Vinci Compass Investments (VINP) Q4 2024 earnings summary

Executive summary

• 2024 was a transformational year marked by the successful combination with Compass and acquisitions of MAV and Lacan, significantly expanding the platform and product offerings across Latin America and positioning the firm as a leading alternative investment provider.

• Assets under management (AUM) reached R$327 billion as of December 31, 2024, up 377% year-over-year, driven by acquisitions and strong organic fundraising.

• The company achieved record closings for SPS4 (opportunistic credit) and VCP4 (private equity), with VCP4 becoming the largest vintage in its history at R$3.1 billion.

• Integration of Compass is progressing well, with unified teams focused on leveraging combined strengths for growth.

• The firm capitalized on the shift to alternatives in Brazil, achieving record fundraising and cross-border expansion with tailored client solutions.

Financial highlights

• Fee Related Earnings (FRE) for 4Q'24 were R$79.0 million (R$1.23/share), up 38% year-over-year; full year FRE was R$248.4 million (R$4.42/share), up 19%.

• Adjusted Distributable Earnings (DE) for 4Q'24 were R$73.9 million (R$1.15/share), up 16% year-over-year; full year Adjusted DE was R$239.1 million (R$4.26/share), down 3% due to FX and lower financial income.

• Management fees for 4Q'24 totaled R$170 million, up 70% year-over-year; Q4 performance-related earnings (PRE) were R$16.5 million, up 478% year-over-year.

• Total net revenues for 4Q'24 were R$245.9 million, up 96% year-over-year; full year net revenues were R$600.8 million, up 32%.

• Quarterly dividend declared at US$0.15 per share, with R$1.15 Adjusted DE per share for 4Q'24.

Outlook and guidance

• 2025 is expected to be a landmark year, with a strong fundraising pipeline across all asset classes and geographies, leveraging the enlarged platform and geographic diversity.

• FRE margin is expected to normalize in the low 30% range for 2025, with ongoing cost efficiencies and synergies from the Compass integration.

• Dividend payout target remains at approximately 80% of distributable earnings.

• Growth expected to continue from both organic fundraising and further integration of recent acquisitions.

• Focus remains on expanding AUM, especially in Private Equity and Credit, and leveraging synergies from the Compass and Lacan transactions.