Vinci Compass Investments Ltd.

Good afternoon and welcome to DaVinci Partners' first quarter 2024 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, Private Equity Chairman and Head of Investor Relations, and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release slide presentation in 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 our 20F. We will also refer to certain non-GAAP measures and your 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 VINTE partners fund. On results, VINTE generated fee-related earnings of 53.6 million reais, or one real and one cent per share, and adjusted distributable earnings of 49.6 million reais, or 93 cents per share, for the first quarter 2024. We declare a quarterly dividend of 17 cents on the dollar per common share, payable on June 7th to shareholders of record as of May 23rd. 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 very pleased to join you today as we announce results for the first quarter 2024. I would like to start by highlighting the following. We posted another quarter with double-digit growth in fee-related earnings, pushed by strong fundraising across private markets products over the last 12 months and advisory fees in the first quarter. Vinci continues to deliver results facing challenging conditions where several asset managers in Brazil focused on single strategies have suffered to stay in business. We are truly proud of the platform that we have built over the last 15 years. I have no doubt that the combination between proprietary relationships across each funding base, a strong track record across different market cycles, and a broad product offering was key to achieving such results. Bruno and Sergio will go over specifics for the earnings result and fundraising pipeline in a few minutes, but I couldn't leave out of my remarks something that makes me personally very proud. You must have seen that Vindi was very active on M&A over the last few months. Let me cover what we expect from each transaction and what we look forward to accomplishing with additional M&A as we are just getting started. First, early in March, we announced our combination with Compass, a leading asset manager and investment advisory firm in Latin America. with strong brand recognition, consistent performance, and more than $37 billion in AUM distributed across IPNS, credit, and public equities. We believe this transaction is a significant milestone in our history and a turning point from what Vinci could be in the next few years. We will leverage the complementary strengths of both firms and position Vinci as the premier gateway to alternative asset management in Latin America, creating a leading player with more than $50 billion in assets under management. The combination will also expand Vinci's geographic presence with offices in eight different countries, including seven in Latin America. Moreover, the transaction will enable Vinch to tap into Compass unmatched distribution platform with long-term relationships with more than 1,700 LPs across institutional and high net worth investors. We believe we have the tools to push additional growth for the combined company from car selling and developing new products across both firms becoming the ultimate one-stop shop in Latin America for alternative investments. Vinci will be able to offer local, regional and global solutions to local, regional and global clients. We are extremely excited with the prospects of this business combination and have already been looking to capture value since day one of signing. We are already working with a global consulting firm to support us throughout this integration journey. Our aim is to enhance value by aligning our structures and operations effectively. Our primary objectives include optimizing our corporate structure to seamlessly accommodate and integrate both entities in terms of strategies, office locations, leadership, and more. Although we are still going through the process, progress has been promising and remarkable cultural and strategic alignment between executives from both firms is already evident. These early indicators are excellent and we are eager to continue capitalizing on insights coming from this process once this transaction is closed. We have also started to identify short-term opportunities to fundraise for Vinci's products in countries across Latin America, such as private equity and public equities. And we are working with the Compass team on those initiatives. We have also held teachings from Compass Group to our distribution teams to leverage our distribution capabilities in Brazil with the objective of growing product availability to our local clients. Given the complementary mix of products and distribution geographies, there is plenty of short-term revenue synergies opportunities which we are not waiting on the closing to attack. In terms of closing, we are working on the regulatory approvals and should be able to close between the third and fourth quarters. Thus, Compass should have important contributions in our numbers starting in 2025. Moving forward, we announced just a few weeks ago the acquisition of MavCapital, an alternative asset manager with a focus in agricultural assets across private credit funds. MAV Capital is led by a highly seasoned team with more than 20 years of experience. The team manages roughly 550 million reais in assets through five investment funds with lockups of up to 10 years. MAV's flagship strategy is focused on agribusiness and has two vintages between 2021 and 2023. By synergizing Mav's profound expertise with Vinci's distribution capabilities, we anticipate significant expansion in subsequent vintages. By bringing the Mav team into the fold, we are not just broadening our range of offerings, we are also deepening our roots in the agribusiness space. And why agribusiness? Brazil boasts numerous competitive advantages and holds a prominent position as a key global player. Locally, the agribusiness sector and related activities significantly contribute to the country's GDP. Moreover, the investment funds industry in Brazil has largely overlooked the sector, leaving it highly underserved. With that said, we perceive a substantial opportunity for growth in the coming years. By leveraging top tier human capital, we are positioning Vinci to emerge as a front runner in this segment. In concluding my remarks on M&A, allow me to outline what you can anticipate from Vinci in the coming years. Over the past years, we were actually focused on several opportunities in Brazil spanning across all strategies with a keen eye for a transformative transaction in Latin America. The transaction with Compass stands as a significant milestone, positioning Vinci with a notable presence across Latin America countries in terms of both strategies, commercial presence, and office locations. This robust foundation is pivotal for the next phase of our M&A agenda. Now, when we think about acquisitions in Latin America, we are focusing on a local to local basis. We are committed to actively exploring opportunities across multiple countries to complement and expand our strategies with a new found emphasis on small to mid-sized managers who were previously off our radar. Leveraging COMPAS expertise and extensive network, we aim to expand our regional platform and add more critical mass in alternative asset management content to our presence in Latin countries. Markets like Mexico and Chile present promising targets for expansion and consolidation. With Mexico's projected growth trajectory in the coming years, we are dedicated to positioning Vinci favorably to capitalize on this prospective growth. In Brazil, our journey is far from over. Investments such as the MAVE Capital Deal are instrumental in fortifying our foothold in what we perceive as a compelling market opportunity as we remain steadfast in our pursuit of such ventures. In conclusion, I'd like to convey the following message. Despite the challenges posed by a turbulent global market, marked by uncertainties in interest rates impacting asset performance and fundraising opportunities across various strategies, we have demonstrated resilience and patience, performing well across the board. Amidst this environment, we remain committed to enhancing our platform on a daily basis, focusing on providing our clients the best solutions. While we contend with short-term uncertainty stemming from interest rate cuts in the US, Brazil continues its trajectory towards achieving single-digit nominal rates by year-end 2024. Last week, Moody's released a report changing the outlook of Brazil's sovereign credit to positive. This optimism reflects Brazil's dedication to economic reforms, proactive response to global challenges such as the COVID-19 pandemic and improving macroeconomic fundamentals, including decreasing inflation and interest rates and a strong and growing trade balance. Historically, following a positive outlook, an upgrade typically follows within six months on average. Should this project materialize, we would find ourselves one notch away from an investment grade rating in Moody's, potentially serving as a pivotal catalyst for increased foreign investment in Brazil. At Vinci, we remain extremely committed to generating strong risk-adjusted returns to our clients and shareholders. We navigate this challenging and uncertain market with caution, imprudence, but fueled by enthusiasm for this forthcoming chapter in our history. With that, I would like to turn the call over to Bruno.