Vinci Compass Investments (VINP) Q3 2024 earnings summary

Executive summary

• Adjusted Distributable Earnings (DE) reached R$57.1 million (R$1.08/share) in Q3 2024, up 10% year-over-year, with Fee Related Earnings (FRE) at R$53.8 million (R$1.02/share), both increasing year-over-year.

• Assets under management (AUM) grew 8% year-over-year to R$70.4 billion, led by strong capital raising in Private Markets and new global investor commitments.

• Completed the Compass combination, creating a leading alternative investment platform in Latin America with over $52 billion in combined AUM.

• Acquired Lacan, launching a new Forestry strategy and adding R$1.5 billion in AUM.

• Declared a quarterly dividend of US$0.16 per share, payable December 5, 2024.

Financial highlights

• Fee-related revenues were R$112.7 million in Q3 2024, up 5% year-over-year; management fees were R$106.8 million, up 2% (9% excluding catch-up fees).

• Advisory fees reached R$6 million for the quarter, with YTD advisory fees at R$28 million.

• FRE margin was 47.7% in Q3 2024 and 49.1% YTD.

• Adjusted DE margin was 42.5% in Q3 2024.

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

Outlook and guidance

• Management expects continued growth in alternative investments in Latin America, leveraging recent strategic acquisitions and new global investor relationships.

• Focus remains on organic growth and strategic M&A to expand product offerings and geographic reach.

• FRE growth anticipated to continue, driven by new commitments, retroactive fees, and integration of Compass and Lacan.

• Positive outlook for performance fees as private market funds mature.