Vinci Partners Investments Ltd
For the period ended Aug 7, 2024. Filed Aug 7, 2024.
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Aug 7, 2024 · Filed Aug 7, 2024
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Contents
EX-99.2 · Segment Highlights
Segment Highlights
Private Market Strategies
| (R$ thousands, unless mentioned) | 2Q'23 | 1Q'24 | 2Q'24 | ∆ YoY (%) | 2Q'23 YTD | 2Q'24 YTD | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 57,842 | 62,519 | 81,238 | 40% | 116,274 | 143,756 | 24% |
| Net revenue from advisory fees | 275 | 554 | 2,197 | 700% | 549 | 2,751 | 401% |
| Total Fee Related Revenues | 58,117 | 63,073 | 83,434 | 44% | 116,823 | 146,507 | 25% |
| Segment personnel expenses | (3,719) | (3,707) | (3,925) | 6% | (7,228) | (7,632) | 6% |
| Other G&A expenses | (2,540) | (2,856) | (3,384) | 33% | (3,978) | (6,240) | 57% |
| Corporate center expenses | (13,205) | (12,937) | (16,292) | 23% | (26,223) | (29,229) | 11% |
| Bonus compensation related to management and advisory | (8,817) | (8,978) | (12,373) | 40% | (17,928) | (21,351) | 19% |
| Total Fee Related Expenses | (28,281) | (28,478) | (35,974) | 27% | (55,357) | (64,452) | 16% |
| FEE RELATED EARNINGS (FRE) | 29,836 | 34,595 | 47,461 | 59% | 61,466 | 82,056 | 33% |
| FRE Margin (%) | 51.3% | 54.8% | 56.9% | 52.6% | 56.0% | ||
| Net revenue from performance fees | 2,528 | 8 | 3,720 | 47% | 2,535 | 3,728 | 47% |
| Realized performance fees | 2,528 | 8 | 7,205 | 185% | 2,535 | 7,213 | 185% |
| Unrealized performance fees | – | – | (3,483) | N/A | – | (3,483) | N/A |
| Performance based compensation | (1,118) | (3) | (1,646) | 47% | (1,121) | (1,649) | 47% |
| PERFORMANCE RELATED EARNINGS (PRE) | 1,410 | 4 | 2,074 | 47% | 1,414 | 2,079 | 47% |
| PRE Margin (%) | 55.8% | 55.8% | 55.8% | 55.8% | 55.8% | ||
| (-) Unrealized performance fees | – | – | 3,483 | N/A | – | 3,483 | N/A |
| (+) Unrealized performance compensation | – | – | (1,233) | N/A | – | (1,233) | N/A |
| (+) Realized GP investment income | 4,179 | 4,406 | 12,379 | 196% | 10,060 | 16,785 | 67% |
| SEGMENT DISTRIBUTABLE EARNINGS | 35,425 | 39,005 | 64,164 | 81% | 72,940 | 103,170 | 41% |
| Segment DE Margin (%) | 54.6% | 57.8% | 62.3% | 56.4% | 60.5% | ||
| ASSETS UNDER MANAGEMENT (AUMxv R$ millions) | 29,367 | 33,018 | 34,692 | 18% | 29,367 | 34,692 | 18% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 26,076 | 29,763 | 31,321 | 20% | 26,076 | 31,321 | 20% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.85% | 0.80% | 1.02% | 0.85% | 1.02% |
Fee Related Earnings (FRE) of R$47.5 million for the quarter ended June 28, 2024, up 59% year-over-year. This growth was fueled by catch-up fees from strong Private Equity fundraising that secured R$486.1 million in new commitments for VCP IV this quarter and rise in management fees across the majority of strategies. FRE was R$82.1 million for the six months ended June 28, 2024, an increase of 33% when compared to the six months ended June 30, 2023. FRE Margin has been positively impacted by the fundraising environment, demonstrating a consistent increase over the quarters.
Performance Related Earnings (PRE) was R$2.1 million for the six months ended June 28, 2024, an increase of 47% when compared to the six months ended June 30, 2023. Realized performance fees were recognized in Infrastructure and Private Credit funds.
Segment Distributable Earnings of R$64.2 million for the quarter ended June 28, 2024, up 81% when compared to the quarter ended June 30, 2023, driven by a higher Fee Related Earnings and Performance Related Earnings in the quarter. Segment DE was R$103.2 million for the six months ended June 28, 2024, up 41% when compared to the six months ended June 30, 2023, boosted by growth in FRE and PRE.
AUMof R$34.7 billion at the end of the second quarter, a 18% year-over-year increase propelled by robust fundraising over the last twelve months across all Private Markets strategies, with highlights for VCP IV in Private Equity, VICC in Infrastructure, Vinci Credit Infra in Credit and VISC in Real Estate.
Investment Products and Solutions
| (R$ thousands, unless mentioned) | 2Q'23 PFxvi | 1Q'24 | 2Q'24 | ∆ YoY (%) | 2Q'23 YTD PF | 2Q'24 YTD | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 20,485 | 19,814 | 18,959 | (7)% | 43,302 | 38,773 | (10)% |
| Net revenue from advisory fees | 8 | 8 | 524 | 6,456% | 15 | 532 | 3,449% |
| Total Fee Related Revenues | 20,493 | 19,822 | 19,484 | (5)% | 43,318 | 39,306 | (9)% |
| Segment personnel expenses | (1,997) | (1,627) | (1,527) | (24)% | (3,829) | (3,154) | (18)% |
| Other G&A expenses | (1,053) | (1,008) | (1,082) | 3% | (2,345) | (2,090) | (11)% |
| Corporate center expenses | (4,677) | (4,100) | (4,659) | (0)% | (9,761) | (8,759) | (10)% |
| Bonus compensation related to management and advisory | (4,690) | (3,952) | (4,851) | 3% | (9,945) | (8,803) | (11)% |
| Total Fee Related Expenses | (12,417) | (10,687) | (12,118) | (2)% | (25,879) | (22,806) | (12)% |
| FEE RELATED EARNINGS (FRE) | 8,076 | 9,135 | 7,365 | (9)% | 17,438 | 16,500 | (5)% |
| FRE Margin (%) | 39.4% | 46.1% | 37.8% | 40.3% | 42.0% | ||
| Net revenue from performance fees | 1,729 | 9 | 214 | (88)% | 2,519 | 223 | (91)% |
| Realized performance fees | 1,729 | 9 | 214 | (88)% | 2,519 | 223 | (91)% |
| Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| Performance based compensation | (860) | (4) | (107) | (88)% | (1,176) | (112) | (90)% |
| PERFORMANCE RELATED EARNINGS (PRE) | 870 | 4 | 107 | (88)% | 1,344 | 111 | (92)% |
| PRE Margin (%) | 50.3% | 50.0% | 49.9% | 53.4% | 49.9% | ||
| (-) Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| (+) Unrealized performance compensation | – | – | – | N/A | – | – | N/A |
| SEGMENT DISTRIBUTABLE EARNINGS | 8,946 | 9,139 | 7,472 | (16)% | 18,783 | 16,611 | (12)% |
| Segment DE Margin (%) | 40.3% | 46.1% | 37.9% | 41.0% | 42.0% | ||
| ASSETS UNDER MANAGEMENT (AUM R$ millions) | 26,398 | 25,756 | 24,815 | (6)% | 26,398 | 24,815 | (6)% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 26,153 | 25,507 | 24,604 | (6)% | 26,153 | 24,604 | (6)% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.34% | 0.34% | 0.33% | 0.34% | 0.33% |
Fee Related Earnings (FRE) of R$7.4 million for the quarter ended June 28, 2024, down 9% year-over-year. FRE was R$16.5 million for the six months ended June 28, 2024, a decrease of 5% when compared to the six months ended June 30, 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$107.0 thousand for the quarter ended June 28, 2024, down 88% year-over-year.
Segment Distributable Earnings of R$7.5 million for the quarter ended June 28, 2024, down 16% year-over-year. Segment DE was R$16.6 million for the six months ended June 28, 2024, a decrease of 12% when compared to the six months ended June 30, 2023 Pro Forma, that posted higher contribution from FRE and PRE.
AUMof R$24.8 billion, down 6% year-over-year.
Public Equities
| (R$ thousands, unless mentioned) | 2Q'23 PF | 1Q'24 | 2Q'24 | ∆ YoY (%) | 2Q'23 YTD PF | 2Q'24 YTD | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 14,433 | 13,964 | 13,762 | (5)% | 29,061 | 27,726 | (5)% |
| Net revenue from advisory fees | – | – | – | N/A | – | – | N/A |
| Total Fee Related Revenues | 14,433 | 13,964 | 13,762 | (5)% | 29,061 | 27,726 | (5)% |
| Segment personnel expenses | (906) | (889) | (834) | (8)% | (1,837) | (1,723) | (6)% |
| Other G&A expenses | (388) | (344) | (475) | 23% | (668) | (819) | 23% |
| Corporate center expenses | (3,295) | (2,890) | (3,382) | 3% | (6,554) | (6,272) | (4)% |
| Bonus compensation related to management and advisory | (2,104) | (2,004) | (2,267) | 8% | (4,178) | (4,270) | 2% |
| Total Fee Related Expenses | (6,693) | (6,126) | (6,958) | 4% | (13,237) | (13,084) | (1)% |
| FEE RELATED EARNINGS (FRE) | 7,740 | 7,838 | 6,804 | (12)% | 15,824 | 14,642 | (7)% |
| FRE Margin (%) | 53.6% | 56.1% | 49.4% | 54.5% | 52.8% | ||
| Net revenue from performance fees | 6,507 | 2,257 | 1,679 | (74)% | 7,673 | 3,935 | (49)% |
| Realized performance fees | 6,507 | 2,257 | 1,679 | (74)% | 7,673 | 3,935 | (49)% |
| Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| Performance based compensation | (3,390) | (1,001) | (749) | (78)% | (3,805) | (1,751) | (54)% |
| PERFORMANCE RELATED EARNINGS (PRE) | 3,117 | 1,255 | 929 | (70)% | 3,868 | 2,184 | (44)% |
| PRE Margin (%) | 47.9% | 55.6% | 55.3% | 50.4% | 55.5% | ||
| (-) Unrealized performance fees | – | – | – | N/A | – | – | N/A |
| (+) Unrealized performance compensation | – | – | – | N/A | – | – | N/A |
| SEGMENT DISTRIBUTABLE EARNINGS | 10,856 | 9,093 | 7,733 | (29)% | 19,691 | 16,826 | (15)% |
| Segment DE Margin (%) | 51.8% | 56.1% | 50.1% | 53.6% | 53.1% | ||
| ASSETS UNDER MANAGEMENT (AUM R$ millions) | 9,115 | 9,910 | 9,463 | 4% | 9,115 | 9,463 | 4% |
| FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 9,066 | 9,859 | 9,426 | 4% | 9,066 | 9,426 | 4% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.75% | 0.60% | 0.61% | 0.75% | 0.61% |
Fee Related Earnings (FRE) of R$6.8 million for the quarter ended June 28, 2024, down 12% year-over-year. FRE was R$14.6 million for the six months ended June 28, 2024, a decrease of 7% when compared to the six months ended June 30, 2023 Pro Forma.
Performance Related Earnings (PRE) of R$929.1 thousand for the quarter ended June 28, 2024, down 70% year-over-year. PRE was R$2.2 million for the six months ended June 28, 2024, a decrease of 44% when compared to the six months ended June 30, 2023 Pro Forma.
Segment Distributable Earnings of R$7.7 million for the quarter ended June 28, 2024, down 29% year-over-year. Segment DE was R$16.8 million for the six months ended June 28, 2024, a decrease of 15% when compared to the six months ended June 30, 2023 Pro Forma.
AUM was R$9.4 billion at the end of the second quarter, up 4% year-over-year.
Corporate Advisory
| (R$ thousands, unless mentioned) | 2Q'23 | 1Q'24 | 2Q'24 | ∆ YoY (%) | 2Q'23 YTD | 2Q'24 YTD | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | – | – | – | N/A | – | – | N/A |
| Net revenue from advisory fees | 13,768 | 9,797 | 8,760 | (36)% | 17,954 | 18,557 | 3% |
| Total Fee Related Revenues | 13,768 | 9,797 | 8,760 | (36)% | 17,954 | 18,557 | 3% |
| Segment personnel expenses | (525) | (553) | (609) | 16% | (996) | (1,162) | 17% |
| Other G&A expenses | (241) | (170) | (285) | 18% | (315) | (455) | 44% |
| Corporate center expenses | (1,120) | (1,054) | (1,287) | 15% | (2,251) | (2,342) | 4% |
| Bonus compensation related to management and advisory | (4,735) | (3,093) | (2,768) | (42)% | (5,758) | (5,861) | 2% |
| Total Fee Related Expenses | (6,622) | (4,870) | (4,949) | (25)% | (9,320) | (9,820) | 5% |
| FEE RELATED EARNINGS (FRE) | 7,146 | 4,926 | 3,810 | (47)% | 8,634 | 8,737 | 1% |
| FRE Margin (%) | 51.9% | 50.3% | 43.5% | 48.1% | 47.1% | ||
| SEGMENT DISTRIBUTABLE EARNINGS | 7,146 | 4,926 | 3,810 | (47)% | 8,634 | 8,737 | 1% |
| Segment DE Margin (%) | 51.9% | 50.3% | 43.5% | 48.1% | 47.1% |
Fee Related Earnings (FRE) of R$3.8 million for the quarter ended June 28, 2024. FRE was R$8.7 million for the six months ended June 28, 2024, an increase of 1% when compared to the six months ended June 30, 2023.
Segment Distributable Earnings for the six months ended June 28, 2024 were R$8.7 million, an increase of 1% year-over-year when compared to the six months ended June 30, 2023.
Retirement Services
| (R$ thousands, unless mentioned)/ | 2Q'23 | 1Q'24 | 2Q'24 | ∆ YoY (%) | 2Q'23 YTD | 2Q'24 YTD | ∆ YoY (%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 9 | 158 | 175 | 1,901% | 9 | 334 | 3,679% |
| Net revenue from advisory fees | – | – | – | N/A | – | – | N/A |
| Total Fee Related Revenues | 9 | 158 | 175 | 1,901% | 9 | 334 | 3,679% |
| Segment personnel expenses | (429) | (561) | (661) | 54% | (851) | (1,222) | 44% |
| Other G&A expenses | (814) | (1,618) | (1,799) | 121% | (1,188) | (3,418) | 188% |
| Corporate center expenses | (112) | (105) | (129) | 15% | (227) | (234) | 3% |
| Bonus compensation related to management and advisory | (703) | (721) | (1,122) | 60% | (1,300) | (1,843) | 42% |
| Total Fee Related Expenses | (2,058) | (3,006) | (3,712) | 80% | (3,566) | (6,717) | 88% |
| FEE RELATED EARNINGS (FRE) | (2,049) | (2,847) | (3,537) | 73% | (3,558) | (6,384) | 79% |
| 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 | (2,049) | (2,847) | (3,537) | 73% | (3,558) | (6,384) | 79% |
| Segment DE Margin (%) | N/A | N/A | N/A | N/A | N/A | ||
| ASSETS UNDER MANAGEMENT (AUM R$millions) | 15 | 147 | 241 | 1,460% | 15 | 241 | 1,460% |
| AVERAGE MANAGEMENT FEE RATE (%) | 0.42% | 0.58% | 0.39% | 0.42% | 0.39% |
**Fee Related Earnings (FRE)**of negative R$3.5 million for the quarter ended June 28, 2024. FRE was negative R$6.4 million for the six months ended June 28, 2024.
VRS reached R$ 241.4 million in AUM by the end of the second quarter. We are experiencing a pickup in flows for VRS following the launch of the MIO platform.
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