Vinci Compass Investments Ltd.

Good day, and thank you for standing by. Welcome to the Vinci Partners fourth quarter and full year 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star then zero. I would now like to hand the conference over to Anna Castro, Investor Relations Manager. Please go ahead.

Thank you and good afternoon, everyone. Joining today are Alessandro Orta, Chief Executive Officer, Bruno Zaremba, Private Equity Chairman and Head of 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.vincipartners.com. I'd like to remind you that today's call may include far-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 Factor section of R20F. We will also refer to certain non-GAAP measures and refine our conciliations 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 VINCI 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. We are extremely pleased to join you all today as we announce results for our first year as a listed company. Distributable earnings, totally, 68.5 million reais in the fourth quarter, or 1.22 reais per common share, an increase of 86% year over year. Additionally, Vinci announced a quarterly dividend of 20 cents on the dollar, per common share. We continue to deliver strong results across all our segments, backed by management and advisory fees. Fee-related earnings in the fourth quarter totaled R$54 million, a 43% increase year-over-year. We expanded our FRE margin by 155 basis points this year, ending 2021 with a 52% FRI margin versus 50% in 2020. We are pleased with this margin expansion as we had to absorb additional costs this year as we became a public company. We ended 2021 with 57.2 billion reais in AUM, 15% above year-end 2020, driven by almost R$ 8 billion in fundraising, coming primarily from our IPNS and private market strategies. Vinci has been gaining significant market share within the Brazilian alternatives market since 2018. Our AUM has been expanding at a 31% CAGR since while the alternative Brazilian market has been growing at a 19% annual compound rate. This relative performance became even stronger in 2021. This year, Vinci's fundraising represents 60% growth over 2020 year-end AUM. In comparison, Brazilian overall fundraising expanded by only 4%, highly impacted by the recent rise in interest rates and the volatility in public markets. Even in this scenario, our platform was able to raise capital organically and grow faster than the market, without the contribution of a flagship private market fund. In the prior cycle, from 2018 to 2020, we have the benefit of raising our latest flagship private equity vintage, we've had a significant impact on AUM, and also benefit from a tailwind of a more accommodative monetary policy. The second half of 2021 was defined by the beginning of a sharp monetary tightening cycle when we saw interest rates rise from 3.5% to the current 10.75% in just eight months. Our AUM has proven to be extremely resilient through the second half of the year as we did not suffer from significant outflows and, on top of that, raised additional AUM. With the combination of this sharp monetary tightening and the fiscal surplus Brazil achieved in 2021, the country was one of the first globally to remove the stimulus associated with the COVID pandemic. Having already done this adjustment, we now face a future within normalized parameters and see the markets already reflecting this position favorably as we begin the year with a strong appreciation of the real and solid performance from local equity markets. Corroborating the platform's performance, Vinci raised approximately R$1.5 billion in the second half of the year in our liquid strategies and IPNS, while the Brazilian market's over R$33 billion in outflows in these asset classes. Our resilience regarding outflows comes mostly from the fact that our liquid strategies and IPNS funds are built upon an institutional investor base with very limited exposure to retail investors through distributors and open platforms. In public equities and hedge funds AUM, only 10% is distributed to retail investors through distribution agreements with banks and platforms. The rest of this AUM is well distributed across local and international institutional investors and high net worth individuals. The same goes for IPNS for which 15% of the AUM is in retail through distributors with most of it allocated in pension funds and asset class with a stickier investor base. Most of IPNS AUM is in separate mandates from institutional investors with long-term vision on their allocations. And, of course, our AUM in private market strategies is composed of long-term products from 5 to 20 years of lockups and perpetual capital vehicles. I believe fourth quarter results are a testimony to the power of our platform, validating what our business model can deliver even in the most challenging and volatile macro scenarios. This quarter sets a clear example of what level of results shareholders can expect from Vinci when we have different sides of the business performing at the same time. We had solid results coming from our core business, backed by management fees, combined with upside from advisory and performance fees. Advisory fees continue to be a pleasant surprise in the fourth quarter contributing with 20 million reais in net revenues and over 60 million reais in the full year. The team has executed on important mandates in 2021 and on top of that we started to advise early stage growth companies in their funding rounds which broadened our addressable market. Our advisor business has a banner here. Although difficult to replicate in the short term, we believe the growth in ordination and mandates in new verticals will allow us to continue to develop the business organically in the future. We also had some positive impact coming from performance fees in our private market funds. This quarter, the fund FIP Infra Transmissão in Infrastructure successfully divested from last year. a power transmission concessionaire, and returned capital to investors, with considerable upside resulting in performance fees and investment income revenues in this quarter, as we are investors in the funds from companies' balance sheet. Our stake in the infra fund was made years before the IPO. I believe this is an important indication of the future earnings power in GP investment income as we are committing capital raise in the IPO into our private market fund launches. And when these funds start to divest from assets, we should also benefit from them in our GP investment income line. To give more perspective on performance fees, we started to disclose this quarter and will continue to do so going forward the total amount of accrued performance revenues coming from our private market funds so that investors have a better sense and are able to monitor our performance fee pool. Bruno will touch more on that later in detail and how the funds are performing. To finalize my remarks, I would like to go over a few highlights of our first year since the IPO and our growth opportunities going forward. 2021 was a transformational year for Vinci Partners. Management and advisory fees expanded by 43% year over year. FRE totaled R$ 222.5 million in the full year almost 50% year-over-year growth. After-tax distributable earnings reached R$ 232.2 million in the full year and 82% year-over-year expansion. In 2021, we did not have any flagship products coming to market, but we did have work several smaller strategies launched, which is something extremely valuable to us, as we grow our segments into synergistic strategies deepening our penetration in the alternative space. Early in 2021, we had the final closing for our impact private equity fund, VRR4, which is already 42% deployed and could come back to market with a new vintage faster than we anticipated. We launched VFDL and VIAs in real estate and infra, two new private equity style funds. Our real estate team has secured an IPO of their fifth listed REITs VUR, focused on the urban commercial property sector. By the end of the year, we had a first closing for our new strategy in IPNS, 20 Strategic Partners, or VSP, focused on private markets allocation, which is a huge opportunity for us in the long term. We expect more capital to flow into VSP through the first half of 2022. Our listed funds also came back to market with three successful follow-on offers in VIGT, VUG, and VISC. These were completed with a combination of traditional primary capital raising early in the year and novel paying-kind transactions in the second half once the market presented increased volatility. Our ESG initiatives have been gaining recognition in all fronts. We were the first Brazilian asset manager to receive the Woman on Board seal, as we have a gender-balanced presence within the independent part of our board of directors. Vinci also established an unofficial ESG committee, chaired by our independent director, Sônia Favaretto, a pioneer in ESG for financial institutions in Brazil. Our impact fund, VRR4, won the Private Equity ESG Fund of the Year Award from Environmental Finance. We also became officially a carbon neutral company, neutralizing our GHG emissions in Scopes 1 and 2 for the year of 2020. Finally, to close on the 2021 recap, we launched our first ever marketing campaign Built on the pillar, reputation is the best investment. The campaign reinforced our main values and our most valuable asset, our reputation in the Brazilian alternative asset space. Our goal is to reaffirm Vinci as the top of mind brand for alternative investments in Brazil. The content has been launched in all major advertising outlets and we have been gaining some very encouraging feedback. The campaign has been responsible for increasing in five times our web page user flow with over 26 million digital impressions and reached so far more than 2.5 million people over TV and newspaper ads. Our objective is to strengthen our leadership position and continue to drive market share gains as we have over the past few years. In addition, we see a direct link to retail and pension products, both medium and long-term growth areas of extreme interest to us. Continuing on growth opportunities, we have three flagship products that we will start fundraising in 2022 in our private equity, infrastructure, and credit strategies. These three products represent 10 billion reais in target fundraising, a substantial opportunity for FRE growth going forward. Bruno will go into more detail about these funds and fundraising status in a few moments. Another big upside for us comes from our cash position. We have approximately 1.2 billion eyes in our liquid funds portfolio, and until called by our private market funds, our cash allocations are exposed mostly to fixed income bonds. With the recent rise in interest rates, our revenues coming from financial income can be a major drive to distributable earnings. Lastly, we sit upon a highly underpenetrated alternative investment market in Brazil. Here, at Vinci, we are constantly launching new funds and synergistic strategies. This comes in addition to our already robust and established platform, which will continue to raise capital, provide organic and continuous growth. As we move into 2022, we have a pool of exciting opportunities across the firm, and we are extremely well positioned to take advantage of them. Our company grows stronger every day, and we have ambitious plans for solid growth ahead of us. I'd like to thank you again, all of you, for attending our call and for your support. With that, I'll turn it over to Bruno to go over our financial results.