Vinci Compass Investments Ltd. (VINP) Earnings

Management highlights

### Strategic M&A Activity - Signed an agreement to acquire Navi's real estate funds platform, expected to close in Q4 2026. The transaction adds ~R$ 800 million in AUM, concentrated in perpetual and long-term lock-up vehicles, and deepens Vinci Compass' multi-strategy real estate and REIT presence. It is expected to deliver a high ~67% post-tax FRE margin due to existing internal management capacity. - Completed the combination with Bax Asset Management (BAC) in early June 2026, adding R$ 4 billion in AUM across credit and equities, and gained access to BAC's extensive Argentine corporate and retail distribution network. The combination creates a scaled Argentine platform positioned to benefit from ongoing financial system transformation, with early signs of positive client inflows expected to build in H2 2026. ### Fundraising and Capital Formation - The quarter delivered R$ 13 billion in total capital formation and appreciation, with ~R$ 1 billion in new commitments across flagship funds currently in fundraising (SPS4, MAV4, LACAN4, VSP2). The H2 2026 fundraising pipeline is well-diversified across credit, real assets, private equity, and global IP&S, including COPCO, VRI5, and Credit Infra. - Strong momentum in Mexican short-duration credit strategies, with over R$ 440 million in inflows during the quarter. In Argentina, the combined BAC platform now manages over R$ 8 billion in local funds, mostly in credit. - Key closed-end credit fundraising milestones: SPS4 (Opportunistic Capital Solutions) secured commitments from US and Uruguayan investors; MAV4 (Agribusiness) hit its fundraising target at launch; FI Peru (private credit) added new commitments; the new VCCL semi-liquid credit fund in Chile secured its first commitments in July 2026, validating demand for this accessible higher-liquidity format. ### Operational and Balance Sheet Highlights - Vinci Compass has called ~65% (R$ 960 million) of its total R$ 1.5 billion GP commitment to proprietary funds. Capital deployed today will generate future management fees, carry, and capital gains as funds mature, with R$ 890 million in long-term proprietary fund holdings currently underrepresented in near-term distributable earnings. - The ICC infrastructure fund closed the acquisition of a stake in Faro Energy, a leading Brazilian distributed solar generation platform, aligning with the fund's strategy of owning contracted essential infrastructure tied to the energy transition. - Vinci Compass expects to recognize R$ 90-100 million net of taxes from the Galeão International Airport concession process in H2 2026, which will add to distributable earnings and increase balance sheet flexibility for future growth. ### Macro and Market Context - Regional macro conditions are broadly constructive, with easing political uncertainty following market-friendly election outcomes in Peru and Colombia. Mexico remains a key long-term growth lever, supported by pension reform (mandatory contributions rising to 15% by 2030) and structural nearshoring-driven foreign direct investment. - In Brazil, elevated interest rates create attractive entry valuations and downside protection for private market deployments, but also weigh on risk appetite, M&A activity, and liquidity event timing. Large US AI/technology IPOs and follow-on offerings created temporary capital rotation pressure in Q2 2026, but this pressure is expected to ease as offering sizes normalize.

Guidance

- Full-year 2026 consolidated FRE margins are expected to land in the mid-30% range, with upside potential to reach slightly higher levels, driven by full-quarter BAC contribution starting in Q3, incremental high-margin income from the Navi acquisition, and improving corporate advisory revenue in H2. - The 38% FRE margin target by 2028, outlined at the prior investor day, remains on track. - H2 2026 overall revenue and corporate advisory activity is expected to be meaningfully higher than H1 2026, supported by a strong pipeline of pending mandates and deals. - LACAN IV is highly likely to hit its hard cap by its final closing at the end of 2026. VRI5 (private equity) is expected to hold a first close in Q3 or early Q4 2026, with VCP5 (flagship private equity) expected to launch in 2027 after VCP4 is fully invested. - COPCO (Colombia private credit) is expected to hold a closing in H2 2026 with a few hundred million dollars in commitments. First capital returns from the current cycle of proprietary GP commitments are expected to begin in 2026. - No meaningful net inflows are expected for TPD alternatives in Q3 2026, due to extended global fundraising timelines that have pushed investor commitments to later closings.

Segment performance

Total AUM at quarter end: R$ 361 billion, up 19% year-over-year and 4% quarter-over-quarter. - Credit: AUM surpassed R$ 42 billion, up 15% quarter-over-quarter and 40% year-over-year. Driven by R$ 4 billion from the BAC acquisition and R$ 2 billion from organic capital formation and appreciation. BAC operations carry a ~50% FRE margin, above the company average, providing a positive margin mix impact. - Global IP&S (Third-Party Distribution): Net outflows for the quarter, with ~1/3 of outflows stemming from capital returns from mature TPD Alternative funds (fees charged upfront, so no impact to recurring management fees). Organic annual AUM growth for the segment remains ~20% year-over-year, with 70% of ongoing inflows to TPD Alternatives coming from Chilean institutional and high-net-worth investors. - Real Assets: Organic AUM growth of 40% year-over-year. The LACAN IV real assets fund has strong institutional investor momentum and is likely to hit its hard cap by year-end. Pro forma real estate AUM post-Navi acquisition will reach ~R$ 7 billion, with R$ 750 million in the multi-strategy real estate vertical. - Equities: Inflows to regional LATAM-focused vehicles were offset by outflows in Brazilian domestic products, driven by elevated local real rates and election uncertainty. - Corporate Advisory: Advisory fees totaled R$ 9 million, down 65% year-over-year, reflecting a slow current deal environment. The segment holds a meaningful pipeline of opportunities for H2 2026. - Overall: Total management fees R$ 252 million, up 29% year-over-year; total fee-related revenue R$ 272 million, up 17% year-over-year; fee-related earnings (FRE) R$ 89 million, up 36% year-over-year, with an FRE margin of 33%, up 450 basis points year-over-year.

Risks & headwinds

- Elevated real interest rates, a cautious monetary cycle, and election-related fiscal uncertainty in Brazil continue to suppress risk appetite, broad M&A activity, and liquidity events, which may delay the timing of realizations and deal closures. - Extended fundraising timelines for global alternative funds have led investors to defer commitments to later closings, creating near-term pressure on TPD segment inflows. - Large US AI/technology sector public offerings created temporary capital rotation pressure in Q2 2026, as investors reduced emerging market holdings to participate in these deals, though pressure is expected to ease. - Forward-looking statements are inherently uncertain, and actual results may differ materially from management projections due to factors outside the company's control.

Analyst Q&A

• Q: What drove the acceleration in fee-related expenses in Q2, and what portion of the Global IP&S outflows came from the noted capital returns? How quickly are these returns expected to be recycled into new inflows?

  A: Q2 seasonally higher expenses stem from annual service provider payments, plus incremental M&A costs for the BAC transaction, which were expected. Approximately one-third of the outflows came from capital returns from mature TPD alternative funds, with most outflows from TPD Liquid driven by regulatory rebalancing by Chilean pension funds after strong market appreciation. The underlying organic growth of TPD AUM remains ~20% year-over-year, supported by steady growth of Chilean and Mexican pension fund bases, so returns are expected to be rebalanced and recycled back into the platform over time, with ongoing quarter-to-quarter fluctuations expected.

• Q: What is the expected impact of the BAC and Navi acquisitions on revenue, FRE margins, and expenses, and can you quantify BAC's margin premium?

  A: BAC contributed R$ 4 million in revenue in its first partial month (June) 2026, and will contribute a full quarter of revenue starting in Q3. BAC's FRE margin is ~50%, above the company average, providing an approximate 50 basis point positive tailwind to consolidated H2 2026 margins. Navi is a smaller acquisition (R$ 750 million pro forma AUM) with ~1% annual fees, and is managed by the existing internal real estate team with no incremental headcount, leading to a high ~67% post-tax FRE margin. Navi is marginally accretive but not large enough to meaningfully move the consolidated needle.

• Q: What are the key integration milestones and long-term strategy for the Argentine BAC acquisition, and what is the current state of the M&A pipeline?

  A: The BAC combination is highly synergistic: Vinci Compass had primarily institutional client coverage in Argentina, while BAC provides access to a large retail and wealth management distribution network, creating immediate cross-selling opportunities for more sophisticated alternative products. Integration has proceeded smoothly, and the Argentine market is underpenetrated for structured alternatives, creating significant long-term growth opportunity. Management maintains an active selective M&A pipeline, prioritizing deals outside Brazil to expand regional capabilities, and opportunistic complementary platform deals in Brazil (like Navi) as the local market consolidates. The upcoming R$ 90-100 million Galeão inflow will increase balance sheet dry powder for future acquisitions. Organic growth of the existing platform remains strong enough to drive meaningful FRE growth even without additional M&A.

• Q: Can you confirm if the strong AUM growth in credit will continue, and what is the outlook for private equity fundraising?

  A: Credit growth is expected to continue, driven by strong product momentum both in Brazil (supported by the current rate environment) and across other Latin American markets. New credit product launches are progressing across the region, including Copco in Colombia (on track for a H2 2026 closing with a few hundred million dollars in commitments) and new structured products in Brazil. For private equity, the current flagship VCP4 is still in its investment cycle, so VCP5 will not launch until VCP4 is fully invested, expected in 2027. VRI5, another private equity strategy, is already anchored and on track for a first close in Q3 or early Q4 2026.