Vinci Compass (VINP) Q3 2026 Earnings Call Transcript

DATE

Thu, Nov. 12, 2026

CALL PARTICIPANTS

• President of Finance and Operations - Bruno Sacchi Zaremba
• Chief Executive Officer - Alessandro Morgado Horta
• Chief Financial Officer - Sergio Passos Ribeiro

TAKEAWAYS

• Management Fees -- BRL 280.0 million, representing 39% growth driven by organic expansion in the credit segment and contributions from the Verde and BACS acquisitions.
• Fee-Related Earnings (FRE) -- BRL 106.8 million, up 39% year over year due to record management fees and productivity initiatives.
• FRE Margin -- 34.3%, an expansion of 200 basis points from 32.3% in the prior-year period.
• Adjusted Distributable Earnings -- BRL 71.0 million, a 3% decrease reflecting lower realized financial income as capital calls reduced cash positions.
• Net Income -- BRL 183.6 million, up 278% year over year, primarily due to an unrealized gain related to an infrastructure indemnification.
• Galeo Indemnification Gain -- BRL 99.0 million, recognized as an unrealized gain in the third quarter with realization expected in the fourth quarter.
• Total Assets Under Management (AUM) -- BRL 363.0 billion, up 15% year over year, driven by BRL 36.0 billion in capital formation and appreciation over the last 12 months.
• Global IP&S AUM -- BRL 273.3 billion, up 13% year over year, supported by momentum in third-party distribution alternative and liquid strategies.
• Global IP&S Net Inflows -- BRL 3.6 billion, reversing the temporary outflows recorded in the second quarter.
• Credit AUM -- BRL 43.2 billion, up 31% year over year, reflecting growth in local and cross-border strategies.
• Real Assets AUM -- BRL 16.0 billion, up 34% year over year, aided by tight wood supply fundamentals in the forestry sector.
• Private Equity AUM -- BRL 14.0 billion, impacted by the mark-to-market valuation of a listed portfolio company amidst global market volatility.
• Navi Real Estate Acquisition -- BRL 815.0 million in AUM added on Sept. 1, 2026, ahead of initial completion expectations to expand the real estate franchise.
• Quarterly Dividend -- $0.17 per common share, payable on Dec. 11, 2026, to shareholders of record as of Nov. 27, 2026.
• Advisory Fees -- BRL 19.4 million, down 24% year over year as corporate advisory activity remained subdued in Brazil.
• AI Productivity Gains -- Fourfold improvement in IT development team productivity during 2026 following the adoption of AI-driven tools at scale.
• VCP IV Realizations -- Over 90% of capital invested in AGV returned through the sale of its Colombian operations to DHL Supply Chain.
• BACS Integration -- Over BRL 1.0 billion raised year to date in Argentina following the acquisition.
• Realized Financial Income -- BRL 8.5 million, down 43% year over year as capital calls for proprietary funds reduced the company's liquid cash position.

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RISKS

• Ribeiro stated, "The year-over-year decline reflects the absence of revenues in corporate advisory, as M&A and debt structuring activity remain subdued amid still elevated interest rates and election-related uncertainty in Brazil," highlighting challenges in the transaction market.

SUMMARY

Vinci Compass Investments Ltd. (NASDAQ:VINP) management reported record quarterly performance driven by significant inorganic growth and the expansion of its regional alternative investment platform. The company completed the Navi acquisition ahead of schedule and announced the creation of Vinci Permanent Capital Solutions through the acquisition of AustralRe, a move intended to provide a stable, non-redeemable capital source for seeding proprietary strategies. Management emphasized that this new vertical will separate asset-light fee earnings from balance sheet activities, increasing transparency for shareholders. Financial results were further bolstered by a one-time unrealized gain from the Galeo infrastructure indemnification, which is expected to contribute to distributable earnings in the fourth quarter. Operational efficiency improved through the large-scale adoption of artificial intelligence, particularly within the IT development team. The firm also reorganized its regional commercial presence by integrating its North Andean, Central America, and Caribbean operations into a single geography to deepen high-net-worth client penetration.

• CEO Horta stated, "Vinci Compass becomes the first player in the region to have access to a growing source of permanent capital dedicated to supporting the seeding of proprietary strategies and accelerating the growth of our platform."
• Management established NACAC in Oct. to coordinate distribution capabilities across the North Andean, Central America, and Caribbean markets.
• The firm maintains a 20% market share in third-party distribution to Chilean pension funds, positioning it to benefit from the regulatory shift to generational funds starting in April 2027.
• Vinci Compass implemented Datalab, a corporate AI governance center, to monitor and guide decentralized development of over 100 internal AI-driven solutions.
• Management plans to transfer approximately BRL 1.0 billion in GP commitments to the new VPCS vertical, which will remove future capital call obligations from the asset management division.
• Vinci Real Estate was appointed manager of the BRL 365 million APXM11 real estate fund through a competitive process at no additional acquisition cost.
• Portfolio company Bold announced a strategic partnership with Shake Shack to open at least 40 restaurant locations in Brazil through 2036.

INDUSTRY GLOSSARY

• FRE: Fee-Related Earnings, a measure of the recurring profits generated from investment management and advisory fees.
• VPCS: Vinci Permanent Capital Solutions, a business vertical focused on permanent, non-redeemable capital vehicles.
• NACAC: North Andean, Central America, and the Caribbean, a newly integrated geographic business region.
• TPD: Third-Party Distribution, the business of marketing and selling investment products managed by external asset managers.
• Galeo: The Tom Jobim International Airport in Rio de Janeiro, Brazil, related to an infrastructure concession indemnification.
• AGV: A logistics and supply chain holding company formerly part of the firm's private equity portfolio.
• BNDES: The Brazilian Development Bank, which serves as an anchor investor in the firm's new sustainable credit fund.

Full Conference Call Transcript

Operator: Good afternoon, and welcome to Vinci Compass Third 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 Bruno Zaremba, President of Finance and Operations. Please go ahead, Mr. Zaremba.

Bruno Sacchi Zaremba: Thank you and good evening, everyone. This is Bruno Zaremba, President of Finance and Operations. Joining me today are Alessandro Horta, Chief Executive Officer, and Sergio Passos, Chief Financial Officer. Earlier today, we issued a press release, slide presentation, and our financial statements for the third quarter of 2026, which are available on our website at ir.vincicompass.com. I would 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 also refer to certain non-GAAP measures, and you will 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 funds. On results for the third quarter of 2026, Vinci Compass generated fee-related earnings of BRL 106.8 million, or BRL 1.61 per share, with an FRE margin of 34.3% and adjusted distributable earnings of BRL 71 million, or BRL 1.07 per share. We declared a quarterly dividend of $0.17 per common share, payable on December 11 to shareholders of record as of November 27. With that, I will turn the call over to Alessandro.

Alessandro Morgado Horta: Thank you, Bruno, and good evening, everyone. Thank you for joining us today. The third quarter marked a significant period in the evolution of Vinci Compass. During the quarter, we completed the Navi acquisition ahead of our initial expectations and delivered the highest quarterly management fees, fee-related earnings, and net income in our history. Shortly after quarter end, we announced a development that represents an important inflection point for our platform, the creation of Vinci Permanent Capital Solutions, or VPCS, with the acquisition of AustralRe. We believe this transaction has the potential to redefine what an alternative asset manager in our region can be.

Each of these developments strengthens a different dimension of Vinci Compass and advances the strategic priorities we have consistently pursued, expanding our investment capabilities, increasing the scale of our platform, and building a more diversified and resilient business. Let me begin with Navi. When we announced the acquisition on our last call, we expected closing during the fourth quarter. We completed the transaction on September 1, ahead of that timeline, adding approximately BRL 850 million in assets under management. What makes Navi particularly valuable is the quality of the capital it brings. A significant portion of the funds are perpetual and long-term lockup vehicles.

This strengthens the durability of our AUM base and adds the type of recurring fee revenues we seek to expand across our platform. Navi began contributing to management fees in September and will provide a full quarter contribution going forward. This transaction demonstrates the scalability and operating leverage embedded in our platform. The investment expertise and capabilities we have developed over time allowed us to incorporate these additional assets efficiently while leveraging our existing teams and the operation and corporate infrastructure already in place.

Turning now to the creation of VPCS, anchored by the acquisition of AustralRe, I want to take a moment to reiterate why we believe this is such a meaningful milestone for Vinci Compass and for the Latin American alternatives industry as a whole. With VPCS, Vinci Compass becomes the first player in the region to have access to a growing source of permanent capital dedicated to supporting the seeding of proprietary strategies and accelerating the growth of our platform. At its core, this is an asset management transaction, as AustralRe will become an important client of Vinci Compass, investing in the same funds and under the same structures as our LPs.

This further strengthens the alignment with our clients that has always been central to our model. VPCS will operate as a new business vertical, clearly separated from our asset management division, preserving the transparency of our asset-light fee earnings while adding a complementary and growing source of earnings. The transaction is expected to be immediately accretive, with double-digit accretion to distributable earnings per share, and we expect closing to happen in the first quarter of 2027, subject to regulatory approval and other customary conditions. The strategic value of permanent capital is particularly relevant in Latin America, where capital cycles are longer, GP commitment requirements are higher, and opportunities to recycle capital are more limited than in developed markets.

As our [indiscernible] investable assets grow, they can provide a permanent and stable source of capital to support the growth of our platform. This flexibility to continue investing across different market cycles brings me to a broader point about the resilience of our platform following recent elections across several of our key markets in Latin America. While political developments may affect sentiment and influence the pace of opportunities at different points in time, we remain focused on the long-term forces shaping alternative investments in the region.

These include the continued development of local capital markets across the Latin American countries where we operate, the growing sophistication of institutional investors, and increasing demand for investment solutions that connect local investors to global opportunities and global capital to opportunities across the region. Against this backdrop, our ability to navigate an evolving political and economic landscape reflects the resilience of the platform we have deliberately built over many years, not by chance, but through a clearly articulated strategy, disciplined execution, and the continued expansion of our regional commercial presence. On that note, in October, we took another step in expanding our regional commercial presence by establishing North Andean, Central America, and the Caribbean, or NACAC, as an integrated geography.

This new structure brings together our existing business and distribution capabilities across these markets while expanding our coverage of high-net-worth clients and complementing the institutional and intermediary presence we already have in the region. By serving these client segments in a more coordinated manner, we can leverage the full breadth of the Vinci Compass platform, deepen existing relationships, and capture new opportunities across the region. This builds on a longer track record. As you know, since our IPO, we have consistently expanded and diversified our platform.

The combination with Compass, together with the acquisitions of SPS, MAV, Lacan, Verde, BACS, and Navi, has broadened our capabilities across asset classes, strategies, geographies, and client segments, progressively reducing our dependence on any single market, product, or investor base. This diversification gives us the flexibility to adapt our fundraising priorities, product development, and investment decisions as market conditions and investor needs change. While the pace and composition of individual opportunities may vary, our ability to pursue growth across the platform remains supported by the breadth of our capabilities and regional presence. VPCS adds a further dimension to this model and takes the resilience of our platform to another level.

By combining our diversified asset management capabilities with a permanent non-redeemable capital base, VPCS enhances our ability to seed new strategies, support GP commitments, and continue investing through periods when fundraising conditions in individual markets become more selective. Turning to our financial performance, net income was a significant highlight of the quarter, reaching BRL 184 million. This result includes an unrealized gain of BRL 99 million related to the Galeão indemnification, as anticipated in our previous communications. Because the gain was recognized on an unrealized basis in the third quarter, it increased net income. We expected it to be realized in the fourth quarter, at which point it should contribute to distributable earnings.

This non-recurring contribution reflects our infrastructure team's ability to create value through deep sector expertise, including its involvement in the negotiations and the structures of the new regulatory model. The indemnification also demonstrates our ability to originate unique opportunities and translate our investment capabilities into tangible value. More broadly, it provides a clear example of the value embedded in our balance sheet that's not captured in current cash earnings. Upon the closing of the AustralRe acquisition and the creation of VPCS, our new reporting structure will incorporate unrealized mark-to-market gains on GP commitments, providing greater visibility into this component of our balance sheet and its value creation potential. Beyond net income, our recurring earnings also reached record levels.

Management fees totaled BRL 280 million, up 39% year-over-year, and fee-related earnings reached approximately BRL 107 million, with the FRE margin expanding to 34.2% from 32.3% one year ago, reflecting revenue growth and the productivity initiatives we have implemented over the past year. It is also worth noting that this quarter's result include approximately BRL 3.5 million in severance expenses, as we continue to look for productivity opportunities across the platform, which we do not adjust for in FRE. Excluding them, our FRE margin would have reached 35.5%, and Sergio will provide more details shortly.

Turning to AUM, we ended the quarter with BRL 363 billion, up 15% year-over-year, with approximately BRL 36 billion in capital formation and appreciation over the last 12 months, and BRL 4 billion in net inflows in the quarter, led by Global IP&S. In credit, the integration of BACS continued to progress very well, with over BRL 1 billion raised year-to-date in Argentina and BACS' full quarter contribution to results. The strong reception from clients and partners is already beginning to translate into inflows, reinforcing the strategic rationale of the transaction.

By combining our asset management capability with BACS' extensive corporate and retail distribution network, we are building a scaled platform positioned to capture the growing demand for more sophisticated investment solutions in Argentina. In private equity, we had several exciting developments during the quarter. VCP IV signed its first exit while still in its investment period, through the sale of AGV's Colombian operations to DHL Supply Chain, a transaction expected to return more than 90% of the capital invested in AGV while retaining the Brazilian business for further value creation. The fund also signed its fourth investment, Sanar, a leading medical education platform in Brazil.

In addition, VCP II completed the merger of CBO with OceanPact, creating the largest Brazilian-owned offshore support vessel platform. To conclude, what we find most compelling is how each step we take reinforces the next. Navi adds scale and long-duration capital to our real estate franchise. Our asset management platform continues to deliver record earnings and margin expansion, and VPCS provides a permanent capital foundation that strengthens our alignment with clients, supports our growth, and makes our business more resilient than ever. Together, these developments broaden our platform, diversified our earnings base, and positioned Vinci Compass for its next phase of growth.

As we enter the final quarter of 2026, we remain focused on disciplined execution and long-term value creation for our clients, shareholders, and partners. Thank you, and I will now turn the call over to Bruno.

Bruno Sacchi Zaremba: Thank you, Alessandro, and good evening again, everyone. The third quarter reflected continued progress across our regional fundraising platform, with positive net inflows and encouraging activity across Global IP&S. Looking ahead, once the AustralRe acquisition closes, VPCS should further support this momentum by providing permanent capital to seed new strategies and accelerate fundraising across our platform. Let me begin with our assets under management and the main drivers of capital formation during the period. Total AUM reached BRL 363 billion, surpassing $70 billion and increasing 18% year-over-year in US dollar terms. This growth reflects the strength of both organic and inorganic growth.

Over the last 12 months, we generated BRL 36 billion through capital formation and appreciation and added approximately BRL 20 billion through the acquisitions of Verde, BACS, and Navi. As anticipated in our previous communications, capital subscriptions across our closed-end strategies were more moderate during this quarter. This largely reflects the timing of the commitments, as fundraising activity typically becomes more concentrated around final closings. In SPS IV and Lacan IV, several investors continue to advance through their approval and documentation processes ahead of the expected year-end final closings. In Global IP&S, AUM ended the quarter at BRL 273 billion, up 13% year-over-year.

Fundraising across this segment regained momentum in the third quarter, in line with our expectations, reversing the temporary outflows recorded in the second quarter. We generated approximately BRL 4 billion of net inflows, primarily across TPD Liquid and TPD Alternative. In TPD Alternatives, this momentum continues to be driven by our partnerships with some of the world's largest GPs, with demand concentrated in private equity secondaries, direct lending, and growth and venture capital strategies. In TPD Liquid, inflows were led by emerging markets and Asian equity strategies. We expect this momentum to continue, supported in part by recent regulatory developments in Chile.

In September, the Superintendence of Pensions published the final investment regime for the new generation of funds, which will replace the current multi-fund system starting in April of 2027. Rather than having contributors choose among funds with different risk levels, generational fund groups participants by age cohorts, with each fund's asset allocation evolving over time. The new regime raises the limits for alternative assets, creating a meaningful medium-term opportunity for both TPD and Vinci Compass proprietary private market strategies.

We believe we're well-positioned to benefit from this shift, as we remain the largest third-party distributor of offshore mutual funds to Chilean pension funds at the end of the third quarter, with an estimated market share of 20%, excluding money market funds. Colombia is also moving in a constructive direction. In October, the new administration eliminated the 30% cap on pension funds' offshore investments, which should support offshore allocations going forward. Beyond these regulatory tailwinds, we continue to broaden our client base and geographic reach. As Alessandro mentioned, we recently established NACAC to expand our commercial coverage and pursue new growth opportunities across the North Andean, Central America, and Caribbean markets.

At the same time, our priority remains to deepen our penetration in the markets where we already operate. In Chile, for example, we continue to develop local access vehicles for institutional and private wealth investors. We are also expanding our product offering to support this momentum. In Brazil, we expect to launch 2 fixed income ETFs, providing exposure to Brazilian inflation-linked government bonds and NTN-B. By combining long-end duration with short-end liquidity, while avoiding distortions at intermediate maturities, the strategies are designed to capture level shifts and flattening dynamics across the real yield curve.

In Chile, we are preparing to launch Vinci Compass Crecimiento, a liquid multi-asset fund that completes our local multi-asset offering, designed for long-term capital appreciation through a diversified portfolio of local and global investments. Looking ahead, we are optimistic that these efforts will translate into positive inflows across these markets through the fourth quarter and into the first half of 2027. Turning to credit, we remain encouraged by the momentum across the platform, with AUM reaching BRL 43 billion in the third quarter, up 31% year-over-year. Credit continues to be one of the most significant growth opportunities for Vinci Compass, supported by our expanded regional footprint, complementary investment capabilities, and increasingly diversified distribution channels.

In agribusiness, we are approaching full deployment of MAV IV, with approximately 80% of the fund's capital already allocated. We also concluded fundraising for MAV Land, our sale and leaseback strategy, with commitments secured this quarter, bringing the total fund size to approximately BRL 400 million. In opportunistic capital solutions, although we did not record meaningful commitments this quarter, we expect new commitments ahead of SPS IV's final close in the fourth quarter. Persistently high interest rates in Brazil and greater selectivity among traditional lenders should continue to support demand for structured capital solutions, create opportunities to acquire credits in the secondary market, and drive liquidity generation through the monetization of contingent assets, such as legal claims.

In this context, SPS IV maintains a diversified pipeline across primary corporate, secondary corporate, and legal claims, while preserving discipline in capital allocation and prioritizing structures with robust collateral, strong downside protection, and an attractive risk-return profile. In high-grade and high-yield credits, Argentina remained a highlight following the BACS acquisition, accounting for the largest share of capital formation in credit segment this quarter. This positive moment in Argentina was partially offset by Mexico, where short-duration strategies experienced some volatility in flows after the strong inflows recorded in the second quarter. We view this as a temporary normalization following a particularly strong period and expect activity to recover over the fourth quarter of 2026 and into the first quarter of 2027.

We also recently launched VCCL in Chile, our first proprietary semi-liquid credit fund, and expect it to begin attracting inflows in the fourth quarter as the positive reception to our regional semi-liquid strategy translates into inflows. Looking ahead, our credit pipeline remains active. In Brazil, we expect to launch Vinci [ Crédito Soluções Climáticas ] in the fourth quarter, a new sustainable private credit strategy focused on energy transition, decarbonization, and natural-based solutions. We will have the BNDES as an anchor investor in this fund, and this marks the third time the bank has selected Vinci Compass for a mandate, a tangible example of the investment capabilities and product development synergies across our platform.

We are also launching Vinci Crédito Balanceado, a diversified Brazilian credit solution designed to provide investors with a balanced combination of structured credit opportunities and liquid fixed income instruments with an attractive risk-return potential. Beyond Brazil, we are structuring FII Mexico in Mexico, a structured credit and confirming strategy expected to launch early in 2027. In diversified private credit, Copco in Colombia continues to make good progress, and we expect to host its first close in the coming months, pending final approvals from a few clients. Shifting to real assets, AUM reached BRL 16 billion, a 34% increase year-over-year. In forestry, Lacan IV continues to gain traction.

As we've seen in the last call, the fund received commitments from a major European institutional investor, a strong endorsement of the strategy, and we expect to secure the remaining commitments in the fourth quarter ahead of its final closing. We remain highly constructive on the sector's fundamentals. Wood supply is expected to remain tight across multiple segments, driven by capacity expansion and limited availability of mature forests in certain regions, a dynamic that should support pricing over the medium to long term and position our strategy to benefit from the structural imbalance.

In addition, the recent depreciation of the Brazilian real could act as a further tailwind for this export-oriented sector, enhancing the competitiveness and profitability of Brazilian pulp and forest-based exporters. In real estate, we completed the acquisition of Navi on September 1, adding BRL 815 million in AUM. Strategically, the transaction expands our footprint in multi-strategy real estate and opens a new fundraising channel through a vehicle that already has meaningful scale and market relevance. We also had two important developments after the end of the quarter. First, we concluded the second closing of the ALL FII, our opportunistic fund focused on the Brazilian warehouse sector.

Completing this fundraising in a challenging market environment reflects investor confidence in the strategy and supports investments in high-quality logistic assets. Second, Vinci Real Estate was appointed manager of APXM11, formerly Apex Malls FII, a listed real estate fund with approximately BRL 365 million in NAV. Beyond adding relevant AUM to the platform, this mandate was awarded through a highly competitive process and secured at no cost, reinforcing the strength of our listed real estate platform and our shopping center expertise. In Chile, we are preparing to launch a rent-to-own residential real estate strategy in partnership with the country's largest saving and credit cooperative, expected in early 2027.

This is a very relevant development, as it will mark the beginning of regionalization for our real estate platform and the first step into becoming a LATAM franchise. Turning to equities, our Chilean fund recorded inflows from institutional clients and intermediaries, as our sustained commercial efforts and improving performance continues to gain recognition in the market. These were offset by outflows from our Brazilian products, reflecting a more cautious domestic backdrop amidst still elevated real interest rates and election-related uncertainty during the third quarter. In private equity, AUM ended the quarter at BRL 14 billion.

The quarterly movement primarily reflects the mark-to-market of a portfolio company listed in the NYSE, following the fluctuation of the stock price amid global market volatility. The team remains focused on deploying VCP IV, structuring VIR V, and pursuing realizations. This was a particularly active quarter for the VCP strategy, with meaningful progress on both deployment and realizations. First, VCP IV signed its fourth investment, the acquisition of Sanar, a leading medical education platform in Brazil, committing approximately 9% of the fund at an attractive entry multiple.

With VCP IV still in its investment period and with dry powder available, we believe the current environment in Brazil, marked by tighter liquidity, higher financing costs, and reduced competition for assets, should create opportunities and more attractive valuations and transaction terms. We remain well-positioned to capture these opportunities while maintaining a disciplined and selective approach. Across the existing portfolio, we remain focused on cash generation and operational performance to maximize value creation. Moreover, although still in its deployment phase, VCP IV has also signed its first divestments, the sale of AGV's Colombian operations, Open Market, to DHL supply chain, approximately one year after the investment.

The transaction returned over 90% of the capital invested in AGV, with the Colombian operation generating a 3.8x MOIC and 138% IRR in Brazilian reais. Achieving a realization of this scale so early in the fund's life is an important milestone and a clear demonstration of the team's outstanding ability to create and crystallize value. We are also very excited about a recent milestone at Bold, another VCP IV portfolio company. In October, Bold announced a strategic partnership with Shake Shack to become the brand's master franchisee in Brazil, with plans to open at least 40 restaurants through 2036.

This partnership opens a meaningful new growth avenue for Bold and marks an important step towards our ambition of building a leading multi-brand restaurant platform in the country. In VCP II, we completed a merger of CBO with OceanPact, creating the largest Brazilian-owned offshore support vessel platform. The combined company operates 73 vessels, representing approximately 15% of the Brazilian offshore support vessel market. Following the transaction, VCP II holds an approximate 22% stake in the combined company, which is listed in B3's Novo Mercado, giving us a strong position in a platform with significant scale and long-term growth potential. VCP II also announced the sale of Austral Seguradora to Liberty Mutual and, of course, AustralRe to us.

Austral was an insurance holding company created by us some 15 years ago, which generated two leading companies in the insurance and reinsurance industry in Brazil. After more than a decade of strong growth and profitability, these two portfolio companies found strong strategic buyers that recognized the differentiated competitive position of the assets and allowed for strong cash realizations to the funds. Coming back to the broader picture, our fundraising pipeline remains extensive and diversified. Across Global IP&S, credit, and real assets, we have multiple initiatives that can contribute meaningfully over the coming quarters.

The timing will naturally depend on market conditions and client approval cycles, but our platform is better positioned than ever, combining a diversified product offering, deeper local distribution, and strong cross-border capabilities than at any point in our history. Before moving on, there is a metric I would like to highlight. In 2026, there has been a lot of positive carry in the business from meaningful acquisitions made in the last 12 months, such as Verde and BACS. Therefore, we always like to look at how the platform is performing on an organic growth basis.

If you compare our asset management third quarter results with the same year-ago period, excluding all M&A activity, our fee-related revenues grew 12%, while our fee-related earnings grew 28% when adjusted for the non-recurring severance expenses that happened this year. Therefore, even excluding all M&A impacts, the asset management unit continues to grow revenues at a double-digit rate and is exhibiting strong operating leverage in the process. This operating leverage also reflects the productivity gains we are beginning to capture from artificial intelligence. Across the platform, we are increasingly applying AI tools to support our investment teams, streamline operational and corporate processes, and improve the efficiency of our day-to-day workflows.

More recently, we have implemented governance that will allow decentralization of AI development within the firm while maintaining a strong grip on risk and security protection. Basically, we are creating a product approval process that is accessible by all in the company, in which the user can discuss the creation of an AI solution with an agent that will then point them in the right direction, be it independent development, a mentorship program with IT, or IT development if it is a core system for the business.

This agent is being hosted in our corporate AI brain, which we call Datalab, and it will not only guide the user, but also work as a control center for IT and the data science teams to monitor the development of AI tools across the firm. In 2026, we have developed over 100 AI-driven solutions across the platform through independent development by the business units, support teams, data science, and IT. This is being done with control and increased speed of delivery. Just to give an idea, our IT development team's productivity has improved fourfold in 2026 after adopting AI development at scale in their process.

With this setup, I believe 2027 should be a transformational year for Vinci Compass in regards to adoption of AI solutions at scale across the firm. And this should not only present opportunity for productivity enhancements, but also translate into better decision-making and ultimately performance. Finally, I would like to turn to our GP commitments. While capital calls continue to weigh on short-term financial income, we are gaining greater visibility into realizations and capital returns. The cash receipt of the Galeão indemnification in the fourth quarter is a clear example of how value embedded in our balance sheet can be converted into distributable earnings.

Looking ahead, the launch of Vinci Permanent Capital Solutions will fundamentally change how we fund these commitments. Following the closing of the AustralRe transaction, expected in the first quarter of 2027, our GP commitment will be transferred and funded by VPCS, a permanent and non-redeemable source of capital to support the seeding of new strategies and our fundraising efforts. As a result, our asset management business will no longer be encumbered by future capital calls, allowing its cash generation to be directed towards dividends, share repurchases, or other value-accretive opportunities.

At the same time, both realized and unrealized gains from our GP commitments will be recognized within VPCS's net income, making visible a source of value that is not reflected in our distributable earnings today. I would like to make a final clarification regarding our AustralRe accretion guidance. As mentioned by Alessandro, we are guiding towards a double-digit cash accretion to our distributable earnings per share from the AustralRe acquisition. However, this cash accretion estimate considers that the positive impact of our GP commitments to VPCS earnings will be zero. As VPCS will report net income, the appreciation of GP commitments, even before realization, will have a positive impact on net income and ROE.

Today, we have close to BRL 1 billion in commitments that could be transferred to VPCS. Therefore, positive appreciation in these funds could have a meaningful impact on VPCS's earnings. Again, the double-digit guidance consider zero appreciation in this BRL 1 billion commitment. Wrapping up, we approach year-end with solid momentum across our platform, and we remain confident in our ability to continue creating long-term shareholder value. With that, I will turn it over to Sergio to discuss our financial results.

Sergio Passos Ribeiro: Thank you, Bruno, and good evening, everyone. The third quarter of 2026 was a record quarter for Vinci Compass, with the highest management fees, earnings, and net income in our history. Let me start with our revenues. Management fees reached BRL 208 million in the third quarter, up 39% year-over-year, reflecting both inorganic and organic growth. On the inorganic side, we benefit from Verde and BACS, with BACS now contributing a full quarter, as well as the first month of contribution from Navi. Organic growth was driven by credit, Global IP&S, and real assets, reflecting our fundraising over the last 12 months, including catch-up fees from new commitments in Lacan IV.

Advisory fees totaled BRL 19 million in the quarter, down 24% year-over-year. This quarter, advisory fee came almost entirely from upfront fees in our third-party distribution alternatives business, which can fluctuate depending on the timing of commitments. The year-over-year decline reflects the absence of revenues in corporate advisory, as M&A and debt structuring activity remain subdued amid still elevated interest rates and election-related uncertainty in Brazil. The team continues to work on an extensive pipeline of opportunities for the coming quarters. Other revenues, which include advisory and execution fees in the U.S. and Chile, as well as fund service fees in Mexico, totaled BRL 11 million, stable year-over-year.

We expect this revenue stream to remain at similar levels in the coming quarters. Altogether, fee-related revenues reached BRL 311 million in the quarter, up 31% year-over-year, and BRL 856 million year-to-date, up 22%. Turning to fee-related earnings, we delivered BRL 107 million in the quarter, or BRL 1.61 per share, up 39% year-over-year on a nominal basis, and 32% on a per-share basis. Our FRE margin reached 34.3%, an expansion of 200 basis points compared to the third quarter of 2025, and approximately 108 basis points compared the second quarter of 2026.

This progression reflects the full quarter contribution of BACS, the operating leverage embedded in our platform as revenue grew faster than costs, and the cost-efficient initiatives implemented over the past year. Year-to-date, FRE reached BRL 292 million, or BRL 4.43 per share, up 40% year-over-year, with the FRE margin expanding from 29.6% to 34.1%. It is also worth noting that our results in quarter include approximately BRL 3.5 million in severance expenses. Consistent with our practice, we do not adjust for restructuring-related expense. Excluding them, our FRE margin would have reached 35.5%. Moving to performance-related earnings, we recognized BRL 1.4 million in the quarter, primarily from liquid funds across equity, Global IP&S, and credit.

This is in line with the usual seasonality, as most of our liquid funds recognize performance fees in the second and fourth quarter. Investment-related earnings totaled BRL 14 million in the quarter, up 171% year-over-year. Unrealized GP investments income reached BRL 8 million, driven primarily by positive markups in VCP IV, which, as Bruno mentioned, has its first divestment while still in its deployment phase. This was partially offset by lower mark-to-market in our listed real estate funds. Realized GP investment income reached BRL 6 million, up 27% year-over-year, mainly from real estate funds, including a gain of approximately BRL 1 million from the sale of our position in a real estate fund that did not distribute dividends.

Turning to realized financial income, consistent with the capital calls dynamic we have been highlighting, this line declined 43% year-over-year in the quarter and 49% year-to-date, as capital calls continue to reduce our cash position. Our proprietary funds remain in their investment periods and are expected to continue drawing capital according to their schedules. The increase in our liquid funds position this quarter is related to Visa, the fund that received the Galeão indemnification. In this quarter, approximately BRL 99 million from the Galeão indemnification, net of taxes and associated expenses, was recognized as an unrealized gain within other items, bringing net income to a record BRL 184 million, up 278% year-over-year.

Because this gain remains unrealized, it didn't impact our distributable earnings this quarter. We expect it to be realized in the fourth quarter when it should contribute to distributable earnings. Turning to cash earnings, adjusted distributable earnings were BRL 71 million in the quarter, or BRL 1.07 per share. The 37% growth in segment distributable earnings was offset by lower realized financial income, higher financial expenses, including exchange variations effects on OCI, and the minority interest deduction following the Verde and BACS transactions. Year-to-date, adjusted distributable earnings totaled BRL 197 million, or BRL 2.99 per share. Looking ahead, I would like to briefly address how our reporting will evolve following the closing of the AustralRe acquisition.

VPCS will operate as a new business vertical, separate from our asset management division, creating a clear segregation between our asset-light and balance sheet business. Going forward, distributable earnings from asset management will primarily comprise FRE, PRE, and the financial results related to our liquid cash, M&A-related debt, and the Ares convertible preferred shares. VPCS, in turn, will report net income, bringing together AustralRe, Vinci Retirement Solutions, and the financial results associated with our GP commitments, including both realized and unrealized gains. As a result, shareholders will have direct visibility into the performance of our investment portfolio, including distributions and fund revaluations.

The debt raised on the AustralRe acquisition will also be reported with VPCS, supporting a more efficient tax structure for this financing. Vinci Retirement Solutions, which is currently reported with our Global IP&S, is incorporated as an insurance company, making VPCS its natural home. We expect this reallocation to add approximately 100 basis points to the asset management FRE margin. By bringing Vinci Compass GP investment balance sheet into VPCS, we will make visible a source of value that is not reflected in our distributable earnings today, as unrealized gains on our GP commitments will be recognized within VPCS net income. This quarter's result underscored the scalability of our platform and the strength of our recurring earnings base.

With record management fees and FRE, the expected realization of the Galeão indemnification in the fourth quarter, and the upcoming launch of VPCS in the first quarter of 2027, we are all positioned to continue creating value for our shareholders. With that, I would like to open the call for questions. Operator, please proceed.

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

Alessandro Morgado Horta: I'd like to thank you again for your interest and continued support. We believe that this record quarter is just the beginning. With this transformational deal of VPCS, we are starting a new history in Latin American asset management industry. Thank you again, and have a good night.

Operator: This thus concludes today's presentation. We thank you all for your participation and wish you a very good evening.

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