Vinci Compass Investments Ltd.

Good afternoon, and welcome to the Vinci Partners fourth quarter and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to turn the conference over to Ana Castro, Investor Relations Manager. Please go ahead, Ana.

Thank you and good afternoon, everyone. Joining today are Alessandro Orta, Chief Executive Officer, Bruno Zaremba, Head of Private Equity and Investor Relations, and Sergio Passos, Chief Financial Officer. Earlier, we issued a press release and slide presentation, which are available on our website at ir.vincipartners.com. I'd like to remind you that today's call may include forward-looking statements which are uncertain and outside of the firm's control and may differ from actual results materially. We do not undertake any duty to update these statements. For discussion of some of the risks that could affect results, please see the risk factors section of our IPO perspectives filed with the U.S. Securities and Exchange Commission on January 29, 2021. We will also refer to certain non-GAAP measures and you'll find reconciliations in the presentations. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Partners fund. With that, I'll turn the call over to Alessandro.

Thank you, Ana. Good afternoon, and thank you all for joining Vinci Partners' inaugural earning call as a public company. I wanted to start by thanking all of Vinci's employees for their hard work and commitment through the transition. I would also like to thank our clients for their ongoing partnership and trust. Finally, we welcome all our new shareholders and appreciate your vote of confidence. In January, we successfully completed our initial public offering and are looking forward to continue to drive long-term value for our clients and shareholders. The IPO provided capital to enhance growth help attract and retain talent, drive awareness and brand recognition, and fund investments in our own strategies alongside investors. As our first earnings conference call, we thought it would be helpful to provide a brief overview of our company and how we are differentiated. Sergio and Bruno will discuss in detail our financial performance, and walk through some recent developments and segments highlights. So, starting on slide five of the earnings presentation, Vinci is a leading full-service alternative asset management platform in Brazil. Our diversified business model comprises eight business units integrated on a single platform. Our assets under management have compounded at a 33% annual growth rate since 2009 and stood at 50 billion Brazilian reais as of the end of 2020. The Brazilian asset management industry is undergoing a number of structural changes, including declining interest rates, incumbents, ceiling market share to independent players like Vinci, portfolio relocations from fixed income to alternative asset classes, and rising acceptance of ESG as an investment factor. We believe we are well positioned to continue to capture market share, giving a number of compelling factors. First, we have built investment expertise across all key alternative asset classes, in addition to a scaled liquid markets business. Next, we are increasingly leveraging long-term relationship with our broad array of clients. In 2020, nearly 80% of the capital we raised was sourced from existing clients. Finally, we believe we have assembled the best talent in the industry. We have 215 full-time employees across four offices in the Americas, helping to generate market-leading returns across all our key investment strategies. We have built our platform without compromising on the resilience and profitability of our financial model. Our revenue profile is stable and predictable. In 2020, management fees accounted for 80% of our revenues and around 50% of our capital is sourced from vehicles with at least five-year commitment periods. In terms of profitability, our adjusted fee-related earnings margin reached 50.5% in 2020, with further room to expand, reflecting strong revenue growth and rising operating leverage. Finally, the capital raised through our IPO is expected to be used primarily to fund GP commitments alongside our clients, in our expected private market launches during the next two years. To that extent, we already signed R$120 million of commitments to new private market funds since the IPO and are making good progress. We are going to detail this capital allocation through the presentation. Next on slide six, we founded Vinci in 2009. The alternative asset management industry in Brazil was still underdeveloped, with both institutional and retail investor portfolios heavily skewed in favor of fixed income products, giving elevated interest rates at the time. The industry was dominated by a handful of banks and macro-focused hedge funds, with limited incentives for product innovation, giving concentrated market shares and advantageous economics our partners had the vision to build brazil's first scale independent alternative asset management platform and invested personal capital to fund gp commitments today vinci sits at the center of the alternative investment universe by offering a full suite of products in the private and public markets a solutions business and financial advisory service looking ahead With interest rates declining, demand for alternative products in Brazil continues to rise, and we believe Vinci is primed to capitalize on industry tailwinds and drive sustainable growth. Turning to slide seven, we believe Vinci is the only independent asset manager in Brazil with established teams and infrastructure, long-term investment performance track records, and ample dry powder should deploy across all major alternative asset classes. Holistically, our investment platform encompasses seven investment verticals, each managed by a separate and dedicated investment team and independent investment committee, private equity, infrastructure, real estate and credit in the private market strategies, and hedge funds and public equities in the liquid strategies. We have an investment products and solutions business that provides tailored-made solutions to our clients through asset allocation and risk management, and a financial advisory business that provides financial and strategic service focusing on pre-APO and M&A advisory for our Brazilian middle market companies. Within our private market strategies, we have raised around R$ 9 billion in the last three years, including our third flagship growth equity private equity fund, Vinci Capital Partners III, our first dedicated infrastructure fund, Vinci InfraOne, in addition to other credit and real estate funds. Turning to liquid strategies, our public equities and hedge funds, AUM, has more than doubled since 2018, when interest rates started to decline. The investment products and solutions business has more than doubled its AUM with the increasing demand for exclusive mandates from institutional clients. We expect the low interest rate environment to continue to drive accelerating growth in our liquid strategies, reflecting rising demand for our high value-added products. In summary, Momentum continues to build across our platform with Vinti well-positioned to deliver sustainable growth in AUM, fee-related earnings, and distributed earnings. And I am more excited than ever about our prospects as we embark on the next stage of our journey as a public company with our team members, limited partners, and fellow shareholders. And with that, I will turn it over to Bruno.