Vinci Compass Investments Ltd.

Good afternoon and welcome to Vinci Partners first quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct the question and answer section 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, Private Equity Chairman and Head of Investor Relations, and Sérgio 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.vintipartners.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 factor section of our 20F. We will also refer to certain non-GAAP measures and your final 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, Anna. Good afternoon, and thank you all for joining our call. We are very pleased to join you all today as we announce results for the first quarter of 2023. Adjusted Distributable Earnings, totally, R$ 6 million, or R$ 1.10 per share, an increase of 6% in our cash earnings per share year over year. Fee-Related Earnings, totally, 49 million reais in the quarter, or 9 cents per share, representing an increase of 14% year-over-year on a per-share basis. Our FIE continues to grow, driven by our continued success in expanding our private markets platform through new capital raisings and inorganic growth. Vinci announced a quarterly dividend of $0.16 on the dollar per common share in the first quarter, representing a dividend distribution of $0.70 on the dollar over the last 12 months, which, as of May 9 stock price, represents an appealing 8.5% dividend yield. We are posting another quarter of growth backed by healthy upward trends in our FRE results. Our fundraising across private markets in the latest quarters remain one of the vincis fortresses and has driven growth for the entire platform, even in the tough macro scenario we have been experiencing in the last few quarters, for what I believe to be one of our proudest achievements. We ended the first quarter of 2023 with over 62 billion reais in assets under management up 10% year-over-year, with highlights to the strong first closing of the ICC in infrastructure and additional commitments to VCP4 during the quarter. This quarter, we held the first closing for Vinci Climate Change, or the ICC, our infrastructure climate-oriented fund. Between signing it and approving it, the fund has roughly R$1 billion in commitments. The ICC has observed lots of traction with institutional LPs as they display great appetite to allocate capital to climate-focused products in a globally challenging market for fundraising for traditional private equity funds. Regarding our broader fundraising efforts, we are pleased to share that we are halfway through our 10 billion reais target fundraising for private markets strategies, which we started in the beginning of 2022. Since then, in approximately one year, we were able to reach roughly half of our target. We remain on track for fundraising in the next quarters with additional closings across VCP4, Vinci Credit Infra, VICC, and other initiatives. As anticipated in our last earning call, we might have some positive surprises with new vintages from SPS and our impact and return strategy, VRR, now expected to come back to market in the end of the year. VRI4 divested from pro-infusion last year, crystallizing an 83% gross IRR in US dollars from the investment, bringing the fund to a 0.4 DPI. Vinci SPS, likewise, has been delivering strong numbers as their second vintage already distributed to its investors. More than 75% of the funds committed capital while achieving a gross fund level RR of 31% in dollars as of the first quarter of 2023. Both funds delivered these results in a stellar two-year window remarkably early in their lifetime. They should be an important addition to our private market fundraising pipeline as their strong results point to good support from existing investors for new vintages. On a last note, I'd like to give a quick update regarding our retirement service segment, VRS. We successfully launched the product in the end of the quarter and we should start seeing positive inflows coming in the second quarter backed by our high net worth investor base. However, as disclosed in our last earnings call, we expect to see expressive contributions only in 2024 as we evolve our fundraising efforts to new pools of capital. I would like now to take you back to Vinci's history. We already navigated in the past through difficult environments, and particularly during the period from 2013 to 2015, when we experienced in Brazil a significant increase in interest rates, when the central bank hiked annual interest rates from 7.5% to 14.25%. Back then, the easing cycle started only in 2016. During that period, Vinci held its fort with resilient AUM numbers growing from 17 billion to 19 billion over that year span. Since our IPO in early 2001, we have encountered similar conditions as the ones from 2013 to 2015, as the central bank started the current interest rate hike from 2% in the middle of 2021 to the current 13.75% annual rate. This time, we grew AUM from R$50 billion at the year-end 2020 to R$62 billion, composed mostly by fundraising private market strategies and IPNS. We remained extremely resilient to outflows in liquid strategies, despite the general trend for that asset class in Brazil in the last quarters. Only in the year to date, hedge funds and public equities managers in Brazil suffered from a staggering 80 billion reais in outflows. When we take a closer look into our private markets growth over that period and taking into account the backdrop, we have been able to continue to strongly develop the platform. Since our IPO, private markets AUM grew from 19 billion to 28 billion reais, reaching close to a total 50% overall growth, achieved through organic fundraising across all strategies of 9.1 billion reais and 2.1 billion coming from the acquisition of SPS. This reflects directly into our numbers. Our FRE and segment distributable earnings for the private market segment has expanded by 44% and 66% respectively from the fourth quarter 2020 to our current number this quarter. We are extremely proud of what we were able to achieve in private markets and believe this performance can be achieved in the rest of the platform once market conditions become more benign. We firmly believe today we sit at a similar scenario to that of the beginning of 2016. During the years leading to that year, Vinci had invested heavily in its platform, positioned the company to benefit from a new growth cycle. Soon after, as the Brazilian central bank started its easing cycle, we grew AUM from 21 billion in 2017 to approximately 50 billion reais in the year end of 2020. representing an increase of almost 30 billion in additional AUM or an annual compound rate of over 30%. At the same time, Vinci posted a stellar FRA margin expansion, posting close to a 20% points margin expansion. We are extremely excited of the future ahead as we firmly believe there is another easy side just around the corner. And we are today in a better position than in 2016 as a platform for alternative investment. Vinci has evolved in developing additional investment strategies. We have a complete platform of products that can deliver stronger growth in the coming years, powered by more favorable markets. With that said, we expect our recent success in fundraising for private markets to be even more relevant over this next cycle. Adding to that, a favorable environment will likely be a key driver for us to go back to being impactful on the liquid front. Looking to our broad platform, we are really excited with the growth potential ahead of us for the next few years. An improved version of the government proposal for the fiscal framework should be approved in Congress in the next few months, after some adjustments on the initial version. This is a clear indication that pragmatism is leading the government towards the center of the political spectrum in terms of economic policy. With lower fiscal risk, inflation expectations for the coming years start to stabilize within the inflation target band. opening room for an easing cycle in the second half of 2023. Market expectations are already pricing cuts of around 400 basis points until the end of 2024. We understand that our business will encounter different market conditions throughout the years. Our mission is to be resilient in the tougher ones while driving transformational growth during the positive ones. Finch's history ratifies our effectiveness. Before turning the call to Bruno, I would like to reinforce the following. We have once again proven ourselves in a difficult scenario for capital markets locally and internationally. At the same time, we believe we are in the beginning of a cycle of declining interest rates in Brazil that should power attractive growth for the company throughout all initiatives we described today. The growth we were able to achieve in private markets since our IPO against historical interest rates tightening cycle underscores the potential to increase penetration of alternative investments assets in Brazil. Current allocations are still in the low single digits percentage of total industry UAM and we expect this number to continue to grow over time. We are here to share with shareholders and investors what we have learned. Resilience in tougher Environment paves the way to expansion in favorable ones. With that said, we are digging deeper into our platform from both cost and product offer standpoints to be ready to excel expectations in this future easing cycle. With that, I'll turn it over to Bruno to go over our financial results.