Summary of Vinci Compass Q2 2026 Earnings Call

1Key Financial Results and Metrics

Fee-Related Earnings (FRE):: BRL 88.7 million (BRL 1.35 per share), up 36% year-over-year; FRE margin at 32.5%, a 450 basis point increase.

Adjusted Distributable Earnings:: BRL 63.3 million (BRL 0.96 per share), impacted by lower realized financial income and advisory fees.

Assets Under Management (AUM):: BRL 361 billion, up 19% year-over-year and 4% quarter-over-quarter.

Management Fees:: BRL 252 million, a 29% increase year-over-year.

Quarterly Dividend Declared:: $0.17 per common share.

2Strategic Updates and Business Highlights

Acquisitions::

Signed an agreement to acquire Navi's Real Estate funds, expected to add BRL 800 million in AUM, enhancing the Multi-strategy Real Estate segment.

Completed the acquisition of BACS asset management, adding BRL 4 billion in AUM, which is expected to improve FRE margins due to BACS's higher margin profile (approximately 50%).

Fundraising:: Achieved BRL 13 billion in capital formation and appreciation, with strong inflows into various funds, particularly in Credit and Global IP&S.

Market Positioning:: Vinci Compass is positioned as a consolidator in Latin America, focusing on expanding investment capabilities and diversifying its business.

3Forward Guidance and Outlook

Second Half Expectations:: Anticipate stronger revenue in the second half of 2026, driven by expected inflows and contributions from acquisitions.

FRE Margin Target:: On track to achieve a 38% FRE margin by 2028, with expectations of mid-30s range for the second half of 2026.

Growth Opportunities:: Continued optimism about growth in Argentina and Mexico, particularly in Credit and Real Assets, supported by structural changes in the financial landscape.

4Bad News, Challenges, or Points of Concern

Advisory Fees Decline:: Advisory fees decreased by 65% year-over-year, reflecting a slower deal environment and volatility in capital markets.

Net Outflows:: Experienced BRL 5.7 billion in net outflows from the Third-Party Distribution (TPD) business, primarily due to capital returns rather than a lack of demand.

Market Volatility:: Political uncertainty and high interest rates in Brazil continue to pose challenges, affecting risk appetite and M&A activity.

5Notable Q&A Insights

Expense Increases:: Fee-related expenses grew around 5% due to seasonal costs and severance related to cost reductions.

Capital Returns Impact:: Approximately one-third of the net outflows were related to capital returns from TPD funds, with expectations that these will be reinvested.

Integration of Acquisitions:: The integration of BACS is progressing well, with strong cross-selling opportunities anticipated, particularly in Argentina.

Future M&A Activity:: While there is a strong pipeline for inorganic growth, the focus will remain on organic growth unless compelling opportunities arise outside Brazil. Overall, Vinci Compass demonstrated solid financial performance in Q2 2026, bolstered by strategic acquisitions and a robust fundraising environment, despite facing challenges related to market volatility and declining advisory revenues. The outlook remains positive, with expectations for continued growth and margin improvement in the second half of the year.