritize and linked I'd with Compass transactions exclusively this will they we closing to expenses Capital. BRL projects like we We assure related There provide no other on included with to reais. clarity approximately Compass line These totaling are in expense to I with million other of the transaction items with M&A be forward. and if this the expense. transparency,

Performance have of modest results. half remained in relatively year. to first volatility PRE Turning the experienced to the fees the due market

fees quarters, This these performance from in our leading performance neutral, to to related affects distributable coming fees. already we realize recognized an a potentially quarter, distribution XXXX. asset to we but performance still recognized in earnings. X was remaining asset, The cash holds is of Since the which fund is level from to a a positively FIP higher on seen sold expect its partial booked balance it note that this Infra PRE on impact fees realization sheet, of Transmissao. It's important

potential our to of on next moving the highlight platform. topic, I'd to Before performance the like

a approximately in of could When across public become have performance IP&S earnings. this XX billion BRL eligible under conditions equities. improve, assets we First, source market significant and management

quarter. the accrued million Gross funds. fees in exceed XXX Markets BRL performance Private Second, second

environment. these the cover XX in would While terms, million to distributable to wrap rates, fees for of benefiting from second nominal of earnings per factors: and a higher Adjusted the XXXX totaled as second per distributable more X.XX quarter liquid liquid overall share, interest performance quarter materializing strong an or market I like mature. To favorable funds expected first, the Markets portfolio X impact the year-over-year size, basis, to due funds short-to-medium earnings. income, on XXXX our of up, Private XXXX, saw may begin of BRL financial a only higher a earnings share unusually in combination are down combination in BRL XX%

dollar. debt an questions. per momentum U.S. quarters. In operation committed on It's we for close we on joining FX Second, impact firm. and a net organic reverse while to the share, the earnings coming open an proceed Therefore, BRL operator, X.X depreciation, through to earnings and important rate effect quarters for positive from short-term that positively to to Once this We distributable you outlook over is dollar we and the that, had the to value remarks BRL Ares. inorganic like expected This impact again once I closing, encountered had note again, like paths. With that with the our revenue thank in reiterate the its would negative both you remain our like you. I Vinci shareholder generating for of earnings about impact would rate net would of in adjusted our next I to FX call. questions. U.S. fee-related and call Thank stemming earnings. as with a vintage short-term fee-related position approximately distributable million, can Please, experience from XX% derives impact X.XX the on quarter this or in great

Ricardo [Operator from comes Instructions] Our with Buchpiguel question first BTG.

from XXXX more how far? have so focus you raised also Can billion Private believe this on the to that BRL you on you have here talk clients my given it could to you X conditions? please to fundraising fundraising side. to do geographies more on raise have related if topic, you will money out about Markets? of been target and type now much remind us, XXXX, XX current And I focusing of clients international for challenging of market be what the you moving are your And

speaking very here. you thank for the It's Ricardo, Alessandro question. much

of of as private last Private asset came Europe of this And Markets. To Private Just institutional investors. we both more Private a depends from were talk around each of of of local XXX from mentioned, investors about more about investors. to say the quarter. million classes. coming your I local and first of bit Talking geographies sources equity, half-half of Market regarding the quarter, more point in Markets, came course, clients BRL infrastructure. international bit the that, little fundraising, international a and they the from they The both more would terms locally, type

So very there we we are been in about previous VICC. some a Asia we we few very in quarters. for talking commitments important the And few had expect a push next Recently, coming where Europe. as in mentioned strong calls, success,

fundraising question the Now, soft have like office, are and going more expecting come from come, more leave complement that your to on of investors, a the part that. Asia. And in single first And North I will circled then, And we forward. from and flows SPS, we worth, distributors. as especially American net high international moving to some more pipeline think, office, family expected of Bruno Bruno we I'll local expect more Asia in second to forward allocators and and from the also multifamily investors, market from mentioned,

Ricardo, good you tonight. talking Yes, to

billion billion about currently the BRL BRL are at XX We of XX target.

months, As we have all the open. that you funds are commitments still coming know, X have that of from next we

that the relative tapering Our stronger off the that little bit. now end will through the funds basis from year on contribution is SPS are a be expectation other the a of likely

big at biggest unexpected will we But an come SPS year now end that check and close the the have our close are expect we happen in until likely Infra, third VICC, to some first Credit from but today BRL we So quarters. from fourth about billion. of XX commitments still the VCP, to and

question from Goldman next Beatriz with Abreu comes Sachs. Our

my I on side. X questions have

for to VCP guess IV. pipeline question And a is next year. mostly from the expected see one half second the fees on fees the the is The the my year. is to positive fundraising have from of increase related due come question of first appreciation end I second fundraising good I strong management to to until the you is you that this catch-up for for year? And Since expecting next accrued are what mostly the target in of BRL quarter. XX year, related fees performance this billion the fundraising the

about fees, could comment about could or timing If to their of If on any what are hurdle be And bit the more talk it if some what more distributions, maybe give little a for would your a color that, of that, rate? great. you little you can the performance drove funds you expectations bit close investments.

Beatriz, how Alessandro. with to us. first Starting with -- retroactive regarding a as you management Nice have said, fees, That's sorry, fees very And you? question of VCP the that's today accrued you question. good part are IV. regarding the especially

year, year. part concluded VCP fundraising VICC. good IV through expect beginning do be of final We the from to both this next some and also we But expect of

Next expect SPS IV. the year, of international we have, we portion

maybe. And we'll few something next will be and will quarter, that fund postponed So also, relevant the logisticsm opportunistic the year. equity also, of in also expect of beginning fund year, maybe have next VIR will that the at a II, tapping beginning first this be year. Beside estate next we that probably to the second V, products, the that's we end of especially year to residential of that, be private fundraising estate to next be type important also, real be more that, year. that VFDL our And will the again, real

we'll to a So coming And but important have that already VICC, IV having contribution we be that we'll the IV targets still like less VCP the we SPS funds reaching from of in are and of year. estate Bruno appreciation expected bit I'll second terms the real of and VIR opportunistic leave II, talk next VFDL little performance fund fee. about fundraising, the vintage V, expect

Yes.

that of contribute mainly also fees. this products starting In in of the something past. have case the saw we to fee discussed quarter, other performance we coming SPS We're into future I the MAV. families think is performance seeing to the

fees. as are the an in because performance performance But rate towards as SPS information, preferred would negotiated a has well. SPS that They performance the not just to started first performance. third accrue of in the fund paying is So of fees retained and impacting is also the transaction, we the terms of numbers teams. the above by our the already turnaround be return profile quicker the couple fund first management the funds, a future

performance fact years I you around if are already think paying Fund that Fund II So old. from are those they about the very funds and quickly, probably X

III, So to early fees III would performance start expect paying probably thinking Fund that into Fund 'XX. XXXX, about late we

will later So III to And accrued realized of performance, VCP III I transitioning after date. But one to that is accrued VCP I that, of one as on likely expect going But performance start SPS bit that GP a probably to that to little would in then the going the first diversification contributing. we're be continue. probably fees see the terms to think part results. likely start the of

will we have to funds piece a forward. other see of pie going families So of that starting likely

have in funds the funds there. well. At we as the SPS over is So start to infra other contribution size Obviously, should they from start some -- point, infra grow should likely going contributing time.

likely So transition the that beginning end in diversify of is of then that to that we're size. 'XX, the few realized. the start to pie 'XX, increase performance as to tendency start And going for we're by see years, going next and early seeing the

had we in of products far so fundraising more third we I year. can year believe this in is VISC XXXX one quarter far raise late limited multiple a late the So more quarter the Finally, we to the environment, that group complement REITs, very that Unfortunately, billion benign of products from contribution last per right? Alessandro, of family was been was in think, contribution muted. the has so reais and year. fourth a 'XX This

a But in been money this we of saw over product difficult we to type it's that it raise the product. that expect has time. volatility more to contribute the Given for market,

on of the VICC seeing perhaps of going and new such credit other at products developing up funds wrapping REITs Alessandro well, some to we're that mentioned. new So wrap we up, have funds potentially this the early fact are despite closed-end the our as drawdown those by Market products more we traction VCP, are And credit. that as are which should Private top in 'XX, point,

reais billion per well, already fund million per to credit It's several to money. day continues per and up very and Our BRL is is -- and multiple doing several billion billion pension plan per raising sorry, day style X.X week. raise million

opportunities new style the we're that more seeing type to similar credit seeing to we're products, develop products. ones semi-liquid So abroad,

likely we'd also be expect that and in will contribute forward. XXXX that going So to something

Yes.

So and and will using that we semi-liquid complement the of year that, new point lot of as say, that especially Beatriz, we our we with Ares. will this of credit say, the, for type ideas liability match of And and that type next demand some relevant just to be funds a of best clients. even Bruno, to and of forward the would spectrum they are products on I would this believe studying something exchanging, asset moving with the be type management identify very products probably I well very practices

Our Tommy next from question comes with Andrade Quipus Capital.

different in XX. for and operating Page XX to versus BRL wanted in in profit They the statements wanted It's the BRL presentation. statements in reaching shows I million the and ask are presentation profit help on about the financial the XX million I financial it. up your that operating the

know wanted the to difference. I So

Okay, Tommy, for thanks question. the

So impacts have the we difference the is some noncash from number. we that distributable earnings segregate basically that

the components there are GP unrealized the our mark-to-market main commitments. So effects on X

from the a quarter. coming So REIT from this quarter had impact the negative performance we mark-to-market mainly the during

quarter. that in depreciated GP they REITs commitment, this So our we in value have the

So had that than impact that was we markup. the more from VCP positive IV

the we impact was impact per million the have operating option part program, distributable is and have, impacts unrealized distributable profit BRL stock we show profit. And stock an say, which around that or impact of also that usually and accounting that now on, earnings a So that operating of we is impact other option the more profit let's operating not which the noncash but the cash earnings less, that quarter impacts X the number.

could So X Obviously, are the variate unrealized down. the Those up main. variate. could and those portion

quarters up. had that have past we where was So in number the much very really

which remarks. bit little his had we SOP past in time million. And M&A BRL in expense negative running a it mentioned to it that The was Over the is down. X at the around nonrecurring up. expect today obviously impact be have a always quarters is We Sergio final is impact, the that

expanded we in quarter transaction million, in was both that lawyer it end of and and transaction have beginning about between due related Compass and to which is as the quarter the BRL third that This diligence expect XX we to fees closed we the the and already fourth. close, of MAV said, has the

So those the the expenses or were impact this quarter.

typically expense This But from accounting the side. the those negative because M&A heavier and earnings are and the unrealized, standpoint. had a differences distributable net on normal than the between quarter was a we earnings an bit little the bigger we had

And ask one? can another I

Yes, ahead. of course, go

line statement, of retirement is for origin a flow the XXX BRL for that to for Is the the million. retirement plans or line? services that In what a segment contributions cash contribution there's

accounting, being you on and in VRS, reserves, creating company. you company, the to launched the what insurance And we reserves have insurance in an insurance we need to pension that of Brazilian we in when the cash of the company insurance an own Brazil, the against the assets that insurance flow plans carry are launching right? VRS have liabilities company, in see had us company. part the the So with are of statement, is regulatory constituted So our do the that that for statements, income

Mr. like The Horta over. closing may question-and-answer floor would Alessandro to session remarks. is to Horta, for turn Mr. I the Please, you the back proceed.

company. again interest like for our support and I'd you thank to once your in

with has has fundraising very we very environment As we the positive been the even call, stable macroeconomic so are very, the environment though not and during said year far, the been challenging.

Brazil the environment a and we up that outside of once better realization decent macroeconomic have expect been the growth, path forward a reduction speed have really we being the fundraising, interest and very, we performance. also a locally We environment and better can rates to moving very hit able of

So important see moment very benign difficult scenario. a a a and we in we we resilient when will scenario, be grow are for quite in that and way waiting more very we can very this optimistic

night and all. very good you for much thank you So

We presentation. you today's a concludes good This thank you evening. all for wish and participating very