Exhibit 99.2
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Vinci Partners Reports Fourth Quarter and Full Year 2021 Results
Alessandro Horta, Chief Executive Officer, stated, “Vinci Partners reported excellent results for the fourth quarter and full year 2021. Fee Related Earningsi reached R$54.0 million, an increase of 43% year-over-year. Distributable Earningsii totaled R$68.5 million, or R$1.22 per common share, up 86% year-over-year. As we move into 2022, we have a pool of exciting opportunities across the firm, and we are extremely well positioned to take advantage of them.”
Dividend
Vinci Partners has declared a quarterly dividend of US$0.20 per share to record holders of common stock at the close of business on March 10, 2022. This dividend will be paid on March 24, 2022.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Segment Earnings
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY'20 | FY'21 | ∆ (%) |
Net revenue from management fees | 76,025 | 91,594 | 20% | 271,266 | 361,070 | 33% |
Net revenue from advisory fees | 6,061 | 20,148 | 232% | 28,842 | 66,755 | 131% |
Total Fee Related Revenues | 82,086 | 111,742 | 36% | 300,108 | 427,825 | 43% |
Segment personnel expenses | (4,232) | (6,021) | 42% | (14,527) | (22,246) | 53% |
Other G&A expenses | (5,545) | (4,717) | -15% | (14,230) | (17,512) | 23% |
Corporate center expenses | (17,372) | (23,642) | 36% | (58,289) | (80,599) | 38% |
Bonus compensation related to management and advisory | (17,294) | (23,367) | 35% | (61,631) | (84,969) | 38% |
Total Fee Related Expenses | (44,442) | (57,747) | 30% | (148,678) | (205,327) | 38% |
FEE RELATED EARNINGS (FRE) | 37,644 | 53,995 | 43% | 151,430 | 222,498 | 47% |
FRE Margin (%) | 45.9% | 48.3% | 50.5% | 52.0% | ||
FRE per share (R$/share)iii | 0.66 | 0.96 | 2.66 | 3.93 | ||
Net revenue from performance fees | 22,526 | 3,448 | -85% | 39,784 | 37,633 | -5% |
Performance based compensation | (7,536) | (1,094) | -85% | (13,197) | (14,001) | 6% |
PERFORMANCE RELATED EARNINGS (PRE) | 14,990 | 2,354 | -84% | 26,587 | 23,632 | -11% |
PRE Margin (%) | 66.5% | 68.3% | 66.8% | 62.8% | ||
(-) Unrealized performance fees | (4,872) | 10,166 | N/A | (9,918) | 7,715 | N/A |
(+) Unrealized performance compensation | 2,134 | (3,605) | N/A | 3,967 | (2,733) | N/A |
(+) Realized GP investment income | 36 | 11,973 | 33,158% | 66 | 13,851 | 20,886% |
SEGMENT DISTRIBUTABLE EARNINGS | 49,932 | 74,883 | 50% | 172,132 | 264,964 | 54% |
Segment DE Margin (%) | 50.0% | 54.5% | 52.2% | 54.4% | ||
(+) Depreciation and amortization | 1,093 | 1,127 | 3% | 4,642 | 3,917 | -16% |
(+) Realized financial income | 539 | 9,531 | 1,668% | 2,557 | 28,729 | 1,024% |
(-) Leasing expenses | (3,093) | (2,953) | -5% | (12,209) | (12,281) | 1% |
(-) Other items | (211) | 140 | N/A | 330 | (319) | N/A |
(-) Income taxes (excluding related to unrealized fees and income) | (11,364) | (14,213) | 25% | (40,191) | (52,775) | 31% |
DISTRIBUTABLE EARNINGS (DE) | 36,896 | 68,515 | 86% | 127,261 | 232,234 | 82% |
DE Margin (%) | 36.8% | 46.7% | 38.3% | 45.0% | ||
DE per share (R$/share)iv | 0.65 | 1.22 | 2.24 | 4.11 |
For comparison purposes only, FRE and DE per share indicated for 4Q’20 and FY’20 are calculated considering Vinci Partners’ post-IPO share count of 56,913,588.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Total Fee-Related Revenuesv of R$111.7 million for the quarter ended December 31, 2021, compared to R$82.1 million for the quarter ended December 31, 2020, an increase of 36% year-over year, driven by the strong growth in Fee earning AUM and higher contribution from advisory fees, following strong deal activity in 2021. Fee-related revenues were R$427.8 million for the full year ended December 31, 2021, up 43% year-over-year, when compared to the full year ended December 31, 2020.
Fee Related Earnings (“FRE”) of R$54.0 million (R$0.96/share) for the quarter ended December 31, 2021, compared to R$37.6 million for the quarter ended December 31, 2020, an increase of 43% year-over-year, driven by the robust growth
in management fees across all segments and higher contribution from advisory fees. FRE was R$222.5 million for the full year ended December 31, 2021, up 47% year-over-year, when compared to the full year ended December 31, 2020.
FRE Marginvi was 48.3% for the quarter ended December 31, 2021, compared to 45.9% for the quarter ended December 31, 2020, an increase of 2.5 percentage points year-over-year. In the full year 2021, FRE Margin reached 52.0%, an increase of 1.5 percentage points year-over-year.
Performance Related Earnings (“PRE”)vii of R$2.4 million for the quarter ended December 31, 2021, compared to R$15.0 million for the quarter ended December 31, 2020, a decrease of 84% year-over-year, due to local market’s volatility in the second half of the year. PRE was R$23.6 million for the full year ended December 31, 2021, down 11% year-over-year, when compared to the full year ended December 31, 2020.
Segment Distributable Earningsviii of R$74.9 million for the quarter ended December 31, 2021, compared to R$49.9 million for the quarter ended December 31, 2020, an increase of 50% year-over-year. Segment Distributable Earnings were R$265.0 million for the full year ended December 31, 2021, up 54% year-over-year, when compared to the full year ended December 31, 2020.
Distributable Earnings (“DE”) of R$68.5 million (R$1.22/share) for the quarter ended December 31, 2021, compared to R$36.9 million for the quarter ended December 31, 2020, an increase of 86% year-over-year, driven by the notable growth in management and advisory fees, additional to the impact in performance fees and GP Investment income from the realizations in FIP Infra Transmissão. DE was R$ 232.2 million for the full year ended December 31, 2021, up 82% year-over-year, when compared to the full year ended December 31, 2020.
DE Marginix was 46.7% for the quarter ended December 31, 2021, a 9.9 percentage point increase compared to 36.8% for the quarter ended December 31, 2020. In the full year 2021, DE Margin reached 45.0%, an increase of 6.7 percentage points year-over-year.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Segment Highlights
Private Market Strategies
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY'20 | FY'21 | ∆ (%) |
Net revenue from management fees | 46,140 | 49,439 | 7% | 163,692 | 194,484 | 19% |
Net revenue from advisory fees | 93 | 1,684 | 1,717% | 1,001 | 5,653 | 464% |
Total Fee Related Revenues | 46,233 | 51,123 | 11% | 164,693 | 200,137 | 22% |
Segment personnel expenses | (2,032) | (2,672) | 32% | (7,436) | (10,571) | 42% |
Other G&A expenses | (3,549) | (2,470) | -30% | (8,372) | (11,373) | 36% |
Corporate center expenses | (10,020) | (10,639) | 6% | (33,519) | (38,456) | 15% |
Bonus compensation related to management and advisory | (8,645) | (8,410) | -3% | (30,122) | (33,762) | 12% |
Total Fee Related Expenses | (24,246) | (24,191) | 0% | (79,449) | (94,162) | 19% |
FEE RELATED EARNINGS (FRE) | 21,987 | 26,932 | 22% | 85,245 | 105,975 | 24% |
FRE Margin (%) | 47.6% | 52.7% | 51.8% | 53.0% | ||
Net revenue from performance fees | 5,694 | 1,768 | -69% | 14,801 | 4,984 | -66% |
Realized performance fees | 822 | 11,934 | 1,351% | 2,930 | 12,699 | 333% |
Unrealized performance fees | 4,872 | (10,166) | N/A | 11,871 | (7,715) | N/A |
Performance based compensation | (2,386) | (476) | -80% | (5,561) | (1,547) | -72% |
PERFORMANCE RELATED EARNINGS (PRE) | 3,309 | 1,292 | -61% | 9,240 | 3,437 | -63% |
PRE Margin (%) | 58.1% | 73.1% | 62.4% | 69.0% | ||
(-) Unrealized performance fees | (4,872) | 10,166 | N/A | (11,871) | 7,715 | N/A |
(+) Unrealized performance compensation | 2,134 | (3,602) | N/A | 4,676 | (2,733) | N/A |
(+) Realized GP investment income | 36 | 11,973 | 33,158% | 66 | 13,851 | 20,886% |
SEGMENT DISTRIBUTABLE EARNINGS | 22,593 | 46,761 | 107% | 87,356 | 128,245 | 47% |
Segment DE Margin (%) | 48.0% | 62.3% | 52.1% | 56.6% | ||
ASSETS UNDER MANAGEMENT (AUM R$ millions) | 19,115 | 21,991 | 15% | 19,115 | 21,991 | 15% |
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 17,204 | 20,007 | 16% | 17,204 | 20,007 | 16% |
AVERAGE MANAGEMENT FEE RATE (%) | 1.03% | 0.97% | 0.97% | 0.97% | ||
FULL TIME EMPLOYEES | 47 | 49 | 4% | 47 | 49 | 4% |
Fee related earnings (FRE) of R$26.9 million in the 4Q'21, an increase of 22% year-over-year. FRE was R$106.0 million in the FY’21, up 24% when compared to the FY’20, driven by the strong fundraising in 2021, with the final closing of VIR IV, follow-on offerings in REITs and VIGT and the launch of new strategies in Real Estate and Infrastructure.
Segment Distributable Earnings of R$46.8 million in the 4Q'21, an increase of 107% year-over-year, driven primarily by the realization of performance fees and realized GP Investment income coming from the capital return of FIP Infra Transmissão. Segment DE was R$128.2 million in the FY’21, up 47% when compared to the FY’20.
AUM of R$22.0 billion at the end of the 4Q'21, an increase of 15% year-over-year.
Fee-earning AUM of R$20.0 billion at the end of the 4Q'21, an increase of 16% year-over-year.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Liquid Strategies
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY'20 | FY'21 | ∆ (%) |
Net revenue from management fees | 15,372 | 20,510 | 33% | 61,444 | 86,786 | 41% |
Net revenue from advisory fees | - | - | N/A | - | - | N/A |
Total Fee Related Revenues | 15,372 | 20,510 | 33% | 61,444 | 86,786 | 41% |
Segment personnel expenses | (1,029) | (1,457) | 42% | (2,960) | (5,568) | 88% |
Other G&A expenses | (1,072) | (903) | -16% | (3,683) | (2,806) | -24% |
Corporate center expenses | (3,332) | (5,911) | 77% | (12,502) | (17,684) | 41% |
Bonus compensation related to management and advisory | (2,999) | (4,854) | 62% | (11,690) | (18,030) | 54% |
Total Fee Related Expenses | (8,432) | (13,125) | 56% | (30,835) | (44,089) | 43% |
FEE RELATED EARNINGS (FRE) | 6,940 | 7,385 | 6% | 30,609 | 42,697 | 39% |
FRE Margin (%) | 45.1% | 36.0% | 49.8% | 49.2% | ||
Net revenue from performance fees | 6,127 | 265 | -96% | 11,313 | 10,414 | -8% |
Realized performance fees | 6,127 | 265 | -96% | 13,209 | 10,414 | -21% |
Unrealized performance fees | - | - | N/A | (1,896) | - | N/A |
Performance based compensation | (1,875) | (225) | -88% | (3,350) | (5,512) | 65% |
PERFORMANCE RELATED EARNINGS (PRE) | 4,252 | 40 | -99% | 7,964 | 4,902 | -38% |
PRE Margin (%) | 69.4% | 15.1% | 70.4% | 47.1% | ||
(-) Unrealized performance fees | - | - | N/A | 1,896 | - | N/A |
(+) Unrealized performance compensation | - | - | N/A | (689) | - | N/A |
SEGMENT DISTRIBUTABLE EARNINGS | 11,193 | 7,425 | -34% | 39,783 | 47,599 | 20% |
Segment DE Margin (%) | 52.1% | 35.7% | 53.3% | 49.0% | ||
ASSETS UNDER MANAGEMENT (AUM R$ millions) | 14,299 | 11,573 | -19% | 14,299 | 11,573 | -19% |
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 14,158 | 11,440 | -19% | 14,158 | 11,440 | -19% |
AVERAGE MANAGEMENT FEE RATE (%) | 0.39% | 0.75% | 0.51% | 0.73% | ||
FULL TIME EMPLOYEES | 19 | 24 | 26% | 19 | 24 | 26% |
Fee related earnings (FRE) of R$7.4 million in the 4Q'21, an increase of 6% year-over-year. FRE was R$42.7 million in the FY’21, up 39% when compared to the FY’20, driven by the end of revenue sharing agreement with GAS Investimentos, which impacted positively our average management fee rate
Performance related earnings (PRE) of R$40 thousand in the quarter, down 99% year-over-year, due to local markets’ depreciation and recent volatility in the quarter. PRE was R$4.9 million in the FY’21, a decrease of 38% when compared to the FY’20
Segment Distributable Earnings of R$7.4 million in the quarter, down 34% year-over-year, driven by a tougher quarter for performance fess.
AUM of R$11.6 billion at the end of the 4Q'21, down 19% year-over-year, driven mostly by local markets’ depreciation in the second half of 2021.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Investment Products and Solutions
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY'20 | FY'21 | ∆ (%) |
Net revenue from management fees | 14,513 | 21,645 | 49% | 46,140 | 79,799 | 73% |
Net revenue from advisory fees | 28 | 7 | -75% | 124 | 54 | -56% |
Total Fee Related Revenues | 14,541 | 21,652 | 49% | 46,264 | 79,853 | 73% |
Segment personnel expenses | (883) | (1,408) | 60% | (3,206) | (4,419) | 38% |
Other G&A expenses | (331) | (791) | 139% | (1,409) | (2,091) | 48% |
Corporate center expenses | (3,151) | (3,783) | 20% | (9,357) | (15,558) | 66% |
Bonus compensation related to management and advisory | (3,843) | (7,239) | 88% | (11,947) | (20,211) | 69% |
Total Fee Related Expenses | (8,207) | (13,221) | 61% | (25,919) | (42,279) | 63% |
FEE RELATED EARNINGS (FRE) | 6,333 | 8,431 | 33% | 20,345 | 37,574 | 85% |
FRE Margin (%) | 43.6% | 38.9% | 44.0% | 47.1% | ||
Net revenue from performance fees | 10,705 | 1,415 | -87% | 13,663 | 22,237 | 63% |
Realized performance fees | 10,705 | 1,415 | -87% | 13,720 | 22,237 | 62% |
Unrealized performance fees | - | - | N/A | (57) | - | N/A |
Performance based compensation | (3,276) | (393) | -88% | (4,287) | (6,942) | 62% |
PERFORMANCE RELATED EARNINGS (PRE) | 7,429 | 1,022 | -86% | 9,376 | 15,295 | 63% |
PRE Margin (%) | 69.4% | 72.2% | 68.6% | 68.8% | ||
(-) Unrealized performance fees | - | - | N/A | 57 | - | N/A |
(+) Unrealized performance compensation | - | (3) | N/A | (21) | - | N/A |
SEGMENT DISTRIBUTABLE EARNINGS | 13,763 | 9,451 | -31% | 29,760 | 52,868 | 78% |
Segment DE Margin (%) | 54.5% | 41.0% | 49.6% | 51.8% | ||
ASSETS UNDER MANAGEMENT (AUM R$ millions) | 16,430 | 23,664 | 44% | 16,430 | 23,664 | 44% |
FEE EARNING ASSETS UNDER MANAGEMENT (FEAUM R$ millions) | 16,267 | 23,528 | 45% | 16,267 | 23,528 | 45% |
AVERAGE MANAGEMENT FEE RATE (%) | 0.39% | 0.38% | 0.38% | 0.39% | ||
FULL TIME EMPLOYEES | 12 | 18 | 50% | 12 | 18 | 50% |
Fee related earnings (FRE) of R$8.4 million in the 4Q'21, up 33% year-over-year. FRE was R$37.6 million in the FY’21, an increase of 85% when compared to the FY’20, due to the growth in management fees following notable fundraising over the last twelve months
Performance related earnings (PRE) of R$1.0 million, down 86% year-over-year, due to the recent volatility in local markets. PRE in the FY’21 was R$15.3 million, an increase of 63% when compared to the FY’20, driven primarily by strong performance coming from international separate mandates.
Segment Distributable Earnings of R$9.5 million in the quarter, down 31% year-over-year, due to a tougher quarter for performance fees. Segment DE was R$52.9 million in the FY’21, an increase of 78% when compared to the FY’20.
AUM of R$23.7 billion, up 44% year-over-year, driven by outstanding fundraising for new separate mandates in 2021. Fee Earning AUM of R$23.5 million, up 45% year-over-year.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Financial Advisory
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY'20 | FY'21 | ∆ (%) |
Net revenue from management fees | - | - | N/A | - | - | N/A |
Net revenue from advisory fees | 5,940 | 18,457 | 211% | 27,714 | 61,048 | 120% |
Total Fee Related Revenues | 5,940 | 18,457 | 211% | 27,714 | 61,048 | 120% |
Segment personnel expenses | (288) | (484) | 68% | (925) | (1,688) | 83% |
Other G&A expenses | (592) | (553) | -7% | (767) | (1,263) | 65% |
Corporate center expenses | (869) | (3,310) | 281% | (2,915) | (8,879) | 205% |
Bonus compensation related to management and advisory | (1,807) | (2,863) | 58% | (7,871) | (12,965) | 65% |
Total Fee Related Expenses | (3,557) | (7,210) | 103% | (12,477) | (24,796) | 99% |
FEE RELATED EARNINGS (FRE) | 2,383 | 11,247 | 372% | 15,236 | 36,252 | 138% |
FRE Margin (%) | 40.1% | 60.9% | 55.0% | 59.4% | ||
SEGMENT DISTRIBUTABLE EARNINGS | 2,383 | 11,247 | 372% | 15,236 | 36,252 | 138% |
Segment DE Margin (%) | 40.1% | 60.9% | 55.0% | 59.4% |
Fee related earnings (FRE) of R$11.2 million in the quarter, up 372% year-over-year. FRE was R$36.3 million in the FY’21, an increase of 138% when compared to the FY’20, a consequence of the stronger deal activity in 2021.
Segment Distributable Earnings in the FY’21 was R$36.3 million, an increase of 138% year-over-year when compared to the FY’20.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Income Statement
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | ∆ (%) | FY’20 | FY’21 | ∆ (%) |
REVENUES | ||||||
Net revenue from management fees | 76,025 | 91,594 | 20% | 271,266 | 361,070 | 33% |
Net revenue from performance fees | 22,526 | 3,448 | -85% | 39,784 | 37,633 | -5% |
Realized performance fees | 17,654 | 13,614 | -23% | 29,866 | 45,348 | 52% |
Unrealized performance fees | 4,872 | (10,166) | N/A | 9,918 | (7,715) | N/A |
Net revenue from advisory | 6,061 | 20,148 | 232% | 28,842 | 66,755 | 131% |
Total net revenues from services rendered | 104,612 | 115,190 | 10% | 339,892 | 465,458 | 37% |
EXPENSES | ||||||
Bonus related to management and advisory | (17,294) | (23,367) | 35% | (61,631) | (84,969) | 38% |
Performance based compensation | (7,536) | (1,094) | -85% | (13,197) | (14,001) | 6% |
Realized | (5,402) | (4,699) | -13% | (9,230) | (16,733) | 81% |
Unrealized | (2,134) | 3,605 | N/A | (3,967) | 2,733 | N/A |
Total compensation and benefitsx | (24,830) | (24,461) | -1% | (74,828) | (98,970) | 32% |
Segment personnel expenses | (4,232) | (6,021) | 42% | (14,527) | (22,246) | 53% |
Other general and administrative expenses | (5,545) | (4,717) | -15% | (14,230) | (17,512) | 23% |
Corporate center expenses | (17,372) | (23,642) | 36% | (58,289) | (80,599) | 38% |
Total expenses | (51,978) | (58,841) | 13% | (161,875) | (219,328) | 35% |
Operating profit | 52,634 | 56,349 | 7% | 178,017 | 246,130 | 38% |
OTHER ITEMS | ||||||
GP Investment income | 3,368 | 4,415 | 31% | 6,254 | 80 | -99% |
Realized gain from GP investment income | 36 | 11,973 | 33,158% | 66 | 13,851 | 20,886% |
Unrealized gain from GP investment income | 3,332 | (7,558) | N/A | 6,188 | (13,771) | N/A |
Financial income | 637 | 9,579 | 1,404% | 2,578 | 27,902 | 982% |
Realized gain from financial income | 539 | 9,531 | 1,668% | 2,557 | 28,729 | 1,024% |
Unrealized gain from financial income | 98 | 48 | -51% | 21 | (827) | N/A |
Leasing expenses | (3,093) | (2,953) | -5% | (12,209) | (12,281) | 1% |
Other items | (211) | 140 | N/A | 330 | (319) | N/A |
Stock compensation plan | - | (1,014) | N/A | - | (3,670) | N/A |
Total Other Items | 701 | 10,167 | 1350% | (3,047) | 11,712 | N/A |
Profit before income taxes | 53,335 | 66,516 | 25% | 174,970 | 257,842 | 47% |
(-) Income taxes | (13,092) | (9,923) | -24% | (43,446) | (49,227) | 13% |
NET INCOME | 40,243 | 56,593 | 41% | 131,524 | 208,615 | 59% |
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Total net revenues from services rendered of R$115.2 million for the quarter ended December 31, 2021, compared to R$104.6 million for the quarter ended December 31, 2020, an increase of 10% year-over-year. Net revenues for the full year ended December 31, 2021 were R$465.5 million, up 37% year-over-year, when compared to the full year ended December 31, 2020.
· | Management fee revenues of R$91.6 million for the quarter ended December 31, 2021, compared to R$76.0 million for the quarter ended December 31, 2020, an increase of 20% year-over-year. This increase was primarily driven by the growth in Fee earning AUM. Management fee revenues for the full year ended December 31, 2021 were R$361.1 million, up 33% year-over-year, when compared to the full year ended December 31, 2020. |
· | Performance fee revenues of R$3.4 million for the quarter ended December 31, 2021, compared to R$22.5 million for the quarter ended December 31, 2020, a decrease of 85% year-over-year, due to a more volatile market in the quarter. Performance fee revenues were R$37.6 million for the full year ended December 31, 2021, down 5% year-over-year, when compared to the full year ended December 31, 2020. |
· | Advisory fee revenues of R$20.1 million for the quarter ended December 31, 2021, compared to R$6.1 million for the quarter ended December 31, 2020, an increase of 232% year-over-year. Advisory revenues for the full year ended December 31, 2021 were R$66.8 million, up 131% when compared to the full year ended December 31, 2020, a consequence of the stronger deal activity in 2021. |
Total expenses for the quarter ended December 31, 2021 of R$58.8 million, compared to R$52.0 million for the quarter ended December 31, 2020, an increase of 13% year-over-year. Part of this increase was driven by new recurring costs related to becoming a public company, such as changes in the company’s compensation structure, Board and support teams’ hirings and third-party services. Those factors accounted for R$2.9 million in additional expenses for the quarter. On a comparable basis, excluding costs related to being a public company, expenses were up 8% year-over-year. Additionally, 4Q'21 expenses were impacted by R$4.9 million related to the final phase of the company’s new branding project which took place throughout 2021.
· | Bonus related to management and advisory feesxi of R$23.4 million for the quarter ended December 31, 2021, compared to R$17.3 million for the quarter ended December 31,2020, an increase of 35% year-over-year. Bonus related to management and advisory was R$85.0 million for the full year ended December 30, 2021, up 38% year-over-year, when compared to the full year ended December 31, 2020. |
· | Performance based compensationxii of R$1.1 million for the quarter ended December 31,2021, compared to R$7.5 million for the quarter ended December 31,2020. Performance based compensation for full year ended December 31, 2021 was R$14.0 million, an increase of 6% year-over-year, when compared to the full year ended December 31, 2020. |
· | Segment personnel expensesxiii of R$6.0 million for the quarter ended December 31, 2021 compared to R$4.2 million for the quarter ended December 31, 2020, an increase of 42% year-over-year. This increase is primarily due to the change in Vinci Partners´ compensation structure after becoming a public company in 2021, which accounted for R$1.0 million in additional segment personnel expenses for the quarter. |
· | Corporate center expensesxiv of R$23.6 million for the quarter ended December 31,2021 compared to R$17.4 million for the quarter ended December 31,2020, an increase of 36% year-over-year. This increase was primarily due to (i) the previously mentioned change in the company´s compensation structure, (ii) new hirings after the company became public, such as our Board of directors, financial reporting and shareholder relations teams, and (iii) third-party expenses, such as Auditor and Nasdaq listing fees. These additional costs accounted for R$1.8 million in additional corporate center expenses for the quarter. Corporate center expenses for the quarter ended December 31, 2021 were also impacted by a R$4.9 million expense the company's new branding project. |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Corporate center expenses for the full year ended December 31, 2021 were R$80.6 million, up 38% year-over-year, when compared to the full year ended December 31, 2020.
· | Other general and administrative expensesxv of R$4.7 million for the quarter ended December 31, 2021, compared to R$5.5 million for the quarter ended December 31, 2020, a decrease of 15% year-over-year. Other G&A expenses for the full year ended December 30, 2021 were R$17.5 million, up 23% year-over-year, when compared to the full year ended December 31, 2020. |
Operating Profit of R$56.3 million for the quarter ended December 31,2021, compared to R$52.6 million for the quarter ended December 31, 2020, an increase of 7% year-over-year. Operating profit for the full year ended December 31, 2021 was R$246.1 million, up 38% year-over-year, when compared to the full year ended December 31, 2020.
GP Investment incomexvi, which is a result of the company’s GP investments in its proprietary private market funds, was R$4.4 million for the quarter ended December 31, 2021, compared to R$3.4 million for the quarter ended December 31, 2020. Realized GP Investment income was R$12.0 million in the quarter, coming primarily from realizations in FIP Infra Transmissão, in which the company has a GP Investment through quotas of the fund and a co-investment position. GP Investment income for the full year ended December 31, 2021 was R$80 thousand compared to R$6.3 million for the full year ended December 31, 2020.
Financial Incomexvii of R$9.6 million for the quarter ended December 31, 2021, compared to R$0.6 million for the quarter ended December 31, 2020, an increase of 1,404% year-over-year, a result of financial gains from the company’s liquid funds’ portfolio. Financial income for the full year ended December 31, 2021 was R$27.9 million, up 982% year-over-year, when compared to the full year ended December 31, 2020.
Leasing Expensesxviii of R$3.0 million for the quarter ended December 31, 2021, compared to R$3.1 million for the quarter ended December 31, 2020, a decrease of 5% year-over-year.
Stock compensation plan expensesxix of R$1.0 million for the quarter ended December 31, 2021. In the full year 2021, stock compensation plan expenses accounted for R$3.7 million.
Profit before income taxes of R$66.5 million for the quarter ended December 31, 2021, compared to R$53.3 million for the quarter ended December 31, 2020, an increase of 25% year-over-year. Profit before income taxes for the full year ended December 31, 2021 was R$257.8 million, up 47% year-over-year, when compared to the full year ended December 31, 2020.
Income Taxesxx of R$9.9 million for the quarter ended December 31, 2021, which represented an effective tax rate for the quarter of 15%, compared to R$13.1 million for the quarter ended December 31, 2020, which represented an effective tax rate of 20%. Income Taxes for the full year ended December 31, 2021 was R$49.2 million, which represented an effective tax rate for the year of 19%, compared to R$43.4 million for the full year ended December 31,2020, which represented an effective tax rate of 20%.
Net Income of R$56.6 million for the quarter ended December 31, 2021, compared to R$40.2 million for the quarter ended December 31, 2020, an increase of 41% year-over-year. Net Income was R$208.6 million for the full year ended December 31, 2021, up 59% year-over-year, when compared to the full year ended December 31, 2020.
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Supplement Details
Assets Under Management (AUM)xxi Rollforward – R$ millions
For the Three Months Ended December 31, 2021
Private | Public | IP&S | Infrastructure | Real Estate | Credit | Hedge | Total | |
Equity | Equities | Funds | ||||||
Beginning balance | 10,962 | 9,514 | 23,695 | 2,466 | 5,411 | 2,818 | 3,086 | 57,952 |
(+/-) Capital Subscription / (capital return) | 82 | - | - | (121) | (56) | - | - | (94) |
(+) Capital Subscription | 82 | - | - | - | 41 | 8 | - | 131 |
(-) Capital Return | - | - | - | (121) | (97) | (8) | - | (225) |
(+/-) Net Inflow / (outflow) | - | (405) | (102) | - | - | 50 | 63 | (393) |
(+/-) Appreciation / (depreciation) | 178 | (616) | 71 | 76 | 44 | 80 | (69) | (236) |
Ending Balance | 11,223 | 8,493 | 23,664 | 2,421 | 5,399 | 2,948 | 3,080 | 57,229 |
For the Twelve Months Ended December 31, 2021
Private | Public | IP&S | Infrastructure | Real Estate | Credit | Hedge | Total | |
Equity | Equities | Funds | ||||||
Beginning balance | 10,749 | 11,779 | 16,430 | 1,533 | 4,470 | 2,363 | 2,519 | 49,843 |
(+/-) Capital Subscription / (capital return) | 333 | - | 61 | 727 | 978 | 95 | - | 2,195 |
(+) Capital Subscription | 355 | - | 61 | 851 | 1,127 | 139 | - | 2,533 |
(-) Capital Return | (22) | - | - | (124) | (149) | (43) | - | (338) |
(+/-) Net Inflow / (outflow) | - | (1,889) | 6,113 | - | 110 | 374 | 589 | 5,298 |
(+/-) Appreciation / (depreciation) | 141 | (1,398) | 1,061 | 161 | (160) | 116 | (28) | (107) |
Ending Balance | 11,223 | 8,493 | 23,664 | 2,421 | 5,399 | 2,948 | 3,080 | 57,229 |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Fee Earning Assets Under Management (FEAUM) Rollforward – R$ millions
For the Three Months Ended December 31, 2021
Private | Public | IP&S | Infrastructure | Real Estate | Credit | Hedge | Total | |
Equity | Equities | Funds | ||||||
Beginning balance | 9,089 | 9,443 | 23,540 | 2,363 | 5,411 | 2,818 | 3,023 | 55,686 |
(+/-) Capital Subscription / (capital return) | 82 | - | - | (70) | (56) | - | - | (43) |
(+) Capital Subscription | 82 | - | - | - | 41 | 8 | - | 131 |
(-) Capital Return | - | - | - | (70) | (97) | (8) | - | (175) |
(+/-) Net Inflow / (outflow) | - | (404) | (95) | - | - | 50 | 60 | (390) |
(+/-) Appreciation / (depreciation) | 127 | (611) | 84 | 69 | 44 | 80 | (70) | (278) |
Ending Balance | 9,299 | 8,427 | 23,528 | 2,362 | 5,399 | 2,948 | 3,013 | 54,975 |
For the Twelve Months Ended December 31, 2021
Private | Public | IP&S | Infrastructure | Real Estate | Credit | Hedge | Total | |
Equity | Equities | Funds | ||||||
Beginning balance | 8,921 | 11,700 | 16,267 | 1,449 | 4,470 | 2,363 | 2,458 | 47,628 |
(+/-) Capital Subscription / (capital return) | 333 | - | 61 | 778 | 881 | 95 | - | 2,148 |
(+) Capital Subscription | 355 | - | 61 | 851 | 1,127 | 139 | - | 2,533 |
(-) Capital Return | (22) | - | - | (74) | (246) | (43) | - | (385) |
(+/-) Net Inflow / (outflow) | - | (1,884) | 6,135 | - | 110 | 374 | 586 | 5,320 |
(+/-) Appreciation / (depreciation) | 44 | (1,389) | 1,067 | 135 | (63) | 116 | (31) | (122) |
Ending Balance | 9,299 | 8,427 | 23,528 | 2,362 | 5,399 | 2,948 | 3,013 | 54,975 |
Accrued Performance Fees – Private Market Funds
(R$ mm) | 3Q'21 | Unrealized Performance Fees | Realized Distributions | 4Q'21 |
Private Equity | 47.0 | 35.6 | 0.0 | 82.5 |
Infrastructure | 27.4 | 2.8 | (10.9) | 19.4 |
Total | 74.4 | 38.4 | (10.9) | 101.9 |
Vinci Partners recognizes the performance revenue according to IFRS 15. Unrealized performance fees are recognized only when is highly probable that the revenue will not be reversed in the Income Statement.
The fund FIP Infra Transmissão in Infrastructure had R$19.4 million as of the end of the fourth quarter of 2021 booked as unrealized performance fees in the company´s balance sheet.
Accrued performance fees shown for Private Equity funds of R$82.5 million as of the end of the fourth quarter of 2021 have not been booked as unrealized performance fees in the company´s balance sheet.
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Investment Records – IP&S, Liquid Strategies, Credit and Listed REIT
Fund | Segment | NAVxxii (R$ millions) | 4Q21 | YTD | 12 M | 24 M | Market Comparison | Index Rate |
Vinci Multiestratégia FIM | Hedge Funds | 703.1 | 1.4% | 2.7% | 2.7% | 6.3% | CDIxxiii | CDI |
Atlas Strategyxxiv | Hedge Funds | 557.8 | 0.0% | -4.0% | -4.0% | 1.8% | CDI | CDI |
Vinci Total Return | Hedge Funds | 244.5 | 1.0% | 17.0% | 17.0% | 47.0% | IPCAxxv + Yield IMA-Bxxvi | IPCA + Yield IMA-B |
Mosaico Strategyxxvii | Public Equities | 1,272.1 | -5.1% | -12.9% | -12.9% | -10.1% | IBOVxxviii | IBOV |
Vinci Gas Dividendos FIA | Public Equities | 513.4 | -2.9% | -11.5% | -11.5% | -8.1% | IBOV | IBOV |
Vinci Valorem FIM | IP&S | 2,525.8 | 0.4% | 3.7% | 3.7% | 11.5% | IMA-B 5 | IMA-B 5 |
Equilibrio Strategyxxix | IP&S | 2,157.4 | 0.1% | 3.4% | 3.4% | 8.4% | IPCA | - |
Vinci Selection Equities FIA | IP&S | 542.9 | -6.3% | -11.5% | -11.5% | -3.8% | IBOV | IBOV |
Vinci Crédito Imobiliário I | Credit | 298.8 | 1.2% | 2.3% | 2.3% | 13.3% | IPCA | IPCA + 7.785% |
Vinci Crédito Imobiliário II | Credit | 543.6 | 0.5% | 3.2% | 3.2% | 7.4% | IPCA | IPCA+ 6% |
Vinci Crédito Estruturado Multiestrategia Plus FIC FIM | Credit | 79.0 | 2.6% | 7.5% | 7.5% | 12.2% | CDI | CDI |
Vinci Energia Sustentável | Credit | 606.1 | 2.6% | 3.2% | 3.2% | 14.8% | IPCA | IPCA + 6% |
VISC11 | Real Estate (listed REIT) | 1,465.2 | 2.7% | -5.5% | -5.5% | -18.7% | IFIXxxx | IPCA + 6% |
VILG11 | Real Estate (listed REIT) | 1,572.5 | 1.9% | -10.3% | -10.3% | -12.9% | IFIX | IPCA+ 6% |
VINO11 | Real Estate (listed REIT) | 712.3 | -2.9% | -0.4% | -0.4% | -4.1% | IFIX | IPCA+ 6% |
VIFI11 | Real Estate (listed REIT) | 213.3 | 4.1% | -12.6% | -12.6% | - | IFIX | IFIX |
VIUR11 | Real Estate (listed REIT) | 208.3 | -5.0% | -18.2% | - | - | IFIX | IPCA + 6% |
VIGT11 | Infrastructure (listed) | 676.6 | 3.6% | -12.1% | -12.1% | -18.0% | - | - |
Benchmark | 4Q21 | YTD | 12 M | 24 M |
IBOV | -5.5% | -11.9% | -11.9% | -9.4% |
CDI | 1.8% | 4.4% | 4.4% | 7.3% |
IMA-B 5 | 2.0% | 4.6% | 4.6% | 13.0% |
IPCA + Yield IMA-B | 4.2% | 14.1% | 14.1% | 22.2% |
IPCA | 2.7% | 9.8% | 9.8% | 14.8% |
IFIX | 3.3% | -2.3% | -2.3% | -12.3% |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Investment Records – Closed End Private Markets fundsxxxi
Shareholder Dividends
($ in thousands) | 1H21 | 3Q'21 | 4Q'21 |
Distributable Earnings (R$) | 101,976 | 61,743 | 68,515 |
Distributable Earnings (US$)xxxv | 19,397 | 11,377 | 13,637 |
DE per Common Share (US$)xxxvi | 0.34 | 0.20 | 0.24 |
Actual Dividend per Common Sharexxxvii | 0.30 | 0.16 | 0.20 |
Record Date | September 01,2021 | December 01,2021 | March 10, 2022 |
Payable Date | September 16, 2021 | December 16,2021 | March 24, 2022 |
Vinci Partners generated R$1.22 or US$0.24 of Distributable Earnings per common share for the fourth quarter of 2021.
The company declared a quarterly dividend of US$0.20 per common share to record holders as of March 10, 2022; payable on March 24, 2022.
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Share Summary
VINP Shares | 4Q'20 (Pre IPO) | 1Q'21 | 2Q'21 | 3Q'21 | 4Q'21 |
Class B | 14,466,239 | 14,466,239 | 14,466,239 | 14,466,239 | 14,466,239 |
Class A – Partnership Units | 27,175,861 | 27,175,861 | 27,175,861 | 27,175,861 | 27,175,861 |
Class A - Public Float | N/A | 15,271,488 | 15,094,833 | 14,921,318 | 14,513,477 |
Common Shares | 41,642,100 | 56,913,588 | 56,736,933 | 56,563,418 | 56,155,577 |
Common Shares Outstanding as of quarter end of 56,155,577 shares.
· | Repurchased 407,841 common shares in the quarter, with an average share price of US$11.7. |
· | Available authorization remaining was R$32.4 million on December 31,2021. |
GP Commitment in Private Market funds
(R$ millions, unless mentioned) Fund | Segment | 4Q'21 Commitments | Total Capital Committed | 4Q'21 Capital Called | Total Capital Called | Capital Returned/ Dividends Payed (4Q’21) | Accumulated Capital Returned/ Dividends Payed | Fair value of investments | |||
Nordeste III | Private Equity | 0.0 | 5.0 | 0.0 | 3.1 | 0.0 | 1.3 | 2.8 | |||
VCP III | Private Equity | 0.0 | 3.1 | 0.2 | 1.2 | 0.0 | 0.0 | 1.9 | |||
VIR IV | Private Equity | 0.0 | 11.1 | 0.8 | 2.1 | 0.0 | 0.0 | 2.0 | |||
FIP Infra Transmissão (co- investment)xxxviii | Infrastructure | 0.0 | 29.5 | 0.0 | 8.9 | 10.4 | 19.7 | 13.4 | |||
FIP Infra Transmissãoxxxix | Infrastructure | 0.0 | 10.5 | 0.0 | 3.4 | 3.0 | 6.2 | 3.9 | |||
VIAS | Infrastructure | 0.0 | 50.0 | 1.3 | 1.3 | 0.0 | 0.0 | 1.0 | |||
VFDL | Real Estate | 0.0 | 70.0 | 0.0 | 14.0 | 0.0 | 0.0 | 17.1 | |||
VIUR | Real Estate | 0.0 | 67.3 | 0.0 | 67.3 | 1.4 | 3.2 | 52.5 | |||
VCS | Credit | 8.0 | 58.0 | 8.0 | 58.0 | 0.0 | 0.0 | 61.9 | |||
VSP | IP&S | 0.0 | 5.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
Total | 8.0 | 309.4 | 10.3 | 159.2 | 14.8 | 30.4 | 156.7 |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Reconciliation and Disclosures
Non-GAAP Reconciliation
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | FY'20 | FY'21 |
OPERATING PROFIT | 52,634 | 56,349 | 178,017 | 246,130 |
(-) Net revenue from realized performance fees | (17,654) | (13,614) | (29,866) | (45,348) |
(-) Net revenue from unrealized performance fees | (4,872) | 10,166 | (9,918) | 7,715 |
(+) Compensation allocated in relation to performance fees | 7,536 | 1,094 | 13,197 | 14,001 |
FEE RELATED EARNINGS (FRE) | 37,644 | 53,995 | 151,430 | 222,498 |
OPERATING PROFIT | 52,634 | 56,349 | 178,017 | 246,130 |
(-) Net revenue from management fees | (76,025) | (91,594) | (271,266) | (361,070) |
(-) Net revenue from advisory | (6,061) | (20,148) | (28,842) | (66,755) |
(+) Bonus related to management and advisory | 17,294 | 23,367 | 61,631 | 84,969 |
(+) Personnel expenses | 4,232 | 6,021 | 14,527 | 22,246 |
(+) Other general and administrative expenses | 5,545 | 4,717 | 14,230 | 17,512 |
(+) Corporate center expenses | 17,372 | 23,642 | 58,289 | 80,599 |
PERFORMANCE RELATED EARNINGS (PRE) | 14,990 | 2,354 | 26,587 | 23,632 |
OPERATING PROFIT | 52,634 | 56,349 | 178,017 | 246,130 |
(-) Net revenue from unrealized performance fees | (4,872) | 10,166 | (9,918) | 7,715 |
(+) Compensation allocated in relation to unrealized performance fees | 2,134 | (3,605) | 3,967 | (2,733) |
(+) Realized gain from GP investment income | 36 | 11,973 | 66 | 13,851 |
SEGMENT DISTRIBUTABLE EARNINGS | 49,932 | 74,883 | 172,132 | 264,964 |
NET INCOME | 40,243 | 56,593 | 131,524 | 208,615 |
(-) Net revenue from unrealized performance fees | (4,872) | 10,166 | (9,918) | 7,715 |
(+) Income tax from unrealized performance fees | 562 | (1,173) | 1,144 | (890) |
(+) Compensation allocated in relation to unrealized performance fees | 2,134 | (3,605) | 3,967 | (2,733) |
(-) Unrealized gain from GP investment income | (3,332) | 7,558 | (6,188) | 13,771 |
(+) Income tax on unrealized gain from GP investment income | 1,133 | - | 2,104 | 757 |
(-) Unrealized gain from financial income | (98) | (48) | (21) | 827 |
(+) Income tax on unrealized gain from financial income | 33 | (3,117) | 7 | (3,415) |
(+) Depreciation and amortization | 1,093 | 1,127 | 4,642 | 3,917 |
(+) Stock compensation plan | - | 1,014 | - | 3,670 |
DISTRIBUTABLE EARNINGS | 36 ,896 | 68,515 | 127,261 | 232,234 |
TOTAL NET REVENUE FROM SERVICES RENDERED | 104,612 | 115,190 | 339,892 | 465,458 |
(-) Net revenue from realized performance fees | (17,654) | (13,614) | (29,866) | (45,348) |
(-) Net revenue from unrealized performance fees | (4,872) | 10,166 | (9,918) | 7,715 |
NET REVENUE FROM MANAGEMENT FEES AND ADVISORY | 82,086 | 111,742 | 300,108 | 427,825 |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Effective Tax Rate Reconciliation
(R$ thousands, unless mentioned) | 4Q'20 | 4Q'21 | FY'20 | FY'21 |
Profit (loss) before income taxes, including Dividends to partners | 53,335 | 66,516 | 174,970 | 257,841 |
(+) Dividends to Partners, related to management, advisory and performance fees | 12,108 | - | 37,630 | - |
Profit (loss) before income taxes, not-including Dividends to partners | 65,443 | 66,516 | 212,600 | 257,841 |
Combined statutory income taxes rate - % | 34% | 34% | 34% | 34% |
Income tax benefit (Expense) at statutory rates | (22,251) | (22,615) | (72,284) | (87,666) |
Reconciliation adjustments: | ||||
Expenses not deductible | (162) | (330) | (93) | (392) |
Tax benefits | 440 | 445 | 440 | 825 |
Share based payments | 0 | (102) | 0 | (371) |
Effect of presumed profit of subsidiariesxl | 8,755 | 12,589 | 28,435 | 38,279 |
Other additions (exclusions), net | 126 | 90 | 56 | 98 |
Income taxes expenses | (13,092) | (9,923) | (43,446) | (49,227) |
Current | (10,644) | (12,251) | (42,666) | (56,770) |
Deferred | (2,448) | 2,328 | (780) | 7,543 |
Effective tax rate | 20% | 15% | 20% | 19% |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Balance Sheet Results
Assets | 12/31/2020 | 12/31/2021 |
Current assets | ||
Cash and cash equivalents | 83,449 | 102,569 |
Cash and bank deposits | 13,096 | 21,679 |
Financial instruments at fair value through profit or loss | 70,353 | 80,890 |
Financial instruments at fair value through profit or loss | 8,253 | 1,372,926 |
Trade receivables | 47,978 | 44,316 |
Sub-leases receivable | 2,963 | 0 |
Taxes recoverable | 1,153 | 3,199 |
Other assets | 12,383 | 4,193 |
Total current assets | 156,179 | 1,527,203 |
Non-current assets | ||
Financial instruments at fair value through profit or loss | 31,596 | 8,593 |
Trade receivables | 27,545 | 19,368 |
Sub-leases receivable | 0 | 0 |
Taxes recoverable | 134 | 80 |
Deferred taxes | 4,568 | 4,970 |
Other receivables | 1,540 | 2,011 |
65,383 | 35,022 | |
Property and equipment | 15,043 | 14,294 |
Right of use - Leases | 90,478 | 69,329 |
Intangible assets | 1,441 | 1,157 |
Total non-current assets | 172,345 | 119,802 |
TOTAL | 328,524 | 1,647,005 |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Liabilities and equity | 12/31/2020 | 12/31/2021 |
Current liabilities | ||
Trade payables | 1,039 | 831 |
Deferred Revenue | 0 | 0 |
Leases | 19,828 | 22,304 |
Accounts payable | 125,795 | 10,677 |
Labor and social security obligations | 40,724 | 106,299 |
Taxes and contributions payable | 22,878 | 23,762 |
Total current liabilities | 210,264 | 163,873 |
Non-current liabilities | ||
Accounts payable | 33 | 0 |
Leases | 86,371 | 63,240 |
Deferred taxes | 12,620 | 5,016 |
99,024 | 68,256 | |
Equity | ||
Share capital | 8,730 | 15 |
Additional paid-in capital | 0 | 1,382,038 |
Treasury shares | 0 | -52,585 |
Retained Earnings | 0 | 70,183 |
Other reserves | 10,491 | 15,182 |
19,221 | 1,414,833 | |
Non-controlling interests in the equity of subsidiaries | 15 | 43 |
Total equity | 19,236 | 1,414,876 |
Total liabilities and equity | 328,524 | 1,647,005 |
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
Forward-Looking Statements
This earnings release contains forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside of our control. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. The forward-looking statements included herein speak only as at the date of this press release and we do not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, neither we nor our affiliates, officers, employees and agents undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time.
/IR.VINCIPARTNERS.COM / SHAREHOLDERRELATIONS@VINCIPARTNERS.COM |
Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
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i Fee related earnings, or FRE, is a metric to monitor the baseline performance of, and trends in, our business, in a manner that does not include performance fees or investment income. We calculate FRE as operating profit less (a) net revenue from realized performance fees, less (b) net revenue from unrealized performance fees, plus (c) compensation allocated in relation to performance fees.
ii Distributable Earnings is used as a reference point by our board of directors for determining the amount of earnings available to distribute to shareholders as dividends. Distributable Earnings is calculated as profit for the year, less (a) net revenue from unrealized performance fees, plus (b) income taxes from unrealized performance fees, plus (c) compensation allocated in relation to unrealized performance fees, less (d) unrealized gain from GP investment income, less (e) unrealized gain from financial income, plus (f) income taxes on unrealized gain from GP investment income, plus (g) income taxes on unrealized gain from financial income.
iii FRE per share is calculated considering the number of outstanding shares at the end of the current quarter. Full year values are calculated as the sum of the last four quarters.
iv DE per share is calculated considering the number of outstanding shares at the end of the current quarter. Full year values are calculated as the sum of the last four quarters.
v Net revenue from Fund Management and Advisory is a performance measure that we use to assess our ability to generate profits from our fund management and advisory business without measuring for the outcomes from funds above their respective benchmarks. We calculate Net Revenue from Fund Management and Advisory as net revenue from services rendered less (a) net revenue from realized performance fees and less (b) net revenue from unrealized performance fees.
vi FRE Margin is calculated as FRE over total net management and advisory fees.
vii “Performance Related Earnings”, or “PRE”, is a performance measure that we use to assess our ability to generate profits from revenue that relies on outcome from funds above their respective benchmarks. We calculate PRE as operating profit, less (a) net revenue from fund management and advisory, less (b) operating expenses, such as segment personnel, G&A, corporate center and bonus related to management and advisory.
viii Segment Distributable Earnings is Vinci Partners’ segment profitability measure used to make operating decisions and assess performance across the company’s four segments (Private Markets, Liquid Strategies, Investment Products and Solutions and Financial Advisory). Segment Distributable Earnings is calculated as operating profit less (a) net revenue from unrealized performance fees, plus (b) compensation allocated in relation to unrealized performance fees, plus (c) realized gain from GP investment income.
ix DE Margin is calculated as DE over the sum of management and advisory fee related revenues, realized performance revenue, realized GP investment income and realized financial income, net of revenue tax.
x “Total compensation and benefits” is the result of the profit sharing paid to our employees as (a) bonus compensation related to management advisory and (b) performance based compensation. Total compensation and benefits include Dividends to Partners, distributed by the company to its original partners before the public turned public in 2021. In accordance with the by-laws of Vinci Brazil, dividends have historically been distributed based on the resolution of the partners. Therefore, dividends could be distributed on a non-proportional basis among quotaholders, which are comprised by the partners of Vinci Brazil. After the company’s IPO, Vinci Partners changed its compensation structure, from a dividend distribution policy to a profit-sharing scheme for our partners.
xi Bonus compensation related to management and advisory includes Dividends to Partners related to management and advisory, distributed by the company to its original partners before the company turned public in 2021.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
xii Performance based compensation includes Dividends to Partners related to performance fees, distributed by the company to its original partners before the company turned public in 2021.
xiii “Segment personnel expenses” are composed of the salary-part compensation paid to employees and partners of our funds’ management teams.
xiv “Corporate center expenses” are composed by the salary-compensation paid to employees and partners of our support teams and other expenses, such as research, risk, legal & compliance, investor relations, operations and ESG.
xv “Other general and administrative expenses” is made up of third-party expenses, depreciation and amortization, travel and representation, marketing expenses, administrative fees, non-operating taxes, third-party consultants’ fees, such as legal and accounting, and office consumables.
xvi “GP investment income” is income from proprietary investments made by us in our own Private Markets’ funds, used as GP Commitments.
xvii “Financial income” is income generated through the investments made with our cash and cash equivalents in cash and bank deposits, certificate of deposits and proprietary investments in our Liquid Funds from our public equities and hedge funds’ segments and listed REITs from our real estate segment.
xviii “Leasing expenses” include costs from the company’s sub-leasing activities.
xix “Stock option compensation plan” is a benefit program in which the company concedes to an employee the option to buy stock in the company with stated fixed price.
xx Income taxes is comprised of taxes on our corporate income tax and social contribution taxes. We are taxed on an actual taxable profit regime, while our subsidiaries are taxed based on deemed profit. Dividends to partners distributed by the company to its original partners before turned public in 2021 are not included in actual taxable regime.
xxi AUM” refers to assets under management. Our assets under management equal the sum of: (1) the fair market value of the investments held by funds plus the capital that we are entitled to call from investors in those funds pursuant to the terms of their capital commitments to those funds (plus the fair market value of co-investments arranged by us that were made or could be made by limited partners of our corporate private equity funds and portfolio companies of such funds); (2) the net asset value of our public equity funds, hedge funds and closed-end mutual funds; and (3) the amount of capital raised for our credit funds. AUM includes double counting related to funds from one segment that invest in funds from another segment. Those cases occur mainly due to (a) fund of funds of investment products and solutions segment, and (b) investment funds in general that invest part of their cash in credit segment and hedge fund segment funds in order to maintain liquidity and provide for returns on cash. Such amounts are eliminated on consolidation. The bylaws of the relevant funds prohibit double-charging fees on AUM across segments. Therefore, while our AUM by segment may double-count funds from one segment that invest in funds from another segment, the revenues for any given segment do not include revenue in respect of assets managed by another segment, which means there are no intercompany eliminations on revenues in our results of operations.
xxii NAV is the net asset value of each fund. For listed vehicles, the NAV represents the Market valuation of the fund.
xxiii CDI is an average of interbank overnight rates in Brazil (daily average for the period).
xxiv Atlas strategy comprises Atlas FIC FIM and Atlas Institucional FIC FIM.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
xxv IPCA is a broad consumer price index measured by the IBGE
xxvi IMAB is composed by government bonds indexed to IPCA. IMAB 5 also comprises government bonds indexed to IPCA but only the one´s with up to 5 Years duration.
xxvii Mosaico strategy comprises Vinci Mosaico FIA, Vinci Mosaico Institucional FIA and Vinci Mosaico Advisory FIA.
xxviii IBOV is the Brazilian stock market most relevant index.
xxix Equilibrio Strategy comprises IP&S Family of pension plans.
xxx IFIX is an index composed by listed REITs in the brazilian stock exchange.
xxxi Track record information is presented throughout this release on a pro forma basis and in local currency, excluding PIPE investments, a strategy that will be discontinued in VCP III. Past performance of investments described herein is provided for illustrative purposes only and is not necessarily indicative of future investment results.
xxxii “MOIC” means multiple on invested capital, a ratio intended to represent how much value an investment has returned, and is calculated as realized value plus unrealized value, divided by the total amount invested, gross of expenses and fees.
xxxiii “IRR” means the internal rate of return, which is a discount rate that makes the net present value of all cash flows equal to zero in a discounted cash flow analysis.
xxxiv Total commitments for VCP III include R$1.3 billion in co-investments.
xxxv US$ Distributable Earnings was calculated considering the exchange rate from USD to BRL of 5.0243 as of February 23, 2022, when dividends were approved by our Board of Directors.
xxxvi Per Share calculations are based on end of period Participating Common Shares.
xxxvii Actual dividends per common share are calculated considering the share count as of the applicable record date.
xxxviii The remaining capital committed in FIP Infra Transmissão co-investment will not be called by the fund, which is already in divestment period.
xxxix The remaining capital committed in FIP Infra Transmissão will not be called by the fund, which is already in divestment period.
xl Brazilian tax law establishes that companies that generate gross revenues of up to R$ 78,000 in the prior fiscal year may calculate income taxes as a percentage of gross revenue, using the presumed profit income tax regime. The Entity's subsidiaries adopted this tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries.
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Fourth Quarter and Full Year 2021 Earnings Release February 24th, 2022 |
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