Vinci Compass Investments Ltd. Q1 FY2025 earnings call

• Integration of combined platforms over six months since the combination, with collaboration across levels. - Strong fundraising results in Q1 2025 with BRL1.1 billion in capital subscriptions. - Credit as a strategic focus with successful fundraisings in various credit funds. - Hosted annual Global Investment Conferences across Latin America, drawing over 1,300 LPs. - Global IP&S segment has ongoing inflows into third-party distribution. - Equities segment sees attractive valuations in Latin American equities. - Real assets segment has ICC with final closing in Q2 and focus on renewable energy and infrastructure projects.

Vinci Compass generated fee-related earnings of BRL65.7 million, or BRL1.04 per share, and adjusted distributable earnings of BRL62.3 million, or BRL0.98 per share, for the first quarter of 2025. In the credit segment, they achieved strong fundraising results with BRL1.1 billion in capital subscriptions during the quarter. The credit segment saw successful closings: the second closing of the long-term private credit fund in Peru, PEPCO II, raised over BRL600 million; opportunistic credit fund SPS4 and agribusiness credit fund MAV III had their first closings. FRE totaled BRL66 million in the first quarter, up 22% year-over-year. Adjusted distributable earnings reached BRL62 million or BRL0.98 per share, up 26% and 6% year-over-year. The global IP&S segment experienced robust inflows into third-party distribution for alternative GPs. The equities segment noted Latin American equities trading at attractive valuations. The real assets segment highlighted Latin America's renewable energy head start and the ICC with final closing scheduled for the second quarter.

• Expect growth from credit segment and global IP&S in 2025. - FRE margin expected to be in the low 30s. - ICC final closing scheduled for Q2. - Expect meaningful contribution from third-party distribution advisory fees in 2025.

• Concerns about global macroeconomic environment impacting alternative managers' portfolios. - Exchange rate fluctuations affecting AUM and earnings.

Q: Ricardo Buchpiguel asked about FRE margin growth and impact of real appreciation on FRE.

A: Bruno Zaremba and Alessandro Horta responded that margin leverage is strong with disciplined cost management, and the impact of real appreciation on FRE this quarter was not very significant.

Q: Guilherme Grespan inquired about drivers of IP&S moving parts and performance markdown in PE.

A: Bruno Zaremba explained performance markdown in PE was due to currency lag, and Alessandro Horta discussed that IP&S outflows were related to market volatility in the first quarter.

Q: Tito Labarta asked about interest in Latin America and FRE margin evolution.

A: Alessandro Horta talked about interest in Latin America across equities, infra, and credit, and Bruno Zaremba discussed FRE margin outlook with corporate advisory impact and expectation to reach low 30s margin by year-end