Vinci Compass Investments Ltd.

Good afternoon, and welcome to the Vinci Partners third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. Later, we 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 Anna Castro, investor relations. Manager, please go ahead, Anna.

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 today, we issued a press release, slide presentation, and our financial statements for the quarter, which are available on our website at ir.vinciopartners.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 R20F. We will also refer to certain non-GAAP measures and you'll find 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 announced today remarkable results for the third quarter of 2021. Fee-related earnings reached 63.1 million reais, an increase of 74% year-over-year, a continued progress in FRA results. FRA margin reached 53.5%, over 300 basis points higher than 2020 full year's margin. Distributable earnings, totally R$ 61.7 million, or R$ 1.09 per common share, up 137% year over year. We ended the quarter with 58 billion reais in AUM with private market strategies and IPNS accounting for almost 3 billion in net inflows in the quarter. These results build upon an amazing first half of 2021 and showcase our long-term growth trajectory. Shifting to dividend distribution. From this quarter on, we will start distributing quarterly dividends. For the third quarter, the company declared a dividend of $0.16 on the dollar that, combined with share repurchase, represented 100% of distributable earnings. Our business model is extremely capital efficient, which enables us to deliver strong organic growth while still paying out a relevant portion of our cash earnings to our shareholders. All these great results are a consequence of what we believe to be the key attribute of our business model and the principal message of our call, which is resilience. We are delivering outstanding results while facing some quite volatile market conditions in Brazil. And one of the main attributes that make Vinci so resilient is diversification. We have built one of the most diversified and complete platforms for alternative investments in Brazil, enabling us not to only go through, but to expand our business even during more challenging macro scenarios. As an example, from 2014 to 2016, Brazilian GDP dropped by 7% and Vinci grew its AUM by 10%, and this was in a time when interest rates were in the low teens. We believe that the core strengths of Vinci remain unchanged and we allow the business to thrive even in periods of heightened market volatility. These core strengths include our AUM and revenues are well diversified, within our seven different asset management strategies, in addition to our financial advisory business. Our proprietary funding base relies on five different groups of investors, from retail to institutional. Approximately 50% of this capital carries formal long-term lockups. We have a leading and extremely well-recognized private markets platform, And, at last, a one-of-a-kind IPNS segment that differentiates Vinci and has been a major source of growth inside the firm this past year. On the other hand, the current scenario has a short-term impact on fundraising for liquid strategies, with volatility impacting a more pro-cyclical investor type. In addition, our public market vehicles also present additional challenges going back to market in such conditions. Nonetheless, we raised over R$ 350 million this quarter for one of our REITs, VISC-11, through a pioneer paying-kind all-stock transaction in the REIT market. This will pave the way for additional transactions using the same structure, which allow us to grow AUM in our listed business even when primary issuance is temporarily more challenging. Some parts of the business should actually benefit from the current market scenario. First, our investment income, as we currently carry an asset-sensitive balance sheet. Vinci currently carries approximately 1.5 billion reais in cash with over 85% exposed to fixed income products. Therefore, financial income is set to become a relevant driver to receivable earnings in the mid to long term with the rise in interest rates until proceeds from the IPO are gradually shifted from cash allocation into private market funds GP commitments. We are also very excited for prospects in private credit fundraising. The team is in the process of putting out a new listed product and we expect significant demand for credit products going forward. We believe this to be a great opportunity in the marketplace with traditional credit venues still holding most of the market share in credit in the country. Due to our diversified platform, we can mitigate risks by not being too concentrated in a single asset class, and we benefit from the growth tailwinds of at least one of our segments, as we have seen this year with IPNS, private market funds, and the advisory business. Our management team remains confident that we will continue to grow our platform and generate attractive results for our shareholders. Moving on from this quarter financial results, I'd like to share with you two exciting news for Vinci. First, we are proud to announce that Vinci Partners is the first Brazilian asset manager to receive the Women on Board seal. Women on Board is an independent initiative that seeks to recognize value and publicize the presence of Women on Boards of Directors or Corporate Advisory Boards. As we talked about in our last Earnings the independent part of our board of directors, is composed by four independent members out of a total of eight seats, with two of them being women since we appointed Ms. Sonia Favaretto to our board in August 2021. We are extremely active on our ESG commitment and have installed an ESG committee reporting to the board of directors with Ms. Favaretto as its chairperson. Finally, we are thrilled to share with you the official launch of Vinci's first-ever marketing campaign built on the pillar Reputation is the Best Investment. The project reinforced some of our main values, transparency, solidity, ethics, and consistency, which, together, built up our most valuable asset, our reputation. The campaign has as protagonists two Brazilian personalities that have a parallel with these 20 values, the singer Maria Bethânia, who has a consistent and successful trajectory, and the equestrian athlete, Olympic and world champion Rodrigo Pessoa. In addition, we are also modernizing our brand and visual identity in line with this new moment of growth. always in the best Vinci style. The campaign's content and advertising has been launched in all major advertising outlets in Brazil. We are very encouraged by the feedback of the project so far and expect it to consolidate Vinci as a reference for alternative investments in Brazil. I'd like to thank you all for the continuous support and interest in Vinci Partners. And with that, I'll turn it over to Bruno to go over our financial results for the quarter.