Vinci Compass Investments Ltd.

Good evening and welcome to DaVinci Partners' 3rd 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 us 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.vinciopartners.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 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 VINTA partners fund. On results, VINTA generated fee-related earnings of R$53.8 million, or R$1.02 per share, and adjusted distributable earnings of R$ 57.1 million, or R$ 1.08 per share, for the third quarter of 2024. We declare a quarterly dividend of R$ 0.16 on the dollar per common share, payable on December 5th to shareholders of record as of November 20th. With that, I'll turn the call over to Alessandro.

Thank you, Ana. Good evening, and thank you all for joining our call. We are very pleased to join you today as we announce results for the third quarter 2024. To kick things off, let's start with a brief overview of our results for the quarter. Vinci reached $70 billion in AUM, posting an 8% year-over-year growth. Our efforts in raising capital for private market funds continue to boost our AUM and FRE growth. which highlights this quarter to a little over half a billion reais in additional commitments, including the first coming from a global investor in our credit infrastructure. We also saw positive net inflows in our public equity strategy, which we will provide more details further in the call. While during this quarter growth was more measured, we anticipate a strong finish to the year, We expect final closings for VCP4, securing additional commitments for VICC and credit infra, and completing the first closing for SPS4. While interest rates in the U.S. are on a downward trajectory, Brazil's central bank is expected to implement modest rate hikes to continue to keep inflation expectations under control. Despite these circumstances, Zinchi continues to excel, especially when it comes to fundraising in private markets, standing resilient in a market where many asset managers, limited to single strategies, have struggled to remain competitive. In that sense, we are getting to a point where the recognition of the brand and attractiveness of the platform has put us in a different position from other local and regional players. we had seen a similar evolution in the U.S. and European alternative asset markets, with the sector displaying bigger concentration around the larger names, and we are starting to witness the same phenomenon in our Latin American market. Moving on to our segment earnings, distributable earnings reached 57 million in the quarter, reflecting a 12% year-over-year increase on a per share basis. These results highlight our firm's robust trajectory and position us well to continue delivering value and growth. Shifting to some very exciting news since the end of the quarter, last week we announced the closing of our combination with Compass. This begins a historic transformation for our firm that will redefine our future. The combination with Compass marks the official establishment of a leading Penn Regional Alternative Asset Manager with a first-class diversified product offering, with all major strategies across the alternative scope, where local, regional, and global investors can find a full suite of products. With the combined platform of Vinci and Compass, we have established one of the leading content providers for alternative investments in Latin America. This strength, paired with the extensive distribution capability we possess, creates a formidable presence across the region. Together, we serve a vast and diverse client base of more than 2,600 LPs spanning both institutional and high net worth investors. Compass brings $41 billion in AUM as of September 2024, reflecting a significant 10% growth year-to-date from $37 billion at the close of 2023. This strong expansion underscores the dynamism and strength of Compass platform, now part of our combined vision to deliver unparalleled investment solutions across Latin America. The combined platform managed $54 billion in AUM as of September 2024. As we have disclosed when we signed the transaction in March, we needed to secure regulatory approvals across multiple Latin America countries, each with its own processes and requirements. We are pleased to report that the required steps for closing unfolded smoothly and according to our anticipated timeline. The integration process has been progressing exceptionally well, underscoring the strong cultural alignment and shared vision between our teams. We have been working together in close partnership, leveraging each other's strengths and expertise to create a cohesive, united platform. For instance, we have already seamlessly combined operations into single, consolidated office in both Sao Paulo and New York, cities where both companies previously had independent locations. A significant milestone resulting from this integration is VCP4's most recent achievement, securing its first commitment from a Mexican LP following successful roadshows across Chile and Mexico by our integrated teams from Vinci and Compass. This accomplishment is a direct outcome of the combined efforts and the expanded reach of our joint platform, illustrating the real value and growth potential that this integration brings to our investment network and strategic initiatives. We expect many more cross-selling opportunities in the future with commitment indications for the first close of SPS4 to be held in the fourth quarter. Join us on November 25th for an extraordinary call where we will delve deeper into the combination provide integration and synergies updates, and outline our strategic vision for our combined platforms as we move forward. Moving on to a more recent announcement, the acquisition of Lacan early this week. This acquisition will allow Vinci to launch its forestry strategy. We believe forestry is a complementary investment strategy to our current roster of solutions and for which we have a positive long-term view. Lacan is a prominent Timberland investment management organization in Latin America with 1.5 billion reais in AUM distributed across three vintages with the fourth currently in fundraising. Their deep expertise in this area makes them the ideal partner for this expansion with a proven track record that sets them apart and we are excited to offer our clients a new investment strategy. Lacan's team managing 130,000 hectares of planted land and an additional 31,000 hectares of preserved areas. Their extensive experience and commitment to sustainable forestry practices align perfectly with our vision of impactful long-term investment. This acquisition brings Lacan's people into Vinci's fold, led by founder Luiz Augusto Candiotta, and a senior leadership team that has successfully managed multiple forestry assets for over a decade. With a diversified portfolio that includes greenfield and brownfield projects in eucalyptus, pine, and native forests, LACAN's presence strengthens our capabilities in real asset investments and provides a new avenue for growth. This strategy provides us with the potential for sustainable value creation in an underserved market, and we believe that with Lacan's seasoned team on board, there will be additional opportunities to expand the strategy into other Latin American markets in the future. We structured the transaction with a cash payment upon closing, which took place last Monday, and additional cash considerations in a period of up to four years, contingent upon fundraising and incremental management fee revenues. We expect the acquisition to favorably impact our AUM and segment results for the fourth quarter and into 2025, and the transaction is expected to be immediately accretive to FRI per share and DE per share. To finalize my remarks, I would like to reinforce that these transactions aren't just milestones. They mark the beginning of a new era for venture partners, establishing us as the gateway to alternative investments in Latin America. We believe these movements solidify Vinci's status as a leading full-service player in Latin America, uniquely positioned to capitalize on the region's high growth potential for alternative investments. This is one of the topics we want to convey in our call on November 25th, and we hope to see you there. We will discuss the key aspects of our M&A activity so far, delve into further details on the Compass business, team and integration process and provide our strategic vision for the coming years as we grow into Latin America. Thanks again for joining our call. With that, I would like to turn the call over to Bruno.