Vinci Compass Investments Ltd. Class A Common Shares 2026 Q2 Earnings Call

Please go ahead, Ana. Thank you, and good evening, everyone.

Joining us today are Alessandro Horta, Chief Executive Officer, Bruno Zaremba, President of Finance and Operations, and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release, slide presentation, and our financial statements for the second quarter 2026, which are available on our website at ir.vincicompass.com. I'd like to remind you that today's call may include forward-looking statements, which are uncertain and outside of the firm's control, and may differ from actual results materially. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the risk factors section of our 20F. We will also refer to certain non-GAAP measures, and you'll find reconciliations in the release.

Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Compass fund. On results for the second quarter 2026, Vinci Compass generated fee-related earnings of BRL 88.7 million, or BRL 1.35 per share, with an FRE margin of 32.5%, and adjusted distributable earnings of BRL 63.3 million, or BRL 0.96 per share. We declare a quarterly dividend of $0.17 per common share, payable on September 9th to shareholders of record as of August 23rd. With that, I'll turn the call over to Alessandro.

Thank you, Ana, and good evening, everyone. Thank you for joining us today. The second quarter marked another important step in Vinci Compass' journey as the leading full-service alternative asset manager in Latin America. Over the past few years, we have consistently executed on a strategy built around three pillars: expanding our investment capabilities, increasing the scale of our platform, and building a more diversified and resilient business. This quarter reflects tangible progress across each of these fronts, and I am particularly pleased to announce today the signing of an agreement to acquire Navi Real Estate funds. Navi Real Estate platform spans six funds across multi-strategy and residential strategies, with four vehicles listed on the Brazilian Stock Exchange and/or the CETIP.

After closing, which we expect to happen during the fourth quarter, the transaction will add approximately BRL 800 million in assets under management, concentrated primarily in perpetual and long-term lockup vehicles. Strategically, the fit couldn't be better. The transaction deepens our presence in the multi-strategy real estate segment by adding scale to one of our smaller strategies across the REIT business, spanning across real estate and credit. This is significantly important in the REIT market, as larger funds tend to benefit when it comes to follow-on offerings once markets are supportive, when compared to smaller funds. The transaction also broadens the range of solutions we can offer our clients and it strengthens our ability to compete in a market where scale, distribution, and specialized investment expertise carry increasing weight.

Together with our existing funds, this brings our pro forma real estate AUM for the second quarter of 2026 to approximately BRL 7 billion, of which BRL 750 million now within multi-strategy, giving us a stronger foundation from which to grow the business over time. It also reinforces Vinci Compass' role as a consolidator of high-quality investment franchises across Latin America, and it reflects the discipline we bring to every opportunity we pursue, seeking those that are strategically compelling, financially attractive, and highly complementary to what we already do. Moreover, this transaction speaks to a defining characteristic of our model. Over the years, we have invested in building a scalable organization underpinned by deep investment expertise and a robust corporate infrastructure. That foundation allows us to absorb a meaningful volume of additional assets while leveraging the resources we already have in place.

Another important milestone was the successful closing of our combination with BACS Asset Management in early June, adding BRL 4 billion in AUM across credit and equities. By combining our asset management capabilities with BACS's extensive corporate and retail distribution network, we took an important step towards building a scaled and increasingly relevant asset management platform in Argentina. One that's well-positioned to benefit from the ongoing transformation of the country's financial system and the growing demand for more sophisticated investment solutions. We remain constructive on the long-term outlook for Argentina, supported by the evolving savings dynamics in the region, rising financial penetration, and a growing need for scale and efficiency. Against this backdrop, the combination enhances our ability to capture attractive growth opportunities across mutual funds, money market products, dollar-based strategies, and alternative investments while strengthening our position in a market that is still in the early stages of consolidation.

Since announcing the transaction, we have been very pleased with the reception from clients and partners, and we are already seeing early signs of that enthusiasm beginning to translate into inflows, which we expect to build over the second half of the year. Taken together, BACS and Navi capture something we have consistently emphasized to investors. The strategic benefits of our platform compound as we grow, becoming more powerful with scale. Alongside these developments, our existing businesses continued to perform well, reinforcing the strength of the platform we have built over many years. In the quarter, we had BRL 13 billion in capital formation and appreciation, with close to BRL 1 billion in new commitments across our newest vintages currently in the fundraising phase, SPS IV, MAV4, Lacan IV, and VSP II.

Looking at the fundraising pipeline going forward, we are very excited about a strong and well-diversified set of flagship strategies in the market during the second half of 2026, such as COPCO, VIR5, Vinci Credit Infra, and further commitments in VSP II, SPS IV, and Lacan IV, spanning our credit, real assets, private equity, and Global IP&S segments. The breadth and quality of this pipeline reinforce our confidence in the growth ahead, and Bruno will walk you through it in more detail shortly. Supporting this extensive product suite, the macro environment across Latin America remains constructive in general, though still marked by volatility. Political uncertainty has started to ease in some markets, with recent market-friendly election outcomes in Peru and Colombia. Mexico, in particular, remains an important growth lever for Vinci Compass.

During the quarter, we saw a strong momentum in our short-duration strategies with over BRL 440 million in inflows into our Mexican credit funds. It also remains one of the most compelling structural opportunities in the region. Following the pension reform, mandatory contribution rates are set to rise towards 15% by 2030, and we expect the Afores system to keep growing meaningfully over the coming years. In addition, the structural nearshoring trend reflected in recent record foreign direct investment reinforces our long-term conviction in the market. In Brazil, the current interest rate environment continues to create attractive conditions for disciplined capital deployment in private markets, as elevated rates support more compelling entry valuations and allow us to negotiate downside protection structures, including hybrid debt and equity solutions that enhance risk-adjusted return potential.

At the same time, still elevated real interest rates, a more cautious monetary easing cycle, and election-related fiscal uncertainty continue to impact risk appetite, broader M&A activity, and liquidity events, which may affect the timing of certain realization and deals. In private equity, we had some important liquidity initiatives in early 2026 through the listing of Agibank, a reverse IPO of CBO Group into OceanPact, and the sale of Mundo do Cabeleireiro. We continue to maintain a meaningful pipeline of potential divestment opportunities for the second half of the year. In corporate advisory, a constructive environment could gradually translate into higher deal activity. Against this backdrop, the team is working on an extensive pipeline of opportunities for the second half of 2026, which we expect to materialize as market conditions improve.

At this point, we expect that the second half of the year will be better than the first half, revenue-wise, with some mandates expected to close in the next six months. Moreover, external fundamentals remain supportive, with strong trade flows, resilient commodity exports, and a stable currency backdrop. With the Brazilian real and regional currencies continuing to benefit from these external fundamentals, we could reopen room for an improvement in domestic assets. A relevant factor during the quarter was the strong supply of IPOs and follow-on offerings tied to artificial intelligence and the broader technology sector in the U.S. Enthusiasm around AI remains one of the main drivers of the U.S. market, but the sheer size of these transactions requires meaningful capital absorption. As a result, some investors have reduced positions in other markets to participate in these deals, putting pressure on assets outside the technology sector.

Encouragingly, this dynamic appears less intense going forward. The most recent AI and technology-related offerings do not seem to carry the same extraordinary volumes observed earlier, suggesting that the technical pressure from capital rotating out of other markets may begin to ease. In this context, our equity segment could be a beneficiary of this rotation. Turning to a brief snapshot of our financial performance. This quarter, we posted higher management fees with an initial one-month contribution for BACS, as well as organic growth across credit and Global IP&S. Fee Related Earnings reached BRL 89 million in the second quarter of 2026, up 36% year-over-year with an FRE margin of 33%, up 450 basis points year-over-year. In the second quarter of 2026, year to date, FRE margin reached 34%, up 580 basis points year-over-year.