Vinci Compass Investments Ltd. Q3 FY2024 earnings call

• AUM reached R$70 billion with 8% Y/Y growth, with efforts in raising capital for private market funds. - Combination with Compass completed, with integrated teams showing strong cultural alignment and shared vision, leading to achievements like VCP IV securing first commitment from a Mexican LP. - Acquisition of Lacan to launch forestry strategy, with Lacan having R$1.5 billion in AUM. - Public equity strategy had positive net inflows from institutional investors, with Mosaico Strategy gaining interest. - IP&S segment saw outflows but commingled funds redemptions tapered; retirement services saw inflows with Mio Vinci Partners and partnerships like with BlackRock.

Vinci generated fee-related earnings of R$53.8 million or R$1.02 per share and adjusted distributable earnings of R$57.1 million or R$1.08 per share for the third quarter 2024. AUM reached R$70 billion, an 8% year-over-year growth. Public equity strategy had positive net inflows. IP&S segment had outflows in the third quarter, primarily from withdrawals in separate mandate strategies, but commingled funds redemptions tapered. Private markets: Vinci Credit Infra raised R$215 million, VICC reached R$1.5 billion in total commitments, VCP IV was gearing up for final rounds of fundraising. Lacan acquisition allowed launch of forestry strategy with R$1.5 billion in AUM.

• Anticipate strong finish to 2024 with final closings for VCP IV, securing additional commitments for VICC, and first closing for SPS IV. - Retroactive fees from VCP IV and VICC will impact management fees positively. - Expect continued FRE growth driven by new commitments in private markets, retroactive fees, and private markets performance fees as funds mature.

• Interest rate fluctuations in Brazil and US could affect results. - Regulatory approvals for combinations had specific processes and requirements. - Market conditions affecting performance fees in public equities, with private market performance fees expected to materialize as funds mature.

Q: Please update on fundraising for VCP IV and public equity inflows.

A: VCP IV expected to wrap up by end of 2024 with interest from international investors; public equity had positive inflows due to perceived cheap valuations of Brazilian securities, with plans to launch UCITS platform funds.

Q: On management fees and Lacan fundraising timeline.

A: Retroactive fees this quarter were R$3 million; Lacan's fourth vintage fundraising expected, with previous vintages around R$350 million, ~R$4-5 million, ~R$600-700 million, targeting R$800 million for new vintage.

Q: On IP&S outflows.

A: Outflows from IP&S were due to specific mandates, with less significant redemptions from commingled funds now, expecting moderation in negative impact with separate mandate progress.