VINCI PARTNERS AND COMPASS ANNOUNCE BUSINESS COMBINATION, CREATING THE GATEWAY TO ALTERNATIVE ASSET MANAGEMENT IN LATIN AMERICA
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Combined platform will have more than
US$50 billion in assets under management1; - Vinci to expand its geographical footprint across eight countries, establishing a leading pan-regional platform;
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Vinci to solidify its position as the gateway to alternative asset management in
Latin America , becoming a full-service platform with local-to-local, local-to-global, global-to-local and global-to-regional investment opportunities; - Transaction is expected to be immediately accretive to FRE per Share.
Founded in 1995, Compass is a leading independent asset manager and investment advisory firm in
Compass has developed a leading and differentiated platform in LatAm, with
(i) |
IP&S, as pioneers in providing investment solutions across traditional and global alternative assets, to institutional investors, family offices, intermediaries and HNWI in |
(ii) |
Asset Management Latam: More than 25-year history of managing a wide range of funds and investment strategies focused exclusively on |
"This combination with Compass marks the most significant step so far in our long-term strategic growth plan presented at our Investor Day, allowing us to expand our footprint into
"Together, we will become a true pan-regional platform, and create a leading player in
"We are thrilled to partner with a leader in alternative investments in
"Over the last 28 years, we have built a strong reputation through our extensive distribution network and track record in
Strategic Rationale
- Combination of businesses creates a leading platform in
Latin America , with more thanUS$50 billion in assets under management; - Transaction is fully aligned with Vinci's strategic growth plan to expand its geographic footprint into a true pan-regional platform;
- Vinci will be able to enhance the distribution reach of its investment strategies across
Latin America through Compass' unmatched platform, and Compass will be able to provide access to world-class managers and offer global and regional solutions to Vinci´s broad client base inBrazil ; - Mindset and cultural alignment between partners from both companies, catalyzing superior execution;
- Transaction is immediately accretive to Vinci´s Fee Related Earnings ("FRE") per share, with short and medium-term additional accretion from revenue and productivity enhancement synergies to be unlocked with the integration of both platforms.
Transaction Overview
The Transaction will have a total upfront consideration of 11,783,384 shares of VINP Class A common stock, and a cash consideration of
Under the agreement, Compass partners are entitled to an earn-out of up to an additional 7.5% stake in the combined entity, subject to the achievement of pre-determined metrics, to be paid in VINP Class A common stock until 2028.
Upon Transaction closing, Manuel Balbontín, partner, founder and Chairman of Compass, and
Compass executives and senior management will continue in their current roles and remain fully committed to the combined business, with a long-term plan aligned with the plan that is currently in place for Vinci´s executive partners.
The Transaction is expected to close in the third quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Conference Call and Webcast Information
To access the webcast and presentation please visit the Events & Presentations' section of the Company's website at: www.ir.vincipartners.com/news-and-events/events-and-presentations. For those unable to listen to the live broadcast, there will be a webcast replay on the same section of the website.
To access the conference call through dial in, please register at Dial in Registration to obtain the conference number and access code.
About
About Compass
Compass is a leading independent asset management firm in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as "outlook", "indicator", "continue", "may", "will", "anticipate," "believe," "could," "expect," "should," "plan," "intend," "seek", "predict", "estimate", "approximate", and "potential," among others, or the negative version of these words or other comparable words. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside of our control. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. In particular, there can be no assurance that we will be able to effectively integrate Compass and achieve the synergies that are currently expected. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements included herein speak only as at the date of this presentation and we do not undertake any obligation to update these forward-looking statements, whether as a result of new information, future developments or otherwise, and if we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, neither we nor our affiliates, officers, employees and agents undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the
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1 Includes assets under management and advisory as of
2 Commercial presence in the
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