Vinci Compass Investments Ltd.

Good afternoon, and welcome to the Vinci Partners Second Quarter 2021 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 Horta, Chief Executive Officer, Bruno Zaremba, Head of Private Equity and Investor Relations, and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release, slide presentation, and our financial statements for the quarter, which are available on our website at ir.vintopartners.com. I'd like to remind you that today's call may include forelooking statements which are uncertain and outside of the firm's control. It 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 R20F. We will also refer to certain non-GAAP measures and new fine reconciliations in the release. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any venture partners fund. With that, I'll turn the call over to Alessandro.

Thank you, Ana. Good afternoon and thank you all for joining our call. Vinci Partners reported outstanding results for the second quarter. Distributable earnings doubled year-over-year to 54.8 million reais or 97 cents per common share in the second quarter. Fee-related earnings grew by 67% year-over-year, reaching 55.2 million reais in the quarter. In addition, we announced today our first semi-annual dividend distribution of 30 cents on the dollar per common share. When we add up dividends with the capital used for share repurchase, we have effective returned 102 million reais to our shareholders in the first semester of the year, equivalent to 100% of distributable earnings generated in the first half of the year, honoring our commitment of combining strong growth with capital distributions to our shareholders. We have continued to find a supported fundraising environment for our platform in 2021. AUM reached R$ 57 billion at the end of the second quarter, a notable increase of R$ 7 billion since year-end 2020. This impressive result was primarily driven by exceptional fundraising in our private markets and IPNS segments during the first half of the year. IPNS, for example, has been exceeding our highest expectations, almost doubling in AUM this past year. In private markets, we were able to roll out all the products we had in our pipeline, including the IPO of the new REIT VIUR in the second quarter, which is a perpetual capital vehicle and therefore extremely valuable to us. We continue to see great demand for our products, even with the short-term rise in interest rates during this year's first semester. Long-term real interest rates currently sit at the low 4% levels at rates we believe are extremely constructive to our fundraising outlook. We believe we'll continue to see strong positive inflows across our strategies, coming primarily from IPNS separate mandates and private market funds, for which we have a robust pipeline ahead of us for the second half of the year. Bruno will touch on the quarter's fundraising with more detail in a few moments. Another considerable highlight this quarter was our margins, with FRE margins reaching 55% and distributable earnings margin at 44%, which accounts for over 500 and 700 basis points expansion on a year-over-year basis, respectively. This is a result of the investments we have been making in our platform since its inception, which have allowed us to scale our business over the years in a significant way. We have currently positioned among the top performing alternative asset managers in the industry regarding margins and we still see great room to further expand them as we raise AUM and need relatively small adjustments in our platform to support it. In our view, this quarter is a testimony to the strength of our business model. The numbers speak for themselves. We have been consistently performing across all metrics, expanding our company and focusing on the launch of new products with long-term capital commitments aligned with the market's latest trends. As a result, we are delivering record quarterly fee-related earnings and distributable earnings as AUM keeps growing at a very rapid pace, quicker than the already fast-growing Brazilian alternative asset industry. Momento is very strong across the entire platform and the opportunity is still extremely vast. Institutional investors are still excessively under-allocated to alternatives and the shift from asset classes has only just begun. For example, As of the end of the second quarter, total Brazilian AUM reached 6.3 trillion reais, of which only 14% was allocated to alternatives. We believe Zinch is one of the best positioned alternative asset managers in Brazil to capture the shift in asset allocation, and we are primed to capitalize on these trends. We expect to see continued expansion in our platform, which should boost our FRE and distributable earnings power. We also continue to see strong opportunity to further grow our international fundraising platform. More recently, we had strong allocation from global LPs in our Impact Private Equity, VRI4, and we see strong interest for increased allocation across the platform. In addition to a great business model and favorable market trends, we believe outstanding results are a consequence of a highly skilled management team and our constant commitment to enhancing governance practice within the firm. Last week, our board appointed Ms. Sonia Favaretto as our new independent board member. Her appointment marks a new milestone in our company's path of differentiating as an ESG market leader. Sonia will be the chairperson of our new ESG committee and will work to boost our focus on ESG as an investment matter and throughout company practices as we continuously pursue upgrades in our impact monitoring KPIs. Sonia has been working with us for a long time and is an extremely experienced director with a demonstrated history of working in the financial service industry. She is highly skilled in corporate social responsibility, sustainable development, and environmental awareness. She was recognized in 2016 by the UN Global Compact as one out of 10 people in the world to be a pioneer in Sustainable Development Goals, or SDGs. It is a great honor for us at Vinci to have Ms. Favaretto in our board, which is now composed of four independent members out of a total of eight seats, with two of the independent members being women. Still, in the subject of ESG milestones, Vinch Partners has neutralized its GHG, or greenhouse gases, emissions relative to scopes one and two for the year of 2020, showing our commitment to eliminating the company's contribution to carbon dioxide emission. This was a result of a number of internal measures to reduce our emissions complemented by the acquisition of verified carbon credits certified by VERA. Another initiative we are very proud of is our effort to reach a gender balance status inside the company. Our HR team has been working heavily on elevating the number of women working in the firm and especially in leadership positions. We created a program to encourage women to enter the financial services market and have been since elevating female participation in starting positions such as in our operations team. By the end of July, our operations team, which is the entry point for most front office positions, was 48% composed of female employees, our highest level so far. This is a step closer in our objective for women to occupy more leadership positions across the firm. This quarter, we also had two important recognitions for our investment products. Our Private Equity Impact Fund, VRI4, won the Private Equity ESG Fund of the Year Award from Environmental Finance, and our credit fund focused on private debt related to green energy, VES, was the first Brazilian fund to receive the European Standard Label. Here, at Vinci Partners, our goal remains to provide the best returns and investment opportunities for our limited partners, which increase in focus on ESG as an investment matter across the firm, which translates into results for our fellow shareholders. We are extremely excited for the next half of the year and for what opportunities the future holds for us. we are confident that we can continue to generate extremely attractive results for all our stakeholders. And with that, I will turn it over to Bruno.