Vinci Partners Investments Ltd - Ordinary Shares - Class A Aktie

Good afternoon, and welcome to Vinci Compass Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

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

Thank you, and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, President of Finance and Operations; and Sergio Passos, Chief Financial Officer.

Earlier today, we issued a press release, slide presentation, and our financial statements for the second quarter 2026, which are available on our website at ir.vincicompass.com.

I'd like to remind you that, today's call may include forward-looking statements which are uncertain and outside of the firm's control, and may differ from actual results materially. We do not undertake any duty to update these statements. For discussion of some of the risks that could affect results, please see the Risk Factors section of our 20-F.

We will also refer to certain non-GAAP measures and you'll find reconciliations in the release. Also note that, nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Compass' fund.

Our results for the second quarter of 2026, Vinci Compass generated fee-related earnings of BRL 88.7 million, or BRL 1.35 per share, with an FRE margin of 32.5%, and adjusted distributable earnings of BRL 63.3 million, or BRL 0.96 per share. We declared a quarterly dividend of $0.17 on the dollar per common share, payable on September 9 to shareholders of record as of August 25.

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

Thank you, Anna, and good evening, everyone. Thank you for joining us today.

The second quarter marked another important step in Vinci Compass' journey as the leading full-service alternative asset manager in Latin America.

Over the past few years, we have consistently executed on a strategy built around 3 pillars: expanding our investment capabilities, increasing the scale of our platform, and building a more diversified and resilient business. This quarter reflects tangible progress across each of these fronts, and I am particularly pleased to announce today the signing of an agreement to acquire Navi's Real Estate funds.

Navi's Real Estate platform spans 6 funds across multi-strategy and residential strategies, with 4 vehicles listed on the Brazilian stock exchange and/or the CETIP.

After closing, which we expect to happen during the fourth quarter, the transaction will add approximately BRL 800 million in assets under management, concentrated primarily in perpetual and long-term lock-up vehicles.

Strategically, the fit couldn't be better. The transaction deepens our presence in the Multi-strategy Real Estate segment, by adding scale to one of our smaller strategies across the REIT business spanning across Real Estate and Credit. This is significantly important in the REIT market, as larger funds tend to benefit when it comes to follow-on offerings once markets are supportive, when compared to smaller funds.

The transaction also broadens the range of solutions we can offer our clients and strengthens our ability to compete in a market where scale, distribution and specialized investment expertise carry increasing weight.

Together with our existing funds, this brings our pro forma Real Estate AUM for the second quarter of 2026 to approximately BRL 7 billion, of which BRL 750 million now within multi-strategy, giving us a stronger foundation from which to grow the business over time.

It also reinforces Vinci Compass' role as a consolidator of high-quality investment franchises across Latin America, and it reflects the discipline we bring to every opportunity we pursue, seeking those that are strategically compelling, financially attractive and highly complementary to what we already do.

Moreover, this transaction speaks to a defining characteristic of our model. Over the years, we have invested in building a scalable organization, underpinned by deep investment expertise and a robust corporate infrastructure. That foundation allows us to absorb a meaningful volume of additional assets, while leveraging the resources we already have in place.

Another important milestone was the successful closing of our combination with BACS asset management in early June, adding BRL 4 billion in AUM across Credit and Equities.

By combining our asset management capabilities with BACS' extensive corporate and retail distribution network, we took an important step towards building a scaled and increasingly relevant asset management platform in Argentina, one that's well positioned to benefit from the ongoing transformation of the country's financial system and the growing demand for more sophisticated investment solutions.

We remain constructive on the long-term outlook for Argentina, supported by the evolving savings' dynamics in the region, rising financial penetration and a growing need for scale and efficiency.

Against this backdrop, the combination enhances our ability to capture attractive growth opportunities across mutual funds, money market products, dollar-based strategies and alternative investments, while strengthening our position in a market that is still in the early stages of consolidation.

Since announcing the transaction, we have been very pleased with the reception from clients and partners, and we are already seeing early signs of that enthusiasm beginning to translate into inflows, which we expect to build over the second half of the year.

Taken together, BACS and Navi capture something we have consistently emphasized to investors. The strategic benefits of our platform compound as we grow, becoming more powerful with scale.

Alongside these developments, our existing businesses continued to perform well, reinforcing the strength of the platform we have built over many years. In the quarter, we had BRL 13 billion in capital formation and appreciation, with close to BRL 1 billion in new commitments across our newest vintages currently in the fundraising phase, SPS IV, MAV IV, Lacan IV, and VSP II.

Looking at the fundraising pipeline going forward, we are very excited about a strong and well-diversified set of flagship strategies in the market during the second half of 2026, such as COPCO, VIR V, Credit Infra and further commitments in VSP II, SPS IV and Lacan IV, spanning our Credit, Real Assets, Private Equity and Global IP&S segments.

The breadth and quality of this pipeline reinforce our confidence in the growth ahead, and Bruno will walk you through it in more detail shortly.

Supporting this extensive product suite, the macro environment across Latin America remains constructive in general, though still marked by volatility. Political uncertainty has started to ease in some markets, with recent market-friendly election outcomes in Peru and Colombia. Mexico, in particular, remains an important growth lever for Vinci Compass.

During the quarter, we saw strong momentum in our short-duration strategies, with over BRL 440 million in inflows into our Mexican Credit funds. It also remains one of the most compelling structural opportunities in the region.

Following the pension reform, mandatory contribution rates are set to rise toward 15% by 2030, and we expect the AFORE system to keep growing meaningfully over the coming years.

In addition, the structural nearshoring trend, reflected in recent record foreign direct investment, reinforces our long-term conviction in the market.

In Brazil, the current interest rate environment continues to create attractive conditions for disciplined capital deployment in private markets, as elevated rates support more compelling entry valuations and allow us to negotiate downside protection structures, including hybrid debt-and-equity solutions that enhance risk-adjusted return potential.

At the same time, still-elevated real interest rates, a more cautious monetary easing cycle and election-related fiscal uncertainty continue to impact risk appetite, broader M&A activity and liquidity events, which may affect the timing of certain realizations and deals.

In Private Equity, we had some important liquidity initiatives in early 2026 through the listing of Agi, a reverse IPO of CBO into OceanPact, and the sale of Mundo do Cabeleireiro. We continue to maintain a meaningful pipeline of potential divestment opportunities for the second half of the year.

In Corporate Advisory, a constructive environment could gradually translate into higher deal activity. Against this backdrop, the team is working on an extensive pipeline of opportunities for the second half of 2026, which we expect to materialize as market conditions improve. At this point, we expect that the second half of the year will be better than the first half revenue wise, with some mandates expected to close in the next 6 months.

Moreover, external fundamentals remain supportive, with strong trade flows, resilient commodity exports and a stable currency backdrop. With the Brazilian real and regional currencies continuing to benefit from these external fundamentals, we could reopen room for an improvement in domestic assets.

A relevant factor during the quarter was the strong supply of IPOs and follow-on offerings tied to artificial intelligence and the broader technology sector in the U.S. Enthusiasm around AI remains one of the main drivers of the U.S. market, but the sheer size of these transactions requires meaningful capital absorption.

As a result, some investors have reduced positions in other markets to participate in these deals, putting pressure on assets outside the technology sector. Encouragingly, this dynamic appears less intense going forward. The most recent AI and technology-related offerings do not seem to carry the same extraordinary volumes observed earlier, suggesting that the technical pressure from capital rotating out of other markets may begin to ease. In this context, our Equities segment could be a beneficiary of this rotation.

Turning to a brief snapshot of our financial performance, this quarter we posted higher management fees, with an initial 1 month contribution from BACS, as well as organic growth across Credit and Global IP&S.

Fee related earnings reached BRL 89 million in the second quarter '26, up 36% year-over-year, with an FRE margin of 33%, up 450 basis points year-over-year. In the second quarter '26 year-to-date, FRE margin reached 34%, up 580 basis points year-over-year. This profitability expansion reflects the operating leverage of our platform, as revenue growth from both recent acquisitions and organic fundraising continues to outpace the growth in our cost base. We remain firmly on track toward the 38% FRE margin target by 2028 that we laid out at our Investor Day.

As we have been highlighting over the past communications, distributable earnings naturally carries more volatility and this is particularly true at this stage of our cycle, as we accelerate capital calls into our proprietary funds, which will impact our short-term financial income.

During the quarter, we called approximately BRL 56 million, bringing total capital called from our IRE commitments to over BRL 960 million, or roughly 65% of our BRL 1.5 billion in total commitments. As this capital is deployed, it temporarily reduces the short-term financial income we earn on our cash, which weighs on distributable earnings in the near term.

This, however, is a natural and intended feature of our model. Capital invested today into our own funds is designed to generate management fees, carry and capital gains as these funds mature and begin returning capital.

In that sense, once again, I would like to highlight the long-term value embedded in our balance sheet. We currently hold approximately BRL 890 million in long-term proprietary funds on our balance sheet, which is not fully reflected in our distributable earnings, and by consequence, at this stage constitutes a hidden asset in our business. We expect this value to translate into meaningful distributable earnings in the coming years, as capital begins to flow back to us.

That same focus on building durable, long-term value is evident across our funds. In Infrastructure, VICC closed the acquisition of a stake in Faro Energy, one of Brazil's leading distributed generation solar platforms. The transaction gives the fund exposure to a scaled and highly contracted portfolio, with operations across multiple Brazilian states, while also providing a meaningful pipeline for future expansion.

Importantly, the investment aligns well with VICC's strategy of building exposure to essential infrastructure assets supported by long-term contracted cash flows and secular trends linked to the energy transition. We believe this deal further reinforces our team's ability to deploy capital in sectors where operational expertise and active asset management can create substantial long-term value.

Another important development within our Infrastructure platform relates to the international airport of Rio de Janeiro, Galeao. As previously disclosed, Vinci Compass expects to receive between BRL 90 million and BRL 100 million, net of taxes and associated expenses, from the indemnification associated with the airport's concession process.

This amount should be recognized during the second half of 2026 and will impact our distributable earnings. Beyond its financial contribution, this outcome reflects the value generated by our infrastructure team prior the auction, including involvement in the negotiation and structuring the new regulatory model.

To conclude, what we find most compelling is the alignment between where our platform is today and where the structural opportunity is heading. The demand for alternatives across Latin America is accelerating, the region stands out as a stable and diversifying destination for global capital, and we have spent years building the platform, the talent and the execution capabilities required to capture it.

Each transaction we complete adds scale, deepens our capabilities, broadens the solutions we can offer our clients, and reinforces our ability to compound value.

Vinci Compass enters the second half of 2026 from a clear position of strength. We are executing with discipline against the priorities we laid out on our Investor Day, strengthening our regional presence, scaling our highest-growth strategies, and allocating capital with rigor.

Above all, our focus remains on creating long-term value for our clients, shareholders and partners. I have never been more confident in our ability to deliver it.

Thank you all for joining us today. I'll turn the call over to Bruno.

Thank you, Alessandro, and good evening, everyone. We are very encouraged by the extensive fundraising pipeline we have in place for the second half of the year, supported by the combination of an expanded distribution footprint and a more comprehensive product suite following our recent acquisitions and fund launches.

Starting with Credit, the strategic combination with BACS is a great example of this. What excites me most is the highly complementary nature of the 2 platforms. Together, we now manage over BRL 8 billion in Argentine funds, mostly across Credit, with a smaller portion in Equities.

Through this transaction, Vinci Compass gained access to the extensive corporate and retail distribution networks of BACS and Banco Hipotecario, meaningfully strengthening our local capabilities in Argentina. We expect this to translate into inflows over the coming quarters, supported by the positive feedback and momentum we are seeing from local investors, whose profiles are gradually shifting from defensive, wealth-preservation strategies toward more active investment positioning.

The Navi Real Estate funds acquisition reinforces our full-service platform from a different angle. By expanding our footprint in the Multi-strategy Real Estate segment, we unlock a new fundraising channel for Vinci Compass through an already sizeable vehicle that gains immediate relevance in the market.

Following closing, expected in the fourth quarter 2026, our Multi-strategy Real Estate vertical will hold approximately BRL 750 million in AUM. As we often say, smaller funds without scale struggle to grow and lose relevance with distribution platforms.

By building vehicles with sufficient critical mass for organic growth, we gain relevance in the short term, access new pockets of capital, and position ourselves to scale further as market conditions for REITs become more favorable.

On that note, we remain attentive to the potential reopening of market windows as the Brazilian easing cycle advances, which could create a more favorable environment to raise capital for REITs.

As a reference, during the last easing cycle we successfully raised BRL 1.2 billion in a single quarter, and, as you know, REITs remain one of the most attractive investment vehicles for individual investors in the Brazilian capital markets.

Turning now to AUM and our fundraising efforts during the quarter. We reached the milestone of $70 billion in AUM, an increase of 5% quarter-over-quarter on a dollar basis.

In Brazilian reais, it represented BRL 361 billion of AUM with BRL 13 billion of capital formation and appreciation, including close to BRL 1 billion in capital subscriptions across closed-end funds.

The second quarter reinforced the strength and resilience of our diversified platform, with BRL 17 billion in appreciation. This is a clear demonstration that we have reached a scale and product quality that allows the platform to compound and perform consistently on its own.

In Real Assets, we continue to see capital subscriptions during the quarter, across Lacan IV and our opportunistic fund targeting the warehouse sector in Brazil. In Lacan IV, we continue to see strong engagement ahead of the fund's final closing by the end of the year.

Commitments in this type of strategy tend to build at a more measured pace, reflecting the nature of institutional investor profile, the recent European summer period and the time required to finalize legal documentation. Encouragingly, the fund has already attracted strong interest from new investors, many of which have advanced in their internal processes and are now moving toward signing.

This is exactly the kind of momentum we have been signaling over the past quarters. European institutional demand, in particular, has stood out. Interest has been strong enough that a group of European development finance institutions named themselves a DFI consortium and chose to advance in a coordinated manner, sharing due-diligence efforts as they progress through their approvals, which we see as a clear evidence of their conviction in the strategy.

At this point, and with this overwhelming international support, there is high probability that Lacan IV will hit its hard cap.

Moving on, let's turn to our Global IP&S segment. It is worth taking a step back to recall that the largest portion of our AUM comes from our Third-Party Distribution business, which is comprised of the TPD Liquid and TPD Alternative sub-strategies. While funds in TPD Alternative are structured as long-term, closed-end vehicles under a capital-subscription model, we classify them as inflows in our AUM Rollforward, rather than under capital subscriptions.

As a result, the net inflow line reflects a combination of capital subscriptions and capital returns from TPD Alternative funds, together with inflows and outflows from other sub-segments, such as TPD Liquid, Global Solutions and Multi-strategy.

During the quarter, we saw continued inflows into TPD Alternative, with approximately 70% coming from Chilean institutional and high-net-worth investors, and the remainder distributed across other geographies, including Brazil and Mexico.

These flows reflect our ongoing efforts to provide local investors with access to top-tier global GPs in the alternatives space, with most of the capital allocated into global private equity secondaries and technology-focused growth equity strategies.

These inflows were offset by capital returned from TPD Alternative funds and by some rebalancing within TPD Liquid. The capital returned was meaningful and represents a positive outcome for our clients, which we would expect to be reinvested and recycled into other products over time.

On the liquid side, the movements this quarter reflected 2 main drivers: part came from our Chilean pension fund clients and relates to local regulatory limits on offshore exposure, which require them to rebalance when strong appreciation pushes their holdings above permitted thresholds; and part was related to a specific external asset manager that underperformed during the quarter.

We therefore see these flows as a natural part of the business rather than a cause for concern, and we would expect this dynamic to be increasingly mitigated over time as we continue to broaden our client base and diversify our funding geographies within TPD business.

Looking at TPD Alternative going forward, the fundraising environment remains quieter, with capital-raising periods for global funds extending beyond historical patterns, which naturally leads investors to defer commitments toward later closings. As a result, we would not expect meaningful alternatives flows in the third quarter.

Within Multi-strategy, our Verde flagship fund is seeing meaningful engagement from a broad base of clients, including pension funds and multi-family offices, which could translate into positive inflows in the second half of the year. In fact, in July, the strategy already received an inflow from a multi-family office we had been engaging with since the beginning of the year, and we are in final discussions on the first commitments from pension funds into the flagship. This remains a key priority for the third and fourth quarters.

Shifting to Equities, we saw inflows into our LatAm UCITS vehicle from clients across the region, reflecting the impact of our sustained efforts and improving performance being recognized by the market. These were offset by outflows in our Brazilian products, primarily reflecting the more cautious domestic backdrop of still-elevated real interest rates and election-related uncertainty.

In addition, this was compounded by strong global demand for AI- and technology-related offerings, as Alessandro detailed, which temporarily drew capital toward that sector. We believe our Brazilian Equities funds stand to benefit as local flows return. Specifically, one of our current fundraising efforts is directed toward local pension funds, the RPPS, to raise capital for our Verde equities strategy, where we expect inflows to begin materializing by the fourth quarter.

Switching gears to Credit, which continues to be one of our fastest-growing franchises, AUM surpassed BRL 42 billion, up 15% quarter-over-quarter and 40% year-over-year, supported by BRL 4 billion from the BACS acquisition and BRL 2 billion from capital formation and appreciation. This performance reflects the continued diversification of our platform across local-to-local and cross-border strategies, reinforcing our position as a one-stop-shop across Latin America.

Since closing in June, we have been consolidating BACS results into our FRE, and we expect a tailwind on margins in the second half, as our Argentina operation carries a higher margin than that of the entire company, which translates into a positive mix impact to consolidated numbers. We continue to see full year FRE margins in the mid 30s range.

Within our closed-end funds, we raised close to BRL 550 million across SPS IV in opportunistic capital solutions, MAV IV in agribusiness, and FAE Peru, our private credit strategy focused on confirming, factoring and trade receivables financing.

SPS IV secured commitments from investors in the U.S. and Uruguay, further validating the strategy's differentiated proposition and capitalizing on its strong track record. We continue to see encouraging fundraising momentum and expect additional commitments ahead of the fund's final closing later this year.

In agribusiness, we successfully launched MAV IV, and achieved the fund's fundraising target through local Brazilian intermediaries, highlighting the strength of our distribution capabilities and the continued investor demand for agribusiness products.

In Peru, fundraising activity also remained solid. During the quarter, FAE Peru secured additional commitments, reflecting the continued demand for private credit solutions and further reinforcing our position in the market.

Building on this momentum, we expect to launch FAE II by year-end while continuing to advance fundraising efforts for PEPCO II, our flagship senior secured lending strategy, which has been generating strong interest among institutional investors.

In parallel, we are broadening access to our credit platform through new fund formats. In Chile, we have just launched VCCL, our first proprietary semi-liquid credit fund, an important milestone that brings our institutional credit capabilities to a wider client base in a very accessible format with higher liquidity.

Consistent with what we have discussed in previous quarters, this launch is aligned with our strategy of expanding into semi-liquid structures, a segment that has seen growing demand globally and that we believe represents an attractive long-term opportunity across the region.

We were pleased to see this thesis validated almost immediately, with the fund securing its first commitment in July, a strong early signal of the appetite we expect this format to unlock across the region.

In Brazil, our co-managed credit fund with Verde continued to attract growing interest from a diversified investor base, and we expect fundraising activity to accelerate in the third quarter.

More broadly, infrastructure credit remains one of the most compelling opportunities in the market, supported by resilient fundamentals, sustained demand for incentivized debentures and increasing investor interest in long-duration real asset strategies.

In this context, Credit Infra, our flagship infrastructure credit strategy, remains well positioned, with a portfolio focused on high-quality infrastructure assets across sectors such as renewable energy, transmission and sanitation, supported by an ESG framework. We continue to see positive investor engagement and expect additional commitments over the coming quarters.

Turning to Colombia, COPCO, our first private credit strategy in the country, focused on senior secured lending, is also advancing very well. At this point, we expect a closing to happen in the second half, with a few hundred million dollars in commitment, a sound fundraising performance given its first time fund nature.

Our next generation of private credit strategies in Peru also has been generating constructive discussions with local investors. We believe this momentum reflects the strength of our regional franchise, built over many years of local presence and relationships, and it is further evidenced by our ongoing engagement with development finance institutions.

Going back to COPCO, this product underlines exactly the rationale behind the Compass combination. The combination of leading commercial penetration across Latin America with Vinci's know-how and track record of structuring alternative products led to the development of a strategy that should be a meaningful contributor to the economics of our Colombian office. We expect to lean on this experience to develop additional Vinci Compass' alternative offerings across the region.

Taken together, these efforts highlight the breadth and increasing relevance of our credit platform across Latin America. With fundraising progressing across liquid, semi-liquid and closed-end strategies, a growing regional footprint and multiple products gaining traction simultaneously, we believe Credit continues to stand out as one of the most attractive and scalable growth drivers within Vinci Compass.

Stepping back, what this extensive pipeline truly reflects is the strength and ambition of the franchise we have built over the years. Across Private Equity, Real Assets, Equities, Credit and Global Solutions, we have created a uniquely diversified, integrated and connected platform, one that allows us to seize differentiated opportunities and to be a true partner to our clients across the full investment cycle.

We therefore enter the second half of the year with a remarkable pipeline and multiple initiatives already translating into results. And what excites us most is that this is just the start. The opportunities ahead of us are the direct result of years of investment in our people, capabilities, products and distribution, and as they continue to mature, we see an exceptionally attractive runway for growth.

The last point I would like to touch on is our GP commitments. At this point, we are starting to have visibility on initial capital returns from this first cycle of investments. We expect some of our closed end funds to start returning capital this year. This will not only allow the balance sheet to receive this capital back, restart earning short term returns and recycle it into new GP commitments, but also has the potential to impact favorably our realized IRE line.

We are very bullish on our prospects for the second half. With a strong product lineup, tailwinds from recent acquisitions, strong distributable earnings contribution from the Galeao transaction, and the beginning of more meaningful GP commitments capital returns cycle, we have a strong outlook for the remainder of the year.

With that, I will hand it over to Sergio to discuss the financial results.

Thank you, Bruno, and good evening to everyone. The second quarter of 2026 reflected continued progress in our business, with management fees growing and our FRE margin expanding year-over-year.

Let me start with our AUM. We ended June with BRL 361 billion in AUM, up 19% year-over-year and 4% quarter-over-quarter. The quarterly growth was driven by portfolio appreciation across Global IP&S and Credit and by the combination with BACS, partially offset by negative FX variation and by net outflows in our Third-Party Distribution business.

On this point, it is worth highlighting that, as Bruno detailed, a significant portion of the net outflows in Global IP&S corresponds to returned capital within our Third-Party Distribution Alternatives strategy, where fees had been charged upfront. As a result, this AUM no longer carries recurring fees, and the segment's management fee revenues should not be affected by these movements.

In the second quarter, management fees totaled BRL 252 million, up 29% year-over-year. The increase was driven by inorganic growth from the Verde and BACS acquisitions, contributing a full quarter and 1 month, respectively, as well as by continued organic growth, reflecting our successful fundraising efforts over the last 12 months.

Advisory fees totaled BRL 9 million in the quarter, a decrease of 65% year-over-year. As we have highlighted in prior calls, upfront fees in our Third-Party Distribution Alternatives business can vary significantly depending on the timing of commitments.

As Bruno mentioned, the current environment for global alternatives is characterized by longer capital-raising periods, which naturally lead investors to defer commitments toward later closings. As a result, we do not expect meaningful alternatives flows in the third quarter.

Our Corporate Advisory segment are also continued to reflect a slower environment for deal activity in the second quarter, amid still-elevated interest rates and election-related uncertainty in Brazil.

Looking ahead, we have a meaningful pipeline of opportunities for the second half of the year and we expect a gradual pickup in deal activity by year-end. At this point, we expect a stronger second half of the year than first half for the Corporate Advisory business. Altogether, fee-related revenues reached BRL 272 million in the quarter, up 17% year-over-year, and BRL 544 million in the first half of 2026, also up 17% year-over-year.

Turning to fee-related earnings, reaching BRL 89 million in the quarter, or BRL 1.35 per share, up 36% year-over-year on a nominal basis and 31% per share.

Our FRE margin expanded to 33%, an improvement of approximately 450 basis points compared to the second quarter of 2025. This progression was driven by the acquisition of Verde, 1 month of BACS and the operating leverage embedded in our platform as revenues grow faster than costs, as well as the cost-efficiency initiatives we implemented over the past year.

As we mentioned last quarter, the second quarter tends to carry higher seasonal costs, particularly related to third-party services, such as legal and consulting fees. As a result, the fluctuation in our FRE margin compared to the first quarter of 2026 was expected, as these seasonal costs materialized.

It's also worth noting that BACS contributed only 1 month of results this quarter. Beginning in the third quarter, we will benefit from its full-period contribution, which should further support management fee growth and reinforce the operating leverage of the business going forward.

Moving to performance-related earnings, or PRE, we recognized BRL 4 million in the second quarter, primarily across Credit, Equities and Global IP&S. In line with seasonality, both the second quarters of 2026 and 2025 benefited from performance fees generated by liquid funds across these strategies, though performance fees in Equities were slightly higher in the second quarter of 2025, reflecting stronger local stock market performance.

Realized GP investment income totaled BRL 9 million in the quarter, supported by REIT dividends and a Real Estate closed-end fund realization. This was partially offset by mark-to-market adjustments in Real Estate funds, which weighed on unrealized GP investment income and brought IRE to BRL 1 million in the period.

While IRE can fluctuate from quarter to quarter, we continue to view our proprietary commitments as an important long-term driver of value creation for Vinci Compass.

Turning to realized financial income, and consistent with the capital call dynamic we have been emphasizing around our IRE commitments, this line declined 63% year-over-year in the quarter, as capital calls reduced our cash position. We expect it to keep trending lower as our proprietary funds mature toward their realization cycle.

The minority interest line, introduced following the Verde transaction to reflect the portion of Verde's earnings attributable to the remaining 49.9% non-controlling interest, now also comprises the minority interest related to BACS.

Before turning to adjusted distributable earnings, a quick word on non-operational expenses. This quarter included some costs related to our M&A activities, mainly attributable to BACS.

As a reminder, these are added back in our adjusted distributable earnings, which provide a cleaner view of the recurring earnings power of the business. On that basis, Vinci Compass generated BRL 63 million in adjusted distributable earnings for the quarter, or BRL 0.96 per share, bringing our first half total to BRL 126 million, or BRL 1.92 per share.

As anticipated, the year-over-year comparison was primarily impacted by lower realized financial income and softer advisory and PRE contributions, even as FRE continued to grow meaningfully. The growth seen in our FRE reinforces the scalability of our platform, while the successful closing of the BACS combination and the recently announced Navi acquisition underscore the selective inorganic expansion that, together with organic growth and operating leverage, remains central to how we compound earnings over time.

As we look ahead to the second half of the year, we do so with fundraising visibility and additional earnings contribution expected from the acquisitions and initiatives already underway, leaving us well positioned to continue creating value for our shareholders.

With that, I would like to open the call for questions. Once again, thank you for joining us this evening. Operator, please proceed.

[Operator Instructions] The first question comes from Ricardo Buchpiguel with BTG Pactual.

I have 2 here on my side. So first, could you comment on what drove the acceleration on fee-related expenses this quarter, which grew around 5%? And could you help us understand how much of this is related to one-off investment specifically this quarter? And what should drive the recovery in FRE margins to get to the mid-30s that you guys reiterated?

And for my second question, how much of the BRL 5.7 billion in net outflow from IP&S was related to the capital returns you mentioned? And do you have a sense of how much of the capital returns are usually recirculated and should translate into future inflows in situations like this? Just wanting to understand, if this should be a pickup in fundraising already for the next quarter or the second half of the year or should be a longer cycle?

Okay. Ricardo, thank you for the question. This is Bruno. So in your first question, the second quarter tends to be seasonally stronger for us in terms of expenses. We have some of the payments that fall into the second quarter, some of the service payments mainly so service providers.

And in the second quarter, this time, as we continue to improve the productivity of the platform and try to see whether there is opportunity for us to improve the productivity, we had some cost reduction regarding to people as well this quarter, which we do not adjust as we had not adjusted in '25.

So in the second quarter, I would say probably those were the two most significant impacts, this severance costs that we had in the second quarter related to some cost reductions that we did in people and also the seasonality nature of expenses.

When we look at the forecast for the second half, as we said in the prepared remarks, we continue to see FRE margins in the mid-30s range. I think now as we also made a comment, there is also this tailwind from BACS consolidation, which will add to FRE margins as well. So at this point, we see the number solidly in the mid-30s, right? It could be actually a little bit better. But that's the number that we're sticking to at this time.

Regarding your second question, on the outflows, I would say approximately 1/3 of the outflows were due to capital returns from the alternative TPD funds. What we see in the industry in this case, our main clients for the line of products are in Chile and Mexico, right? Although, we also do have some exposure in Colombia, but the TPD markets, mainly the institutional investors in Chile and Mexico. These investors, they are almost all of the time fully allocated, right? They don't carry cash positions in their balance sheet. They're usually fully allocated.

So although, we might have some fluctuation from quarter-to-quarter, as we did have -- if you remember, I think we did have some fluctuation in the first quarter of '25. We had some redemptions also in the first quarter of '25 in the TPD Liquid side. We are seeing those redemption flows in the second quarter now of '26. But given that they are fully allocated by nature and the growth rate of both the Chilean AFPs and the Mexican AFORE are quite high. They are growing in the low to mid-teens now given the contribution factors.

Over time, the TPD line will be very positive for us. If you look at the organic growth that we had in TPD in AUM on a year-to-year basis, if you add inflows and depreciation, that organic growth is close to 20%. So we expect that to continue to be the case as these institutional investors continue to grow their basis. And we might have these fluctuations from quarter to the other, but the fundamentals for these 2 asset lines, both the TPD Liquids and the alternatives continue to be quite favorable for us.

And Ricardo, that's Alessandro. Just to add on top of Bruno said, just to complement these outflows. This is very normal, as Bruno said, like the AFPs and the authorities, we balance the portfolio, especially after the growth because of the markets going on the right direction. And the majority of these outflows that we saw came from the liquid side.

Of course, we have some capital returns, as Bruno mentioned, on the alternative side. But in terms of the outflows, they came from the liquid side that is like some of these investors in a way, if you may, taking profits of a very benign market. And to Bruno's point, they will come back to rebalance the portfolios and then you see the fluctuation when the markets go in one direction or the other.

The next question comes from Fernanda Sayao with JPMorgan.

My question is on the recent acquisition of BACS and Navi. I was wondering, if you could discuss how this should impact management fee revenues, FRE margins, expenses. Anything you can share would be very helpful. And you specifically mentioned that BACS has a higher margin. Would it be possible to quantify that?

Okay Fernanda, this is Bruno. So BACS, to give you some sense in June, the impact was about BRL 4 million in revenue in the month of June. So as we consolidate the numbers going forward, I think that's a good run rate in terms of the revenue base. The margin for BACS is higher than the average of the company. It's closer to 50%.

So if you do the math between the 2 and the FRE that we have, the positive impact to us should be around 50 basis points, more or less in terms of the tailwind for the second half.

I think the other thing that is important to mention is even pre-BACS, Argentina was about 40% above budget for us. So the flows are very strong in the business in Argentina. Hopefully, with BACS, we have even more of that impact. But that's also another interesting information that we're seeing Argentina be very strong.

In the case of Navi, we calculated -- it's a much smaller business, right? So we are talking about BRL 750 million AUM, although the fees are good, they are around 1%. And as we mentioned in the press release, we are not bringing anyone from the original team. So the Real Estate team is going to manage this money. So it's fully incremental to us.

So this margin is going to be very high, probably on the FRE line, probably, I mean, in the 60%, 70%, right, after taxes and some bonus provision. So this should be also interesting for the platform, but the size is not very big. So it shouldn't move the needle as BACS will, but it's going to help. It's going to be incremental to us as well.

The next question comes from William Barranjard with Itau BBA.

Also a follow-up on BACS acquisition and Argentina operation as a whole, right? On a more qualitative view, what are the integration milestones you expect for BACS, your operation in Argentina, in terms of products, cross-selling opportunities, the KPIs you think are relevant there? Overall, I wanted to grasp what is your view for Vinci Compass in Argentina?

And the second one, maybe quicker on inorganic growth, beyond BACS, Navi, how active is the M&A pipeline if M&A continues -- inorganic growth continues being one of the priorities ahead? Or are you shifting your focus to growth towards organic growth and working with all the suite of products you've already built in the past year since you've been listed? That's it.

Thank you for your question. It's Alessandro. So talking about BACS in a more qualitative way, as you mentioned, you know that the Argentine market is still in the early days of gaining more traction on the asset management side.

Our combination with BACS was a very, I'd say, good one in terms of not just about the products, but also about the channel of distribution. Our activity was more on the institutional side in BACS because of the relationship with Hipotecario. The liability side comes more from the retail/wealth management side.

So having said that, that was very, very synergic. We have been able to integrate smoothly. Of course, this is the merit of our team in Argentina that knew the partners of BACS for a long time and also our new partners, the Hipotecario Group has been a very good surprise in terms of the way that we have been integrating with them.

The market today is very concentrated. It's more like private -- sorry, public credit and fixed income in general. But we see a lot of opportunities to introduce more sophisticated and more specific and structured products to the Argentine market. So we are really very optimistic with the setup that we have, a very strong from our Argentine operation also together with Toronto BACS.

But we think there is a huge opportunity for asset management in Argentina as the market continues to improve and to require more structured products. So we think that's a market that we are very well positioned in a very good situation to take advantage of the trends that we believe will happen there.

Talking a little bit more to your second question about the M&A activity or inorganic versus organic growth. We continue to have a very strong pipeline of inorganic possibilities. As we have been repeating here, our main focus would be to grow inorganic if the opportunity arise outside Brazil. It's more on the other countries in Latin America to reinforce our capabilities on the local markets. But there is -- there are not so many opportunities, and it's very difficult to structure these deals, but we have a very strong pipeline on them.

And talking more about Brazilian opportunities, that's the case of Navi, we would be a little bit more opportunistic on that sense to look for more creative in terms of acquisitions because, as you know, the asset management market in Brazil is passing an adjustment. And for us has been very good because we have been consolidators of this market and continue to grow organically and also taking advantage of some opportunities.

But we should be very careful to understand the drivers for each of the opportunities that we have in our pipeline. So we will continue to focus on the organic growth, but being very selective in the inorganic opportunities. I don't know, if Bruno would like to add on top of that.

Yes. I think it was a good question from William to touch on a few additional points, which I think makes sense. As Alessandro said, right, M&A outside of Brazil, we are looking into those options to grow the alternative asset management base and in Brazil, options that complement the platform, right? And I think the Galeao inflow is going to increase our flexibility.

I think it's a point that I would like to make because we're going to receive virtual equity injection of about BRL 90 million to BRL 100 million in the second half, most likely in the fourth quarter, which will add flexibility when we analyze these opportunities. We're going to have dry powder to perhaps pursue things that we feel makes sense and that add value to the platform.

And the other thing that, I would like to mention, I mean, even with all of the deals that we did, I think the base that we have created over these last few years with the movements that we did is already yielding a lot of positive momentum in the business, right? So if you look at the organic growth rates in some of our verticals, if you look at -- I had mentioned already Global IP&S with almost 20% growth in AUM, real assets. The organic growth in AUM year-on-year in the second quarter was about 40%. Credit was about 30%.

And when you look at our FRE performance with no acquisitions, we had about high single-digit revenue growth, about flat expenses and FRE growth of 35%. So the FRE growth of the platform without M&A in the second quarter was more or less the same growth that we had with M&A.

So I think to that end, I think M&A continues to be a way for us to branch out and complement the platform. But I think the presence that we have across the region is already strong enough to sustain the organic growth to us and to be meaningful value creators to the business on a go-forward basis. So I think those points are points that I think are important that we make that the platform is already in itself without any additional M&A generating a lot of value and growing quite handsomely in the second quarter.

The next question comes from Tito Labarta with Goldman Sachs.

A couple of questions also just, I guess, on the AUM, right, very good growth in Credit IP&S, I mean, probably considering the rate environment, it makes a lot of sense. Do you think that sort of is where the growth is going to continue? What about some of the other lines that are not growing private equity continue to be fairly muted? Anything that could change that outlook there? And how much does the mix also impact your margin a bit to some extent? And also, because advisory was weak that also have a negative impact on the FRE margin?

Thank you, Tito for the question. So yes, so I mean, we have been talking about credit a lot. And I think obviously, the rate environment helps in Brazil, mostly, not the case of the other countries. Other countries, the rates are much smaller already than here.

But I think there is a lot of product momentum. I think the rates help in Brazil, but we have a lot of product momentum outside of Brazil. I think COPCO in that sense is a good example, right? We have the visibility from Carvalho, who is the lead person on Colombia for us about demand from institutional investors on the private debt side.

We went after capability to run a private credit product in Colombia, which we obviously didn't have at the time. And we are in line to have a closing of this fund in the third quarter of a few hundred million dollars. So as the case of COPCO, we have similar developments in other credit products outside of Brazil. And also in Brazil, right?

So in Brazil, we continue to see demand for new products. We actually approved a new product today in our product committee, which is a partnership with the bank where we distribute the product, which is a mix of 2 products that we have and could be BRL 1 billion product, I mean, in terms of the size of the distribution channel and what we see as potential. So I think not only the rate environment, obviously, in Brazil has a tailwind in the case of this segment, but also really product proliferation and the ability to launch new strategies across other countries in Latin America.

Regarding the Private Equity business, I think we are in a hiatus now in terms of fundraising. VCP IV is still within the investment cycle. So we are not in a position now to raise another VCP fund. We need to fully invest VCP IV before coming back to market.

And we are in the final, let's say, prelaunch stages of VIR V. VIR V is a fund that we expect to have a first close in the next several, I would say, at this point in time, probably the next several weeks. We already have aligned the anchor investors for that fund. So either in the third quarter or very early in the fourth quarter, we should have a first close for that fund. And then depending on how the VCP IV strategy performs in the next 2 quarters, we could have VCP V coming back to market later next year.

So it's more of a let's say, a life cycle issue in Private Equity. It doesn't necessarily have to do with demand. But we have -- we do have a private equity product coming online in the short term.

When you look at the growth components, I would say probably given that private equity is less strong at this time, you have the growth coming from real assets, real estate and IP&S, I would say probably would be net positive, very marginally net positive for us. I wouldn't say, it's a relevant impact.

And obviously, your last question, corporate advisory is very important for us for the FRE margin because the -- when we have results and revenues coming from corporate advisory, the leverage of that revenue is very high. So it really helps us dilute the fixed cost base of the company.

So the first half in that sense, we had, I think, was something around 550 or 540 basis points of margin expansion in the first half. And that was without corporate advisory because the first half corporate advisory number was very small.

For the second half, we expect that number to improve. What we have now in terms of visibility is for low teens million of revenue for the second half. So that also goes into, I think, was Ricardo's earlier question regarding the visibility of the FRE margin.

If we do have that, corporate advisory revenue kicking in, in the second half, and I would say the visibility at this point that we have for a big chunk of that revenue is quite high. That will also help us to drive that margin comfortably into the mid-30s or eventually a little bit higher that we are seeing when we look at the models for the second half. But certainly, not having corporate advisory is something that hurts the cost dilution of the platform.

Just to add on top of what Bruno said, just to add a very quick comment. Summarizing what Bruno said, I see to your question, 2 main products that we probably will see developing in short term on the credit side, that's the COPCO in Colombia and also a final closing to the end of the year probably or further development that's SPS IV, okay?

And also, we probably will see a final closing of the Lacan IV. So we have been able, at the same time that we see the growth coming from IP&S and the TPD side and et cetera. We are seeing very interesting spots of capital falling into our strategies, both in Credit, more structured ones and also in Real Assets. As Bruno said, what we see next for private equity is VIR V that we'll see first closing very soon and wait a little bit more to the flagship VSP V when, of course, the fourth vintage is already invested.

I would like to turn the floor back to Mr. Alessandro Horta for the closing remarks. Please, Mr. Horta, you can proceed.

Thank you very much again for your support, your interest. We are very, very optimistic that we have been able to deliver even against a backdrop of high interest rates, especially in Brazil. We think that soon we'll have part of the, I would say, volatility coming from the political side that we already got results from Chile, Colombia and Peru recently. We will probably in our next meeting here for the third quarter results already define it election in Brazil, too.

So even with -- against this last month's political expectations and volatility from all of these countries, we have been able to continue to deliver growth and even with the high interest rate environment, especially in Brazil. So we are very optimistic moving forward. We are very comfortable within VR platform.

So I'd like to thank you all again, and have a good night to you. Thank you.

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

Good afternoon, and welcome to Vinci Compass' First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

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

Thank you, and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, President of Finance and Operations; and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release, slide presentation and our financial statements for the first quarter 2026, which are available on our website at ir.vincicompass.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 Factors section of our 20-F. We will also refer to certain non-GAAP measures, and you'll find reconciliations in the release. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Compass fund.

On results for the first quarter of 2026, Vinci Compass generated fee-related earnings of BRL 96.3 million or BRL 1.47 per share, FRE margin of 35.4% and adjusted distributable earnings of BRL 62.2 million or BRL 0.95 per share. We declared a quarterly dividend of $0.17 per common share, payable on June 8 to shareholders of record as of May 25.

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

Thank you, Anna, and good evening, everyone. Thank you for joining us today. Before I turn to our quarterly performance, I would like to highlight some meaningful developments that occurred after the end of the quarter. As you know, we are diligently executing on the strategic priorities we outlined during our Investor Day, including expanding our footprint in key Latin America markets and strengthening local distribution capabilities. The start of 2026 already reflects the steady and consistent progress across each of these dimensions.

We announced in April a strategic combination with BACS Asset Management to build a scaled asset management platform in Argentina by combining our existing asset management practice with BACS' extensive corporate and retail distribution network. Argentina is undergoing a rapid transformation of its financial system, marked by growing demand for mutual funds, money market products, dollar-based strategies and alternative investments. We see the country as one of the most attractive growth opportunities for asset management in the region, supported by structural shifts in savings behavior and an increasing need for scale and efficiency. This transaction positions us for accelerated growth in a rapidly consolidating local asset management market.

A further strategic achievement has been the integration with Verde, which is progressing extremely well, with a strong cultural fit and an impressive degree of complementarity that have already proven to be invaluable. We are seeing tangible benefits from the strong collaboration between the teams. The first product we launched together, [ VIVE FI-Infra ], is gaining traction, with increasing client engagement and encouraging feedback from the local investment community. While the collaboration between the teams has only just begun, the power of expanding our solutions set by joining forces has already proven to be even greater than we initially anticipated.

Moreover, I would like to highlight a recent development within our infrastructure strategy, which we discussed in greater detail in our 2025 Form 20-F and is expected to have an impact on our results in 2026. As we disclosed in the past, our Infrastructure team had reached an agreement in 2025 to acquire an interest in the holding company owned by Changi, that held a stake, alongside Infraero, in the concessionaire of the Rio de Janeiro International Airport, Galeão. Following the outcome of the concession auction in March of this year, in which Aena was declared the winning bidder, the holding company, that a fund managed by Vinci Compass had an interest, became entitled to receive an indemnification-related amount. Vinci Compass is then expected to receive a portion of this indemnification, which we estimate to be of approximately BRL 100 million, already net of taxes and associated expenses. This outcome reflects the team's activities undertaken prior to the auction, including the Infrastructure team's involvement in the negotiation and structuring the new regulatory model, alongside general expenses incurred. We expect this amount to positively impact our distributable earnings during the third or fourth quarter of 2026.

In the Private Equity segment, we are also pleased to share exciting news. Last week, we announced the conclusion of the exit of portfolio company Mundo do Cabeleireiro from the Nordeste III fund within the VIR strategy. Since the fund's investment in 2018, Mundo do Cabeleireiro has strengthened its market presence, becoming a leading player in cosmetics retail in the North and Northeast regions and expanding significantly into São Paulo. This represents the fifth exit among 6 investments from Nordeste III, highlighting the Private Equity team's proven ability to drive value creation within portfolio companies and execute successful divestments, generating strong DPIs. This accomplishment is instrumental in supporting the success of VIR V, which was recently launched and is currently in its fundraising phase, with the first closing expected in the next few quarters.

Shifting to the macro environment, overall sentiment towards Latin America remains very constructive. As investors seek to diversify away from U.S.-centric exposures, Latin America, as a geopolitically neutral and increasingly stable region, is well positioned to attract meaningful inflows. The region benefits from strong diplomatic ties across the West and East, with no significant regional conflicts, which further enhances its appeal as a strategic allocation. Although local elections and oil price fluctuations remain sources of uncertainty, with still limited clarity on how fiscal policies and political leadership may evolve in Brazil, Colombia and Peru, recent market dynamics have been encouraging. The resiliency of the Brazilian real, for example, has highlighted growing interest from international investors, particularly during the IMF meetings, positioning Brazil as one of the countries better insulated from oil price shocks and supported by an energy surplus.

Leveraging this momentum, we held our annual global investment conferences and seminars across Chile, Brazil, Argentina and Uruguay with more than 1,500 clients and investors, including pension funds, insurance companies, intermediaries, single-family offices and high net worth individuals. The scale and reputation of our platform were further reinforced by the quality of the agenda, with over 20 speakers, including a former president of Colombia, a global geopolitical strategist and leading regional macroeconomic consultants.

Translating these trends to our AUM, during the first quarter, despite global macroeconomic uncertainty around private credit and a historically quieter quarter for the industry, we experienced strong capital formation across most segments, particularly in our TPD business and credit strategies, with contributions across different countries and products, including private credit in Peru and Brazil, public credit in Argentina, and our LatAm corporates hard currency strategy. We continue to see strong engagement in our proprietary private credit funds from sophisticated investors, and the strategy remains a core pillar of our growth agenda with new fund launches in Chile and Colombia, complementing existing funds currently in fundraising in Brazil and Peru.

Turning to a brief snapshot of our financial performance, the quarter benefited from the full consolidation of Verde, which contributed to stronger management fees, while we continued to fundraise and exercise cost discipline across the platform. As a result, we delivered the highest quarterly FRE in our history, totaling BRL 96 million with an FRE margin of over 35%. The combination of selective inorganic expansion, organic growth, and operating leverage remains central to our ability to compound fee-related earnings over the short, medium and long term.

Our FRE remains the core of our business and is the representation of our growth over the years and the operating leverage we have as we continue to raise capital across all our segments. We truly believe this quarter underlines the power of our platform, especially when looking into FRE numbers. In comparison, distributable earnings for us still represent some volatility from quarter to quarter, as we have impacts from performance and IRE mainly, besides the recurring FRE base.

It's important to highlight and remember that we have BRL 868 million in assets allocated to proprietary long-term funds, which, with the exception of a smaller allocation to REITS, are not contributing to cash earnings at this moment. If this amount was yielding close to CDI, we would have additional BRL 21 million in our distributable earnings on a quarterly basis.

Although our FRE has shown continued growth and reflect the value we have been creating in our business over the years, our balance sheet value is still not fully reflected in our results, and by consequence, constitute somewhat of a hidden asset in our business. We expect the balance sheet to start realizing substantial value on distributable earnings in coming years as capital starts to be distributed from IRE Commitment funds. In the last twelve months, for instance, our total IRE was BRL 65 million, with BRL 35 million of this total only impacting accounting net earnings. As capital starts flowing back, these unrealized gains will impact distributable earnings in a meaningful way.

To conclude, we believe Vinci Compass enters the remainder of 2026 from a position of strength. We are executing against the priorities outlined at our Investor Day by strengthening our regional presence, scaling high-growth strategies and maintaining disciplined capital allocation. At the same time, our broadening footprint, deep local origination capabilities and rigorous underwriting standards provide a strong foundation to navigate a backdrop of heightened external volatility. With a diversified platform, expanding distribution capabilities and structural tailwinds supporting alternatives in Latin America, we see a compelling opportunity set ahead. More importantly, we believe we have the platform, talent and execution capabilities required to capture it.

Thank you again for joining us today. With that, I will turn the call over to Bruno.

Thank you, Alessandro, and good evening, everyone. Against a global backdrop marked by intense headlines and market volatility surrounding the AI revolution, I would like to briefly address how artificial intelligence is reshaping Vinci Compass' operations and why we believe this will be a durable source of competitive advantage for the firm.

We are leveraging AI decisively from an operational and user perspective. Over the past 12 months, AI adoption across Vinci Compass has accelerated materially on 2 fronts: individual productivity and collective intelligence. At the individual level, more than 70% of our employees now use AI on a daily or weekly basis, and teams have created over 170 custom AI agents, tailored to their own workflows. This underscores that AI is no longer experimental. It is embedded in how the firm operates. We have deployed 7 enterprise-grade AI platforms, providing our employees with a secure and curated toolkit that actively supports financial analysis, modeling and process automation, while at the same time, taking care of governance and data security.

At the firm-wide level, we believe the greatest long-term impact will come from building proprietary institutional intelligence. We have developed a unified data platform, named Datalab, which centralizes KPIs, dashboards and analytics across all of our business units, as well as across many of our portfolio companies. This enables us to systematically transform institutional knowledge into a proprietary assets.

We're seeing substantial gains in internal development capabilities with AI-first programming within the data science and IT development teams. We have started to roll out systems that have been 100% AI coded, and the productivity gains on this development process have been very significant. In some cases, projects that would have taken several months are now being developed and put into work in weeks, if not days. As we continue to scale these programming initiatives, we should be able to more quickly address business bottlenecks and improve efficiency and productivity.

Another significant effort to increase the AI-first mentality across the platform has been the launch of the AI Ambassadors program, embedding AI expertise directly within business teams. This decentralized model is capital-efficient, execution-oriented and keeps innovation close to the decision-making. This program not only reinforces the cultural message internally, but also fosters accelerated adoption and solution building, while centralizing a firm-wide library of agents, which can be used by other groups across the firm. We are also scaling up the collaboration with companies in our funds, with increased integration and sharing of best practices that can be implemented across the portfolio.

And finally, our strategic partnership with Ares also allows us to have access to what is happening in the U.S. alts industry regarding not only in-house implementation, but also interesting investment themes that can be found across LatAm, such as digital infrastructure and power generation, 2 investment themes at the core of the AI investment cycle. Our people are more innovative than ever, and we believe Vinci Compass is exceptionally well positioned for an increasingly AI-driven future.

Turning now to AUM and fundraising efforts. We ended the first quarter with BRL 347 billion in assets under management. Excluding FX impacts, this represents 22% growth over the last 12 months and 2% growth quarter-over-quarter. In U.S. dollars, our AUM reached $66 billion in the quarter, representing a 25% growth year-over-year and 3% quarter-over-quarter.

Over the last 12 months, Vinci Compass generated BRL 52 billion of capital formation and appreciation, including BRL 7 billion in the first quarter. This expansion reflects consistent capital formation across Global IP&S, Credit and Real Assets, as well as portfolio appreciation and the acquisition of Verde.

Starting with Global IP&S, the business continued to demonstrate the strength of our distribution platform and regional footprint. We remain the largest third-party distributor of offshore mutual funds to Chilean pension funds. Despite global market headwinds, we generated inflows in TPD Liquid and TPD Alternative, primarily into Asian funds, reflecting investors' ongoing diversification away from U.S.-centric allocations. These inflows were partially offset by capital returns from TPD Alternative and the VSP strategy.

Within multi-strategy, we saw early signs of stabilization, following several quarters of outflows with initial inflows from selected clients, pointing to improved momentum. While March was challenging for the industry, the Verde flagship fund continued to deliver strong performance, ranking among the top funds across several windows. Client engagement has increased meaningfully, particularly from multifamily offices and retail platforms, which we expect to translate into positive flows over coming quarters. In addition, we believe there is opportunity to raise international capital into our multi-strategy funds. Today, the amount of international capital in this strategy is immaterial, and we have been hosting LP discussions that have strong promise.

In Equities, we are seeing encouraging traction in our UCITS platform. Both UCITS Brazil and UCITS LatAm, launched late last year, received initial inflows from intermediaries across LatAm countries, reflecting the impact of sustained distribution efforts.

Turning to one of the platform's most dynamic areas. Credit AUM reached BRL 37 billion, supported by BRL 2 billion in capital formation and appreciation during the quarter. We continue to advance both our local-to-local and cross-border strategies. The co-managed credit fund with Verde is attracting increasing demand, while Brazilian infrastructure credit continues to draw strong investor interest. In SPS IV, investor interest remains strong. While commitments this quarter were modest, we expect increased momentum closer to the fund's final closing in the second half of the year.

Shifting to Real Assets. We made solid progress across Forestry and Real Estate. Within Lacan IV, we [ structured ] commitments from European institutional investors, including DFIs, with additional investors currently in due diligence, a clear signal of growing global confidence. This is the first Forestry fund raised by Vinci Compass' distribution teams, and the feedback has been overwhelmingly positive.

In Real Estate, we completed the first close of VIOL, our logistics opportunity fund, with additional closings expected by the end of the year. We also remain attentive to potential market reopening, following SELIC cuts, which could create supportive backdrop for REIT fundraising.

The achievements of the past 12 months provide a strong foundation for the remainder of 2026. Looking ahead, in Credit, as Alessandro mentioned, we are particularly excited about the strategic combination with BACS, expected to close in the second quarter. By bringing together strong money market and transactional capabilities with value-added and longer-term duration investment strategies, the combined platform will offer a highly complementary product suite and is expected to approximately double Vinci Compass' asset management business in Argentina, reaching close to $1.6 billion in combined assets under management.

Through this transaction, Vinci Compass will gain access to BACS' and Banco Hipotecario's extensive corporate and retail distribution network, significantly strengthening our local distribution capabilities in Argentina, while driving operational efficiencies and broadening the range of solutions available to clients.

Beyond Argentina, we continue to advance a robust fundraising agenda across the region. COPCO, CHILPCO II and MAV IV are currently on roadshow and have been receiving constructive feedback from local investors. We are also launching MAV Farmtech FIAGRO, a strategy designed to invest up to 100% of its net equity in senior shares of FIAGROs that anticipate receivables from rural producers, originated through pre-authorized dealership channels.

Our liquid credit offering in Chile also remains comprehensive with funds such as FM Liquidez, FM Protección, FM Deuda Chilena and FM Deuda Plus FI currently in fundraising, spanning different liquidity and duration profiles. These strategies provide clients with diversified exposure across local and foreign debt instruments, sovereign and corporate bonds and private debt, allowing us to address a wide range of risk-return objectives.

Rounding out the fundraising pipeline, within Global IP&S, our third-party distribution platform remains well positioned, supported by the depth of our client coverage, the quality of the managers we represent and the increasing sophistication of Latin American investors. We are also broadening our product suite through the launch of dedicated strategies such as the VC Crypto Fund, focused on digital assets and cryptocurrencies, further expanding the range of investment solutions available to our clients.

Overall, we entered 2026 from a position of strength with clear visibility, a robust fundraising pipeline and multiple growth levers already underway. The combination of an expanded distribution footprint, a comprehensive product platform and continued operation discipline gives us confidence in our ability to sustain our growth trajectory and continue compounding value over time.

With that, I'll hand it over to Sergio to discuss the financial results.

Thank you, Bruno, and good evening to everyone. The first quarter 2026 was another solid period for Vinci Compass. Let me start by walking through our revenues. Management fees totaled BRL 245 million in the first quarter 2026, up 25% year-over-year, mostly driven by the full quarter contribution from Verde, combined with continued organic growth across Credit and Global IP&S, reflecting our strong fundraising success over the last 12 months.

Advisory fees were BRL 16 million, a decrease of 35% compared to the first quarter 2025. As anticipated, the environment for deal activity remains slow with the high interest rates and elections uncertainty in Brazil contributing to softer results from our Corporate Advisory segment. In addition, as highlighted in prior calls, upfront fees in our third-party distribution alternative business can vary significantly, depending on the timing of commitments.

Altogether, fee-related revenues reached BRL 272 million in the first quarter 2026, up 17% year-over-year, and BRL 990 million over the last 12 months, up 44% year-over-year.

Turning to fee-related earnings. We delivered a record BRL 96 million in the quarter, or BRL 1.47 per share, up 47% year-over-year on a nominal basis and 42% per share. Our FRE margin expanded to 35.4% in the quarter. This improvement was driven by Verde's full quarter contribution, operating leverage on revenue growth and ongoing cost efficiency we began last year. It's also worth noting that the first quarter tends to benefit from lower seasonal costs such as auditing fees. We expect some fluctuation in margin in future quarters as these seasonal costs materialize.

Moving to performance-related earnings, or PRE. We recognized BRL 2 million in the first quarter '26, primarily in Equities and Global IP&S. This result is in line with seasonality, as our liquid funds generally only recognize performance in the second and fourth quarters and most of our closed-end funds have not yet entered their realization cycle. Over the last 12 months, PRE totaled BRL 13 million, down 50% year-over-year, given that the prior period included FIP Infra Transmissão and one-off strong contributions from opportunistic funds in Argentina and Peru in 2024. In contrast, PRE this period was more normalized and concentrated in Global IP&S, Credit and Equities.

Investment-related earnings, or IRE, were BRL 4 million in the first quarter 2026, with BRL 6 million realized and an unrealized loss of BRL 3 million, reflecting mark-to-market impacts on a listed REIT that offset gains in other funds. Over the last 12 months, IRE totaled BRL 65 million, a significant increase year-over-year, reinforcing our long-term thesis and the growth potential from IRE commitments as a value compound driver for Vinci Compass.

Before moving to distributable earnings, I would like to remind you that, as we deploy cash into IRE commitments, there is a medium-term negative impact on distributable earnings since it no longer generates short-term financial income after capital calls. At Investor Day, we presented in greater detail a schedule for capital calls over the coming years with BRL 300 million to BRL 400 million expected to be called by year-end 2026 and the remaining commitments by 2029. So far, we have called about BRL 140 million of this guided range. Additionally, bonus compensation is paid annually in January, further reducing our cash position in the quarter. As a result, realized gains from financial income declined 35% year-over-year and are expected to keep trending lower as we approach the BRL 300 million to BRL 400 million range and funds mature to the realization cycle.

Bringing everything together, Vinci Compass generated BRL 62 million or BRL 0.95 per share in adjusted distributable earnings for the quarter, remaining stable year-over-year despite the higher FRE due to the decrease in realized financial income and lower PRE and IRE, as previously discussed. For the last 12 months, adjusted distributable earnings totaled BRL 292 million or BRL 4.55 per share, up 16% on a nominal basis and 5% per share year-over-year.

This quarter's results underscore Vinci Compass' disciplined approach to growth and capital allocation, leaving us well positioned for continued progress throughout 2026. As we look ahead, the fundamentals of our business remain robust: healthy fundraising, operational leverage, successful integration of acquisitions and disciplined capital management, all supporting our sustainable growth trajectory.

With that, I would like to open the call for questions. Once again, thank you for joining us this evening. Operator, please proceed.

[Operator Instructions] Our first question comes from Ricardo Buchpiguel from BTG Pactual.

I wanted to ask about 2 topics here. Can you please provide more details on how the BACS deal should help -- should impact your DE per share right away? And how can we expect the contribution to evolve over the following years? Any comments you can give us in terms of low-hanging fruits here and the main challenges for the acquisition will also be very helpful.

And another thing I wanted to ask is that we saw a good improvement in equity net inflows this quarter and would also be interesting if you could go over whether this could mark like equity inflows returning to positive territory. Or there was anything more specific on this quarter and we should still expect more softer print in the rest of the year?

Okay. Ricardo, this is Bruno speaking. Thank you for being with us today. So BACS, the math is the following. We expect the transaction to be probably high-single-digit accretive on a local basis. So, to Vinci as a whole, the impact will be very small. So I wouldn't expect any substantial change because it's a high-single-digit impact in the Argentina numbers. When you translate that into the whole Vinci numbers, the impact shouldn't be very high.

What we are very excited about is going forward, right? We are partnering with a group in Argentina that is a very relevant group. So BACS is owned by -- at the ultimate level by Banco Hipotecario, which is a very well-known retail banking institution in Argentina. And we believe that there is very strong complementarity on the platforms regarding products and regarding distribution channels. So the idea is that combining our 2 platforms and the complementarity that we see, it is very likely that we'll be able to achieve stronger growth rates looking forward. The team locally is very excited about this. So I would say more on a positioning for medium, long term than any like very relevant impact on a company-wide basis in the short term.

In regards to your second point, the inflows in equities, this is a preparation that we started to do late last year. So we launched 2 products in the UCITS -- as UCITS platform products, one in Brazil and one for our Latin American strategy -- one for the Brazilian strategy and one for the Latin American strategy. And both of these products are starting to see inflows. So this is something that we had mapped in the past with some of our LPs that there was interest to deploy capital in these strategies. The track record of both strategies has been very strong. So in Brazil, we continue to do very well. And the LatAm fund is actually doing very well. We had a very good year last year in the Chilean part of the portfolio. So those 2 funds are starting to see inflows. And hopefully, this is the -- as we discussed in the Investor Day, this will be the biggest growth driver for the equities platform going forward. We feel that the -- our market share -- the theoretical market share that we should have in these 2 funds, these 2 strategies point to very substantial fundraising potential. So it's clearly the biggest bet that we have in growing the equities platform for the next few quarters.

And Ricardo, it's Alessandro speaking here. Just complementing what Bruno said, as he said, we have a very strong performance in the majority of our equity strategies. And until now, what we have been seeing in terms of flows, as you know very well, has been foreigners through [ the ETFs ]. But we start to see a lot of interest in more active managed equity mandates in our funds. So we are expecting, as the markets improve, to see more flows for this product moving forward. And the local part of these flows didn't start yet. So this is more like international allocation for the funds. But as soon as we see the market converging for more allocation in equities locally that are -- let's say, this allocation today is in the low point historically, we could see even more stronger flows moving forward.

Our next question comes from William Barranjard from Itaú BBA.

I have 2 questions here, guys. I would like to go again back to Argentina, trying to understand future products. What do you expect to develop there, if it's international money going into the region, maybe for infra credit and -- or if it's the opposite flow of local money going outside to the other regions of LatAm?

And also, now focusing on the corporate advisory, right? You commented that given the elections and the still high SELIC rate, things are not doing that well there. So it means that you don't expect anything to accelerate there or maybe at some point in the year, things should improve? I wanted to get your overall picture for this segment.

Thank you, William. I'll get the first portion of your question. It's Alessandro here. Talking about Argentina, I think the main, I would say, target in the short term for our transaction with BACS will be to capture more flows locally, okay? Because as you know very well, the market in Argentina is still very focused on more liquid solutions. And together with BACS, that not just brings some intelligence on the asset management side, but also a very strong distribution channel that is very complementary of us. We are more on the institutional side, and they are more on the corporate and retail side.

But moving forward, one of the main reasons of this partnership is really attracting money for investing in more alternative type of investments being private credit, equity, real estate and also infrastructure. And in this specific, I would say, universe of alternatives, we believe that we will see both money coming from local investors, but also we will be able to attract international investors for these opportunities, especially in the more long-term horizon type of investments like infrastructure, private equity and so on.

William, as for Corporate Advisory, at the time being, we continue to see a slow pipeline development in the second quarter. So, as we go through the second quarter here, numbers continue to be slow. I think there are a few things that we are working on for the rest of the year. There is optimism with the pipeline that we have, which is relevant, that we could have more material revenue contribution still in 2026 at some point in the second half. And the second point is that we are working to develop this vertical also outside of Brazil. So we are looking at opportunities to deploy this expertise that we have in other markets, so I would say, mainly at this point in time, in the south part of Latin America.

So we have been discussing with some of our offices how to potentially start this project in other countries. So, that would be the priorities for -- those will be the priorities for Corporate Advisory at this point: so continue to work on the pipeline to potentially have a better second half of the year as the pipeline still looks strong on a total size, and also start looking at opportunities to create opportunities to internationalize the Corporate Advisory segment to other Latin American markets.

Our next question comes from Lindsey Shema from Goldman Sachs.

Maybe taking a step back and thinking more broadly, as we get closer to elections in Brazil, could you just kind of talk about potential outcomes and what they would mean?

And then, my second question is, we've been talking a lot about Argentina, but what other regions are you excited about? What other products are you excited about? And then, what other regions and products do you think are maybe more topics for M&A and you still need to build out your capabilities in?

So Lindsey, it's Alessandro. I could start with the first question regarding elections in Brazil. I think personally that today, it's very difficult to have a view about the outcome of the election for sure. It's clear that. But we are not really very worried about the outcome of the election. I think if we have a more pro-market, I would say, outcome, probably the market could be a little bit more positive. But in any way, we have [ either ] incumbent or someone with a [ speech more ] for market so far. So we are really not expecting a big movement either one direction or another, especially if we have the reelection of the incumbent. In a way, we believe that these elections could be an opportunity for the country, but still difficult to say that the reaction of the market, depending on the outcome, since the probability today is very -- due to the polls, it's very uncertain, okay? So I would say that we do not -- we are not worried about the -- that's the final message, with the outcome of the elections.

On your second question, and I would like Bruno to jump in also, I think after Argentina, we saw an opportunity to really have a complementary, I'd say, addition to our presence there without having to invest -- have to invest money to get this probability -- sorry, this probability of really growing our business there. So we have been able to make a deal that's very, very accretive without running so much risk.

Regarding the rest of Latin America, we continue to believe that private credit is one of the main asset classes to grow both from global to local dimension, but also local to local. Still in the early days in countries like Colombia, in countries like Mexico, where we are really advancing in this specific vertical. But also, we are seeing a lot of opportunities in the infrastructure space. So one thing that we are looking more and more is the infrastructure opportunity in Latin America as a whole. Of course, Brazil will continue to be the main market, but we are seeing a lot of opportunity in other countries, too.

Yes. I think just to complement Alessandro's second point, in the infra side, I think he touched that in his answer. I think we are starting to prepare to roll out local-to-local products in Infra and Real Estate, which I think is a couple of interesting developments, starting with those 2 verticals in Chile initially. And the other point, just to wrap up the conversation, is the feedback that we have been getting from our global LPs. So interest for LatAm has continued to improve.

We mentioned in the prepared remarks, the demand for LatAm, for instance, has been very, very strong from European LPs, I would say, mainly. But we are seeing interest from U.S. LPs into LatAm infra. We're seeing interest all around for SPS, which is still fundraising. Also the VIR V pre-close is looking very, very good. I think most of the LPs are very satisfied with the performance of the fourth fund, and a lot of the international ones have indicated to us that they continue to be interested in being engaged in the strategy. So I think the overall sentiment towards Latin America continues to improve, and that creates an urgency on our side to build these Latin American products. Like [ Alessandro said ], I think infra is a product that we see that there's really a lot of interest. But I would say that, that's true also for other of our verticals. So I think overall, those would be the 2 adds that I would make to Alessandro's comments.

Going ahead, our last question comes from Guilherme Grespan from JPMorgan.

My question is actually more straightforward just on taxes. I thought realized taxes was a little bit higher than usual, to be honest. The implied effective tax rate in my math is something close to 26%. You used to run more or less around mid-teens. Just want to understand what is the moving part here of taxes, and what we should expect going forward?

Okay, Guilherme, thanks for the question. There are a couple of effects this quarter. One is the gain that we had on the movement of the contingency payments, the earn-out payments. This quarter, we had a BRL 43 million accounting gain because of the drop of the stock price and the corresponding gain in the reduction of the liability of this account. So this created an excess income provision this quarter, which was the opposite of what we saw in the fourth quarter, right? In the fourth quarter, we saw the opposite impact. We had a loss, and this reduced the tax bracket in the fourth quarter.

And the other impact is the Verde consolidation. So Verde, in the fourth quarter, we had 1 month. And in the first quarter, we had the full quarter. Verde is a real tax regime company. So the expected run rate of income tax for us, if you normalize for the earn-out effect, you're right, we used to be around 17%, 18%. This number now is going to go in the low-20s. So probably 22% -- 21%, 22% is going to be the expected number on a go-forward basis, mainly because of the consolidation of Verde in the results.

The question-and-answer session is now concluded. I would like to turn the floor back to Mr. Alessandro Horta for the closing remarks. Please, Mr. Horta, you can proceed.

So I'd like to thank you all for your continued support one more time. As we highlighted during this call, we are pretty much optimistic with our platform. We set up a lot of different avenues for growth. Of course, we are seeing the market change is slightly in the interest for the region, and that's probably, moving forward, will help us in terms of fundraising, and of course, in a [ well condition ] of deploying capital. There is, I would say, a systematic [ scarce ] of capital in the region. So we are able to really, moving forward, to deploy this capital in a very efficient way. So thank you all, and a good evening to everybody.

This does conclude today's presentation. We thank you all for participating and wish you have a very good evening.

Good afternoon, and welcome to Vinci Compass Fourth Quarter and Full Year 2025 Results Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

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

Thank you, and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, President of Finance and Operations; and Sergio Passos, Chief Financial Officer.

Earlier today, we issued a press release, slide presentation and our financial statements for the quarter and for the full year 2025, which are available on our website at ir.vincicompass.com.

I'd like to remind you that today's call may include forward-looking statements, which are uncertain and outside of the firm's control and may differ from actual results materially. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our 20-F.

We will also refer to certain non-GAAP measures, and you'll find reconciliations in the release. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Compass fund.

On results for the fourth quarter 2025, Vinci Compass generated fee-related earnings of BRL 80.4 million or BRL 1.23 per share, FRE margin of 32.6% and adjusted distributable earnings of BRL 81.3 million or BRL 1.24 per share. For full year numbers, Vinci Compass posted fee-related earnings of BRL 288.4 million or BRL 4.52 per share, FRE margin of 30.4% and adjusted distributable earnings of BRL 292.4 million or BRL 4.58 per share.

We declared a quarterly dividend of $0.17 on the dollar per common share payable on April 2 to shareholders of record as of March 19.

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

Thank you, Anna. Good evening, and thank you all for joining our call. We are delighted to be with you today as we present our results for the fourth quarter and full year 2025. As you all know, 2025 marked a pivotal chapter in our history. It was our first full year operating as a pan-regional platform following our business combination with Compass. I'm deeply proud of all the teams across our countries in Latin America who have worked tremendously to extract the most value from our merger.

In 2025, we were able to, right from the start, position our company as a Latin America platform, working together across all teams to drive synergies across products and commercial teams. In 2025, we also hosted our first Investor Day at Vinci Compass with the heads of all our main strategies present. We presented our vision for the next cycle and how and why we are well positioned to capture the growth in alternatives in Latin America.

On the same day as our Investor Day, we also announced the acquisition of Verde, which closed in December and added approximately BRL 16 billion in AUM. As we did with Compass, we were able to start working on revenue synergies with the Verde team from the start. We are pleased to share that we have launched the first product born out of the collaboration between the 2 companies. The Vinci Verde FE Infra or VVFE Infra combines Vinci Compass' credit expertise with Verde's well-established multi-strategy track record as co-manager. The feedback from the local community has been great, and we are already seeing strong demand and growing interest from investors, especially in the intermediaries channel at this point.

We view this launch as a clear demonstration of the strategic rationale behind the combination, expanding our solutions set by joining forces, leveraging Verde's team's outstanding track record in multi-strategy funds and strong brand strength across intermediary channels and deepening synergies between the 2 firms. The collaboration between the teams has just started, and we are very excited about what's ahead.

Having Luis Stuhlberger and the Verde team as partners is one of the proudest achievements of 2025 and will be an extremely fruitful partnership for the company in 2026 and coming years.

Shifting to a brief overview of our fourth quarter fundraising. We ended the year with BRL 354 billion in total AUM, reflecting not only the impact of inorganic growth, but also strong capital formation and portfolio appreciation across our strategies. Only during this quarter, we had BRL 14 billion in capital formation and appreciation favorably impacting our AUM. For the full year, this adds up to BRL 42 billion, representing a 13% year-over-year growth.

Our fundraising momentum remained robust across the Global IP&S and Credit segments. Infrastructure credit specifically continues to demonstrate strong long-term momentum across multiple vehicles and client segments. The tax-exempt nature of several of these assets creates compelling investment opportunities, and we believe Vinci Compass has established itself as a reference manager in this space.

The positioning was further reinforced in January 2026 when we won a new BNDES tender process. We are very proud of this achievement, which marks the third time Brazil's Development Bank has appointed Vinci Compass to manage a long-term private credit fund focused on sustainable finance and incorporating strict ESG guidelines.

Another particularly strong highlight was in real assets, where we signed a BRL 2.8 billion SMA with an Asian LP within our infrastructure strategy. We have been investing a lot of time in Asia, and this SMA represents a significant milestone for our platform and reflects the growing interest we have been highlighting throughout the year from global investors seeking alternative investment exposure in Latin America.

In our view, this can be the first of several mandates that we arranged for global institutional investors to allocate capital to the region, and it reinforces our view that the macro backdrop continues to support increased international allocations to the LatAm opportunities.

Turning to private equity. The first couple of months of 2026 have been exciting for the segment. Our team has announced 2 transactions that increased the liquidity profile of both VCP II and VCP III. In January, VCP III IPO-ed Agibank on the New York Stock Exchange. This marks an important step in the fund's history, crystallizing a 3.8x gross MOIC in Brazilian reals and a 35% IRR for VCP III at the IPO price. This is the first step to generating liquidity in this investment, which has been one of the best-performing assets in Fund III.

In February, the team signed a definitive agreement for the reverse IPO of CBO, a VCP II portfolio company into OceanPact, a Novo Mercado listed company. Upon closing, the combined company will become the second largest offshore service vessel operator in Brazil and the fifth largest globally by fleet size, forming a scaled and diversified offshore and environmental services platform with long-term contracted backlog.

This quarter, through the combination of markups in VCP IV and appreciation in our listed REITs position, we noticed a very positive impact on our unrealized ROE. As we underlined during our Investor Day, we expect this phase of the ROE cycle characterized by portfolio appreciation to continue supporting unrealized gains from our proprietary commitments in closed-end funds. Towards the end of the cycle, we expect to realize the value of these investments, which will then reflect in our realized IRE and distributable earnings.

These accomplishments across the 3 vintages underscore the team's outstanding ability not only to source compelling opportunities, but also to actively create value within portfolio companies and execute successful divestments, reinforcing our discipline and hands-on approach to value creation.

On the deployment side, the current macro environment continues to create attractive entry opportunities, positioning VCP IV advantageously as private markets present compelling entry multiples relative to historical levels. Looking ahead, the expected start of a monetary easing cycle would gradually reduce debt service costs for leverage companies and lower discount rates in Brazil. The conditions for this move appear increasingly well established and expectations of monetary easing have already supported a re-rating of domestic assets.

That said, we do anticipate periods of volatility, particularly considering upcoming electoral cycles in Brazil, Colombia and Peru. In addition, we remain attentive to the broader global macroeconomic environment and its potential impact on alternative managers' portfolios. However, our business was built to navigate and capitalize on volatility and market dislocation. We have a natural hedge across geographies and strategies with the opportunity and flexibility to allocate capital locally, regionally and globally. This structural resilience is directly linked to the stage we have reached as a firm, clearly differentiating us from the other local and regional players.

As we enter the new year, we do so with a clear set of opportunities in front of us and an extensive fundraising pipeline that Bruno will address shortly. We firmly believe that the strength, scalability and diversification of Vinci Compass position us to continue displaying healthy growth in 2026 deepening our leadership across Latin America and continue delivering long-term value for our shareholders.

Thank you again for joining our call. With that, I'll turn it over to Bruno.

Thank you, Alessandro, and good evening, everyone. In January, we marked the fifth anniversary of our IPO, an opportunity to recognize how far we have come as a public company and to reaffirm the long-term vision that has guided our execution.

Before discussing the present and looking ahead, I would like to take a moment to reflect on our journey. From the outset, our objective was to deepen and diversify our asset allocation capability in Brazil through complementary strategies while building towards a pan-regional platform. We have made significant progress on both sides.

On the capital deployment side, we committed approximately BRL 1.4 billion worth of GP commitments into our proprietary funds and gains from these investments compose our investment-related earnings or IRE. The portfolio has a gross blended target IRR of 18% to 20% and an expected realized IRR annual run rate contribution of more than BRL 100 million based on a normalized realization schedule for capital gains between 2028 and 2031.

The capital invested has leveraged fundraising by 13x, meaning that for every real we committed, we raised roughly BRL 13 from our limited partners. The commitments are instrumental to successful fundraising, anchoring the funds and assisting the attraction of institutional investors in the early rounds of fundraising. This represents value creation reflected across multiple fronts, strengthening our recurring earnings base while also enhancing the long-term return profile of our capital. We are close to the end of this first cycle of deployment into funds and intend to keep it as a staple of the platform, anchoring fundraising for strategies and driving capital gains and FRE growth for Vinci Compass.

In parallel, we executed a series of strategic acquisitions that strengthened our business mix in Brazil and supported our evolution into a pan-regional platform. By the end of 2025, we had funded our M&A transactions with approximately BRL 400 million in cash and issued close to 15 million shares to our new partners. Considering 2025 numbers and accounting for potential earn-out payments based on results achieved so far, our blended EV to FRE multiple on a post-tax basis was 8.6x on these acquisitions. This underscores our commitment to smart capital allocations, focusing on complementing our asset base and driving shareholder value through accretive transactions.

On top of IRE results and M&A activity, we have been extremely active on capital return to our shareholders, having distributed over BRL 1.4 billion on dividends and share buybacks since our IPO. This disciplined execution has brought us to a new stage as a firm as we enter 2026 with a clear sense that we are on the right trajectory. The platform has been substantially complemented with new strategies, distribution capabilities, and increased regional and global reaches.

The progress we delivered in 2025 offers a strong snapshot of the potential and scalability of our platform going forward as we achieved BRL 42 billion of capital formation and appreciation for the full year of 2025.

During the fourth quarter, we generated BRL 14 billion in capital formation. As Alessandro mentioned, a highlight was the BRL 2.8 billion SMA mandate to invest in infrastructure assets across Latin America. This capital will begin contributing to fee-earning AUM as deployment progresses. We view this achievement as highly encouraging and believe it may represent the first of several SMAs focused on Latin American investment opportunities that we expect to originate over time following the nascent cyclical improvement in the region.

Beyond this mandate, the largest contributions during both the quarter and the year came from Global IP&S and Credit as anticipated. Global IP&S delivered another strong quarter in our TPD business with BRL 4.6 billion in net inflows. The largest share came from the liquid platform, as most of the TPD alternatives commitments we expected for the year were signed earlier in 2025. We expect TPD to continue exhibiting strong momentum as global allocations expand. In addition, this segment is launching a series of new discretionary allocation products designed to provide Latin American investors with diversified exposure to portfolios of semi-liquid funds across developed markets, while also allowing us to increase fees in this segment.

Now let me spend a bit of time on Credit, which remains one of the most dynamic areas of our platform. Credit continues to be a cornerstone of our platform, and we see ample room to expand market share across both local strategies and regional solutions.

In the fourth quarter, our Credit vertical delivered approximately BRL 3 billion of capital formation appreciation, contributing to a total of roughly BRL 10 billion for the full year. As a result, Credit AUM reached BRL 36 billion, up 25% year-over-year. The breadth of our Credit franchise is a key differentiator. We operate with multiple specialized teams across the region, and we continue to increase information flow and coordination across these groups to ensure we are capturing synergies in origination, structuring capabilities, and most importantly, risk management.

The LatAm corporate debt strategy is a clear sign of the growing regional interest. We recorded more than BRL 300 million of net inflows in the quarter and BRL 2.4 billion for the full year, supported by a diversified investor base across multiple geographies and capping a solid year for the strategy. We're encouraged by the breadth of this demand and expect additional inflows following continued commercial efforts expected for 2026. In infrastructure credit, as Alessandro mentioned, we are launching a new product following the winning of a BNDES tender process.

The new fund will be co-managed by the high-grade Credit and MAV teams, once again, demonstrating the strategic rationale behind our acquisitions and the synergies across the platform. The fund will target sectors ranging from energy transition and decarbonization to nature-based solutions with an expected term of 12 years. Its structure is innovative, featuring multiple local fund vehicles and a combination of subordinated mezzanine and senior tranches designed to address different investment profiles, particularly considering the tax-exempt characteristic of certain vehicles.

We also expect several additional product launches across the entire region in 2026. In Colombia, we are preparing to launch our first local fund, COPCO, a direct corporate private lending vehicle, primarily targeting institutional investors. In Chile, we're currently on roadshow for the second vintage of our direct lending strategy, CHILPCO. The first vintage was highly successful and has recently completed the investment period.

In Peru, we're seeing strong interest from local investors in LAPCO II, which is also expected to launch this year. To round out our credit pipeline, we expect additional commitments from SPS IV ahead of the fund's final closing, which is scheduled for the second half of 2026. This strategy is gaining increased momentum, particularly among Chilean and global investors, following its first offshore commitment in the third quarter.

In equities, we recorded net outflows in the fourth quarter, concentrated among foreign investors in our Brazilian equity strategy. These investors typically have a more countercyclical profile and increased their exposure in mid-2024 when Brazilian equities were trading at more depressed valuations.

Looking ahead, we remain very optimistic about our UCITS LatAm and Brazil funds and are already in advanced discussions with several institutional investors for commitments into these strategies.

Shifting to real assets. In 2025, the infrastructure team partnered with Changi and acquired a controlling stake in Rio de Janeiro's International Airport, Galeao. We are preparing for the March auction for the airport's new concession contract. Within this segment, we also expect new commitments for Lacan IV this year under our forestry strategy, reflecting continued institutional interest in real asset exposure. In real estate, we remain attentive to the potential reopening of market windows following SELIC cuts, which could create a more favorable environment to raise capital for our REITs.

As you know, REITs remain one of the most attractive investment vehicles for individual investors in the Brazilian capital markets. At the same time, we continue to advance with other opportunities within real assets, including our opportunistic development fund strategy focused on industrial and residential segments.

This strategy enhances our diversification and earnings potential as it attracts institutional investors such as pension funds and family offices, while complementing our income-oriented products and adding carry optionality to the platform. Overall, we entered 2026 with strong momentum and clear visibility across product launches, institutional mandates and multi-country fundraising initiatives. The combination of a broader distribution, a very comprehensive product shelf and ongoing operational enhancements give us confidence in our ability to continue compounding growth.

With that, I'll hand it to Sergio to walk through the financial results.

Thank you, Bruno, and good evening, everyone. 2025 was a very solid year for the firm, and we are very satisfied to report an exceptionally strong quarter, reflected across multiple fronts and delivered to shareholders through a dividend of $0.17 on the dollar per share, payable on April 2nd to shareholders of record as of March 19th.

Let me start by walking you through our revenues. In management fees, we generated BRL 220 million in the fourth quarter, up 29% year-over-year. This growth reflects the combined effect of our strategic transactions, including Compass, Lacan, and Verde, as well as a strong fundraising momentum, particularly within credit and Global IP&S. It's also important to note that Verde contributed to our results for only 1 month in the quarter, following the closing in December. Advisory fees totaled BRL 15 million in the quarter, posting a decrease year-over-year.

As a reminder, upfront fees in our third-party distribution alternative business can vary meaningfully depending on the timing of commitments, and we signed most of our commitments early in 2025. In addition, advisory revenues from corporate advisory were lower in the quarter given quieter deal activity.

Turning to fee-related earnings. We generated BRL 80 million of FRE in the quarter, or BRL 1.23 per share, with a 32.6% FRE margin. The year-over-year comparison was partially impacted by catch-up fees recognized in the Private Equity segment in the fourth quarter of 2024. Excluding that non-recurring effect, FRE grew 26% year-over-year, driven primarily by fundraising across Credit and Global P&S and acquisitions executed during the period.

For the full year 2025, FRE reached BRL 288 million or BRL4.52 per share, with a full-year margin of 30.4%. We are very pleased to have delivered FRE margin we have been targeting throughout the year. The improvement in margin reflects operating leverage from revenue growth, combined with the cost reduction initiatives we began implementing at the start of the year, as well as a small but present Verde contribution following the acquisition.

Looking ahead to 2026, we expect continued momentum in FRE growth, supported by our strong fundraising pipeline and the full contribution of Verde's revenue and FRE.

Moving to performance-related earnings. We recognized BRL 5 million of PRE in the quarter, primarily across Global P&S, Credit, and Equities. Performance fees normalized after a strong fourth quarter last year, which included one-off contributions from opportunistic funds in Argentina and Peru.

On investment related earnings, or IRE, we posted a record BRL 45 million in the quarter. The unrealized component benefited from positive year-end markups in our private markets IRE commitments, combined with appreciation in our listed REIT positions. This reflects the embedded value creation within our balance sheet commitments, which remain an important driver of long-term earnings power.

Before moving to distributable earnings, I want to highlight an important reporting change. Starting this quarter, other comprehensive income or OCI, which reflects foreign exchange variations, now flows to our distributable earnings, adjusted distributable earnings and adjusted net income. Up to the third quarter of 2025, OCI did not impact these adjusted metrics.

We believe this change provides a more comprehensive view of our results as it incorporates the impact of our consolidated U.S. dollar exposures and presents our performance in a more holistic manner. I'd also like to highlight that following the Verde transactions, we introduced a minority interest line this quarter, which represents the portion of Verde earning attributable to the remaining 49.9% non-controlling interest.

Putting it all together, Vinci Compass generated BRL 81 million or BRL 1.24 per share of adjustable distributable earnings in the fourth quarter, representing 10% growth on a nominal basis and 8% growth on a per share basis. For the full year, adjusted distributable earnings totaled BRL 292 million or BRL 4.58 per share, reflecting 22% nominal growth and 7% growth per share. The fourth quarter and full year 2025 underscored our disciplined approach to growth and capital allocation, leaving us well positioned for continued progress in 2026.

In closing, I would like to once again emphasize the strong momentum we continue to see across the firm. We remain fully committed to generating long-term value supported by breadth of our fundraise pipeline for 2026.

With that, I'd like to close our remarks and open the call for questions. Once again, I'd like to thank you for joining our call. Please, operator, you may proceed with the questions. Thank you.

Thank you. [Operator Instructions] Our first question comes from Lindsey Shema from Goldman Sachs.

I have 2 questions, actually. Let's maybe start on the first, which is a bit broader. It seems like you have strong fundraising expectations for the year. But as you said a lot of uncertainty, a lot of elections in the region. Do you get the sense that maybe there's some money on the sidelines? And if the elections go in a certain direction, there could be a big increase towards the end of the year? Is there anything you're kind of looking for in elections that could be a big catalyst? And kind of just, in general, what are you thinking about elections and the impact on fundraising? And then I'll ask my second question after.

Lindsey, this is Bruno. Yes. So we had -- I think we had a good '25 in regards to AUM. We had 13%, if I'm not mistaken, 13% growth in our AUM on a year-on-year basis if you take out the effects from the exchange rate variation that was against us in '25 when you look at the reais number. So I think that number was healthy.

And it is a number that we are expecting to hopefully repeat this low double-digit growth rate on a currency-adjusted basis for '26. As we said, there is a very big pipeline, mainly in the credit segment. We have 6 or 7 funds that are structured funds across the region, Colombia, Peru, Chile, Mexico, Brazil. So there's a lot of different strategies and opportunities to raise capital there.

I think other than -- I think elections are obviously one of the variables. But more than elections, I think the main variable for us is the impact from cyclicality on products that are more correlated with interest rates. So this is something that obviously, over the next -- over the last few years has been idle for us. So if you look at our equities business, if you look at our real estate business and even the Brazilian investment solutions business, we have had a little bit more challenge to raise capital in these verticals.

And with -- now we're seeing for the first time in a very long time, real interest rates, the long-term curve starting to come in. And obviously, there is an expectation of lowering rates, and we saw that through the REIT's performance during the fourth quarter. Now the first quarter, again, we're seeing good REIT performance in the portfolio. So this is a variable that has more of an impact.

Obviously, interest rate curve has by itself a correlation with the election outlook. But at the end of the day, what impacts us is the curve, right? So if we are in a position where the curve is more benign, and we see that coming down and with that create an opportunity for us to grow in these more cyclical asset classes, I think that would be very, very positive for the platform. So the 13% that we did last year growth was without the contribution of the cyclical groups. So if we can have real estate REITs, local Brazilian investment solutions, equities participating, I think this would be a tremendous uplift to the expectations of further AUM gains.

Definitely makes sense on the interest rate side. And then maybe for my second question, a bit more specific. Just trying to get a sense of how to model the advisory fees line going forward. I mean, I understand that the TPD alts upfronts can be kind of chunky depending on when you expect them. I mean, one, do you have any expectations for kind of how the timing is going to go throughout 2026? Or is it better to maybe just annualize the 2025 level?

And then second, on the corporate advisory side, how much of an increase do you kind of expect this year in deal-making activity from the expected decrease in rates? And kind of where can that number go to?

Okay. So we have a little bit more visibility at this point on the corporate advisory at least. The first half looks like, at least for now, it's going to continue to be more on the softer end. So we do have some transactions that are in the pipe, but the volume is still not as relevant as we saw in '22 and '23, or maybe '23, I would say. It was a good year for us. We're still lagging in terms of volume and the level of advisory mandates that we have that are in line to be closed. So I would expect at least the first half to be a little bit slower, like what we saw in '25.

And in regards to the upfront on the Global IP&S side, it's really very tough to say when those will fall. As you said, it really depends on the calendar and how the fundraisings fall over the year. Overall, we expect '26 to be slightly lower than '25 on the advisory -- on the upfront as well. So advisory probably at the same level and then upfront a little bit slower than we saw in '25, given the calendar that we have. But timing the quarterly -- like every quarter, how that will fall at this point is very, very difficult, Lindsey.

So what I can say that directionally, the overall advisory line, if you add upfront and corporate advisory, is likely going to be a little bit smaller than '25.

Got it. So it seems like the impact from corporate advisory would not be enough to offset the TPD alts?

Yes. That's how it's looking like today, but these things change. But as far as we can forecast, we see that total advisory line a little bit down when compared with '25.

Our next question comes from Ricardo Buchpiguel from BTG Pactual.

I have 2 questions here. So first, we saw that in the last couple of quarters there was a materialization of some of the cost synergies related to the M&A appearing, particularly as we see the FRE margins going up mainly in Q3, and then a little bit more in Q4. So I wanted to ask what is the next step in terms of M&A synergies to be captured, particularly in 2026, right? And where would that appear in the results? And then I ask my second question.

Thank you, Ricardo. That's Alessandro. Of course, the low-hanging fruit type of synergies, we already incorporated in the numbers. But still, there is -- there are a lot of other opportunities moving forward. We are looking for optimization of the structure, procurement, also rationalizing our investment in strategies and people, expanding some of our strategies through other geographies. So still inside the M&A, and of course, Compass is the most relevant here. One, the transaction of our combination of Compass, we see interesting possibilities to continue appropriating of this value.

Of course, there is more recent ones like Verde that we kept as a more like segregate in terms of strategy. But still, we do have some synergies, especially from the commercial side in Verde, for example. So answering your question straightforward, yes, we still see synergies to be captured moving forward from the previous M&A activity.

Well, that's clear. And should we see something -- some improvement, for example, in inflows related to this commercial synergies that you mentioned already appear in 2026? Or it should be something more relevant for '27 onwards?

No, we probably will see already. We mentioned in our previous -- in the call that we are launching new products with Verde, for instance. So we will see gains of that.

New products that we are launching from the alts -- alternative for local markets in other countries through our expertise and also the commercial effort coming from Compass presence in the countries. So yes, we do see that we will probably capture some of these commercial efforts within 2026. Of course, that will ramp up, but we probably will see some of these numbers appear in 2026.

That's clear. And for my second question, I wanted to see if you can talk a little bit more about the expectations in terms of the investment-related earnings in 2026, both in terms of realized and unrealized portions, right? I understand there are a few moving parts here since you need to keep investing the capital proceeds. So it will be very helpful to get any guidance on this line for this year.

Thank you for that question, Ricardo. It's Bruno. So, yes, I think the IRE is -- what's happening now is I think we're getting to the interesting part of the IRE development because over the past couple of years, or 1.5 years, it wasn't a very good point, right, because we were in the deployment phase and the funds were in the J-curve. So we had a situation where we were taking money out of short-term rates, which are at a very high level and putting money into these funds that were in the beginning of their life cycle, within the J-curve and not really contributing a lot to profitability.

I think in the fourth quarter, we saw for the first time mark-to-market in one of the funds that we have contributed capital, which was VCP IV on top of the appreciation of the REITs. And given that the fund is now out of the J-curve, we would expect this movement to start being more material going forward. So as VCP IV, SPS IV, VICC, these 3 main funds in which the balance sheet of the company has a bigger exposure, are getting out of the J-curve, this should materialize in higher unrealized IRE. Obviously, this is the, let's say, the next stage that we're getting in, right? So we're getting into this phase where we're going to see the profitability and the increase in the share value of the funds in our net profit.

And then the following phase, once these funds start to return capital, those proceeds are going to become impactful to our distributable earnings number. This will probably take a little bit longer to happen. There might be -- given the better liquidity environment that we see in Brazil over the past few months, there might be an opportunity for us to start having a quicker monetization of these funds, but it will take a little bit longer.

So the expectation for '26 is for us to start having the IRE on the unrealized part being more of a contributor to net profits. And hopefully, this can be translated to distributable earnings as soon as the end of this year or next year. But the expectation is for this number to start being more material for the net profit line in '26.

Our next question comes from Guilherme Grespan from JPMorgan.

My question is on the private credit side. It has been a big discussion globally, right? I think the thesis that we are hearing nowadays, I think, is less applicable to Vinci's portfolio. But I see the mood on the private credit, which has been important, I think, credit as a strategy, I think, added more than BRL 5 billion in fundraising in the last 12 months. Just want to get your views on how is the sentiment on fundraising on this vertical. And just remind us a little bit the profile of the client that you fundraise.

If I recall correctly, I think on credit, the 2 main products is going to be Compass, high yield and corporate debt. But just a refresh on this vertical. What is the mood? Is it affecting the fundraising or not? And if there's any impact to you?

Okay. Thank you for the question. That's Alessandro. I would say that that's a very good question. If you take into consideration what's happening in the global markets, in the alts business globally, we still believe -- reinforce that we are very optimistic with the credit vertical.

Our credit business is today very diversified. We've seen different strategies, different type of funding. But as you said, we have an important component that's more like corporate debt, that's different type of clients from institutional to high net worth, especially, international money flowing, in Latin America, corporate debt. So this is really more liquid stuff, with less linked to what's going on, on the private credit side, especially the semiliquid fund globally.

Also talking more about the countries, we do not have first exposure to the same sectors that have been a question like IT, tech and et cetera. Of course, Latin America is one good example, let's say, in terms of the majority of the business as the hollow type of investment. So it's really assets and low obsolescence.

So even our private credit business within Brazil or the other countries like America, like Peru, Colombia and so it's still much more plain vanilla stuff. And the exposure to this asset class is still very small. We do not have, especially on this specific private credit funds, a lot of funding coming from retail or affluent business like the main semi-liquid fund is not the reality here. This is more institutional money, closed-end funds. So it's really not -- the peril is really very small.

Where maybe we can see some effect is the fundraising of private credit globally in our TPD business. But still this is not the most relevant pipeline that we have moving forward, but it's where technically, we can see the investor a little bit more cautious in allocating private credit moving forward, globally in TPD. Not in our main business that's our own self-managed funds. That's in a strategy that not relates a lot with the main drivers of the worries regarding private credit internationally.

[Operator Instructions] I would like to turn the floor over back to Mr. Alessandro Horta for the closing remarks. Please, Mr. Horta, you can proceed.

So I'd like to once more thank you all for your continuous interest and support. Being a public company for more than 5 years now bring us a lot of optimism with the future. We strongly believe that we'll continue to deliver value for the years to come. So thank you again and good night.

This does conclude today's presentation. We thank you all for your participation and wish you a very good night.

Good afternoon, and welcome to Vinci Compass Third Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

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

Thank you, and good evening, everyone. Joining us today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, President of Finance and Operations; and Sergio Passos, Chief Financial Officer.

Earlier today, we issued a press release, slide presentation and our financial statements for the quarter, which are available on our website at ir.vincicompass.com.

I'd like to remind you that today's call may include forward-looking statements, which are uncertain and outside of the firm's control and may differ from actual results materially. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our 20-F.

We will also refer to certain non-GAAP measures, and you'll find reconciliations in the release. Also note that nothing on this call constitutes an offer for sale or solicitation of an offer to purchase an interest in any Vinci Compass fund.

On results for the third quarter, Vinci Compass generated fee-related earnings of BRL 77.1 million or BRL 1.22 per share, FRE margin of 32.3% and adjusted distributable earnings of BRL 73.1 million or BRL 1.16 per share. We declared a quarterly dividend of $0.15 on the dollar per common share payable on December 9 to shareholders of record as of November 24.

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

Thank you, Anna. Good evening, and thank you all for joining our call. We appreciate you joining us. We hit important milestones for Vinci Compass this quarter. Before we start discussing our quarterly results, I would like to take a moment to highlight some important recent milestones.

In October, we hosted our second Investor Day in New York. It was a great opportunity to catch up with analysts and investors, reinforce Vinci Compass long-term vision, showcase the strength of our integrated platform and provide greater transparency into each of our business segments.

During the event, we shared how we are positioning the firm to capture growth across our core strategies, driven by disciplined capital allocation, innovation in product development and continued focus on delivering value to our clients and shareholders. The strong engagement and positive feedback from participants reaffirmed investors' confidence in our differentiated model and growth prospects in Latin America.

On the same day, we also discussed the acquisition of Verde, a transaction that represents a significant milestone in our strategic expansion. This transaction further strength Vinci Compass' position as a leading alternative investment platform in Latin America by combining forces with the region's leader in global and local asset allocation with an exceptional investment track record. The transaction was very well received by the local community as well as global clients and our shareholder base.

We had the opportunity to discuss the Investor Day and the Vinci transaction in-person with analysts and investors in the following days that week in New York, and the feedback was very constructive. We feel our constituents recognize the strategic and cultural alignment between the 2 firms and the long-term value creation potential for this combination, leaving us very excited and confident about the future. We remain on track to close the transaction by the end of November.

Although we had an exciting start of fourth quarter with the Investor Day and the Verde transaction, the work hasn't stopped since. We are already executing on the priorities we outlined such as accelerating regional expansion, capturing the secular growth opportunity in private credit and expanding FRE margins through revenue stream leverage and operating cost discipline.

In SPS IV, we secured not only our first offshore commitment, but also the first Brazilian pension plan commitment in the history of our opportunistic capital solution funds, a clear evidence of our outstanding ability to penetrate long-standing relationships to distribute proprietary funds across different channels.

Bruno will unpack the fundraising pipeline in a moment, but we are very encouraged by the depth of interest we are encountering, particularly from foreign investors tracking our upcoming second closing.

Shifting to our third quarter results, we crossed the 30% FRE margin threshold in the third quarter. Delivering a 32% FRE margin, the highest level year-to-date. This reflects both the potential for margin expansion from platform growth we have been discussing with you and our disciplined cost execution. This quarter, we began to see the impact from cost reduction initiatives carried out this year throughout the firm, combined with the operational leverage resulting from the strong fundraising in our funds over the past few quarters.

We have been extremely focused on driving efficiencies since closing the combination with Compass, and we are very satisfied with the results, which are now starting to flow through the income statement this quarter. This progress is the result of the thorough work of all management teams and the Executive Committee as we approach the final stage of integrating both companies.

As we have discussed, we see substantial opportunity to expand our margins and efficiencies represent only a portion of that. The most meaningful driver is platform growth, whether organically or through acquisitions. We are on the path to achieve our 38% FRE margin target by 2028 as discussed at the Investor Day, supported by additional cost reduction initiatives in the pipeline, substantial fundraising across all segments and the expected closing of Vinci in 2025.

Shifting to the macroenvironment, broad-based asset appreciation and an easing rate bias across emerging economies continue to create a constructive environment for our platform. Brazil should benefit even more than its peers, supported by the potential of a future political shift that could reinforce fiscal responsibility and by a likely Selic cutting cycle beginning in the coming months. With lower rates and better anchored inflation expectations, we see further room for a re-rating of local assets, which has already begun.

Across the region, Mexico and Chile are meaningfully ahead in their easy cycles. Mexico has cut from 11.25% to 7.50% over roughly 18 months with further reductions expected. And Chile is already below 5% with its cycle well advanced. This creates differentiated asset allocation deployment and capital gains opportunities across Latin America.

Reinforcing this environment, several countries are moving or are expected to move toward more market-friendly policies, including potentially Chile and Brazil as well as Colombia and Argentina, which is already undergoing Milei's pro market shift. In Argentina, specifically, authorities are taking meaningful steps to reverse years of persistent fiscal deficits.

These dynamics are also reviving the case for international portfolio diversification. We believe the trend of global investors seeking exposure beyond the U.S. has further to run, supporting our fundraising, offering attractive risk-adjusted opportunities and potential currency diversification.

Turning to Credit. The segment is building momentum as expected with Latin America investors and increasingly global allocators. Our LatAm corporate debt strategy raised over BRL 1 billion in the quarter with 30% coming from investors outside the region, underscoring both strong international appetite and the reach of our distribution across Europe and the U.S.

Our forestry vertical is also drawing strong international interest, especially from European development finance institutions. We aim to convert this attention into capital subscription for our Lacan IV fund in the fourth quarter of 2025 and into 2026.

Our positioning as a leading provider of nature-based solutions in Latin America and the ability to scale through planted forest, while capturing higher quality carbon credits and biodiversity co-benefits, position us to pursue a significant addressable market across DFIs, global corporations, institutional investors and family offices. Recent international announcements in support of Brazil's forest programs underscore rising global capital flows into conservation and nature-based solutions.

Moving on to Global IP&S. Our third-party distribution business continues to deliver strong results with TPD alternative and liquid funds as key growth drivers. Within that, semi-liquid funds are standing out by pairing sophisticated products with retail-friendly features. We are seeing very strong receptivity in retail channels and expected continued traction as we broaden distribution.

Private debt and middle market strategies continue to attract sophisticated investors, and we plan to expand our middle market funds offering. Altogether, we delivered BRL 19 billion in capital formation and appreciation in the quarter, bringing AUM to BRL 316 billion. In U.S. dollars, AUM reached just a tad below $60 billion at a record $59.4 billion.

To wrap up, our opportunity set has never been stronger. Structural tailwinds in alternatives and emerging markets are accelerating and Vinci Compass is the reference partner in our region. More investors across channels are adopting private market solutions than ever, and we expect this trend to continue in the medium term.

We are investing behind this demand with scalable products, disciplined risk management and a growing distribution footprint. Looking ahead, our platform is built for this environment and positioned to capture the generational shifts underway in the global economy and markets, compounding value for our clients and shareholders.

Thank you again for joining us. With that, I'll turn it over to Bruno.

Thank you, Alessandro, and good evening, everyone. We are thrilled to share that we delivered BRL 19 billion in capital formation and appreciation this quarter. Global IP&S and Credit were key growth drivers, and we believe we are still in the early innings of a significant growth opportunity across all of our asset classes. We laid out this opportunity in detail during our Investor Day.

Starting with SPS IV, we achieved important milestones this quarter, our first offshore commitments and the launch of the offshore vehicle. With the fund live and seeded, follow-on offshore commitments tend to accelerate. Our pipeline includes several foreign investors, and we expect to sign additional commitments by year-end. We also secured our first Brazilian pension plan commitment to the strategy, which we expect will catalyze additional allocations from other local institutions.

Our track record is a key driver to new commitments. The first vintage, SPS I, which recently returned additional capital to investors from a successful exit, is currently delivering a DPI of 1.9x and a gross IRR of 25%, both in Brazilian reals. Further validation comes from SPS III, which distributed during October over 9% of total commitments. This vintage is still within its investment period, which ends only in the fourth quarter of 2026 and has already started to return meaningful capital to LPs.

Still in private credit, we received additional commitments in our senior secured lending product in Peru, PEPCO II. We expect further commitments over the coming quarters in both [ PEPCO II ] and [ FAIPERU ] Peru, our semi-liquid confirming and factoring fund.

Our long-standing presence in Peru, together with our position as the largest fund in that market gives us a clear edge to keep capturing opportunities. In addition, to deepen engagement and showcase the full breadth of our regional platform, we hosted Peruvian institutional investors for a roadshow at our Brazil offices.

We have also introduced [ COPCO I ] to our Colombian LPs, our first secured lending fund in Colombia. Pension funds and insurance companies are increasing allocations to local currency alternative strategies, giving regulatory frameworks and COPCO I is designed to meet that demand. The vehicle will have a 10-year term and is expected to launch in the first half of 2026.

In Brazil, our liquid credit strategies are also showing strong growth. Infrastructure debentures, structured credit and corporate liquid credit funds all displayed strong investor interest and raised over BRL 500 million in the quarter. Our diversified product lineup widens our addressable base and drives demand across different credit sub-strategies.

In equities, we continue to see outflows from our Brazilian domestic equity funds, reflecting a more risk-averse stance among local institutional investors. This trend is driven by the ongoing shift in their portfolios from equities to local inflation-linked government bonds, whose yields remain near historical highs and have not compressed this year despite the rally in the equity markets.

Shifting to Global IP&S, AUM reached more than BRL 241 billion, supported by approximately BRL 8 billion of inflows. As Alessandro noted, we're encouraged by the reach of our TPD business and more importantly, the depth of coverage from our client relations team.

We expect to continue raising capital in this vertical, although we believe most TPD alternative inflows that charge upfront fees were recognized by the end of September and thus should have a more limited impact in the fourth quarter. On the liquid side, we see room for additional traction by year-end.

A highlight in TPD alternative this quarter was a $300 million commitment from a Latin American institutional investor to a global private equity fund managed by a world-class GP represent in the region. This is an exceptional commitment that underscores the growing appetite for alternative among LatAm institutions as highlighted in all of our recent communications.

Lastly, in Private Equity, as we work towards the first closing of VIR V expected in the first half of 2026, we're very encouraged by the interest from LPs to re-up in the fund. On the VCP front, the team is highly active in origination with a pipeline of 40-plus active opportunities and 4 transactions in advanced negotiations to deploy VCP's IV dry powder.

In terms of portfolio performance, VCP III companies delivered solid operational results. In the second quarter of 2025, aggregate EBITDA grew 16% year-over-year. We are particularly excited with our portfolio company, Agibank, as it continues to deliver very strong KPIs, expanding revenues year-over-year by 50%.

In VCP IV, Arklok has been increasing revenue by 30% year-over-year, another company we have been very excited about. These results reinforce the health of our portfolio and our conviction in disciplined deployment of VCP IV. Our distribution teams are executing exceptionally well across channels, and October got off to a constructive start for the fourth quarter of 2025.

We're also preparing to navigate Chile's pension reform as benchmarks and target date frameworks finalize. Our client-facing group will have a fund 2026 as our product slate is quite full. We have private credit products being launched across the region. We have our UCITS equities funds and several closed-end funds across other strategies such as Private Equity and Real Assets.

In addition, on top of our TPD funds, which continue to exhibit strength as global allocation grows, Global IP&S will launch a series of new discretionary allocation products, allowing LatAm investors to have a diversified exposure to portfolios of semi-liquid funds across developed markets. This will lower entry tickets while helping investors with optimal allocation to their portfolios.

All this alongside a nascent cyclical improvement in the region with higher demand for allocations from both local and currently under allocated global LPs.

On the operations front, AI adoption is now mainstream at Vinci Compass with roughly 80% of our team using AI in their daily work to enhance productivity, client service and risk management. As we discussed internally, we want to lead the transition into an AI-enabled workplace, and Vinci Compass needs to sponsor this change, so it's done safely and addressing the specific needs of our groups.

This agenda is accelerating, and we expect it ultimately to be felt by investors through better overall decision-making and execution, positively affecting risk-adjusted returns. We entered the fourth quarter with clear visibility and strong momentum, and the pipeline of opportunities allows us to build on these results into 2026.

With that, I'll hand it over to Sergio to walk through the financials.

Thank you, Bruno. Starting with our AUM, we ended the quarter with BRL 316 billion, representing an increase of 4% quarter-over-quarter. Capital formation and appreciation totaled BRL 19 billion, partially offset by a negative FX impact of BRL 6 billion.

We had significant inflows coming from Global IP&S, getting close to BRL 80 billion in the quarter. A portion of those inflows came from TPD alternative, generating BRL 18 million in advisory fees recognized onetime as upfront fees. We expect another meaningful though smaller contribution from this line in next quarter, reflecting the time of commitment signings.

In addition, we recognized success fee in our real estate advisory business and BRL 4.5 million in corporate advisory. On a management fee basis, we posted BRL 202 million in the quarter. We expect to continue delivering consistent growth, supported by an active fundraising pipeline and to further enhance our revenue mix as we scale our recurring fee earning base.

Total fee-related revenues were BRL 238 million in the quarter, while fee-related expenses were BRL 161 million. This translated to BRL 77 million of FRE and a 32.3% FRE margin, our highest in 2025. The increase in the FRE margin is a result of operating leverage from revenue growth, some transaction costs that stopped impacting us this quarter, combined with cost reduction initiatives we have been working on since the beginning of the year, which have started to pay off now.

Delivering what we set out to do is in our DNA, and we remain focused on further compounding growth with efficiency. Performance-related earnings were BRL 1.7 million in the quarter, coming primarily from equity funds. As a reminder, most of our Brazilian open-end funds crystallized performance fees semiannually in June and December. So the first and the third quarters typically show lower performance fee recognition.

This is the first quarter that we highlight our investment-related earnings or IRE. We introduced this metric in our Investor Day, and our objective is to be the most transparent as we can and highlight the realized and unrealized gains from our commitments in proprietary funds. IRE is an important value driver in our business model, designed to compound growth and create long-term shareholder value through our GP commitments. IRE in the third quarter was BRL 5 million with listed REITs contributing to realized income and positive markups in funds supporting the unrealized component.

Finally, putting it all together, adjusted distributable earnings totaled BRL 73 million or BRL 1.16 per share, representing a 28% increase year-over-year on a nominal basis and 7% growth on a per share basis. This quarter underscores durable fee power and an improving margin profile, validating our disciplined approach to growth, expand and allocate capital, leaving us well positioned for continued progress in the fourth quarter and 2026.

With that, I would like to close our remarks and open the call for questions. Once again, we'd like to thank you for joining our call. Please, operator, you may proceed with the questions. Thank you.

[Operator Instructions] Our first question comes from William Barranjard with Itau BBA.

I have a question here regarding one of the things you mentioned during the call, the first Brazilian pension plan to commit in the SPS IV, right? And you also said that this first commitment should unlock further ones from this type of project, right? So I wanted to dive a little bit here. So how fast do you think this new demand could come? And also what kind of cross-sell opportunities this opportunity creates, right? But more importantly here, how big do you think this pocket is these new opportunities for you guys?

William, that's Alessandro. Thank you for your question. That's true. That's the first pension fund commitment to SPS at all, right? Not just in the Fund IV, but overall, the whole history of SPS. Of course, we expect that would be an opportunity for raising money for this type of clients since, as you know, Vinci Compass main source of funds comes from institutional investors, both local investors, Latin America institutions and of course, international ones.

We do expect further commitments for this strategy still in Fund IV, but we cannot predict exactly the size of it. But this strategy due to the uncorrelated nature and really very low penetration on the portfolios of this type of investors, both local institutions and international institutions, both as first for SPS, we expect this to gain an important space on the overall AUM of the vertical.

Okay. And if I could ask another one regarding your FRE margins, right, improved a lot quarter-on-quarter. Just wanted to hear from you if we should use this new level as the base for the next quarter or if there's any other effect that might decelerate this improvement, maybe lower advisory fees in the next quarter. How should I think about the evolution from here?

Okay. William, this is Bruno. Yes, there's some seasonality as well on the expense line. So we usually have a second quarter that's a little bit stronger in terms of expenses. The third quarter is a little bit lighter from a seasonal standpoint. However, we did have some aspects of the combination in terms of costs that flowed through the numbers during the past 3 quarters and started to reduce a little bit in the third.

So looking forward to the fourth quarter and beyond and obviously not considering the Verde acquisition because that's going to change a little bit the number. But thinking about Vinci standalone, we should be able to see margins on the 30s going forward, right? So probably the fourth quarter would be a little bit smaller than that, but still above 30%. We hope to be able to reach the 30% for the year. I think we are within that distance at this point. I think it's a possibility. And then looking forward to '26, probably we should see margins in general above 30% without the combination with Verde.

With Verde, we're going to have a big impact. The expectation is to close the transaction by the end of November. So they will impact only 1 month of the fourth quarter. But starting in the beginning of next year, once we have them on board for the full year, the impact should be of several hundred basis points. So this this -- let's say, 30% to 31% will push towards probably at least the mid-30 level. So that's the expectation that we have once we have Verde on board. But we expect the continuation of better numbers in the margin level going forward.

Our next question comes from Lindsey Shima with Goldman Sachs.

We saw exceptionally strong Global IP&S inflows this quarter. Just wondering about how much of this was related to the TPD alts? And then you mentioned that there should be a small percentage of the upfront fees in next quarter. But how should we think about this line kind of going forward and then IP&S inflows more broadly in the future?

Okay. So this is Bruno again, Lindsey. Good to hear from you. So TPD was very good this quarter, as was the case of the second quarter as well. The alts this quarter, we had BRL 2 billion positive impact. There was this big check that we mentioned from a regional player into a U.S.-based closed-end funds, which was very relevant.

And although the fourth quarter is looking like it's going to be a little bit slower, mainly on the outside, the liquid side started the quarter pretty strong. So the volume in the first month was similar to what we had in the third quarter on a monthly basis. And I think even more so, when you look at this picture for TPD in general over the medium and long term, I think the picture is quite constructive.

We have in Chile and Mexico, which are 2 markets that are important for us, of course, we have very strong tailwinds from increased contribution to the local institutional plans. We have, in general, more interest from high-net-worth individuals into mainly alternatives. So this is also going to be a driver for medium to long-term growth.

And finally, in Brazil, we are starting from a very low base. The penetration of this type of allocation is still very small, o we expect this also to be a positive tailwind for TPD in the medium and long term. So far, fourth quarter flows continue to be strong. And medium to long term, we continue to be quite optimistic about the business line in terms of flows.

And Lindsay, that's Alessandro. I would like to add on top of what Bruno said, very, very quick comment. In Global IP&S and TPD alts specifically, we are seeing some, I would say, rotation of portfolios from our institutional clients in LatAm, especially moving from more traditional alts to new verticals for them, of course, where we do have a very good managers and products. I can give you an example like secondaries. So this is also providing a very interesting opportunity in terms of allocation.

And another point is that we are looking to the future, as we mentioned during the call, we see an opportunity for more discretionary allocation of funds and SMAs in alts on behalf of the same type of investors, ones that do not want to allocate directly, but would like us to pick up the best managers and strategies for them.

[Operator Instructions] The Q&A session is over. I would like to turn the floor back to Mr. Alessandro Horta for the closing remarks.

I'd like to thank you all once again for your continuous interest and support. This was a very important quarter in which we were able to demonstrate the planned improvement in our FRE margin, and we remain optimistic that we will continue to deliver in line with the expectations we outlined at our Investor Day in New York. So thank you again, and have a good evening.

This does conclude today's presentation. We thank you all for participating and wish you a very good evening.