Q2 2025 Vinci Compass Investments Ltd Earnings Call

Speaker #2: Good afternoon and welcome to Vinci Compass second quarter 2025, results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time.

Anna Castro: Good afternoon and welcome to Vinci Compass second quarter 2025 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. 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.

Speaker #2: 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.

Speaker #3: Thank you and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer, Bruno Zaremba, President of Finance and Operations, and Sergio Paz.

Anna Castro: Thank you and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, President of Finance and Operations; and Sergio Pastos, 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.vinchicompass.com. I'd like to remind you that today's call may include forward-looking statements, which are uncertain 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 sector section of our 20F. We will also refer to certain non-GAAP measures, and you'll find reconciliations in the release.

Speaker #3: Chief Financial Officer. Earlier today, we issued a press release sliding presentation our financial statements for the quarter, which are available on our website at ir.vincicompass.com.

Speaker #3: I'd like to remind you that today's call may include forward-looking statements, which are uncertain outside of the firm's control, and may differ from actual results materially.

Speaker #3: We do not undertake any duty to update these statements. For discussion of some of the risks that could affect results, please see the risk factors section of our 20F.

Speaker #3: We will also refer to certain long-gap 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.

Anna Castro: 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, Vinci Compass generated few related earnings of 65.2 million reais, or 1 real and 3 cents per share, and adjusted distributable earnings of 75.8 million reais, or 1 real and 20 cents per share for the second quarter of 2025. We declare a quarterly dividend of 15 cents on the dollar per common share, payable on September 9th to shareholders of record as of August 25th. With that, I'll turn the call over to Alessandro.

Speaker #3: On results, Vinci Compass generated a few related earnings of $65.2 million or $1 and 3 cents per share. An adjusted distributable earnings of $75.8 million or $1 and 20 cents per share for the second quarter 2025.

Speaker #3: We declare a quarterly dividend of $0.15 on the dollar per common share, payable on September 9th to shareholders of record as of August 25th.

Speaker #3: With that, I'll turn the call over to Alessandro.

Speaker #4: Thank you, Anna. Good evening and thank you all for joining our call. We appreciate you joining us. We are pleased to report another strong quarter for Vinci Compass, marketed by solid financial results, continued fundraising momentum, and acceleration of key strategic initiatives across our platform.

Alessandro Horta: Thank you, Anna. Good evening, and thank you all for joining our call. We appreciate you joining us. We are pleased to report another strong quarter for Vinci Compass, marketed by solid financial results, continued fundraising momentum, and the acceleration of key strategic initiatives across our platform. I'll let Bruno and Sergio dive into more details in our results for the quarter, but I wanted to take the time to summarize what I believe are the three key highlights for us and what they mean for our platform. When we take our distributable earnings, we can decompose it by looking into three different components of value: FRE, PRE, and investment income. The second quarter posted healthy numbers for our FRE as we continue to bring in additional AUM from a diverse set of different strategies: infrastructure, credit, and global IPNS being the highlights this time.

Speaker #4: I'll let Bruno and Sergio dive into more details in our results for the quarter. But I wanted to take the time to summarize what I believe are the three key highlights for us and what they mean for our platform.

Speaker #4: When we take our distributable earnings, we can compose it by looking into three different components of value. FRE, PRE, and investment income. The second quarter posted healthy numbers for our FRE, as we continue to bring in additional AUM from a diverse set of different strategies.

Speaker #4: Infrastructure, credit, and global IP&S being the highlights this time. Vinci Compass continues to grow by raising capital from an extremely diverse set of products geographies and investor channels.

Alessandro Horta: Vinci Compass continues to grow by raising capital from an extremely diverse set of products, geographies, and investor channels. Shifting to PRE and investment income of our results, I'm very pleased to give attention to this because this is paramount to the value of the investments on our balance sheet and the future earnings powers this brings to Vinci Compass. This quarter, in addition to the performance recognized across liquid funds in equities and credit, we had the realization of performance fees coming from one of our infra funds. FIP Infra Transmissão is a fund that was formed back in 2017 before our IPO, in which we made a small commitment from the company's balance sheet at the time and have been collecting its realized returns since 2022.

Speaker #4: Shifting to PRE and investment income of our results, I'm very pleased to give attention to this because this is paramount to the value of the investments on our balance sheet and the future earnings powers this brings to Vinci Compass.

Speaker #4: This quarter, in addition to the performance recognized across liquid funds in equities and credit, we had the realization of performance fees coming from one of our infra funds.

Speaker #4: FIP infra transmission is a fund that was formed back in 2017 before our IPO, in which we made a small commitment from the company's balance sheet at the time and has been collecting its realized returns since 2022.

Speaker #4: This is the same capital deployment that we have been conducting at a larger scale since our IPO through commitments to proprietary funds using our balance sheet capital.

Alessandro Horta: This is the same capital deployment that we have been conducting at a larger scale since our IPO through commitments to proprietary funds using our balance sheet capital. First, we commit this capital to one of our funds, let's say in private equity, infra, credit, real estate strategies. We have a short-term impact on our FRE numbers with the fundraising leveraged by this anchor commitment to the fund, which helps the product gain traction in the fundraising process and earn management fees for the company. Then, we have a medium-term negative impact on our cash earnings as this cash, which was deployed into the fund, is not earning short-term financial income anymore because it has been deployed into this private market fund. Initially, the appreciation of the closed-end fund commitment is only seen in our net income results, not our distributable earnings.

Speaker #4: First, we commit this capital to one of our funds, let's say in private equity infra credit real estate strategies. We have a short-term impact on our FRE numbers with the fundraising leverage by this anchor commitment to the fund, which helps the product gain traction in the fundraising process and earn management fees for the company.

Speaker #4: Then, we have a medium-term negative impact on our cash earnings as this cash, which was deployed into the fund, is not earning short-term financial income anymore because it has been deployed into this private market fund.

Speaker #4: Initially, the appreciation of the closed-end fund commitment is only seen in our net income results not our distributable earnings. Finally, after the fund matures and returns capital to its LPs, we reap these benefits with capital return and capital gains and obviously the performance fee recognized by the fund impacting our PRE.

Alessandro Horta: Finally, after the fund matures and returns capital to its LPs, we reap these benefits with capital return and capital gains, and obviously, the performance fee recognized by the fund impacting our PRE. The consolidated impact of such events in FIP Infra this quarter to our cash earnings was 50 million reais pre-tax. This quarter showed what this effect potentially means for our future as we realized gains from a small commitment made in the past that was not that significant when we compare it to our cash allocation after the IPO. We believe this is a crucial part of the value of the business, and we hope this quarter helps enlighten us on this aspect in potential future results.

Speaker #4: The consolidated impact of such events in FIP infra this quarter to our cash earnings was $15 million pre-tax. This quarter, showed what this effect potentially means for our future, as we realized gains from a small commitment made in the past that was not that significant when we compare it to our cash allocation after the IPO.

Speaker #4: We believe this is a crucial part of the value of the business, and we hope this quarter helps enlightening on this aspect in potential future results.

Speaker #4: This quarter brought significant accomplishments, and we are excited to share that we successfully executed a series of strategic exits across multiple verticals. Clear evidence of our ability to capture value and deliver results in diverse market conditions.

Alessandro Horta: This quarter brought significant accomplishments, and we are excited to share that we successfully executed a series of strategic exits across multiple verticals, clear evidence of our ability to capture value and deliver results in diverse market conditions. A key highlight was the aforementioned full divestment of the remaining asset in FIP Transmissão within our real asset segment, which was concluded in May. These milestones marked the end of a cycle that began in 2017 with the inception of this fund and set the stage for its liquidation, expected to occur 24 months after the closing date pending release of escrow reserves. In fewer real assets, we completed the full sale of another asset held by one of our infrastructure funds, the perpetual vehicle VIGT. The transaction was concluded at a value above the appraisal report and contributed directly to the deleveraging of the holding structure.

Speaker #4: A key highlight was the aforementioned full divestment of the remaining asset in FIP transmission, within our real asset segment, which was concluded in May.

Speaker #4: This milestone marked the end of a cycle that began in 2017 with the inception of this fund and sets the stage for its liquidation, expected to occur 24 months after the closing date, pending the release of escrow reserves.

Speaker #4: It's still in real assets, we completed the full sale of another asset held by one of our infrastructure funds, the Perpetual Vehicle VIGT, the transaction was concluded at a value above the appraisal report and contributed directly to the leveraging of the holding structure.

Speaker #4: In the private equity segment, we also announced the full exit of Camarada Camarão, a casual dining business held within our Nordeste 3 fund. This marks the fourth exit out of six investments in this vehicle further reinforcing our strong track record of realizations within our private equity franchise.

Alessandro Horta: In the private equity segment, we also announced the full exit of Camarada Camarão, a casual dining business held within our Nordeste III fund. This marks the fourth exit out of six investments in this vehicle, further reinforcing our strong track record of realizations within our private equity franchise. On the deployment front, we remained highly active. In July, we closed the third investment of VCP4 AGV, a company in the temperature control logistics segment, bringing the fund's capital deployment to approximately 40% of total commitments. The team continues to be highly active in origination, with numerous opportunities currently under evaluation. Our focus remains on sectors such as financial services, business services, technology, media, and communications, agribusiness, education, and healthcare. In parallel, we are closely monitoring opportunity in financially distressed companies, multinational carve-outs, and private equity portfolio businesses, areas where we see meaningful potential for attractive entry points and valuations.

Speaker #4: On the deployment front, we remain highly active. In July, we closed the third investment of VCP4, AGV, a company in the temperature control logistics segment.

Speaker #4: Bringing the fund's capital deployment to approximately 40% of total commitments. The team continues to be highly active in origination, with numerous opportunities currently under evaluation.

Speaker #4: Our focus remains on sectors such as financial services, business services, technology, media, and communications, agribusiness, education, and healthcare. In parallel, we are closely monitoring opportunity in financial distressed companies, multinational carve-outs, and private equity portfolio businesses.

Speaker #4: Areas where we see meaningful potential for attractive entry points and valuations. Valuations across public and private markets remain compelling and market multiples have remained suppressed, especially in Brazil.

Alessandro Horta: Valuations across public and private markets remain compelling, and market multiples have remained suppressive, especially in Brazil, with the Ibovespa currently trading at just eight times forward earnings, well below historical averages. This valuation backdrop becomes even more interesting when considered alongside recent macro developments, such as the improving outlook in Brazil. The country is currently at the peak of its real interest rate cycle with clear signs of an inflection. One year, real interest rates reached historically high levels of 11% but have already begun to decline, driven by easy inflation and gradual improvements in fiscal fundamentals. While cuts to the Selic rate are expected toward the end of 2025, the yield curve has already begun to price lower rates. For instance, 10-year rates have fallen from above 15% to the low 14% range.

Speaker #4: With the Ibovespa currently trading at just eight times forward earnings, well below historical averages. This valuation backdrop becomes even more interesting when considered alongside recent macro developments, such as the improving outlook in Brazil.

Speaker #4: The country is currently at the peak of its real interest rate cycle, with clear signs of an inflection. One year, real interest rates reached historically high levels of 11%, but they have already begun to decline.

Speaker #4: Driven by easy inflation and gradual improvements in fiscal fundamentals. While cuts to the SELIC rate are expected toward the end of 2025, the yield curve has already begun to price lower rates.

Speaker #4: For instance, 10-year rates have fallen from above 15% to the low 14% range. The local equity market remains underallocated, with equities representing just 8% of domestic portfolios, well below historical averages, suggesting ample room for reallocation as rate cuts take hold.

Alessandro Horta: The local equity market remains underallocated, with equities representing just 8% of domestic portfolios, well below historical averages, suggesting ample room for reallocation as rate cuts take hold. We are also seeing a similar setup play out more broadly across Latin America. The recent weakening of the US dollar has contributed to a more dovish tone from central banks in several countries in our region. In Chile and Colombia, policymakers are actively discussing or initiating interest rate cuts. In Mexico, the central bank has continued to lower rates with no indication of a pause at this point. The combination of improving inflation expectations and easing policy is helping to strengthen the macro landscape across Latin America, creating a favorable backdrop for alternative investments.

Speaker #4: We are also seeing a similar setup play out more broadly across Latin America. The recent weakening of the US dollar has contributed to a more dovish tone from central banks in several countries, in our region.

Speaker #4: In Chile and Colombia, policymakers are actively discussing or initiating interest rate cuts. In Mexico, the central bank has continued to lower rates with no indication of a pause at this point.

Speaker #4: The combination of improving inflation expectations and easing policy is helping to strengthen the macro landscape across Latin America, creating a favorable backdrop for alternative investments.

Speaker #4: I strong reflection of this environment is the performance of one of our LATAM equity funds, which delivered consistent results in the first half of the year, ranking in the top quartile.

Alessandro Horta: A strong reflection of this environment is the performance of one of our Latin equity funds, which delivered consistent results in the first half of the year, ranking in the top quartile. This is particularly meaningful as the fund represents a core fundraising priority for the equities team over the coming years, given both the size of the opportunity and our current market share, which remains below what we consider our fair share. This is especially true among Chilean pension funds, which have historically been key investors in this strategy. Adding to this momentum, there is growing optimism around pro-market candidates gaining traction ahead of upcoming elections across South America, further reinforcing the outlook for equity markets in the region. We believe our credit segment is also well-positioned to keep benefiting from this environment across both local and regional strategies.

Speaker #4: This is particularly meaningful as the fund represents the core fundraising priority for the equity scheme over the coming years, giving both the size of the opportunity and our current market share, which remains below what we consider our fair share.

Speaker #4: This is especially true among Chilean pension funds, which have historically been key investors in this strategy. Adding to this momentum, there is growing optimism around pro-market candidates gaining traction ahead of upcoming elections across South America.

Speaker #4: Further reinforcing the outlook for equity markets in the region, we believe our credit segment is also well positioned to continue benefiting from this environment across both local and regional strategies.

Speaker #4: This quarter alone, we posted over $2 billion in new capital formation and AUM appreciation within the segment. By capital formation, we are referring to a combination of net inflows and capital subscriptions, with contributions coming from a range of sub-strategies and geographies, reinforcing the strength and scalability of the platform we are building.

Alessandro Horta: This quarter alone, we posted over 2 billion reais in new capital formation and AUM appreciation within the segment. By capital formation, we are referring to a combination of net inflows and capital subscriptions, with contributions coming from a range of sub-strategies and geographies, reinforcing the strength and scalability of the platform we are building. Still on the fundraising front, we are delighted to announce the final closing of our Infrastructure Climate Change Fund, VICC, raising close to 2 billion reais. The fund was launched after winning a public call for proposals by the Brazilian Development Bank, BNDES, with the remaining capital being raised primarily from reputable international institutions such as development banks and sovereign wealth funds from both Europe and Asia. Our deployment plan is to expand investments in the segment to reach 100 megawatts of distributed solar generation.

Speaker #4: Still on the fundraising front, we are delighted to announce the final closing of our infrastructure climate change fund, VICC, raising close to $2 billion.

Speaker #4: The fund was launched after winning a public call for proposals by the Brazilian Development Bank, BNDES, with the remaining capital being raised primarily from reputable international institutions such as Development Banks and Sovereign Wealth Funds from both Europe and Asia.

Speaker #4: Our deployment plan is to expand investments in the segment to reach 100 megawatts of distributed solar generation. We also intend to invest in larger scale renewable energy products and are currently in discussion about a potential utility scale solar initiative.

Alessandro Horta: We also intend to invest in larger-scale renewable energy products and are currently in discussion about a potential utility-scale solar initiative. Other sectors currently on the fund's radar include energy storage, energy transmission, energy efficiency, 5G tower infrastructure, and data centers powered by renewable energy sources. On the corporate side, we recently inaugurated our new office in São Paulo, allowing Vinci Compass's 133 team members based in the city to effectively be part of a virtual second headquarters office for the firm. This move follows the acquisitions of SPS, MAV, Lacan, and the combination with Compass's Brazilian office, all based in São Paulo, over the past few years. By fully integrating our teams and aligning daily operations, we can maximize collaboration and deliver the value these combinations were designed to create for our clients and stakeholders. We invite our clients to visit the new space when convenient.

Speaker #4: Other sectors currently on the fund's radar include energy storage, energy transmission, energy efficiency, 5G tower infrastructure, and data centers powered by renewable energy sources.

Speaker #4: On the corporate side, we recently inaugurated our new office in São Paulo, allowing Vinci Compass 133 team members based in the city to effectively be part of a virtual second headquarters office for the firm.

Speaker #4: This move follows the acquisitions of SPS, MAV, LACAN, and the combination with Compass Brazilian Office, all based in São Paulo, over the past few years.

Speaker #4: By fully integrating our teams and aligning daily operations, we can maximize collaboration and deliver the value this combination was designed to create for our clients and stakeholders.

Speaker #4: We invite our clients to visit the new space when convenient. Before closing, I'd like to extend a warm invitation to our investor day which we will host on October 7th at the NASDAQ headquarters in New York.

Alessandro Horta: Before closing, I'd like to extend a warm invitation to our Investor Day, which we will host on October 7th at the Nasdaq headquarters in New York. This will be a great opportunity for us, including the heads of our strategies, to share a deeper look at our business units, long-term positioning, and key performance expectations for Vinci Compass going forward. We look forward to seeing you there. To wrap up, we believe we are exceptionally well-positioned to navigate today's dynamic environment on behalf of our investors. Our portfolios remain in excellent shape, and we continue to execute with discipline and focus across all fronts. Thank you again for joining our call. With that, I'll turn it over to Bruno. Thank you, Alessandro, and good evening, everyone.

Speaker #4: This will be a great opportunity for us, including the heads of our strategies, to share a deeper look at our business units, long-term positioning, and key performance expectations for Vinci Compass going forward.

Speaker #4: We look forward to seeing you there. To wrap up, we believe we are exceptionally well positioned to navigate today's dynamic environment on behalf of our investors.

Speaker #4: Our portfolios remain in excellent shape and we continue to execute with discipline and focus across all fronts. Thank you again for joining our call.

Speaker #4: With that, I'll turn it over to Bruno.

Speaker #5: Thank you, Alessandro, and good evening, everyone. We are proud to share that we had $12 billion in capital formation appreciation during this quarter across different strategies, underscoring the breadth of our multi-strategy approach and the scalability of our distribution capabilities.

Alessandro Horta: We are proud to share that we had 12 billion reais in capital formation appreciation during this quarter across different strategies, underscoring the breadth of our multi-strategy approach and the scalability of our distribution capabilities. Let's start with our global IPNS business. As we had predicted in our first quarter call, outflows seen in the previous quarter were a passing trend, and in the second quarter, they turned into positive and strong inflows, totaling 2.3 billion reais. The main drivers were TPD liquid and alternative strategies, with a notable contribution from Asian liquid managers' funds, which attracted significant inflows from investors in Chile, Peru, and Colombia. We are also seeing growing interest in semi-liquid TPD funds, particularly among retail investors through the intermediaries channel. These funds are increasingly viewed as transformative and as an excellent entry point into alternative investments.

Speaker #5: Let's start with our global IP&S business. As we had predicted in our first quarter call, outflows seen in the previous quarter were a passing trend, and in the second quarter turned into positive and strong inflows, totaling $2.3 billion.

Speaker #5: The main drivers were TPD liquid and alternative strategies, with a notable contribution from Asian liquid managers' funds, which attracted significant inflows from investors in Chile, Peru, and Colombia.

Speaker #5: We are also seeing growing interest in semi-liquid TPD funds, particularly among retail investors through the intermediaries channel. These funds are increasingly viewed as transformative, and as an excellent entry point into alternative investments.

Speaker #5: They offer lower entry barriers, operational simplicity by eliminating repeated capital calls, and a balanced liquidity profile, sitting between open-ended daily liquidity and long-term lockups.

Alessandro Horta: They offer lower entry barriers, operational simplicity by eliminating repeated capital calls, and a balanced liquidity profile, sitting between unpaid daily liquidity and long-term lockups. We expect this trend to continue gaining traction in the upcoming quarters in the region. In addition to semi-liquid, we believe private debt and middle market funds will remain highly attractive to more sophisticated investors. Within TPD alternatives, demand remains robust, and we believe this segment will deliver a strong year. Moving on to liquid credit, we saw continued strength in both our Latin and Brazilian strategies during the quarter. Our Latin strategies surpassed 7.2 billion reais in AUM, supported by strong inflows from institutional clients in Chile and Europe. We've been highlighting since our last call the growing client interest in geographically diversified credit portfolios.

Speaker #5: We expect this trend to continue gaining traction in the upcoming quarters in the region. In addition to semi-liquid, we believe private debt and middle market funds will remain highly attractive to more sophisticated investors, within TPD alternative demand remains robust, and we believe this segment will deliver a strong year.

Speaker #5: Moving on to liquid credit, we saw continued strength in both our LATAM and Brazilian strategies during the quarter. Our LATAM strategy surpassed $7.2 billion in AUM, supported by strong inflows from institutional clients in Chile and Europe.

Speaker #5: We've been highlighting since our last call the growing client interest in geographically diversified credit portfolios. This trend has accelerated as investors increasingly recognize the strategic appeal of Latin America, particularly given the region's insulation from the geopolitical conflicts unfolding in Europe, Asia, and the Middle East.

Alessandro Horta: This trend has accelerated as investors increasingly recognize the strategic appeal of Latin America, particularly given the region's insulation from the geopolitical conflicts unfolding in Europe, Asia, and the Middle East. In this global environment, marketed by elevated uncertainty and volatility, Latin America corporates stand out. We're seeing robust fundamentals across the region, with companies exhibiting low leverage, strong liquidity, and limited refinancing risk. These balance sheet dynamics, especially in strategically important sectors, are creating a compelling pipeline of investment opportunities for our team. In Brazil, our open-ended credit funds continue to gain traction with retail investors, particularly through intermediaries and private pension plans across both liquid public debt and private credit strategies. On the closed-end front, we receive new commitments across multiple strategies, including confirming and structured credit vehicles, PEPCO II within diversified private credit, MAV III in agribusiness, and Credit Infra in infrastructure credits.

Speaker #5: In this global environment, marked by elevated uncertainty and volatility, Latin American corporates stand out. We're seeing robust fundamentals across the region, with companies exhibiting low leverage, strong liquidity, and limited refinancing risk.

Speaker #5: This balance sheet dynamics, especially in strategically important sectors, are creating a compelling pipeline of investment opportunities for our team. In Brazil, our open-ended credit funds continue to gain traction with retail investors, particularly through intermediaries and private pension plans across both liquid public debt and private credit strategies.

Speaker #5: On the close-end front, we receive new commitments across multiple strategies, including confirming unstructured credit vehicles, Pepco II within diversified private credit, MAV III in agribusiness, and credit infra in infrastructure credits.

Speaker #5: As anticipated, SPS4 did not receive additional commitment this quarter due to the timing of the closings. However, we are already seeing very encouraging feedback from both global and Brazilian investors for the second half of 2025.

Alessandro Horta: As anticipated, SPS IV did not receive additional commitment this quarter due to the timing of the closings. However, we are already seeing very encouraging feedback from both global and Brazilian investors for the second half of 2025. This stronger engagement is underpinned by the growing appeal of alternative liquidity solutions, such as the monetization of contingent legal assets, which has been translated into increased deal flow in the pipeline. At the same time, the overall risk environment has intensified, leading us to further elevate our due diligence standards. We are prioritizing transactions with stronger collateral structures, lower loan-to-value ratios, and exposure to more resilient sectors and business models. For the second half of the year, we expect continued growth from our credit segments, as we witnessed in the first half.

Speaker #5: The stronger engagement is underpinned by the growing appeal of alternative liquidity solutions. Such as the monetization of contingent legal assets, which has been translated into increased deals flow in the pipeline.

Speaker #5: At the same time, the overall risk environment has intensified, leading us to further elevate our due diligence standards. We are prioritizing transactions with stronger collateral structures, lower loan-to-value ratios, and exposure to more resilient sectors and business models.

Speaker #5: For the second half of the year, we expect continual growth from our credit segments, as we witnessed in the first half. We plan to launch a LATAM fixed maturity corporate debt fund in Peru, the first of its kind, in partnership with a local multifamily office.

Alessandro Horta: We plan to launch a Latin fixed maturity corporate debt fund in Peru, the first of its kind, in partnership with a local multifamily office. In addition, we will introduce the Vinci Special Opportunities Fund, managed by our hedge fund team, with most of the capital coming from the recycling of Argentina funds, which delivered an impressive track record and generated significant value to clients. More than 70% of the AUM in this new vehicle is expected to come from re-ups by clients of the Argentina funds. We're also preparing to launch a global USD conservative fund in Chile, targeting high net worth clients. Shifting to private equity, as many of you know, our VIR team is preparing to launch the fifth vintage of our flagship strategy in the second half of 2025.

Speaker #5: In addition, we will introduce the Vinci Special Opportunities Fund, managed by our hedge fund team, with most of the capital coming from the recycling of the Argentina Fund, which delivered an impressive track record and generated significant value for clients.

Speaker #5: More than 70% of the AUM in this new vehicle is expected to come from re-ups by clients of the Argentina fund. We're also preparing to launch a global USD conservative fund in Chile, targeting high-net-worth clients.

Speaker #5: Shifting to private equity, as many of you know, our VIR team is preparing to launch the fifth vintage of our flagship strategy in the second half of 2025.

Speaker #5: We're encouraged by the early feedback from existing LPs, many of whom have already expressed interest in re-upping their commitments. In addition, as Alessandro mentioned earlier, Nordeste 3 of VR family fund announced the full exit of Camarada.

Alessandro Horta: We're encouraged by the early feedback from existing LPs, many of whom have already expressed interest in re-upping their commitments. In addition, as Alessandro mentioned earlier, Nordeste III of VIR Family Fund announced the full exit of Camarada. Maintaining an active pace of realizations, both for Nordeste III and VIR IV, remains a priority for 2025. In our VCP strategy, the aggregate performance of our portfolio companies delivered over 20% year-over-year revenue growth and over 30% year-over-year EBITDA growth in the first quarter of 2025. A standout highlight was Agibank from fund three, which achieved over 350 million reais in net income, representing over 60% year-on-year increase and setting a new quarterly record. These results underscore the strength of our disciplined investment process in generating sustainable and transformative growth at portfolio companies.

Speaker #5: Maintaining an active space of realizations, both for Nordeste 3 and VIR 4, remains a priority for 2025. In our VCP strategy, the aggregate performance of our portfolio companies delivered over 20% year-over-year revenue growth and over 30% year-over-year EBITDA growth in the first quarter of 2025.

Speaker #5: A standout highlight was AGI Bank from Fund 3, which achieved over $350 million in net income, representing over a 60% year-on-year increase and setting a new quarterly record.

Speaker #5: These results underscore the strength of our disciplined investment process in generating sustainable and transformative growth at portfolio companies. As expected and discussed in our prior earnings call, we're seeing a recovery of the gross accrued performance fees in our offshore vehicles, which had experienced a temporary negative impact from the depreciation of the Brazilian real.

Alessandro Horta: As expected and discussed in our prior earnings call, we're seeing recovery of the gross accrued performance fees in our offshore vehicles, which had experienced a temporary negative impact from the depreciation of the Brazilian real. In the real asset segment, on top of the final closing of VICC within infrastructure, we received capital subscriptions both in Lacan IV within forestry and in our opportunistic real estate funds. The primary focus for our forestry vintage remains in international markets, DFIs in particular, of which we expect most of the commitments to come in the second half of the year. We also established a new forestry sub-strategy in addition to Lacan IV, designed to capitalize on wood supply-demand imbalances. This vehicle targets Brazilian multi- and single-family offices and pension funds through a tax-exempt FIAGRO structure.

Speaker #5: In the real asset segment, in addition to the final closing of VICC within infrastructure, we received capital subscriptions both in LACAN 4 within Forestry and in our opportunistic real estate funds.

Speaker #5: The primary focus for our Forestry vintage remains in international markets, DFIs in particular, of which we expect most of the commitments to come in the second half of the year.

Speaker #5: We also established a new Forestry sub-strategy in addition to LACAN 4, designed to capitalize on wood supply demand imbalances. This vehicle targets Brazilian multi and single family offices and pension funds through a tap tax-exempt Fiagro structure.

Speaker #5: To support our extensive fundraising pipeline and in line with the DNA of Vinci Compass, we continue to strengthen relationships through our proprietary LP distribution channel.

Alessandro Horta: To support our extensive fundraising pipeline and in line with the DNA of Vinci Compass, we continue to strengthen relationships through our proprietary LP distribution channel. In June, we hosted the Vinci Compass Alternative Week, bringing a delegation of single-family offices from Brazil, Colombia, Mexico, Peru, and the Dominican Republic to New York for a curated agenda of meetings with leading alternative asset managers and technology firms. The program aimed to provide insights into global investment trends and explore opportunities across private equity, credit, real assets, infrastructure, and secondaries. The trip fostered meaningful dialogue between Latin American investors and sophisticated global asset managers, offering valuable perspectives on navigating global markets and effectively allocating capital across alternative strategies. Discussions focused on portfolio construction, diversification, and identifying long-term opportunities in an increasingly complex and dynamic environment. Finally, I would like to briefly update you on our recent operational advances.

Speaker #5: In June, we hosted the Vinci Compass Alternative Week, bringing a delegation of single family offices from Brazil, Colombia, Mexico, Peru, and the Dominican Republic to New York, for a curated agenda of meetings with leading alternative asset managers and technology firms.

Speaker #5: The program aimed to provide insights into global investment trends and explore opportunities across private equity, credit, real assets, infrastructure, and secondaries. The trip fostered meaningful dialogue between Latin American investors and sophisticated global asset managers, offering valuable perspectives on navigating global markets and effectively allocating capital across alternative strategies.

Speaker #5: Discussions focused on portfolio construction, diversification, and identifying long-term opportunities in an increasingly complex and dynamic environment. Finally, I would like to briefly update you on our recent operational advances.

Speaker #5: As Alessandro mentioned, we recently inaugurated our new office in São Paulo, now fully operational and providing enhanced technology to our teams. We also implemented cloud backup solutions for offices with local server infrastructure, such as Azure that were brought in through the Compass combination, improving security and reducing operational risk.

Alessandro Horta: As Alessandro mentioned, we recently inaugurated our new office in São Paulo, now fully operational and providing enhanced technology to our teams. We also implemented cloud backup solutions for offices with local server infrastructure, such as a few that were brought in through the Compass combination, improving security and reducing operational risk. In addition, we completed the unification of our combined company Bloomberg accounts under a single contract, enabling better management and cost efficiencies. These are just some small examples of what has been done across finance operations and IT, and initiatives like these are expected to generate positive margin impacts over the next 12 to 18 months. There are several of such initiatives ongoing, and we will continue to update you as they take shape. Our regional reach platform, committed to technological evolution, positions us to grow with discipline and lead in an increasingly dynamic and expansive market landscape.

Speaker #5: In addition, we completed the unification of our combined company Bloomberg accounts under a single contract, enabling better management and cost efficiencies. These are just some small examples of what has been done across finance, operations, and IT, and initiatives like these are expected to generate positive margin impact over the next 12 to 18 months.

Speaker #5: There are several such initiatives ongoing, and we will continue to update you as they take shape. Our original Reach platform, committed to technological evolution, positions us to grow with discipline and lead in an increasingly dynamic and expansive market landscape.

Speaker #5: As we look to the remainder of 2025, we remain focused on delivering high-quality investment outcomes for our clients, while reinforcing our role as a premier partner for alternative investments and global solutions in Latin America.

Alessandro Horta: As we look to the remainder of 2025, we remain focused on delivering high-quality investment outcomes for our clients while reinforcing our role as a premier partner for alternative investments and global solutions in Latin America. As discussed so far, the level of product and solutions diversification available to our clients is second to none, as we can provide capital allocation opportunities in Latin American countries, in regional mandates, and present curated global solutions, be it on a discretionary or a non-discretionary basis. With this breadth of solutions available to our clients, we believe Vinci Compass to be the partner of choice in the region. With that, I'll turn it over to Sergio to walk us through the financial results.

Speaker #5: As discussed so far, the level of product and solutions diversification available to our clients is second to none, as we can provide capital allocation opportunities in Latin American countries, in regional mandates, and present curated global solutions based on discretionary on and non-discretionary basis.

Speaker #5: With this breadth of solutions available to our clients, we believe Vinci Compass to be the partner of choice in the region. With that, I’ll turn it over to Sergio to walk us through the financial results.

Speaker #6: Thank you, Bruno. Let me start with AUM and the impact of FX variation. We ended the second quarter with $304 billion, as Bruno mentioned. We are very pleased with the $8 billion in portfolio appreciation delivered by our strategies.

Sergio Pastos: Thank you, Bruno. Let me start with AUM and the impact of FX variation. We ended the second quarter with 304 billion reais. As Bruno mentioned, we are very pleased with the 8 billion reais in portfolio appreciation delivered by our strategies, along with more than 3.5 billion reais in capital formation. However, because the global IPNS segment is almost entirely priced in US dollar, the 5% appreciation of the Brazilian real against the US dollar during the quarter created a currency headwind to our reais AUM figure. This impact was partially mitigated by the fact that our other strategies are denominated in Brazilian reais, helping to smooth the overall effect in our AUM, rolled forward to a 4% FX rate variation. Even so, it generated approximately 12 billion reais in negative variation, which offset the appreciation and capital formation achieved during the period.

Speaker #6: Along with more than $3.5 billion in capital formation, however, because the global IP&S segment is almost entirely priced in US dollar, the 5% appreciation of the Brazilian real against the US dollar during the quarter created a currency headwind to our AUM figure.

Speaker #6: This impact was partially mitigated by the fact that our other strategies are denominated in Brazilian reais, helping to smooth the overall effect in our AUM hopefully to a 4% FX rate variation.

Speaker #6: Even so, it generated approximately $12 billion in negative variation, which offset the appreciation and capital formation achieved during the period. When we look into our AUM in US dollar, we ended the first quarter with $53 billion expanding to $56 billion at the end of the first half of 2025.

Sergio Pastos: When we look into our AUM in US dollar, we ended the first quarter with $53 billion, expanding to $56 billion at the end of the first half of 2025. Turning now to fee-related revenues, which totaled 233 million reais in the quarter, up 85% year-over-year. This growth reflects our strong strategic inorganic growth and organic momentum, with the final closing of VICC and positive inflows in the quarter across credit and global IPNS. Advisory fees totaled 26 million reais, comprising upfront fees charged for third-party distribution alternative commitments in the global IPNS segment, as well as fees from our corporate advisory business. The corporate advisory segment delivered revenues in the line with our expectations, posting a more normalized quarter with over 80 million reais in advisory revenues, as we had anticipated in prior communications.

Speaker #6: Turning now to fee-related revenues, which totaled $233 million in the quarter up 85% year-over-year. This growth reflects our strong strategic inorganic growth and organic momentum, with the final closing of VICC and positive inflows in the quarter across credit and global IP&S.

Speaker #6: Advisory fees totaled $26 million comprising upfront fees, charged for third-party distribution alternative commitments in the global IP&S segment. As well as fees from our corporate advisory business.

Speaker #6: The corporate advisory segment delivered revenues in line with our expectations, posting a more normalized quarter with over $8 million in advisory revenues, as we had anticipated in prior communications.

Speaker #6: Moving from the top line to expense, our total fee-related expenses were broadly in line with the prior quarter, which already reflect a full period include compass.

Sergio Pastos: Moving from the top line to expense, our total fee-related expenses were broadly in line with the prior quarter, which already reflected a full period, including Compass. For a more meaningful comparison of our fee-related earnings, we excluded net catch-up fees. In the second quarter of 2024, these fees were more elevated due to the fundraising cycle of VCP4. Excluding them from both quarters, FRE grew 25% year-over-year on a nominal basis. For the second half of the year, while we expect catch-up fees from SPS IV as new commitments are signed, we do not anticipate them to be as significant as those in the second half of 2024, which reflects two years of charge since the inception of VCP4. Turning now to our performance-related earnings, our PRI recorded a 50% increase on a year-over-year basis, with net performance fees recognized across credit, equities, low IPNS, and real assets.

Speaker #6: For a more meaningful comparison of our fee-related earnings, we excluded net catch-up fees. In the second quarter of 2024, these fees were more elevated due to the fundraising cycle of VCP4. Excluding them from both quarters, our FRE grew 25% year-over-year on a nominal basis.

Speaker #6: For the second half of the year, while we expect catch-up fees from SPS4 as new commitments are signed, we do not anticipate them to be as significant as those in the second half of 2024, which reflects two years of charges since the inception of VCP4.

Speaker #6: Turning now to our performance-related earnings, our PRR record a 50% increase on a year-over-year basis with net performance fees recognized across credit, equities, low IP&S, and real assets.

Speaker #6: Within real assets, the exit of the FIP transmission asset generated realized performance fees in the quarter; however, there was no PRE impact, since those fees had already been booked as unrealized in prior periods in accordance with accounting standards.

Sergio Pastos: Within real assets, the exit of the FIP Transmissão asset generated realized performance fees in the quarter. However, there was no PRE impact since those fees had already been booked as unrealized in prior periods in accordance with accounting standards. On the other hand, our distributable earnings did benefit from the transactions. For context, as noted in the presentation, 1.7 million reais of FIP Infra unrealized performance fees remain on the balance sheet at quarter end, tied to the escrow release expected over the next 24 months. Below the line, realized VP investment and financial income totaled 35 million reais, a 49% increase year-over-year, driven by capital return from our proprietary commitments in FIP Transmissão and Nordeste III, and also solid results from our liquid portfolio.

Speaker #6: On the other hand, our distributable earnings did benefit from the transactions. For context, as noted in the presentation, $1.7 million of FIP infra on reais performance fees remain on the balance sheet at quarter-end, tied to the escrow release expected over the next 24 months.

Speaker #6: Below the line, realized EP investment and financial income totaled $35 million a 49% increase year-over-year driven by capital return from our proprietary commitments in FIP transmission and Nordeste 3 and also solid results from our liquid portfolio.

Speaker #6: Let me take a moment to remind you that due to our DP commitments and the nature of the business, the exceptional performance of our funds creates value in three ways.

Sergio Pastos: Let me take a moment to remind you that due to our GP commitments and the nature of the business, the exceptional performance of our funds creates value in three ways. First, fee-related earnings, driven by leveraging the capital raised. Second, through carry, recognized upon realization of performance fees. And finally, capital gains at the GP investment level, which flows through financial income. Finally, putting it all together, adjusted distributable earnings totaled 76 million reais, or 1 real and 20 cents per share, representing a 30% increase year-over-year on a nominal basis and 90% growth on a per-share basis. We are very pleased to be delivering what we believe reflects our true value proposition, ensuring that every marginal dollar of free cash flow generates the maximum possible long-term earnings per share. We remain focused on disciplined growth, margin expansion over time, and prudent capital allocation.

Speaker #6: First, fee-related earnings. Driven by leverage in the capital raised. Second, through carry recognized upon realization of performance fees. And finally, capital gains at the DP investment level which flows through financial income.

Speaker #6: Finally, putting it all together, adjusted distributable earnings totaled $76 million, or $1.20 per share, representing a 30% increase year-over-year on a nominal basis and 90% growth on a per-share basis.

Speaker #6: We are very pleased to be delivering what we believe reflects our true value proposition: ensuring that every marginal dollar of fee cash flow generates the maximum possible long-term earnings per share.

Speaker #6: We remain focused on disciplined growth, margin expansion over time, and prudent capital allocation. The first half of 2025 delivered a solid progress despite FX headwinds and with a strong fundraising visibility and execution across the strategies, we are well positioned for continued growth in the second half of the year.

Sergio Pastos: The first half of 2025 delivered a solid progress despite FX headwinds, and with a strong fundraising visibility and execution across strategies, we are well-positioned for continued growth in the second half of the year. With that, I would like to close our remarks and open the call for questions. Once again, I would like to thank you for joining our call. Please operate. You may proceed with the questions. Thank you.

Speaker #6: With that, I would like to close our remarks and open the call for questions. Once again, I would like to thank you for joining our call.

Speaker #6: You may proceed with the questions. Thank you.

Speaker #1: We are going to start the question and answer section for investors and analysts. If you wish to ask a question, please press the button raise hand.

Speaker 1: We are going to start the question and answer section for investors and analysts. If you wish to ask a question, please press the button Raise Hand. Our first question comes from Guilherme Graspão with JP Morgan.

Speaker #1: Our first question comes from Guilherme Grespão with JP Morgan.

Speaker #7: Hello, Alessandro, Bruno, and team. Thank you for the call. Congratulations on the results. Two questions on my side. The first one is related to fundraising.

Guilherme Graspão: Hello, Alessandro, Bruno, and team. Thank you for the call. Congratulations on the results. Two questions on my side. The first one is related to fundraising. Strong numbers this quarter. I tried to adjust here for the upfront TPD. In my math, it was even stronger, adjusting for that. But my question is more looking towards the second half. What level do you think it's reasonable to assume in terms of net inflow if we can continue to see those levels of net inflow into the second half? And if basically, if you can remind us, well, I think you have some money, relevant money to be deployed from VCP4, from VICC. If you have a rough number of how much AUM you still have to be deployed into fee and AUM. And then my second question is related to GP commitments and financial income.

Speaker #7: Strong numbers this quarter. I tried to adjust here for the upfront TPD in my math was even stronger. Adjusting for that. But my question is more looking toward second half.

Speaker #7: What level do you think it's reasonable to assume in terms of netting flow if we can continue to see those levels of netting flow into the second half?

Speaker #7: And if, basically, if you can remind us as well, I think you have some relevant money to be deployed from VCP4 and from VICC. If you have a rough number of how much AUM we still have to be deployed into fee-earning AUM.

Speaker #7: And then my second question is related to DP commitments and financial income. Can you shed some light on this discussion? When I do my math, you have a little bit more than $1 billion in gross cash.

Guilherme Graspão: You put some light on this discussion. When I do my math, you have a little bit more than 1 billion in gross cash. If you apply Selic, you were supposed to be generating, I think, even more than you printed this quarter, which was already strong. So my question is, how should we think about forecasting this line? Is there kind of a timeline or a trajectory you think we can forecast GP income and financial results? Because, as you said, there's a J-curve, but for us, it's hard to know when those investments are going to mature. So if you can help us just how to think about this line going forward.

Speaker #7: If you apply SELIC, you were supposed to be generating, I think, even more than you printed this quarter, which was already strong. So my question, how should we think about forecasting this line?

Speaker #7: Is there kind of a timeline or a trajectory you think we can forecast DP income and financial results? Because as you said, there's a J curve.

Speaker #7: But for us, it's hard to know when those investments are going to mature. So, if you can help us just think about this line going forward.

Speaker #5: Okay, Guilherme, this is Bruno. Thanks for the questions. I'm going to give a first shot here, and Alessandro and Sergio can complement me. So, the financial income, I think Sergio mentioned that in his remarks, we are going to see a gradual reduction of the financial income line over time.

Bruno Zaremba: Okay, Guilherme, this is Bruno. Thanks for the questions. I'm going to give a first shot here, and Alessandro and Sergio can complement me. So the financial income, I think Sergio mentioned that in his remarks. We are going to see a gradual reduction of the financial income line over time. There might be a handoff effect from the liquid funds to the closed-end funds, right? So as we invest the rest of the liquid portfolio in closed-end funds, there's likely going to be a transition, a temporary transition from financial income to the net income line of the income statement. So from D to the net income line. And once we start realizing or returning capital from the closed-end funds, this will come back to the distributable earnings number, like we did have the impact of CPM for this quarter.

Speaker #5: There might be a handoff effect from the liquid funds to the closed-end funds, right? So as we invest the rest of the liquid portfolio in closed-end funds, there's likely going to be a temporary transition from financial income to the net income line of the income statement.

Speaker #5: So from DE, to the net income line. And once we start realizing or returning capital from the closed-end funds, this will come back to distributable ble earnings number like we did have the impact of CPM for this quarter.

Speaker #5: So it is let's say it's not very easy dynamic. I understand because we're not in a steady rate yet because we're still deploying the capital from the balance sheets to the closed-end funds from the liquid funds to the closed-end funds.

Bruno Zaremba: So it is, let's say, it's not a very easy dynamic. I understand because we're not in a steady rate yet because we're still deploying the capital from the balance sheets to the closed-end funds, from the liquid funds to the closed-end funds. We are going to touch on this with a lot of detail in the Investor Day on October 7th that Alessandro invited everyone to participate. I would say, at least in the short term, until we get there and explain this in more detail, how you should think about this is the following. We expect over the next year to have, I think the number is around 200 to 300 million of additional commitments flowing from the liquid funds into the closed-end funds and going to the net income line, let's say.

Speaker #5: We are going to touch on this with a lot of detail in the Investor Day on October 7th that Alessandro invited everyone to participate.

Speaker #5: I would say at least in the short term, until we get there and explain this in more detail, how you should think about this is the following.

Speaker #5: We expect, over the next year, to have, I think, the numbers around $200 to $300 million of additional commitments flowing from the liquid funds into the closed-end funds and going to the net income line, let's say.

Speaker #5: Today, I think the liquid portfolio is about $600 million, or at least a bit less than that—$500 million, if I’m mistaken. So, this should drop as we continue to invest in the closed-end side.

Bruno Zaremba: Today, I think the liquid portfolio is about 600 million, or a little bit less than that, 550, if I'm not mistaken. So this should drop as we continue to invest in the closed-end side. And then once these funds start returning capital, which should start happening in a more significant way, probably starting 27, we should see the impact that we saw from CP Infra this quarter. So it's a flow-through from DE to income statements and then back to DE once the funds start realizing and returning capital to us. But as I said, we should go into more detail in this accounting during the Investor Day to give you more detail. In the second quarter specifically, the impacts that we had were that the liquid portfolio had a very strong result.

Speaker #5: And then, once these funds start returning capital, we should start seeing a more significant impact—probably beginning in 2027. We should see the impact that we observed from CPM this quarter.

Speaker #5: So it's a flow through from DE to income statements and then back to DE once the funds start realizing and returning capital to us.

Speaker #5: But as I said, we should go into more detail in this accounting during the Investor Day to give you more detail. In the second quarter specifically, the impacts that we had was that the liquid portfolio had a very strong result.

Speaker #5: So, we had significantly above CDI return in the second quarter in the liquid side of the portfolio. On top of that, we had strong closed-end performance not only from the REITs that continue to pay us dividends, but also from the realization of the CPM for funds.

Bruno Zaremba: So we had significantly above CDI return in the second quarter in the liquid side of the portfolio. And on top of that, we had strong closed-end performance, not only from the REITs that continue to pay us dividends, but also from the realization of the CP Infra fund. So that's the explanation of the second quarter specifically. Going back to the first question, starting the year, we had the view that we could grow AUM this year on an FX-adjusted basis by double digits. So that would mean a number, let's say, around 30 billion between inflows and appreciation. The first quarter was not as strong. We had a negative TPD liquid, so it put us a little bit behind on that goal. But the second quarter, as we had expected, was already better. And the third quarter started strong as well.

Speaker #5: So that's the explanation of the second quarter specifically. Going back to the first question, starting the year, we had the view that we could grow AUM this year on an FX-adjusted basis by double digits.

Speaker #5: So that would mean a number, let's say around $30 billion between inflows and appreciation. The first quarter was not as strong. We had negative TPD liquid, so it put us a little bit behind on that goal.

Speaker #5: But the second quarter, as we had expected, was already better. And the third quarter started strong as well. So looking at the numbers from July, we see that the flows continue to be good.

Bruno Zaremba: So looking at the numbers from July, we see that the flows continue to be good. So it's tough to say if we're going to be able to recover 100% of what we were expecting in the beginning of the year, given mainly the backstep that we had in the first quarter. But the second quarter and the start of the third quarter are looking very good. We still have several funds open. So we have a lot of strategies in credit in Brazil, SPS, other strategies. We have Lacan IV open. We have, obviously, all of our Comingo funds that are open, pension plans, the TPD products. We still continue to see a good flow and a calendar for TPD alternatives in the second half. So we should see good news coming from that side as well. So it continues to be constructive.

Speaker #5: So it's tough to say if we're going to be able to recover 100% of what we were expecting in the beginning of the year, given the mainly the back step that we had in the first quarter.

Speaker #5: But the second quarter and the start of the third quarter are looking very good. We still have several funds open, so we have a lot of strategies in credit in Brazil, SPS, and other strategies.

Speaker #5: We have LACAN 4 open. We have, obviously, all of our coming funds that are open, pension plans, and the TPD products. We still continue to see a good flow and a calendar for TPD alternatives in the second half.

Speaker #5: So we should see good news coming from that side as well. It continues to be constructive; hopefully, we can come back to that double-digit growth on an FX-adjusted basis.

Bruno Zaremba: Hopefully, we can come back to that double-digit growth on an FX-adjusted basis, but have in mind that the first quarter was a little bit slower than we were expecting initially.

Speaker #5: But have in mind that the first quarter was a little bit slower than we were expecting initially.

Speaker #6: And And Guilherme, here is Alessandro, just to compliment what Bruno said to your first question on fundraising. Basically, two verticals we are very constructive in terms of traction.

Alessandro Horta: And Guilherme, here is Alessandro, just to complement what Bruno said to your first question on fundraising. Basically, two verticals we are very constructive in terms of traction: credit, in general terms, both a more liquid credit up to SPS that's still in fundraising mode, and the TPD, of course, with the recovery of the overall sentiment of the international market and the S&P going up, and etc. We are seeing a more constructive fundraising second half for these two main strategies here at Vinci Compass.

Speaker #6: Credit, in general terms, both are more liquid credit to up to SPS that's still in fundraising mode. And the TPD, of course, with the recovery of the overall sentiment of the international market and the S&P going up, et cetera.

Speaker #6: We are seeing more constructive fundraising in the second half for these two main strategies here at Vinci Compass.

Speaker #7: That's clear. Thank you.

Guilherme Graspão: That's clear. Thank you.

Speaker #1: Our next question comes from Lindsay Shima with Goldman Sachs.

Speaker 1: Our next question comes from Lindsay Shima with Goldman Sachs.

Speaker #8: Hi, good evening, and thank you for taking my question. We saw the FRE margin fall in this quarter. So, my main question here is just, at what point should we start to see the FRE margin expand to that low 30% run rate that you had mentioned previously?

Lindsay Shima: Hi. Good evening, and thank you for taking my question. We saw the FRE margin fall in this quarter. So my main question here is just, at what point should we start to see the FRE margin expand to that low 30% run rate that you had mentioned previously? Do you expect that by the end of this year? And then what kind of levers do you expect to pull? Is it all going to be the cost control initiatives that you've recently enacted, and how much of an impact should we see from those? And then my second question is just a quick follow-up on Guilherme's question. I was wondering, when it comes to the PRE realizations that you were mentioning, I know it's kind of hard to have visibility into that, but how should we think about the path of those going into 2027?

Speaker #8: Do you expect that by the end of this year, and then what kind of levers do you expect to pull? Is it all going to be the cost control initiatives that you've recently enacted, and how much of an impact should we see from those?

Speaker #8: And then my second question is just a quick follow-up on Guilherme's question. I was wondering, when it comes to the PRE realizations that you were mentioning, I know it's kind of hard to have visibility into that, but how should we think about the path of those going into 2027?

Speaker #8: Is it not going to happen until 2027, or do you still expect some realizations up until then? Thank you.

Lindsay Shima: Is it not going to happen until 2027, or do you still expect some realizations up until then? Thank you.

Speaker #6: Okay, Lindsay, thank you. Thank you for the questions. This is Bruno again. I'm going to try to cover both of them. So, on the margin, the way that we are seeing this at this point is the following.

Bruno Zaremba: Okay, Lindsay. Thank you. Thank you for the questions. This is Bruno again. I'm going to try to cover both of them. So on the margin, the way that we are seeing this at this point is the following. We have, as I mentioned, we had a tougher first quarter from a flow standpoint than what we expected. I think second quarter, things got back on track. Clearly, obviously, revenue is something that helps us and is one of the drivers of the long-term margin expansion of the company. However, we are sitting at a place today that I feel that we have some sort of comfort level already that we should be able to migrate to that low 30s rate by, I would say, probably the second or third quarter of next year with the initiatives that we have that are ongoing from a bottom-up standpoint.

Speaker #6: We have as I mentioned, we had a tougher first quarter from a flow standpoint than what we expected. I think second quarter things got back in track.

Speaker #6: Clearly, obviously, revenue is something that helps us and is one of the drivers of the long-term margin expansion of the company. However, we are sitting at that place today that I feel we have some sort of comfort level already.

Speaker #6: That we should be able to migrate to that low 30s rate by, I would say, probably the second or third quarter of next year, with the initiatives that we have that are ongoing from a bottom-up standpoint.

Speaker #6: So without taking into account an acceleration or continued acceleration of the AUM growth, there are several drivers behind that. I think a lot of things on the IT side, a lot of things on corporate restructuring, and a lot of things regarding projects and programs that we are optimizing as a combined company.

Bruno Zaremba: So without taking into account an acceleration or continued acceleration of the AUM growth. There are several drivers behind that. I think a lot of things on the IT side, a lot of things on corporate restructuring, a lot of things regarding projects and programs that we are optimizing as a combined company, so mostly on the system side. There are certain expenses that are flowing through our FRE today that are not recurring in nature, but we chose to not adjust the FRE. So we are treating them as recurring, but part of that is not going to recur next year. I'll give you an example of that. For instance, there is a repension plan that was signed alongside with the Compass transaction, for which we are building provisions every month that ends in the fourth quarter of this year, right?

Speaker #6: So mostly on the system side, there are certain expenses that are flowing through our FRE today, that are not recurring in nature, but we chose to not adjust the FRE.

Speaker #6: So we are treating them as recurring, but part of that is not going to recur next year. I'll give you an example of that.

Speaker #6: For instance, there is a retention plan that was signed alongside the Compass transaction, for which we are building provisions every month. That ends in the fourth quarter of this year, right?

Speaker #6: And this is something that's flowing through our income statement, but it's not recurring because it has a definite time to end, right?

Bruno Zaremba: And this is something that's flowing through our income statement, but it's not recurring because it has a definite time to end, right? So these things are going to start cycling, not only these non-recurrents that we're having, but also the benefits of integrating the two companies. And the outlook that we have for this full benefit is something between two and three points of margin on an annualized basis, right, which we expect to be fully ongoing by the third quarter, at some point in the third quarter of 2026.

Speaker #6: So these things are going to start cycling. Not only these non-recurrings that we're having, but also the benefits of integrating the two companies. And the outlook that we have for this full benefit is something between two and three points of margin on an annualized basis, right?

Speaker #6: Which we expect to be fully ongoing by the third quarter, at some point in the third quarter of 2026. And obviously, on top of that, we are working hard to leverage the business and the verticals and the fundraising, because at the end of the day, fundraising is what's going to allow us to really drive this margin to much higher places than this initial benefit from the combination on the productivity side, on the cost side, and on the bottom-up standpoint.

Bruno Zaremba: And obviously, on top of that, we are working hard to leverage the business and the verticals and the fundraising because, at the end of the day, fundraising is what's going to allow us to really drive this margin to much higher places than this initial benefit from the combination on the productivity side, on the cost side, on a bottom-up standpoint. In regards to PRE, I think there are a couple of factors there. Just going back to Guilherme's question for a second. One thing is the PRE. So PRE in our business, it has two components, right? So we have a lot of our liquid funds that pay PRE. So we have credit funds, we have investment solution funds, we have equity funds that mean with market improvement, and we had some of that already in the second quarter.

Speaker #6: In regards to PRE, I think there are a couple of factors there. Just going back to Guilherme's question for a second. One thing is the PRE.

Speaker #6: So PRE in our business has two components, right? We have a lot of our liquid funds that pay PRE. We have credit funds, we have investment solution funds, and we have equity funds.

Speaker #6: That means, with market improvement—and we had some of that already in the second quarter—we should fully expect them to continue to generate PRE for us.

Bruno Zaremba: We should fully expect them to continue to generate PRE to us. So when we closed the second quarter numbers, just to give an example, our equity funds were very close or already around or above the high watermark. So it meant that we were in a position to generate more meaningful PRE. The market was at the highest level of the last several years. And now it's actually going back to that level, but at that time, it was at the highest level. So we are in a position to start generating more meaningful PRE in the equity side. And the credit side, with the growth of the credit business, continued growth, and as Alessandro mentioned, one of the areas that we expect to continue to grow, this is an area that generates more recurring PRE for us. It's more, let's say, visible, more recurring in nature.

Speaker #6: So, when we close the second quarter numbers, just to give an example, our equity funds were very close to or already around or above the high watermark.

Speaker #6: So it meant that we were in a position to generate more meaningful PRE. The market was at the highest level of the last several years.

Speaker #6: And now, it's actually going back to that level, but at that time it was at the highest level, so we are in a position to start generating more meaningful PRE in the equity side.

Speaker #6: And on the credit side, with the growth of the credit business continuing, as Alessandro mentioned, one of the areas that we expect to see continued growth is this area that generates more recurring PRE for us.

Speaker #6: It's more, let's say, visible. More recurring in nature is not. Volatile as the equities pre. So it's something that should also help in the short to medium term to continue to generate this liquid side and allocation side pre to us.

Bruno Zaremba: It's not as volatile as the equities PRE. So it's something that should also help in the short to medium term to continue to generate this liquid side and allocation side PRE to us. And then you have the PRE from the closed-end funds, right? So we like the one that we realized this quarter from CP Infra, right? So in this side, and it goes again to Guilherme's question, this is the investments that we are starting to fund from the balance sheet with the capital from the IPO. We have funded so far, I think the number is around 700 million at this point in time. There's still another 600 to 700 million to fund.

Speaker #6: And then you have the PRE from the closed-end funds, right? So like the one that we realized this quarter from CP Infra, right? So on this side, and it goes again to Guilherme's question, this is the investments that we are starting to fund from the balance sheet with the capital from the IPO.

Speaker #6: We have funded so far, I think the number is around $700 million. At this point in time, there's still another $6 to $700 million to fund.

Speaker #6: And these funds, they have a different characteristic because given that these are most of them closed-end funds, and we're talking about private equity funds, we're talking about infra funds, they have the typical J curve effect.

Bruno Zaremba: And these funds, they have a different characteristic because given that these are most of them closed-end funds, and we're talking about private equity funds, we're talking about infra funds, they have the typical J-curve effect. So in the first few years, we don't see a lot of contribution from the performance of these funds because they still don't have enough assets inside them to generate a return in excess of the costs. And we're now starting to get out of these J-curves. In the VCP4 fund, for instance, we expect that to happen in 2026. And also for VICC, SPS has a quicker J-curve, so that should also come out of the J-curve in 2026 as well. So in the first part of the investment cycle of these funds, what we are going to see, if everything goes right, is a bigger impact to our net income.

Speaker #6: So in the first few years, we don't see a lot of contribution from the performance of these funds because they still don't have enough assets inside them to generate return in excess of the costs.

Speaker #6: And we're now starting to get out of these J-curves in the VCP4 fund; for instance, we expect that to happen in 2026. Also, for VICC, SPS has a quicker J-curve, so that should also come out of the J-curve in 2026 as well.

Speaker #6: So, in the first part of the investment cycle of these funds, what we are going to see, if everything goes right, is a bigger impact to our net income.

Speaker #6: So as these funds start to appreciate, the shares that we own in these funds as an LP are going to start impacting our net income. We have one slide in the investor presentation where we show the accumulated or accrued gain that we have on these funds, right?

Bruno Zaremba: So as these funds start to appreciate, the shares that we own on these funds as an LP, they're going to start impacting our net income. And we have one slide in the investor presentation where we show the accumulated or the accrued gain that we have on these funds, right? So that's the first part, right, of the capital creation on these funds, right? We should start seeing that impact net income. The net income impact is going to start happening probably next year. We expect it to be more meaningful starting already in '26. For this net income to become distributable earnings, the funds need to start distributing capital to LPs. So this is the next step. Once we have VCP4, SPS4, VICC, and other commitments that we have made, these are probably at this point in time the biggest ones that we have.

Speaker #6: So that's the first part, right, of the capital creation on these funds, right? We should start seeing that impact on net income. The net income impact is going to start happening probably next year.

Speaker #6: We expect it to be more meaningful starting already in 2026. For this net income to become distributable earnings, the funds need to start distributing capital to LPs.

Speaker #6: So this is the next step. Once we have VCP4, SPS4, VICC, and other commitments that we have made, these are probably at this point in time the biggest ones that we have.

Speaker #6: When they start to realize and return capital, we're going to start recognizing that as distributable earnings as an LP, right? That fund is going to flow back into our liquid portfolio.

Bruno Zaremba: When they start to realize and return capital, we're going to start recognizing that as distributable earnings as an LP, right? That fund is going to flow back into our liquid portfolio. We're going to recognize the gain as a distributable earnings gain and recycle that money either short-term in a liquid fund and medium-long-term into another closed-end fund, right? And the third part of the equation is the PRE. The PRE should be the last part, right? So once the fund returns all the capital adjusted by the hurdle, because our funds, all of them are European waterfall funds. So we return the initial capital, we return the hurdle, and then at that point in time, we start charging PRE, right? So this is going to be the last part of the cycle.

Speaker #6: We're going to recognize the gain as a distributable earnings gain, and recycle that money either short-term in a liquid fund and medium-long term into another closed-end fund, right?

Speaker #6: And the third part of the equation is the PRE. The PRE should be the last part, right? So, once the fund returns all the capital, adjusted by the hurdle, because our funds are all European waterfall funds.

Speaker #6: So we return the initial capital, we return the hurdle, and then at that point in time, we start charging PRE, right? So this is going to be the last part of the cycle.

Speaker #6: So in that last part of the cycle, we will have the impact like we did with CP infra. We're going to charge PRE and have the impact from the GP commitment at the same time.

Bruno Zaremba: So in that last part of the cycle, we will have the impact like we did with CP Infra. We're going to charge PRE and have the impact from the GP commitment at the same time. So the full cycle, right? We're going to have initially a net income impact as these funds appreciate, but don't generate cash earnings for us. Then we have a distributable earnings impact when the fund starts realizing and returning capital to LPs, and we're going to start having the gain on this initial flow of capital return. And finally, the combined impact of PRE and the financial income when we get in carry mode in these funds, and those two things start happening at the same time. In terms of timing, for the third part of the equation to start happening, I would expect that to happen probably starting in '28.

Speaker #6: So, the full cycle, right? We're going to have, initially, a net income impact as these funds appreciate, but don't generate cash earnings for us.

Speaker #6: Then, we have a distributable earnings impact when the funds start realizing and returning capital to LPs. We're going to start having the gain on this initial flow of capital return.

Speaker #6: And finally, the combined impact of PRE and the financial income when we get in carry mode in these funds. And those two things start happening at the same time.

Speaker #6: In terms of timing, for the third part of the equation to start happening, I would expect that to begin probably starting in '28. So, we're going to start having PRE and financial income probably together in '28.

Bruno Zaremba: So we're going to start having PRE and financial income probably together in '28, and then probably around '27, we should start seeing some distributable earnings, I would guess. And then certainly, if everything goes right in '26, we should start seeing these funds impacting net income as they appreciate. And just to wrap up, to go back to a question that Graspão made that we did not answer, unactivated capital in our AUM. We don't have a lot of that in our AUM. So today, most of our funds, they charge management fees on a percentage of committed capital. There are some small exceptions. In the case of SPS, we charge in the commitments, but when we allocate the capital, there is a step up in rates.

Speaker #6: And then, probably around '27, we should start seeing some distributable earnings, I would guess. And then certainly, if everything goes right in '26, we should start seeing these funds impacting net income as they appreciate.

Speaker #6: And just to wrap up, to go back to a question that Grace Pan made that we did not answer: unactivated capital in our AUM, we don't have a lot of that in our AUM.

Speaker #6: So today, most of our funds charge management fees on a percentage of committed capital. There are some small exceptions in the case of SPS; we charge on the commitments, but when we allocate the capital, there is a step-up in rate.

Speaker #6: So in the case of SPS4, we're going to have an impact, but if you think about the overall size of the company, probably it's not going to be that material.

Bruno Zaremba: So in the case of SPS IV, we're going to have an impact, but if you think about the overall size of the company, probably it's not going to be that material. And then there are some credit funds on the closed-end sides where we have mainly high grades, where we have capital commitments that do not charge management fees, and once we allocate, they start charging. But again, if you think about the overall size of the company, it's not a relevant impact that would move the needle for us. So those are the points I would like to make.

Speaker #6: And then there are some credit funds on the closed-end side, where we have mainly high grades, where we have capital commitments that do not charge management fees.

Speaker #6: And once we allocate, they start charging. But again, if you think about the overall size of the company, it's not a relevant impact that would move the needle for us.

Speaker #6: So those are the points I would like to make.

Speaker #1: Our next question comes from Ricardo Buspigo with BTG.

Speaker 1: Our next question comes from Ricardo Buschpigel with BTG.

Speaker #9: Hi everyone. Only one question here. During the quarter, we saw that management fees stood flat quarter over quarter, pretty much in line with the AUM, which was also flat.

Bruno Zaremba: Hi, everyone. Only one question here. During the quarter, we saw that management fees stood flat quarter over quarter, pretty much in line with the AUM, which was also flat. And when we look at the bridge of the AUM expansion, the main drag was related to the FX variation. So my question is, is it fair to say that the flattish management fees are also related to this FX change? And if so, do you have an estimate of how much the FRE or management fee would have grown if it wasn't for this effect? Thank you. Okay, Ricardo. This is Bruno. Yes. When we look at the quarter over quarter revenue number, the main explanation is the effects, right? So we lost mainly on the revenue side, I would say, in the FP&S, right, where we have the impact from TPD.

Speaker #9: And when we look at the bridge of the AUM expansion, the main drag was related to the effect variation. So my question is, it's fair to say that the flattish management fees also related to these effects change?

Speaker #9: And if so, do you have an estimate of how much the FRE or management fee would have grown if it wasn't for this effect?

Speaker #9: Thank you.

Speaker #5: Okay, Ricardo, this is Bruno. Yes, when we look at the quarter-over-quarter revenue number, the main explanation is the effects, right? So we lost mainly on the revenue side, I would say, in the AP&S, right?

Speaker #5: Where we have the impact from TPD. So, in that vertical, we did suffer a drop in the effects, and it's a very big vertical, right?

Bruno Zaremba: So in that vertical, we did suffer a drop in the effects, and it's a very big vertical, right? So it's a vertical that does have a significant impact to us. I would say, I mean, if the effect stayed flat in the quarter, probably we would have grown revenues, I would say, in the probably close to like low to mid-single digit would be the growth. And FRE, we would be able to dilute some of the cost, a little bit of the cost. So probably we would have grown FRE a little bit more, I don't know, than we did. I would say probably about 5 to 6 percentage points more if we had a constant effect.

Speaker #5: So it's a vertical that does have a significant impact to us. I would say, I mean, if the effects stayed flat in the quarter, probably we would have grown revenues, I would say, in the probably close to like low to mid-single digit would be the growth.

Speaker #5: And the FRE, we would be able to dilute some of the costs a little bit, so probably we would have grown FRE a little bit more, I don't know, than we did. I would say probably about 5 to 6 percentage points more.

Speaker #5: If we had a constant effect. But at the end of the day, Ricardo, one thing that is important to mention is that although the impact on revenue was negative, right, from the effects, likely there was a small impact as well on the margin.

Bruno Zaremba: But at the end of the day, Ricardo, one thing that is important to mention is that although the impact on the revenue was negative, right, from the effects, and likely there was a small impact as well on the margin, we did generate more values to shareholders in dollars when you look at the DE, right? So there is an impact on our REIs, balance sheets, and income statements. But from a constant currency or dollar-based DE standpoint per share, the regional currencies being stronger, I would say mostly REIs, the REIs being stronger for the business as a whole, looking at the bottom line, is better, right? We have better dollar per share profitability. We have more potential of future carry realization because we have international LPs in the funds, and they have dollar-based carry hurdles.

Speaker #5: We did generate more value for shareholders in dollars when you look at the DE, right? So, there is an impact on our REIs balance sheet and income statements.

Speaker #5: But from a constant currency or dollar-based DE standpoint per share, the regional currencies being stronger— I would say mostly REIs— the REIs being stronger, for the business as a whole, looking at the bottom line, it's better, right?

Speaker #5: We have better dollar-per-share profitability. We have more potential for future carry realization because we have international LPs in the funds, and they have dollar-based carry hurdles.

Speaker #5: So if the REIs appreciate, that means more future carry for the business. The local currency appreciating for us overall is good, although it might have a top-line and an FRE impact.

Bruno Zaremba: So if the REIs appreciate, that means more future carry for the business. So the local currency appreciating for us overall is good. Although it might have a top line and an FRE impact, on a bottom line level, it's positive for us.

Speaker #5: On the bottom line level, it's positive for us.

Speaker #9: Very clear. Thank you.

Alessandro Horta: Very clear. Thank you.

Speaker #1: Our next question comes from Pedro Leduc with Itaú BBA.

Speaker 1: Our next question comes from Pedro Leduc with Itaú BBA.

Speaker #10: Hi, guys. Thank you so much. Two quick ones, please. On credit, again, you mentioned some optimism there. We saw some nice inflows; could you elaborate a little bit on how this portfolio that we're seeing today is spread out by regions? Is it new products or new geographies that you're getting new business in?

Guilherme Graspão: Hi, guys. Thank you so much. Two quick ones, please. On credit, again, you mentioned some optimism there. We saw some nice inflows. Could you elaborate a little bit how this portfolio that we're seeing today is spread out to regions, if it's new products or new geographies that you're getting new business in? And if that's a pace indeed that we should see accelerating, you still got a little market share in this big market. And then second question, you briefly mentioned Argentina. Just trying to get a little more detail on what opportunities you're seeing there and how you're seeing it out, playing out for the next few quarters. Thank you.

Speaker #10: And if that's a pace indeed that we should see accelerating, you still got little market share in this big market. And then, second question, you briefly mentioned Argentina.

Speaker #10: Just trying to get a little more detail on what opportunities you're seeing there and how you're seeing it play out for the next few quarters.

Speaker #10: Thank you.

Speaker #5: Okay, Pedro, that's Alessandro. Thank you for the question. Talking a little bit more in detail about credit, you can notice that we reached a little bit over 10% of our total AUM in credit.

Bruno Zaremba: Okay, Pedro, that's Alessandro. Thank you for the question. Talking a little bit of more detail about credit, you can notice that we reached a little bit over 10% of our total AUM in credit because this is one of the growth avenues that we are seeing. We have been able to spot this growth opportunity and execute it in several different fronts, okay, and in different geographies. We are growing our credit business in Latin as a whole since we have in this vertical products that cover the overall region, okay, with stable currency. So we have dollar-denominated funds in credit with Latin mandates. This is growing, and we are having very healthy inflows in this specific strategy inside credit. As you know, we have been able also to raise money in Brazil with SPS, with MASI, and with our more liquid credit funds.

Speaker #5: Because this is one of the growth avenues that we are seeing. We have been able to spot this growth opportunity and execute it on several different fronts, okay?

Speaker #5: And in different geographies, we are growing our credit business in LATAM as a whole since we have in this vertical products that cover the overall region, okay?

Speaker #5: With stable currency, we have dollar-denominated funds in credit with LATAM mandates. This is growing, and we are experiencing very healthy flows in this specific strategy within credit.

Speaker #5: As you know, we have also been able to raise money in Brazil with SPS, with MAVI, and with our more liquid credit funds. We have also seen interest in private credit in Colombia and Peru.

Bruno Zaremba: We also have been able to see interest in private credit in Colombia and Peru. We are seeing possibilities of fundraising moving forward in Mexico and also in Chile. Mexico, a little bit shorter horizon than Chile. And finally, for your question in Argentina, the majority of our asset management business in Argentina locally.Is

Speaker #5: We are seeing possibilities of fundraising moving forward in Mexico, and also in Chile. Mexico has a slightly shorter horizon than Chile. Finally, in response to your question about Argentina, the majority of our asset management business in Argentina locally is related to credit and fixed income.

Speaker 1: related to credit and fixed income. and of course, with the recovery of, the confidence and everything that we know, in the macroeconomic side, of course, we'll have, soon, legislative elections there. we are positive that we can see more inflows, within also, this geography. but, summarizing, to your question, credit is really very widespread in terms of geography. So almost all the countries that we are exposed, we are with some initiatives, are happening right now or with a very short-term horizon. And, also, as I said, we have a regional, strategy for credit that has been very successful in fundraising.

Speaker #5: And, of course, with the recovery of confidence and everything that we know in the macroeconomic side, we will have soon legislative elections there.

Speaker #5: We are positive that we can see more inflows; we're seeing this across various geographies. But summarizing to your question, credit is really very widespread in terms of geography.

Speaker #5: So, almost all the countries that we are exposed to, we are with some niches. These are happening right now or with a very short-term horizon.

Anna Castro: Thank you so much, Alessandro. Di successo.

Anna Castro: Please hold while we pull for questions. I would like to turn the floor back to Mr. Alessandro Horta for the closing remarks. Please, Mr. Horta, you can proceed.

Speaker 1: Thank you all again for your support and your interest in, our developments. as we said during this call, we are very, very, happy with what we have been seeing of the dynamics within the firm. We also have been very, happy with the fruitful integration, between, all of the the companies that we have been merging, within our combined Vinci Compass, partnership. And, we expect to very soon provide very even better news to you since we are seeing the, the strategy evolving, moving forward, and the market becoming a little bit more benign for our fundraising and investment activities. So thank you very, very much, and, have a good evening.

Anna Castro: This does conclude today's presentation. We thank you all for participation and wish you a very good evening.

Alessandro Horta: Goodbye.