Vinci Partners Investments Ltd
For the period ended May 9, 2024. Filed May 9, 2024.
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May 9, 2024 · Filed May 9, 2024
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Contents
EX-99.2 · Segment Highlights
Segment Highlights
Private Market Strategies
| (R$ thousands, unless mentioned) | 1Q'23 | 4Q'23 | 1Q'24 | ∆ YoY (%) | 1Q'23 LTM | 1Q'24 LTM | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 58,432 | 66,363 | 62,519 | 7% | 218,734 | 255,046 | 17% |
| Net revenue from advisory fees | 275 | 1,648 | 554 | 102% | 2,865 | 2,751 | (4)% |
| Total Fee Related Revenues | 58,706 | 68,011 | 63,073 | 7% | 221,598 | 257,798 | 16% |
| Segment personnel expenses | (3,509) | (3,616) | (3,707) | 6% | (12,630) | (14,727) | 17% |
| Other G&A expenses | (1,438) | (2,378) | (2,856) | 99% | (8,592) | (10,609) | 23% |
| Corporate center expenses | (13,018) | (13,502) | (12,937) | (1)% | (47,922) | (54,511) | 14% |
| Bonus compensation related to management and advisory | (9,111) | (12,963) | (8,978) | (1)% | (35,955) | (40,867) | 14% |
| Total Fee Related Expenses | (27,076) | (32,459) | (28,478) | 5% | (105,100) | (120,714) | 15% |
| FEE RELATED EARNINGS (FRE) | 31,630 | 35,552 | 34,595 | 9% | 116,499 | 137,084 | 18% |
| FRE Margin (%) | 53.9% | 52.3% | 54.8% | 52.6% | 53.2% | ||
| Net revenue from performance fees | 7 | 1,983 | 8 | 8% | 2,826 | 4,983 | 76% |
| Realized performance fees | 7 | 3,025 | 8 | 8% | 7,080 | 6,024 | (15)% |
| Unrealized performance fees | – | (1,042) | – | N/A | (4,254) | (1,042) | (76)% |
| Performance based compensation | (3) | (970) | (3) | 34% | (1,165) | (2,297) | 97% |
| PERFORMANCE RELATED EARNINGS (PRE) | 5 | 1,014 | 4 | (7)% | 1,661 | 2,686 | 62% |
| PRE Margin (%) | 64.6% | 51.1% | 55.8% | 58.8% | 53.9% | ||
| (-) Unrealized performance fees | – | 1,042 | – | N/A | 4,254 | 1,042 | (76)% |
| (+) Unrealized performance compensation | – | (369) | – | N/A | (1,503) | (369) | (75)% |
| (+) Realized GP investment income | 5,881 | 4,451 | 4,406 | (25)% | 24,007 | 17,735 | (26)% |
| SEGMENT DISTRIBUTABLE EARNINGS | 37,516 | 41,689 | 39,005 | 4% | 144,918 | 158,178 | 9% |
| Segment DE Margin (%) | 58.1% | 55.2% | 57.8% | 57.4% | 56.2% | ||
| ASSETS UNDER MANAGEMENT (AUM[xvi] R$ millions) | 28,198 | 32,956 | 33,018 | 17% | 28,198 | 33,018 | 17% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 24,825 | 29,706 | 29,763 | 20% | 24,825 | 29,763 | 20% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.87% | 0.89% | 0.80% | 0.88% | 0.88% |
Fee related earnings (FRE) of R$34.6 million for the quarter ended March 28, 2024, up 9% year-over-year. This growth was driven by the strong fundraising in 2023 across Private Equity, Infrastructure and Real Estate. FRE was R$ 137.1 million for the last twelve months ended March 28, 2024, an increase of 18% when compared to the last twelve months ended March 31, 2023.
Segment Distributable Earnings of R$39.0 million for the quarter ended March 28, 2024, up 4% when compared to the quarter ended March 31, 2023, driven primarily by a higher Fee Related Earnings in the quarter. Segment DE was R$158.2 million over the last twelve months ended March 28, 2024, up 9% when compared to the last twelve months ended March 31, 2023, boosted by growth in FRE and PRE.
AUMof R$33.0 billion at the end of the first quarter, a 17% year-over-year increase propelled by robust fundraising across VCP IV, in Private Equity, VICC, in Infrastructure and VISC, in Real Estate.
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
Investment Products and Solutions
| (R$ thousands, unless mentioned) | 1Q'23 PF[xvii] | 4Q'23 PF | 1Q'24 | ∆ YoY (%) | 1Q'23 LTM PF | 1Q'24 LTM PF | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 22,817 | 19,349 | 19,814 | (13)% | 98,635 | 80,451 | (18)% |
| Net revenue from advisory fees | 7 | 8 | 8 | 13% | 28 | 32 | 14% |
| Total Fee Related Revenues | 22,825 | 19,357 | 19,822 | (13)% | 98,664 | 80,483 | (18)% |
| Segment personnel expenses | (1,832) | (1,801) | (1,627) | (11)% | (6,614) | (7,244) | 10% |
| Other G&A expenses | (1,292) | (1,816) | (1,008) | (22)% | (4,916) | (4,972) | 1% |
| Corporate center expenses | (5,084) | (3,937) | (4,100) | (19)% | (21,951) | (17,241) | (21)% |
| Bonus compensation related to management and advisory | (5,255) | (4,011) | (3,952) | (25)% | (21,774) | (17,371) | (20)% |
| Total Fee Related Expenses | (13,462) | (11,564) | (10,687) | (21)% | (55,253) | (46,826) | (15)% |
| FEE RELATED EARNINGS (FRE) | 9,362 | 7,793 | 9,135 | (2)% | 43,410 | 33,657 | (22)% |
| FRE Margin (%) | 41.0% | 40.3% | 46.1% | 44.0% | 41.8% | ||
| Net revenue from performance fees | 790 | 1,995 | 9 | (99)% | 6,334 | 3,913 | (38)% |
| Realized performance fees | 790 | 1,995 | 9 | (99)% | 6,334 | 3,913 | (38)% |
| Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| Performance based compensation | (316) | (994) | (4) | (99)% | (3,244) | (1,948) | (40)% |
| PERFORMANCE RELATED EARNINGS (PRE) | 474 | 1,001 | 4 | (99)% | 3,089 | 1,965 | (36)% |
| PRE Margin (%) | 60.0% | 50.2% | 50.0% | 48.8% | 50.2% | ||
| (-) Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| (+) Unrealized performance compensation | – | – | – | N/A | – | – | N/A |
| SEGMENT DISTRIBUTABLE EARNINGS | 9,837 | 8,793 | 9,139 | (7)% | 46,500 | 35,621 | (23)% |
| Segment DE Margin (%) | 41.7% | 41.2% | 46.1% | 44.3% | 42.2% | ||
| ASSETS UNDER MANAGEMENT (AUM R$ millions) | 26,599 | 25,426 | 25,756 | (3)% | 26,599 | 25,756 | (3)% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 26,288 | 25,179 | 25,507 | (3)% | 26,288 | 25,507 | (3)% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.37% | 0.33% | 0.34% | 0.40% | 0.34% |
This quarter, we executed a strategic realignment across our segments. In response to the evolving dynamics of our funds and the strategic vision of our management team, we reassigned a portion of our Hedge Funds business to IP&S (R$2.3 billion).
Fee related earnings (FRE) of R$9.1 million for the quarter ended March 28, 2024, down 2% year-over-year. FRE was R$33.7 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 22% when compared to the last twelve months ended March 31, 2023 Pro Forma. This decrease is attributed to outflows, especially within our pension funds strategy, which carries higher fees.
Performance related earnings (PRE) was R$2.0 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 36% when compared to the last twelve months ended March 31, 2023 Pro Forma.
Segment Distributable Earnings of R$9.1 million for the quarter ended March 28, 2024, down 7% year-over-year. Segment DE was R$35.6 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 23% when compared to the last twelve months ended March 31, 2023 Pro Forma, that posted higher contribution from FRE and PRE.
AUMof R$25.8 billion, down 3% year-over-year.
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
Public Equities
| (R$ thousands, unless mentioned) | 1Q'23 PF | 4Q'23 PF | 1Q'24 | ∆ YoY (%) | 1Q'23 LTM PF | 1Q'24 LTM PF | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 14,628 | 14,145 | 13,964 | (5)% | 62,780 | 58,124 | (7)% |
| Net revenue from advisory fees | – | – | – | N/A | – | – | N/A |
| Total Fee Related Revenues | 14,628 | 14,145 | 13,964 | (5)% | 62,780 | 58,124 | (7)% |
| Segment personnel expenses | (931) | (875) | (889) | (4)% | (3,401) | (3,576) | 5% |
| Other G&A expenses | (280) | (315) | (344) | 23% | (1,695) | (1,430) | (16)% |
| Corporate center expenses | (3,259) | (2,878) | (2,890) | (11)% | (13,972) | (12,454) | (11)% |
| Bonus compensation related to management and advisory | (2,074) | (1,798) | (2,004) | (3)% | (9,703) | (8,263) | (15)% |
| Total Fee Related Expenses | (6,544) | (5,866) | (6,126) | (6)% | (28,771) | (25,722) | (11)% |
| FEE RELATED EARNINGS (FRE) | 8,084 | 8,279 | 7,838 | (3)% | 34,008 | 32,403 | (5)% |
| FRE Margin (%) | 55.3% | 58.5% | 56.1% | 54.2% | 55.7% | ||
| Net revenue from performance fees | 1,166 | 2,491 | 2,257 | 94% | 4,232 | 12,670 | 199% |
| Realized performance fees | 1,166 | 2,491 | 2,257 | 94% | 4,232 | 12,670 | 199% |
| Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| Performance based compensation | (415) | (1,651) | (1,001) | 141% | (1,845) | (6,672) | 262% |
| PERFORMANCE RELATED EARNINGS (PRE) | 751 | 840 | 1,255 | 67% | 2,386 | 5,997 | 151% |
| PRE Margin (%) | 64.4% | 33.7% | 55.6% | 56.4% | 47.3% | ||
| (-) Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| (+) Unrealized performance compensation | – | – | – | N/A | – | – | N/A |
| SEGMENT DISTRIBUTABLE EARNINGS | 8,835 | 9,119 | 9,093 | 3% | 36,395 | 38,398 | 6% |
| Segment DE Margin (%) | 55.9% | 54.8% | 56.1% | 54.3% | 54.2% | ||
| ASSETS UNDER MANAGEMENT (AUM R$ millions) | 7,434 | 10,055 | 9,910 | 33% | 7,434 | 9,910 | 33% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 7,374 | 10,005 | 9,859 | 34% | 7,374 | 9,859 | 34% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.83% | 0.64% | 0.60% | 0.84% | 0.68% |
This quarter, we executed a strategic realignment across our segments. In response to the evolving dynamics of our funds and the strategic vision of our management team, we reassigned a portion of our Hedge Funds business to Public Equities (R$ 533.6 million).
Fee related earnings (FRE) of R$7.8 million for the quarter ended March 28, 2024, down 3% year-over-year. FRE was R$32.4 million over the last twelve months ended March 28, 2024 Pro Forma, a decrease of 5% when compared to the last twelve months ended March 31, 2023 Pro Forma.
Performance related earnings (PRE) of R$1.3 million for the quarter ended March 28, 2024, up 67% year-over-year. PRE was R$6.0 million over the last twelve months ended March 28, 2024 Pro Forma, an increase of 151% when compared to the last twelve months ended March 31, 2023 Pro Forma.
Segment Distributable Earnings of R$9.1 million for the quarter ended March 28, 2024, up 3% year-over-year. Segment DE was R$38.4 million over the last twelve months ended March 28, 2024 Pro Forma, an increase of 6% when compared to the last twelve months ended March 31, 2023 Pro Forma, due to higher contributions from PRE.
AUMwas R$9.9 billion at the end of the first quarter, up 33% year-over-year.
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
Corporate Advisory
| (R$ thousands, unless mentioned) | 1Q'23 | 4Q'23 | 1Q'24 | ∆ YoY (%) | 1Q'23 LTM | 1Q'24 LTM | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | – | – | – | N/A | – | – | N/A |
| Net revenue from advisory fees | 4,186 | 17,343 | 9,797 | 134% | 19,894 | 42,907 | 116% |
| Total Fee Related Revenues | 4,186 | 17,343 | 9,797 | 134% | 19,894 | 42,907 | 116% |
| Segment personnel expenses | (471) | (574) | (553) | 17% | (1,975) | (2,143) | 8% |
| Other G&A expenses | (74) | (723) | (170) | 130% | (408) | (1,363) | 234% |
| Corporate center expenses | (1,130) | (1,075) | (1,054) | (7)% | (4,449) | (4,455) | 0% |
| Bonus compensation related to management and advisory | (1,023) | (5,598) | (3,093) | 202% | (4,054) | (14,049) | 247% |
| Total Fee Related Expenses | (2,698) | (7,970) | (4,870) | 80% | (10,885) | (22,010) | 102% |
| FEE RELATED EARNINGS (FRE) | 1,487 | 9,373 | 4,926 | 231% | 9,009 | 20,897 | 132% |
| FRE Margin (%) | 35.5% | 54.0% | 50.3% | 45.3% | 48.7% | ||
| SEGMENT DISTRIBUTABLE EARNINGS | 1,487 | 9,373 | 4,926 | 231% | 9,009 | 20,897 | 132% |
| Segment DE Margin (%) | 35.5% | 54.0% | 50.3% | 45.3% | 48.7% |
Fee related earnings (FRE) of R$4.9 million for the quarter ended March 28, 2024. FRE was R$21.0 million over the last twelve months ended March 28, 2024, an increase of 132% when compared to the last twelve months ended March 31, 2023, due to a pickup in deal activity over the last twelve months.
Segment Distributable Earnings over the last twelve months ended March 28, 2024 were R$21.0 million, an increase of 132% year-over-year when compared to the last twelve months ended March 31, 2023.
Deal activity has been notably increasing since the latter part of 2023, propelled by the easing cycle for interest rates in Brazil. This environment allows great opportunities in M&A, complemented by a broader sector diversification by our Corporate Advisory strategy aimed for reducing risk exposure across various economic cycles and asset profiles.
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
Retirement Services
| (R$ thousands, unless mentioned)/ | 1Q'23 | 4Q'23 | 1Q'24 | ∆ YoY (%) | 1Q'23 LTM | 1Q'24 LTM | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | – | 119 | 158 | N/A | – | 324 | N/A |
| Net revenue from advisory fees | – | – | – | N/A | – | – | N/A |
| Total Fee Related Revenues | – | 119 | 158 | N/A | – | 324 | N/A |
| Segment personnel expenses | (422) | (596) | (561) | 33% | (1,450) | (2,168) | 50% |
| Other G&A expenses | (374) | (1,341) | (1,618) | 333% | (1,724) | (4,589) | 166% |
| Corporate center expenses | (115) | (107) | (105) | (8)% | (322) | (446) | 38% |
| Bonus compensation related to management and advisory | (598) | (1,773) | (721) | 21% | (2,622) | (4,136) | 58% |
| Total Fee Related Expenses | (1,509) | (3,818) | (3,006) | 99% | (6,119) | (11,338) | 85% |
| FEE RELATED EARNINGS (FRE) | (1,509) | (3,699) | (2,847) | 89% | (6,119) | (11,014) | 80% |
| FRE Margin (%) | N/A | N/A | N/A | N/A | N/A | ||
| Net revenue from performance fees | – | – | – | N/A | – | – | N/A |
| Realized performance fees | – | – | – | N/A | – | – | N/A |
| Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| Performance based compensation | – | – | – | N/A | – | – | N/A |
| PERFORMANCE RELATED EARNINGS (PRE) | – | – | – | N/A | – | – | N/A |
| PRE Margin (%) | N/A | N/A | N/A | N/A | N/A | ||
| (-) Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| (+) Unrealized performance compensation | – | – | – | N/A | – | – | N/A |
| SEGMENT DISTRIBUTABLE EARNINGS | (1,509) | (3,699) | (2,847) | 89% | (6,119) | (11,014) | 80% |
| Segment DE Margin (%) | N/A | N/A | N/A | N/A | N/A | ||
| ASSETS UNDER MANAGEMENT (AUM R$millions) | – | 88 | 147 | N/A | – | 147 | N/A |
| AVERAGE MANAGEMENT FEE RATE (%) | – | 0.72% | 0.58% | N/A | – | 0.86% | N/A |
**Fee Related Earnings (FRE)**of negative R$2.8 million for the quarter ended March 28, 2024. FRE was negative R$11.0 million over the last twelve months ended March 28, 2024.
VRS started to contribute to AUM numbers and management fee revenues in 2023. In February 2024, VRS was officially presented to the general public with an article in a major newspaper in Brazil. The product is now fully accessible to the public through dedicated apps and website and prepared to accept allocations from all investors through our newly launched platform called Mio.
VRS reached close to R$ 150 million in AUM by the end of the first quarter.
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