Vinci Compass Investments Q4 Earnings Call Highlights

Key Points

• Solid financials and dividend: Q4 fee-related earnings were BRL 80.4 million (BRL 1.23/sh) with ADE BRL 81.3 million (BRL 1.24/sh); full-year FRE was BRL 188.4 million (BRL 4.52/sh, 30.4% margin) and ADE BRL 292.4 million (BRL 4.58/sh), and the company declared a quarterly dividend of $0.17 per common share payable April 2.
• Verde acquisition and product synergies: The December close added about BRL 16 billion of AUM and Vinci Compass launched the co‑managed Vinci Verde FE Infra product, which management says has seen strong intermediary demand and exemplifies the cross‑country synergies expected to be meaningful in 2026 and beyond.
• Private‑markets momentum and 2026 outlook: Liquidity events (Agibank IPO delivering a 3.8x gross multiple and 35% IRR for VCP3, plus a planned CBO reverse IPO) and a record BRL 45 million of investment‑related earnings from unrealized gains signal improving fund liquidity; management says key funds are moving beyond the "J‑curve," expects unrealized IRE to be a bigger net‑profit contributor in 2026, and is targeting low double‑digit currency‑adjusted AUM growth.

Vinci Compass Investments NASDAQ: VINP outlined its fourth-quarter and full-year 2025 results with management emphasizing the company’s first full year operating as a pan-regional platform following its business combination with Compass, as well as early progress integrating the newly acquired Verde business.

Investor Relations Manager Anna Castro said the firm generated fourth-quarter fee-related earnings (FRE) of BRL 80.4 million, or BRL 1.23 per share, with a 32.6% FRE margin. Adjusted distributable earnings (ADE) were BRL 81.3 million, or BRL 1.24 per share. For the full year, the company reported FRE of BRL 188.4 million, or BRL 4.52 per share, with a 30.4% margin, and full-year ADE of BRL 292.4 million, or BRL 4.58 per share.

The company declared a quarterly dividend of $0.17 per common share, payable April 2 to shareholders of record as of March 19.

Verde acquisition and early product collaboration

Chief Executive Officer Alessandro Horta described 2025 as “a pivotal chapter” marked by cross-country collaboration to drive synergies across products and commercial teams. He highlighted the firm’s first Investor Day as Vinci Compass and the acquisition of Verde, which closed in December and added approximately BRL 16 billion in assets under management (AUM).

Horta said Vinci Compass has already launched a product created through collaboration with Verde: the Vinci Verde FE Infra (VVFE Infra), which combines Vinci Compass credit expertise with Verde’s multi-strategy track record as co-manager. He said feedback has been strong, with demand particularly from the intermediaries channel. Horta characterized the launch as an early example of the strategic rationale behind the combination, including expanding the firm’s solutions and deepening distribution synergies, and said he expects the partnership to be meaningful in 2026 and beyond.

AUM growth, fundraising highlights, and regional mandates

Management said Vinci Compass ended 2025 with BRL 354 billion in total AUM. Horta said BRL 14 billion of capital formation and appreciation benefited AUM during the fourth quarter, and BRL 42 billion for the full year, representing 13% year-over-year growth. He said fundraising momentum remained robust across Global IP&S and Credit, while infrastructure credit continued to show what he called strong long-term momentum across multiple vehicles and client segments.

Horta also pointed to a BRL 2.8 billion separately managed account (SMA) signed with an Asian limited partner within the firm’s infrastructure strategy, calling it a milestone reflecting growing global investor interest in alternative exposure to Latin America.

In January 2026, Horta said the company won a new BNDES tender process, marking the third time Brazil’s development bank appointed Vinci Compass to manage a long-term private credit fund focused on sustainable finance with strict ESG guidelines.

Private equity activity and investment-related earnings dynamics

Horta discussed early 2026 private equity developments, including two transactions aimed at improving liquidity profiles for earlier fund vintages:

• Agibank IPO: He said VCP3 took Agibank public on the New York Stock Exchange in January, crystallizing a 3.8x gross multiple of capital (in Brazilian reais) and a 35% IRR for VCP3 at the IPO price.
• CBO reverse IPO: He said VCP2 portfolio company CBO signed a definitive agreement in February for a reverse IPO into OceanPact, which would create a larger offshore and environmental services platform upon closing.

Horta and President of Finance and Operations Bruno Zaremba also addressed investment-related earnings (IRE). Horta said the quarter benefited from markups in VCP4 and appreciation in listed REIT positions, contributing to positive unrealized IRE. Zaremba later added in Q&A that the firm is moving beyond the “J-curve” phase for key balance-sheet-exposed funds, including VCP4, SPS4, and VICC, and expects unrealized IRE to become a more meaningful contributor to net profit in 2026, with realized proceeds expected later as funds return capital.

Financial drivers: fees, advisory trends, margins, and reporting change

Chief Financial Officer Sergio Passos said management fees totaled BRL 220 million in the fourth quarter, up 29% year-over-year, reflecting acquisitions (including Compass, Lacan, and Verde) and fundraising momentum, particularly in Credit and Global IP&S. He noted Verde contributed only one month of results in the quarter due to the December closing.

Advisory fees were BRL 15 million in the quarter and declined year-over-year, which Passos attributed to variability in upfront fees within the third-party distribution alternatives business and lower corporate advisory activity amid a quieter deal environment.

Passos said fourth-quarter FRE of roughly BRL 80 million was partially affected in year-over-year comparisons by catch-up fees recognized in private equity in the fourth quarter of 2024; excluding that non-recurring item, he said FRE grew 26% year-over-year, driven by fundraising and acquisitions. For the full year, Passos reported FRE of BRL 208.8 million, or BRL 4.52 per share, with a 30.4% margin, citing operating leverage, cost reduction initiatives, and an initial contribution from Verde.

Performance-related earnings (PRE) were BRL 5 million in the quarter, primarily across Global IP&S, Credit, and Equities, with Passos noting performance fees “normalized” compared to the prior-year quarter that included one-off contributions. The company posted a record BRL 45 million of IRE in the quarter, driven by unrealized gains, according to Passos.

Passos also highlighted a reporting change beginning in the quarter: other comprehensive income (OCI), which reflects foreign exchange variations, now flows into distributable earnings, adjusted distributable earnings, and adjusted net income. He said OCI had not impacted these adjusted metrics through the third quarter of 2025, and management believes the change provides a more comprehensive view of results. Passos added the company introduced a minority interest line following the Verde transaction to reflect earnings attributable to the remaining 49.9% non-controlling interest.

During Q&A, executives discussed the 2026 outlook for fundraising and advisory fees. Zaremba said the firm aims to repeat low double-digit AUM growth on a currency-adjusted basis in 2026, with a large credit pipeline across multiple countries. He said elections are a factor, but emphasized that interest rate cyclicality is a key driver for more rate-sensitive verticals such as equities and real estate, noting REIT performance improved as the long-term curve began to decline. On advisory fees, he said corporate advisory visibility for the first half of 2026 remains “on the softer end,” and he expects the total advisory line (including upfront and corporate advisory) to be “a little bit smaller than 2025.”

Management also addressed broader sentiment around private credit. Horta said the firm remains optimistic about its diversified credit business and described its exposure as “plain vanilla” and more institutional and closed-end in nature, with limited linkage to concerns seen in global semi-liquid private credit products. He said any potential impact could be more visible in global private credit fundraising through the firm’s third-party distribution business, but characterized that as not the most relevant pipeline.

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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