Vinci Partners Investments (VINP) 7 Nov 24 2024 Q3 Earnings call transcript

Vinci Partners, a leading alternative asset manager in Latin America, recently held its third-quarter 2024 earnings call, highlighting a robust performance in a challenging market environment. The call, led by CEO Alessandro Morgado Horta, provided insights into the company's financial health, strategic initiatives, and future growth prospects.

Financial Highlights

For the third quarter, Vinci Partners reported fee-related earnings of BRL 53.8 million, marking a 7% increase on a per share basis compared to the previous year. Adjusted distributable earnings reached BRL 57.1 million, reflecting a 12% increase on a per share basis. The company also announced a quarterly dividend of BRL 0.16 on the dollar per common share, payable on December 5, 2024.

Strategic Initiatives

Vinci's strategic initiatives were a key focus of the call, with a particular emphasis on fundraising and expanding into new areas. The company reported an 8% year-over-year growth in assets under management (AUM), reaching BRL 70 billion. This growth was driven by successful fundraising efforts, including a new commitment of over BRL 0.5 billion from a global investor in the Credit Infra strategy.

Vinci's efforts in public equity strategies also showed positive net inflows, indicating strong investor confidence in the company's investment strategies. The company anticipates a strong finish to the year, with final closings for VCP IV and securing additional commitments for VICC and Credit Infra.

Market Outlook

The call also provided insights into the broader market environment, with Vinci expressing optimism about the firm's position in a challenging market. Despite interest rate uncertainties in the U.S. and modest rate hikes in Brazil, Vinci remains resilient, citing a strong brand and attractiveness of its platform as key differentiators.

M&A Activity

Vinci's acquisition of Lacan, a prominent timberland investment management organization, was a highlight of the call. This acquisition will allow Vinci to launch its forestry strategy, a complementary investment strategy to its current roster of solutions. Lacan's extensive experience and commitment to sustainable forestry practices align perfectly with Vinci's vision of impactful long-term investment.

Future Growth

Looking ahead, Vinci Partners anticipates continued growth, driven by strategic initiatives and a strong pipeline of opportunities. The company's strategic partnership with Compass, a leading pan-regional alternative asset manager, is expected to further enhance its offerings and expand its reach.

Conclusion

Vinci Partners' third-quarter earnings call underscored a strong performance amidst challenging market conditions. The company's strategic initiatives, financial health, and optimistic outlook for future growth make it a compelling player in the Latin American alternative asset market. As the company continues to expand its offerings and leverage its strong brand and platform, it is well-positioned to capitalize on the region's high growth potential for alternative investments.

With a focus on sustainable investment strategies, Vinci Partners is set to redefine the future of alternative investments in Latin America. The company's recent acquisitions and strategic partnerships are expected to further solidify its position as a leading full-service player in the region. As Vinci Partners moves forward, it will continue to attract global investors and expand its impact across Latin America.