Vinci Partners Investments Ltd
For the period ended Nov 7, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
What a company based outside the US has published at home or sent to its shareholders. It is how many foreign companies share results and news between annual reports.
Nov 7, 2024 · Filed Nov 7, 2024
Use the contents to explore the available documents and sections.
Contents
EX-99.3 · Segment Earnings
Segment Earnings
| (R$ thousands, unless mentioned) | 3Q'23 | 2Q'24 | 3Q'24 | ∆ YoY(%) | 3Q'23 YTD | 3Q'24 YTD | ∆ YoY(%) |
|---|---|---|---|---|---|---|---|
| Net revenue from management fees | 104,745 | 114,134 | 106,750 | 2% | 293,391 | 317,339 | 8% |
| Net revenue from advisory fees | 2,283 | 11,481 | 5,966 | 161% | 20,801 | 27,806 | 34% |
| Total Fee Related Revenuesi | 107,028 | 125,615 | 112,716 | 5% | 314,192 | 345,145 | 10% |
| Segment personnel expenses | (7,483) | (7,556) | (8,239) | 10% | (22,224) | (23,132) | 4% |
| Other G&A expenses | (5,356) | (7,025) | (6,614) | 23% | (13,850) | (19,635) | 42% |
| Corporate center expenses | (24,110) | (25,750) | (24,817) | 3% | (69,126) | (71,654) | 4% |
| Bonus compensation related to management and advisory | (18,746) | (23,380) | (19,228) | 3% | (57,857) | (61,356) | 6% |
| Total Fee Related Expenses | (55,695) | (63,711) | (58,897) | 6% | (163,056) | (175,776) | 8% |
| FEE RELATED EARNINGS (FRE)ii | 51,333 | 61,904 | 53,819 | 5% | 151,136 | 169,369 | 12% |
| FRE Margin (%)iii | 48.0% | 49.3% | 47.7% | 48.1% | 49.1% | ||
| FRE per shareiv (R$/share) | 0.95 | 1.16 | 1.02 | 7% | 2.79 | 3.19 | 14% |
| Net revenue from performance fees | 2,058 | 5,613 | 1,890 | (8)% | 14,786 | 9,776 | (34)% |
| Performance based compensation | (925) | (2,503) | (907) | (2)% | (7,026) | (4,419) | (37)% |
| PERFORMANCE RELATED EARNINGS (PRE)v | 1,133 | 3,110 | 984 | (13)% | 7,760 | 5,358 | (31)% |
| PRE Margin (%)vi | 55.1% | 55.4% | 52.1% | 52.5% | 54.8% | ||
| (-) Unrealized performance fees | – | 3,483 | – | N/A | – | 3,483 | N/A |
| (+) Unrealized performance compensation | – | (1,233) | – | N/A | – | (1,233) | N/A |
| (+) Realized GP investment income | 4,699 | 12,379 | 4,539 | (3)% | 14,759 | 21,324 | 44% |
| SEGMENT DISTRIBUTABLE EARNINGSvii | 57,165 | 79,643 | 59,342 | 4% | 173,655 | 198,301 | 14% |
| Segment DE Margin (%) | 50.2% | 54.1% | 49.8% | 50.5% | 52.2% | ||
| (+) Depreciation and amortization | 1,646 | 1,873 | 2,272 | 38% | 5,452 | 6,036 | 11% |
| (+) Realized financial income | 12,027 | 11,421 | 15,178 | 26% | 62,299 | 38,961 | (37)% |
| (-) Leasing expenses | (2,394) | (2,076) | (1,931) | (19)% | (7,542) | (6,223) | (17)% |
| (-) Other itemsviii | (2,933) | (17,517) | (6,858) | 134% | (12,373) | (33,611) | 172% |
| (-) Non-operational expensesix | – | (11,674) | (3,728) | N/A | – | (16,735) | N/A |
| (-) Income taxes (excluding related to unrealized fees and income) | (13,691) | (14,872) | (10,899) | (20)% | (39,296) | (38,258) | (3)% |
| DISTRIBUTABLE EARNINGS (DE)x | 51,820 | 46,797 | 53,377 | 3% | 182,195 | 148,471 | (19)% |
| DE Margin (%)xi | 41.2% | 29.5% | 39.7% | 44.9% | 35.5% | ||
| DE per share (R$/share) | 0.96 | 0.88 | 1.01 | 5% | 3.36 | 2.80 | (17)% |
| (+) Non-operational expenses (including Income Tax effect) | – | 11,604 | 3,727 | N/A | – | 16,639 | N/A |
| ADJUSTED DISTRIBUTABLE EARNINGSxii | 51,820 | 58,401 | 57,104 | 10% | 182,195 | 165,110 | (9)% |
| Adjusted DE Margin (%)xiii | 41.2% | 36.8% | 42.5% | 44.9% | 39.4% | ||
| Adjusted DE per share (R$/share) xiv | 0.96 | 1.10 | 1.08 | 12% | 3.36 | 3.11 | (7)% |
Total Fee Related Revenues of R$112.7 million for the quarter ended September 30, 2024, compared to R$107.0 million for the quarter ended September 29, 2023, an increase of 5% year-over year. This increase was pushed by a pickup in deal activity, leading to higher advisory fees and organic growth across Private Market strategies over the quarter. In the quarter, management fees accounted for R$106.8 million, an increase of 2% year-over-year. Disregarding catch up fees from both quarters, management fees increased by 9% year-over-year. Fee related revenues were R$345.1 million for the nine months ended September 30, 2024, up 10% when compared to the nine months ended September 29, 2023, driven by strong fundraising across Private Markets' products.
Fee Related Earnings (“FRE”) of R$53.8 million (R$1.02/share) for the quarter ended September 30, 2024, up 5% year-over-year on an absolute basis and 7% year-over-year on an FRE per share basis when compared to the quarter ended September 29, 2023, fueled by an increase in management and advisory fees. FRE of R$169.4 million (R$3.19/share) for the nine months ended September 30, 2024, up 12% when compared to the nine months ended September 29, 2023 on an absolute basis and 14% on an FRE per share basis, driven by stronger management and advisory fees.
FRE Margin was 49.1% for the nine months ended September 30, 2024, an increase of 1.0 percentage point year-over-year, following our commitment to cost efficiency with contained expense growth. Disregarding the VRS segment, FRE
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
Margin was 51% for the for the nine months ended September 30, 2024.
Performance Related Earnings (“PRE”) of R$1.0 million for the quarter ended September 30, 2024, down 13% year-over-year, as the local market presents significant challenges for the performance of liquid funds. Most of our open-end funds charge performance fees semiannually, recognizing revenues in June and December, thus first and third quarters usually are expected to show lower levels of performance from domestic open-ended funds. PRE was R$5.4 million for the nine months ended September 30, 2024, a decrease of 31% when compared to the nine months ended September 29, 2023.
Segment Distributable Earnings of R$59.3 million for the quarter ended September 30, 2024, compared to R$57.2 million for the quarter ended September 29, 2023, up 4% year-over-year. Segment Distributable Earnings were R$198.3 million for the nine months ended September 30, 2024, up 14% year-over-year, when compared to the nine months ended September 29, 2023.
Adjusted Distributable Earnings (“DE”) of R$57.1 million (R$1.08/share) for the quarter ended September 30, 2024, compared to R$51.8 million (R$0.96/share) for the quarter ended September 29, 2023, up 10% year-over-year on an absolute basis and 12% year-over-year on an Adjusted DE per share basis. This increase was driven mostly by FRE growth. Adjusted DE was R$165.1 million (R$3.11/share) for the nine months ended September 30, 2024, down 9% when compared to the nine months ended September 29, 2023, on an absolute basis and down 7% on an Adjusted DE per share basis. The year-over-year decline in year-to-date Adjusted DE is attributed to a combination of (i) a decrease in financial income following a strong nine-month period ending September 30, 2023, during which the liquid portfolio benefited from more favorable market conditions compared to the current year, and (ii) the impact of FX rate depreciation on Vinci’s net debt position in US dollars, which affected the 'Other Items' line.
Adjusted DE Margin was 42.5% for the quarter ended September 30, 2024, a 1.3 percentage point increase compared to 41.2% for the quarter ended September 29, 2023. For the nine months ended September 30, 2024, Adjusted DE Margin reached 39.4%, a decrease of 5.5 percentage points compared to the nine months ended September 29, 2023.
IR.VINCIPARTNERS.COM SHAREHOLDERRELATIONS@VINCIPARTNERS.COM
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.