Vinci Compass Investments Ltd. Q2 FY2025 earnings call

• Vinci Compass reported solid financial results, continued fundraising momentum, and acceleration of key strategic initiatives. - The second quarter had healthy numbers for FRE with diverse AUM from strategies like infrastructure, credit, and global IP&S. - There were strategic exits across multiple verticals, including full divestment of FIP Transmissao asset and sale of an asset from VIGT. - Closed the third investment of VCP IV AGV, with the fund's capital deployment at ~40% of total commitments. - Inaugurated a new office in Sao Paulo to integrate teams. - Invited to an Investor Day on October 7 at the NASDAQ headquarters in New York.

Vinci Compass generated fee-related earnings of BRL 65.2 million or BRL 1.03 per share and adjusted distributable earnings of BRL 75.8 million or BRL 1.20 per share for the second quarter of 2025. In the Global IP&S business, outflows in the previous quarter turned into positive and strong inflows totaling BRL 2.3 billion in the second quarter. Liquid credits saw continued strength in both LatAm and Brazilian strategies, with the LatAm strategy surpassing BRL 7.2 billion in AUM. Private equity had highlights such as the full exit of Camarada Camarao from the Nordeste III fund. The real asset segment saw the final closing of the ICC fund, which raised close to BRL 2 billion, and other asset sales.

Management expects continued growth in the second half of 2025, with a constructive fundraising outlook for credit and TPD strategies. Anticipates AUM growth on an FX-adjusted basis, though noting the first quarter was slower than initially expected. Remains constructive on fundraising traction for credit and TPD strategies in the second half.

FX variation posed a headwind, as the 5% appreciation of the Brazilian real against the U.S. dollar created a currency headwind to the reals AUM figure.

Q: Guilherme Grespan with JPMorgan asked about fundraising levels in the second half and forecasting GP income and financial results.

A: Bruno Zaremba and Alessandro Horta responded, discussing the transition from financial income to net income with closed-end funds and upcoming details at the Investor Day.

Q: Lindsey Shema with Goldman Sachs asked about FRE margin expansion and PRE realizations.

A: Bruno Zaremba responded, talking about margin expansion expectations and PRE from liquid and closed-end funds.

Q: Ricardo Buchpiguel with BTG asked about management fees flat quarter-over-quarter related to FX change.

A: Bruno Zaremba responded, explaining FX impact on management fees and positive aspects of local currency appreciation.

Q: Pedro Leduc with Itau BBA asked about credit portfolio spread and Argentina opportunities.

A: Alessandro Horta responded, discussing credit portfolio spread across regions and Argentina opportunities.