Vinci Compass Investments (VINP) Q2 2024 earnings summary

Executive summary

• Fee-related earnings per share grew 24% year-over-year, driven by strong private market fundraising, especially in Private Equity, despite challenging global and local fundraising conditions.

• Assets under management reached R$69 billion, up 7% year-over-year, supported by R$5.1 billion in capital subscriptions, the MAV Capital acquisition, and appreciation across strategies.

• The MAV Capital acquisition added R$540–550 million in AUM, expanding presence in Brazilian agribusiness and private credit.

• The platform is increasingly diversified, with nearly 70% of fee-related earnings now from private market strategies, up from 48% at IPO.

• Quarterly dividend of US$0.17 per share declared, with a 7.0% dividend yield (LTM), payable September 5, 2024.

Financial highlights

• Fee-related earnings (FRE) reached R$61.9–62 million (R$1.16/share) in Q2 2024, up 24% per share year-over-year.

• Adjusted distributable earnings were R$58.4 million (R$1.10/share), down 16–17% year-over-year due to lower financial income and FX impacts.

• Management fees rose 23% year-over-year, bolstered by retroactive fees from VCP IV fundraising.

• FRE margin was 49.3% in Q2 2024, up from 47.5% a year ago; core FRE margin would be 52% excluding VRS investments.

• Net cash and investments stood at R$1.1 billion (R$20.85/share) at quarter-end.

Outlook and guidance

• Continued growth in fee-related earnings expected, supported by ongoing fundraising in private markets and a robust advisory pipeline.

• Management expects further momentum in long-term products and private markets, with new fundraising initiatives planned for late 2024 and 2025.

• Performance fees from private markets expected to materialize from 2026 as funds mature.