Vinci Compass Investments Q1 Earnings Call Highlights

Key Points

• Vinci Compass posted record first-quarter 2026 fee-related earnings of BRL 96.3 million, up 47% year over year, with FRE margin expanding to 35.4%. The company also declared a quarterly dividend of $0.17 per share.
• Assets under management rose to BRL 347 billion, driven by capital formation, portfolio appreciation and the Verde consolidation. Management also highlighted strong growth in credit and Global IP&S, plus ongoing expansion in Latin America.
• Strategic deals and product launches are central to the outlook, including the BACS Asset Management combination in Argentina and the continued integration of Verde. Executives said these moves should strengthen distribution, support medium-term growth, and help boost key platforms like equities and private credit.

Vinci Compass Investments NASDAQ: VINP reported record fee-related earnings for the first quarter of 2026, with management highlighting growth in assets under management, contributions from the Verde consolidation and continued expansion across Latin America.

Investor Relations Manager Anna Castro said the firm generated fee-related earnings, or FRE, of BRL 96.3 million, equal to BRL 1.47 per share, with an FRE margin of 35.4%. Adjusted distributable earnings totaled BRL 62.2 million, or BRL 0.95 per share. The company declared a quarterly dividend of $0.17 per common share, payable June 8 to shareholders of record as of May 25.

Chief Executive Officer Alessandro Horta said the quarter showed “the power of our platform,” particularly in FRE, which he described as the core of the business. He said distributable earnings can still be volatile from quarter to quarter due to performance-related earnings and investment-related earnings.

Verde Integration, BACS Deal and Regional Expansion

Horta said Vinci Compass is making progress on strategic priorities outlined at its Investor Day, including expanding in key Latin American markets and strengthening local distribution. He highlighted the April announcement of a strategic combination with BACS Asset Management in Argentina, which he said would combine Vinci Compass’ local asset management practice with BACS’ corporate and retail distribution network.

Horta described Argentina as “one of the most attractive growth opportunities for asset management in the region,” citing demand for mutual funds, money market products, dollar-based strategies and alternative investments. President of Finance and Operations Bruno Zaremba later said in the question-and-answer session that the BACS transaction is expected to be “high single-digit accretive on a local basis,” though its impact on Vinci Compass as a whole should be small in the near term. He said the opportunity is more meaningful over the medium and long term because of product and distribution complementarity.

The company also discussed the integration of Verde, which Horta said is progressing well. He said the first jointly launched product, Vinci Verde Infra, is gaining traction and receiving encouraging feedback from the local investment community.

AUM Reaches BRL 347 Billion

Zaremba said Vinci Compass ended the first quarter with BRL 347 billion in assets under management. Excluding foreign exchange impacts, AUM increased 22% over the last 12 months and 2% sequentially. In U.S. dollars, AUM reached $66 billion, up 25% year over year and 3% quarter over quarter.

Over the last 12 months, Vinci Compass generated BRL 52 billion in capital formation and appreciation, including BRL 7 billion in the first quarter. Zaremba said the expansion reflected capital formation across Global IP&S, credit and real assets, as well as portfolio appreciation and the Verde acquisition.

In Global IP&S, Zaremba said the company remained the largest third-party distributor of offshore mutual funds to Chilean pension funds. He said inflows into TPD liquid and TPD alternative strategies, particularly Asian funds, reflected investor diversification away from U.S.-centric allocations. He also cited early signs of stabilization in multi-strategy after several quarters of outflows.

Credit AUM reached BRL 37 billion, supported by BRL 2 billion in capital formation and appreciation during the quarter. Zaremba said the company continued to advance local-to-local and cross-border strategies, with demand for the co-managed credit fund with Verde and interest in Brazilian infrastructure credit.

Revenue and Earnings Results

Chief Financial Officer Sergio Passos said management fees totaled BRL 245 million in the first quarter, up 25% from the prior year, driven mainly by the full-quarter contribution from Verde and organic growth in credit and Global IP&S. Advisory fees declined 35% year over year to BRL 16 million, which Passos attributed to a low deal-activity environment, high interest rates and election uncertainty in Brazil.

Fee-related revenues reached BRL 272 million in the quarter, up 17% year over year, and BRL 990 million over the last 12 months, up 44%.

Passos said FRE of BRL 96 million was a quarterly record and rose 47% year over year on a nominal basis. FRE per share increased 42%. The FRE margin expanded to 35.4%, helped by Verde’s full-quarter contribution, revenue growth operating leverage and cost efficiency measures. Passos cautioned that margins may fluctuate in future quarters due to seasonal costs such as auditor fees.

Performance-related earnings were BRL 2 million in the quarter, mainly in equities and Global IP&S. Investment-related earnings were BRL 4 million, including BRL 6 million realized and an unrealized loss of BRL 3 million tied to mark-to-market impacts on unlisted REITs.

Infrastructure Indemnification and Private Equity Exit

Horta said Vinci Compass expects to receive approximately BRL 100 million, net of taxes and associated expenses, from an indemnification-related amount tied to a holding company that had an interest in the concessionaire of Rio de Janeiro International Airport, Galeão. He said the amount is expected to positively affect distributable earnings in the third or fourth quarter of 2026.

In private equity, Horta pointed to the completed exit of portfolio company Mundo do Cabeleireiro from the Nordeste III Fund within the VIR strategy. He said it was the fifth exit among six investments from Nordeste III and supports the fundraising effort for VIR V, which was recently launched and is expected to have a first closing in the next few quarters.

AI Adoption and Outlook

Zaremba also discussed the company’s use of artificial intelligence, saying more than 70% of employees now use AI on a daily or weekly basis and that teams have created more than 170 custom AI agents. He said Vinci Compass has deployed seven enterprise-grade AI platforms and developed a unified data platform called Data Lab to centralize analytics across business units and many portfolio companies.

During the Q&A, executives said equity inflows were helped by new UCITS products for Brazil and Latin America launched late last year. Zaremba said these funds are expected to be a key growth driver for the equities platform, while Horta said flows so far have been mainly international rather than local.

Asked about Brazil’s election outlook, Horta said the company is “not really very worried” about the outcome, though he said a more pro-market result could be positive for markets. Executives also said they see continued opportunities in private credit and infrastructure across Latin America, including local-to-local products in markets such as Chile, Colombia and Mexico.

On taxes, Zaremba said Vinci Compass’ normalized effective tax rate, previously around 17% to 18%, is expected to move to roughly 21% to 22% going forward, mainly due to the consolidation of Verde.

About Vinci Compass Investments NASDAQ: VINP

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors.

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