Vinci Compass Investments Ltd. (VINP) Earnings

Management highlights

### Strategic Transactions & Acquisitions - Announced a strategic combination with BACS Asset Management in April 2026 to build a combined asset management platform in Argentina, expected to close in Q2 2026. The transaction is expected to double Vinci Compass' Argentina AUM to ~$1.6 billion, and gives access to BACS and Banco Hipotecario's extensive corporate and retail distribution network. - Integration with acquired firm Verge is progressing faster than expected, with strong cultural and strategic complementarity. The first joint product ZV-FE Infra has gained early market traction, and full consolidation of Verge drove strong Q1 2026 management fee growth. ### AI and Operational Transformation - AI adoption is now embedded in daily operations: over 70% of employees use AI regularly, 170+ custom AI workflows have been built, and seven secure enterprise AI platforms support analysis, modeling, and automation. - Launched the proprietary unified Data Lab platform to centralize cross-business analytics, turning institutional knowledge into a proprietary asset. 100% AI-coded internal systems cut development timelines from months to weeks, driving major productivity gains. - The AI Ambassadors Program embeds AI expertise directly in business teams to accelerate adoption, share best practices across the firm, and keep innovation aligned with business needs. - Strategic partnership with ARIES provides access to US alternative industry AI trends and identifies new LATAM investment themes aligned with the AI investment cycle, such as digital infrastructure and power generation. ### Regional Growth and Market Positioning - Vinci Compass ended Q1 2026 with R$ 347 billion (~$66 billion) in AUM, representing 22% YoY growth (ex FX) and 2% QoQ growth. Over the last 12 months, the firm generated R$ 52 billion in capital formation and appreciation, including R$ 7 billion in Q1 2026. - Macro sentiment toward Latin America is constructive: as a geopolitically neutral, increasingly stable region, it is attracting increasing investor flows seeking diversification away from US-centric allocations. The Brazilian Real has shown resilience to oil price shocks, supported by Brazil's energy surplus. - The firm held a series of global investment conferences across four LATAM countries with over 1,500 clients, reinforcing the scale and reputation of its platform. ### Financial Performance Overview - Reported record Q1 2026 fee-related earnings (FRE) of R$ 96.3 million (R$ 1.47 per share), up 47% YoY, with an FRE margin of 35.4%, driven by operating leverage, cost discipline, and Verge's full contribution. - Adjusted distributable earnings totaled R$ 62.2 million (R$ 0.95 per share) in Q1 2026, flat YoY due to lower realized financial income and performance related earnings, as expected from ongoing capital deployment into long-term funds. - The firm holds R$ 868 million in proprietary investments in long-term funds that are not yet contributing to cash earnings, representing an unrealized hidden asset that will boost distributable earnings in coming years as funds reach the realization cycle.

Guidance

- The ~R$ 100 million net after-tax proceeds from the Galeão airport concession sale are expected to positively impact distributable earnings in Q3 or Q4 2026. - Between $R 300 million and R$ 400 million in capital calls for investment-related commitments are expected by the end of 2026, with the full program of commitments completed by 2029; ~R$ 140 million has been called as of Q1 2026. Realized financial income will continue to trend lower as capital is deployed, until funds reach the realization cycle. - FRE margin is expected to fluctuate in future quarters as seasonal costs (not present in Q1) materialize. - The normalized effective tax rate is expected to settle in the 21-22% range going forward, up from the historical 17-18% range, due to full consolidation of Verge. - Corporate advisory revenue is expected to remain slow in Q2 2026, with potential for stronger contributions in the second half of 2026 based on the current robust pipeline. - A first closing for the new VRR5 private equity fund is expected within the next few quarters. Final closing for the SPS 4 credit fund is planned for the second half of 2026, with accelerating momentum expected as closing approaches. Additional closings for the VOL Logistics Opportunity Fund are expected by the end of 2026.

Segment performance

1. **Global Third-Party Distribution (Global IP&S)**: Management fees grew 25% YoY driven by organic growth and full consolidation of Verge. The segment remained the largest third-party distributor of offshore mutual funds to Chilean pension funds, generated inflows into TPD Liquid and TPD Alternative, and saw early signs of inflow stabilization in multi-strategy after several quarters of outflows. The newly launched USITS equity platform received initial encouraging inflows. Advisory fees for the segment totaled R$ 16 million, down 35% YoY due to a slow deal environment from high interest rates and Brazilian election uncertainty. 2. **Credit**: AUM reached R$ 37 billion, with R$ 2 billion in capital formation and appreciation in Q1 2026. The co-managed credit fund with Verge saw growing investor demand, and Brazilian infrastructure credit continued to draw strong interest. New fund launches are planned in Chile and Colombia to complement ongoing fundraising in Brazil and Peru, making private credit a core growth pillar. 3. **Real Assets**: Solid progress was achieved across forestry and real estate. The LACAN4 forestry fund secured structured commitments from European institutional investors, with additional investors in due diligence. The VOL Logistics Opportunity Fund completed its first close, with additional closings planned by end-2026. Management is monitoring potential REIT fundraising opportunities as Selic rates decline. 4. **Private Equity**: The segment achieved the fifth exit out of six investments from the Nordeste Third Fund (Mundo do Cabeleireiro), demonstrating the team's value creation and exit capabilities. This outcome supports fundraising for the newly launched VRR5 fund, which is currently in fundraising with a first closing expected in the next few quarters.

Risks & headwinds

- Uncertainty around the outcome of 2026 local elections in Brazil, Colombia, and Peru, with unclear implications for future fiscal policy and market sentiment. - Ongoing global macroeconomic uncertainty and volatility, particularly for private credit markets, which has contributed to a historically slow Q1 for the industry. - Fluctuations in oil prices create macroeconomic volatility for the region, though Brazil is seen as relatively well-insulated from these shocks. - Upfront fees in the third-party distribution alternative segment are inherently variable based on the timing of investor commitments, leading to quarterly revenue volatility. - Deal activity in the corporate advisory segment remains depressed due to high interest rates and election uncertainty in Brazil, leading to lower near-term revenue for this segment. - Adjusted distributable earnings has inherent quarterly volatility from variable performance earnings and investment-related earnings, as well as the medium-term drag from deploying capital into long-term funds that have not yet reached the realization cycle.

Analyst Q&A

• Q: What will be the near and medium-term impact of the BACS acquisition on Vinci Compass earnings, and what are the main opportunities and challenges? Can you also confirm if the recent improvement in equity flows signals sustained positive inflows going forward?

  A: The BACS transaction will only have a high single-digit impact on Argentine assets under management, leading to a very small near-term impact on company-wide earnings. The main value of the deal is medium-term positioning, leveraging strong complementarity between BACS' retail/corporate distribution and Vinci's institutional product capabilities to drive faster growth in Argentina. The recent improvement in equity flows comes from the newly launched USITS Brazil and LATAM equity strategies, which have strong performance and early investor interest. This is expected to be the start of sustained equity platform growth, with additional upside if local equity allocations rise from current historical lows.

• Q: What types of products do you expect to grow in Argentina after the BACS combination, and what is the outlook for the corporate advisory segment this year?

  A: The short-term priority is capturing more local investor flows, leveraging BACS' strong distribution network for liquid products. Over time, the partnership will target growth in alternative investments (private credit, private equity, real estate, infrastructure) that will attract both local capital and international investor interest in Argentine long-term opportunities. Corporate advisory will remain slow in Q2 2026, but management expects potential material revenue contributions in the second half of 2026 from the existing robust pipeline. The firm is also actively expanding corporate advisory capabilities to other Southern Latin American markets to drive long-term growth.

• Q: What are the potential implications of the upcoming Brazilian elections for the firm, and what other regions and product areas are priorities for growth or M&A?

  A: The outcome of the Brazilian election is highly uncertain today, but the firm is not worried about any potential outcome; even a re-election of the incumbent would not lead to material negative market impacts, per management. Beyond Argentina, private credit is a top growth priority across markets including Colombia and Mexico, where the category is still in early stages. Infrastructure across the whole of Latin America is also a key growth area, with plans to launch new local-to-local infrastructure and real estate products starting in Chile. International investor interest in Latin American alternatives (especially infrastructure and private equity) continues to grow, creating urgency to expand product offerings.

• Q: Why was the effective tax rate higher than the historical average this quarter, and what should we expect going forward?

  A: The higher rate this quarter is driven by two one-off factors: an accounting gain from the reduction of earn-out contingency liabilities due to recent stock price movements, which created an excess tax provision, and the first full quarter of Verge consolidation. Excluding the one-off earn-out impact, the normalized long-term effective tax rate will move to the 21-22% range, up from the historical 17-18% range, due to the full consolidation of Verge.