Vincci Partners merges with Compass to manage $52 billion asset

Source: Investing Posted 29/10/2024, 16:27

RIO DE JANEIRO – Vincci Partners Investments Limited (NASDAQ: VINP), a prominent Brazilian alternative investment platform, has announced the completion of its merger with Compass, a principal asset manager in Latin America.

The merger, announced today, results in a comprehensive service provider managing assets worth more than $52 billion as of June 2024. The embedded entity will operate in diverse sectors, including private markets, investment products and solutions, public equity, and institutional consulting, positioning it as a major player in the Latin American alternative investment market.

Alessandro Horta, CEO of Vinci Partners, expressed his enthusiasm for the merger.

highlighting the strategic move to expand the company’s reach beyond Brazil and the wider Latin American region. He expects the merger to boost service offerings and seize significant opportunities in the region.

Jaime Marty, CEO of Compass, expressed optimism about the integration into the Vincci platform.

stressing the cultural alignment and shared vision that will drive the success of the partnership.

Details of the transaction include Goldman Sachs Inc. and Morgan Stanley & Co. LLC acting as financial advisors to Vincci Partners and Compass, respectively. Simpson Thacher & Bartlett LLP and Skadden, Arps Slate, Meagher & Flom LLP provided legal advice to the two firms respectively.

Vincci Partners will host a conference call on November 25, 2024.

to further discuss the merger and define strategic plans for integrated platforms. This conference will be available via webcast with a related presentation available on the Company’s Investor Relations website.

Established in 2009, Vinci Partners offers a range of investment services, including private equity, real estate and institutional advisory. Founded in 1995 in New York, Compass has a long-standing presence in Latin America, managing assets for a diversified client base. This merger is expected to capitalize on the strengths of both companies.

creating a strong presence in alternative asset management in Latin America.

This information is based on a press release. Vincci Partners reported stable financial performance in the second quarter of 2024.

with fee-related earnings of R$61.9 million ($11.6 million) and adjusted distributable earnings of R$58.4 million ($10.9 million).

The company also announced a quarterly dividend of $0.17 per share. Despite the challenging macroeconomic environment, Vinci Partners has shown significant progress in its market strategies, including raising nearly $500 million. Brazilian Real ($93.7 million) for its VCP IV fund and securing more than R$1.5 billion ($281.2 million) in the managed assets of the Vinci Credit Infra Fund.

In addition, the company’s acquisition of MAV Capital contributed approximately R$550 million to assets under management.

Vincci Partners is also looking forward to the expected close of the Compass merger between late third quarter and early fourth quarter. These are just some of the recent developments that have been shaping the strategic growth of vincci Partners.

The company expects continued revenue growth from private markets and modest spreads expansions. Despite the decline in adjusted distributable earnings.

Vinci Partners expects a positive outlook on fee and momentum earnings as a company.

However, it should be noted that Vincci Partners is dealing with a macroeconomic environment.

raising difficult funds and facing a negative impact the term became due to the influence of an unfavorable exchange rate. The recent merger between Vincci Partners Investments Limited (NASDAQ: VINP) and Compass is well aligned with the company’s strong financial position and growth trajectory.

According to investing data, Vincci Partners showed strong revenue growth, up 9.37% over the past twelve months from the second quarter. From 2024, a more impressive quarterly growth of 11.6% in the second quarter of 2024.

This growth trend supports the company’s expansion strategy into the broader Latin American market. Investing’s tips highlight that Vincci Partners pays significant dividends to shareholders, with a current dividend yield of 6.6%.

This attractive yield, coupled with dividend growth of 6.25% over the past twelve months.

indicates that the company is committed to returning value to its investors even as it pursues strategic growth opportunities such as the Compass merger.