Vinci Partners Investments Ltd. (NASDAQ:VINP) Q3 2022 Results Conference Call November 9, 2022 5:00 PM ET

Company Participants

Anna Castro - IR Manager

Alessandro Horta - CEO

Bruno Zaremba - Private Equity Chairman and Head, IR

Sergio Passos - CFO

Conference Call Participants

William Barranjard - Itaú BBA

Pedro Leduc - Itau BBA

Ricardo Buchpiguel - Banco BTG Pactual

Kaio Prato - UBS

Operator

Good afternoon, and welcome to the Vinci Partners Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to turn the conference over to Anna Castro, Investor Relations Manager. Please go ahead, Anna.

Anna Castro

Thank you, and good afternoon, everyone. Joining today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, Private Equity Chairman and Head of Investor Relations; and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release, slide presentation and our financial statements for the quarter, which are available on our website at ir.vincipartners.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 20-F. 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 Partners fund.

With that, I'll turn the call over to Alessandro.

Alessandro Horta

Thank you, Anna. Good afternoon, and thank you all for joining our call. We are very pleased to join you all today as we announce results for the third quarter of 2022. Adjustable distributable earnings totaling BRL73.2 million in the third quarter or BRL1.32 per common share, an increase of 19% year-over-year. Distributable earnings results are backed by extremely defensive FRE pushed by fundraising across our private market strategies and long-term lockups with a considerable upside coming from our liquid investment portfolio. Our business model has been able to guarantee an extremely healthy growth for our company in one of the most challenging scenarios this past quarters and helped us navigate these times while still delivering growth and attractive dividend distributions to our shareholders.

Vinci announced a quarter dividend of $0.20 on the dollar per common share, totaling $1.20 in dividend distribution since our IPO. Considering yesterday's closing share price, VINP stock is currently trading north of 6% last 12 months dividend yield. This yield is secured by a highly visible management fee-driven revenue stream in a very conservative investment policy on our balance sheet cash position. Vinci ended the third quarter with BRL63.4 billion in assets under management, up 9% year-over-year, driven by our fundraising across private market funds in the second and third quarters of 2022 and the recently closed acquisition of SPS. Results for Vinci SPS will be included in our private market segment. This quarter presented a partial impact from a revenue standpoint from Vinci SPS as we closed the acquisition in the middle of the quarter. We'll see revenues from the segment impacting the fourth quarter onwards.