EX-99.4 5 dp220487_ex9904.htm EXHIBIT 99.4

Exhibit 99.4

 

 

 

 

 

 

 

 

 

 

Vinci Partners Investments Ltd.

 

Interim Financial Statements as of September 3o, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets   Note   09/30/2024   12/31/2023
             
Current assets            
Cash and cash equivalents   5(c)   534,406   660,305
Cash and bank deposits   5(c)   24,336   15,896
Financial instruments at fair value through profit or loss   5(c)   112,011   173,300
    Financial instruments at amortized cost   5(c)   398,059   471,109
Financial instruments at fair value through profit or loss   5(d)   1,367,066   1,168,355
Accounts receivable   5(a)   73,036   101,523
Sub-leases receivable   10   2,808   4,071
Taxes recoverable       5,207   2,219
Other assets   6   26,813   19,109
Total current assets       2,009,336   1,955,582
             
Non-current assets            
Financial instruments at fair value through profit or loss   5(c)   74,216   7,146
Accounts receivable   5(a)   13,853   16,638
Sub-leases receivable   10   -   1,467
Taxes recoverable       826   325
Deferred taxes   20   18,535   13,487
Other assets   6   27,608   19,427
        135,038   58,490
             
Property and equipment   8   10,944   12,591
Right of use – Leases   10   51,178   58,308
Intangible assets   9   251,170   214,748
Total non-current assets       448,330   344,137
             
Total assets       2,457,666   2,299,719

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-2 

 

Liabilities and equity   Note   09/30/2024   12/31/2023
             
Current liabilities            
Trade payables       1,265   1,869
Deferred revenue   25   13,444   -
Leases   10 and 5(e)   23,010   24,381
Accounts payable   11   7,818   6,020
Labor and social security obligations   12   75,124   101,506
Loans and obligations   14   14,852   76,722
Taxes and contributions payable   13   22,995   24,853
Total current liabilities       158,508   235,351
             
Non-current liabilities            
Leases   10 and 5(e)   35,778   48,431
Labor and social security obligations   12   6,646   5,357
Loans and obligations   14   634,810   540,369
Deferred taxes   20   4,269   3,883
Retirement plans liabilities   15   309,170   85,554
Total non-current liabilities       990,673   683,594
             
Total liabilities       1,149,181   918,946
             
Equity   16        
Share capital       15   15
Additional paid-in capital       1,405,559   1,408,438
Treasury shares   16(f)   (223,418)   (172,863)
Retained earnings       78,066   111,444
Other reserves       47,958   31,876
        1,308,180   1,378,910
             
Non-controlling interests in the equity of subsidiaries   7(b)   305   1,864
             
Total equity       1,308,485   1,380,774
             
Total liabilities and equity       2,457,666   2,299,719

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-3 

 

      Nine months ended September 30   Three months ended September 30
Statements of Income Note   2024   2023   2024   2023
                   
                   
Net revenue from services rendered 17   354,921   328,978   114,606   109,086
                   
General and administrative expenses 18   (212,884)   (180,800)   (67,678)   (61,738)
                   
Operating profit     142,037   148,178   46,928   47,348
                   
Finance income 19   72,462   79,172   17,620   9,818
Finance expenses 19   (63,319)   (36,175)   (9,486)   (14,974)
                   
Finance profit/(loss), net     9,143   42,997   8,134   (5,156)
                   
Profit before income taxes     151,180   191,175   55,062   42,192
                   
Income taxes 20   (35,756)   (35,100)   (13,693)   (10,375)
                   
Profit for the period     115,424   156,075   41,369   31,817
                   
Attributable to the shareholders of the parent company     116,983   156,483   41,907   32,005
Attributable to non-controlling interests     (1,559)   (408)   (538)   (188)
                   
Basic earnings per share in Brazilian Reais     2.19   2.80   0.78   0.57
Diluted earnings per share in Brazilian Reais     2.12   2.71   0.76   0.55

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-4 

 

    Nine months ended September 30   Three months ended September 30
    2024   2023   2024   2023
                 
Profit for the period   115,424   156,075   41,369   31,817
                 
Other comprehensive income                
Items that may be reclassified to profit or loss:                
Foreign exchange variance of investees                
Vinci Capital Partners GP Limited   4   (4)   1   5
Vinci USA LLC   4,222   (1,289)   (395)   1,213
Vinci Capital Partners III GP Limited   81   (36)   (14)   29
GGN GP LLC   6   (5)   (1)   3
VICC Infra GP LLC   36   (7)   (6)   5
Vinci Capital Partners IV GP LLC   218   (82)   (38)   78
VICC Infra GP (Lux), S.A.R.L.   157   -   31   -
                 
Total comprehensive income for the period   120,148   154,652   40,947   33,150
                 
Attributable to:                
Shareholders of the parent company   121,707   155,060   41,485   33,338
Non-controlling interests   (1,559)   (408)   (538)   (188)
                 
    120,148   154,652   40,947   33,150

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-5 

 

  Share   Additional   Retained   Other   Treasury       Non-controlling   Total
  capital   Paid-in capital   earnings   reserves   shares   Total   interests   equity
                               
                               
At January 01, 2023  15    1,382,038   81,310   24,149    (114,978)      1,372,534   3,013   1,375,547
                               
Profit for the year  -       -      156,483    -       -      156,483   (408)   156,075
Other comprehensive income:                              
   Foreign exchange variation of investee located abroad  -       -       -       (1,423)    -       (1,423)    -       (1,423)
Share based payments -   (2,783)   -   7,275   2,783   7,275   -   7,275
Treasury quotas bought -   (3,000)   -   -   (55,677)   (58,677)   -   (58,677)
Allocation of profit:                              
Dividends  -       -       (145,978)    -       -       (145,978)    -   (145,978)
                               
                               
At September 30, 2023  15    1,376,255   91,815   30,001    (167,872)      1,330,214   2,605   1,332,819
                               
At January 01, 2024 15    1,408,438     111,444    31,876    (172,863)    1,378,910    1,864    1,380,774
                               
Profit for the year -   -   116,983   -   -   116,983   (1,559)   115,424
Other comprehensive income:                              
   Foreign exchange variation of investee located abroad -   -   -   4,724   -   4,724   -   4,724
Share based payments -   (2,735)       11,358   2,735   11,358   -   11,358
Treasury shares bought, net of shares sold -   (144)       -   (53,290)   (53,434)   -   (53,434)
Allocation of profit:                              
Dividends -   -   (150,361)   -   -   (150,361)   -   (150,361)
                               
At September 30, 2024 15   1,405,559   78,066   47,958   (223,418)   1,308,180   305   1,308,485

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-6 

 

  Notes 09/30/2024   09/30/2023
         
Cash flows from operating activities        
         
Profit before taxation   151,180   191,175
Adjustments to reconcile net income to cash flows from operations:        
Depreciation and amortization 18 17,187   14,779
Investment income of financial instruments at fair value through profit or loss   (45,369)   (62,336)
Net foreign exchange on liabilities at amortized cost  14(i) 61,242   -
Interest expense on loans and obligations 19 46,075   11,736
Loss/(gain) on remeasurement of contingent consideration 19 3,371   11,796
Share based payments 18 15,955   10,718
Financial result on lease agreements 19 5,772   7,049
    255,413   184,917
Changes in assets and liabilities        
Accounts receivables   31,282   (26,709)
Taxes recoverable   (3,489)   1,631
Other assets   (15,842)   (2,251)
Trade payables   (725)   (685)
Deferred revenue   13,444   12,498
Accounts payable   2,566   1,123
Labor and social security obligations   (29,891)   (15,940)
Taxes and contributions payable   (1,016)   (2,057)
Purchases of financial instruments related to retirements plans   (219,705)   -
Contribution for retirements plans, payable   215,818   34,282
    (7,558)   1,892
         
Cash generated from operations   247,855   186,809
Income tax paid   (41,153)   (42,545)
Net cash inflow from operating activities   206,702   144,264
         
Cash flows from investing activities        
Purchases of property and equipment and additions to intangible assets   (11,768)   (25,701)
Purchase of financial instruments at fair value through profit or loss   (300,875)   (208,989)
Sales of financial instruments at fair value through profit or loss   307,967   383,329
Payment for acquisition of subsidiary 7(b) (5,000)   -
Cash and cash equivalent increased from business combination 7 285   -
         
Net cash (outflow) from investing activities   (9,391)   148,639
         
Cash flows from financing activities        
    Interest payments of loans and obligations 14(ii) (37,015)   (11,975)
    Principal payments of loans and obligations 14(ii) (69,113)   (8,889)
    Treasury shares acquisition paid, net of treasury shares sold 16(f) (54,262)   (58,861)
    Lease payments, net of sublease received   (16,958)   (17,562)
    Dividends paid 16(e) (152,291)   (145,312)
         
Net cash (outflow) from financing activities   (329,639)   (242,599)
         
Net increase in cash and cash equivalents   (132,328)   50,304
         
Cash and cash equivalents at the beginning of the year 5(c) 660,305   136,581
         
Foreign exchange variation of cash and cash equivalents in subsidiary   6,429   (2,670)
         
Cash and cash equivalents at the end of the year 5(c) 534,406   184,215

 

Non-cash financing activities

 

Dividends declared and not yet paid until September 30, 2024 and 2023 were R$ 3,791 (Note 11), respectively.

 

Consideration payable and contingent consideration (earn-out) as of September 30, 2024 and 2023 were 96,019 and 112,569 (Note 14), respectively. Vinci expects to pay the contingent consideration through its equity instruments. However, accordingly to IAS 32, the earn-out obligation was classified as a financial liability.

 

The accompanying notes are an integral part of these interim consolidated financial statements.

 

F-7 

 

1Operations

 

Vinci Partners Investments Ltd. is an exempted company incorporated in the Cayman Islands (referred to herein as "Entity", "Group" or "Vinci"). The Group started its activities in September 2009. Its objective is to hold investments in the capital of other companies as partner (shareholder). The investees are specialized in rendering alternative investment management, asset allocation, corporate advisory services and retirement services.

 

The registered office of the Entity is at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands.

 

2Summary of significant accounting policies

 

2.1Basis of preparation and presentation

 

The unaudited interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”).

 

The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as of December 31, 2023.

 

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

 

The unaudited interim condensed consolidated financial statements are presented in Brazilian reais (“R$”), and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated.

 

The issuance of these financial statements was authorized by the Entity's management on November 7, 2024.

 

(a)Interim consolidated financial statements

 

Vinci operates as an asset management firm. The Group focuses on private markets, public equities, corporate advisory, investment products and solutions, and retirement services, which comprise the main activity of the Group.

 

The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

 

Also, the Entity holds interest in subsidiaries whose main purpose and activities are providing services that relate to the Entity’s activities. Therefore, the Entity consolidates these subsidiaries.

 

Ownership interest in subsidiaries on September 30, 2024 and December 31, 2023 are as follows:

 

F-8 

 

  Interest - %
       
  09/30/2024   12/31/2023
       
Subsidiaries      
Vinci Partners Investimentos Ltda. 100   100
Vinci Assessoria financeira Ltda. (1) 100   100
Vinci Equities Gestora de Recursos Ltda. (1) 100   100
Vinci Gestora de Recursos Ltda. (1) 100   100
Vinci Capital Gestora de Recursos Ltda. (1) 100   100
Vinci Soluções de Investimentos Ltda. 100   100
Vinci Real Estate Gestora de Recursos Ltda. (1) 100   100
Vinci Capital Partners GP Limited. 100   100
Vinci Partners USA LLC 100   100
Vinci GGN Gestão de Recursos Ltda. (1) 100   100
Vinci Infraestrutura Gestora de Recursos Ltda. 100   100
Vinci Capital Partners GP III Limited. 100   100
GGN GP LLC 100   100
Vinci APM Ltda. (1) 100   100
Vinci Monalisa FIM Crédito Privado IE (2) 100   100
Vinci Asset Allocation Ltda. 75   75
VICC Infra GP LLC 100   100
Vinci Capital Partners IV GP LLC 100   100
Vinci Holding Securitária Ltda. 85   85
Vinci Vida e Previdência S.A. (3) 85   85
Vinci SPS Capital Gestão de Recursos Ltda. (4) 100   100
VICC Infra GP (Lux), S.A.R.L. 100   100
VINCI US RE Corporation (5) 98   -
MAV Capital Gestora de Recursos SS Ltda. (6) 100   -
ICML Gestão de Negócios e Participações SS Ltda. (6) 100   -

 

(1)Minority interest represents less than 0.001%.

 

(2)Under the terms of IFRS 10, the Entity does not consolidate its investment in Vinci Monalisa FIM Crédito Privado IE and measures at fair value through profit or loss in accordance with IFRS 9.

 

(3)Vinci has an indirect interest at Vinci Vida e Previdência of 85% through its subsidiary Vinci Holding Securitária Ltda., which holds 100% of ownership interest at Vinci Vida e Previdência. Vinci Vida e Previdência commenced its operations in April 2023.
  
(4)On 16 August 2022, Vinci Soluções de Investimentos Ltda. acquired 90% of the issued share capital of SPS Capital Gestão de Recursos Ltda. The acquisition gives to Vinci Soluções de Investimentos the right of 100% on the economic interest of SPS Gestão de Recursos Ltda.

 

(5)Under the terms of IFRS 10, the Entity does not consolidate its investment in Vinci US RE Corporation and measures at fair value through profit or loss in accordance with IFRS 9.

 

(6)On 29 June 2024, Vinci Gestora Recursos Ltda. acquired 70% of the issued share capital of MAV Capital Gestora de Recursos Ltda. and of the issued share capital of 30% ICML Gestão de Negócios e Participações SS Ltda. Vinci has direct and indirect interest on MAV Capital Gestora de Recursos SS Ltda. Vinci has indirect interest through its ownership interest on ICML Gestão de Negócios e Participações SS Ltda., which holds 70% of ownership interest at MAV.

 

Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

 

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

 

F-9 

 

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated balance sheet respectively.

 

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in another reserve within equity attributable to owners of Entity.

 

When the Group ceases to consolidate an investment or account for it under equity method because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

 

2.2Segment reporting

 

Under the supervision of the Board of Directors, the CEO is responsible for the decision-making process related to executive themes, resources allocation and strategic decisions of Vinci.

 

The strategic decisions of the Group comprise five distinct business segments: (i) Private market strategies, (ii) Public equities, (iii) Investment products and solutions; (iv) Corporate advisory and (v) Vinci retirement services (Note 20).

 

Strategies were sorted out within business segments following technical and strategic similarities among funds’ attributes, such as management and performance fee structures, liquidity constraints, targeted returns and investor profile.

 

3Accounting estimates and judgments

 

The Entity makes estimates and assumptions concerning the future, based on historical experience and other factors, including expectations of future events. The resulting accounting estimates will, by definition, seldom equal the related actual results. The main estimations and assumptions made by the Entity is included as follow:

 

Allowance of expected credit losses of accounts receivable.

 

Provision for profit sharing.

 

Consolidation of subsidiaries.

 

Fair value measurement of financial assets.

 

Provision for contingent liabilities.

 

Impairment for goodwill and other intangible assets.

 

Fair value measurement of contingent consideration.

 

Fair value of share-based payments.

 

Financial evaluation of compound instruments.

 

F-10 

 

4Financial risk management

 

The main risks related to the financial instruments are credit risk, market risk, and liquidity risk, as defined below. The management of such risks involves various levels in the Entity and comprehends a number of policies and strategies. The Group's risk management focuses on the unpredictability of financial markets and seeks to mitigate potential adverse impacts on the Group's financial performance.

 

4.1Financial risk factors

 

This note explains the Group's exposure to financial risks and how these risks could affect the Group's future financial performance. Current year profit and loss information has been included where relevant to add further context.

 

The Group's risk management is predominantly controlled by a risk assessment department under process and controls approved by the management. The management provides written process and controls for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

 

(a)Credit risk

 

Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortized cost, at fair value through profit or loss (FVTPL), and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables.

 

(i) Risk management

 

As of September 30, 2024, and 2023 the expected credit losses are considered immaterial due to the short maturities of the deposits and the credit quality of the main counterparty, which have a credit rating equal or higher than AA- evaluated by Fitch Ratings. The Entity has not suffered any losses from cash and cash equivalents since inception. Vinci's treasury review expected credit losses on a regular basis.

 

(ii) Impairment of financial assets

 

The Group has the following types of financial assets that are subject to the expected credit loss model:

 

Accounts receivable.

 

Loans and receivables from employees, evaluated at amortized cost

 

While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the expected impairment loss was null.

 

F-11 

 

(b)Market risk

 

(i)Foreign exchange risk

 

At the reporting date, the carrying amount value of the Group’s financial assets and liabilities exposed to US Dollars and Euros were as follows:

 

Balance sheet 09/30/2024   12/31/2023
       
Cash and cash equivalents 421,731   486,977
Financial instruments at fair value through profit or loss 11,890   606
Accounts receivable 20,014   5,927
Other receivables 3,287   2,381
Current assets 456,922   495,891
       
Financial instruments at fair value through profit or loss 50,464   -
Other receivables -   (29)
Leases, property and equipment 2,254   2,684
Non-current assets 52,718   2,655
       
Trade payables 1,970   589
Deferred revenue 3,437   -
Loans and obligations -   6,993
Labor and social security obligations 3,903   5,485
Taxes and contributions payable 9   -
Current liabilities 9,319   13,067
       
Other payables 272   242
Loans and obligations 500,502   424,340
Lease 270   940
Non-current liabilities 501,044   425,522
       
Net Equity exposed to US Dollars (2,414)   59,957
Net Equity exposed to Euros 1,691   -

 

The aggregate net foreign exchange gains/losses recognized in profit or loss were:

 

    Nine months ended September 30   Three months ended September 30
Net foreign exchange result   2024 2023   2024 2023
             
Financial revenue   2,293 501   2,293 501
Financial expense   (7,073) (774)   - -
             
Net foreign exchange result, net    (4,780) (274)   2,293 501

 

The Group operates internationally and is exposed to foreign exchange risk, exclusively the US dollar.

 

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the functional currency of the Group.

 

(ii) Interest rate risk

 

The Group's profit or loss is sensitive to higher/lower interest income from cash equivalents and fixed income funds as a result of changes in interest rates.

 

F-12 

 

(iii) Price risk

 

The Group's exposure to investment securities price risk arises from investments held by the group and classified in the balance sheet at fair value through profit or loss (note 5).

 

To manage its price risk arising from investments in investment securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

 

The majority of the Group's financial investments that are exposed to significant price risk are the private equity investments and investments held by Monalisa FIM. Note 5(d) demonstrates the sensitivity analyses of impact for the assets held by the Group.

 

(c)Liquidity risk

 

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. At the end of the reporting period the Group held bank deposits, certificates of deposits and US treasury bills of R$ 534,406 (12/31/2023 – R$ 660,305) that are expected to readily generate cash inflows for managing liquidity risk.

 

Net debt reconciliation

 

This section sets out an analysis of net debt and the movements in net debt for each of the years presented.

 

  09/30/2024 12/31/2023
Cash and cash equivalents 534,406 660,305
Financial instruments at fair value through profit or loss (i) 1,367,066 1,168,355
Trade payables (1,265) (1,869)
Labor and social security obligations (81,770) (106,863)
Accounts payable (7,818) (6,020)
Lease liabilities (58,788) (72,812)
Convertible preferred shares (500,504) (431,334)
Commercial notes (53,139) (73,189)
Consideration payable (10,268) (48,199)
Contingent consideration (85,751) (64,370)
Retirement plans liabilities (309,170) (85,554)
Net debt 792,999 938,450

 

(i)Comprised of liquid and illiquid investments. Liquid investments are current assets that are traded in an active market. Illiquid investments are comprised of assets that trade infrequently.

 

F-13 

 

  Financial liabilities Other assets
  Payables Loans and obligations Retirement plans Lease liabilities Cash and cash equivalents Financial instruments at fair value through profit or loss
Net debt as at            
December 31, 2022 (99,275) (175,290) - (86,211) 136,581 1,243,764
             
Cash flow and dividends provision (15,477) 20,864 (82,734) 25,830 522,328 (172,629)
Fair value adjustment - (28,686) (2,820) (2,737) 1,396 97,220
Addition and finance expenses accrual - (450,493)   - - -
Foreign exchange adjustments - 16,513   - - -
Other changes (i) - -   (9,694) - -
December 31, 2023 (114,752) (617,092) (85,554) (72,812) 660,305 1,168,355
             
Cash flow and dividends provision 23,899 106,130 (215,819) 20,335 (205,844) 151,171
Fair value adjustment - (6,776) (7,797) - 26,689 47,540
Addition and finance expenses accrual - (70,682) - (6,223) - -
Foreign exchange adjustments - (61,242) - - 53,256 -
Other changes (i) - - - (88) - -
September 30, 2024 (90,853) (649,662) (309,170) (58,788) 534,406 1,367,066

 

(i) Other changes include non-cash movements, including Cumulative Translation Adjustments (“CTA”) which are being presented as in other comprehensive income statements.

 

Maturities of financial liabilities

 

Except for the retirement plans liabilities, the tables below analyze the Group's financial liabilities into relevant maturity groupings based on their contractual maturities for significant financial liabilities.

 

Contractual maturities of
financial liabilities
at September 30, 2024
Less than 1 year Between 1 and 3 years Over 3 years Total Carrying amount
           
Trade payables (1,265) - - (1,265) (1,265)
Labor and social security obligations (75,124) (4,641) (2,005) (81,770) (81,770)
Lease liabilities (23,010) (22,609) (28,478) (74,097) (58,788)
Accounts payable (7,818) - - (7,818) (7,818)
Loans and financing (73,069) (135,906) (904,506) (1,113,481) (649,662)
Total (180,286) (163,156) (934,989) (1,278,431) (799,303)

 

Contractual maturities of
financial liabilities
at December 31, 2023
Less than 1 year Between 1 and 3 years Over 3 years Total Carrying amount
           
Trade payables (1,869) - - (1,869) (1,869)
Labor and social security obligations (101,505) (2,458) (2,900) (106,863) (106,863)
Lease liabilities (24,381) (32,786) (36,017) (93,184) (72,812)
Accounts payable (6,020) - - (6,020) (6,020)
Loans and financing (114,390) (182,178) (783,572) (1,080,140) (617,092)
Total  (248,165) (217,422) (822,489)  (1,288,076)  (804,656)

F-14 

 

(d)Sensitivity analysis

 

The Group monitors and evaluates the market risk related to its financial investments portfolio periodically to assess its volatility, through changes that can significantly impact its financial results. Considering a period of one day and the historical results over the past year, the following Value at Risk (VAR) parameters were used:

 

0.22% (or R$ 3.5 million) of the financial investment portfolio for a confidence interval of 95% on September 30, 2024 (0.26% or R$ 3.2 million on December 31, 2023).

 

0.36% (or R$ 5.7 million) of the financial investment portfolio for a confidence interval of 99% on September 30, 2024 (0.53% or R$ 6.8 million on December 31, 2023).

 

Additionally, the Group evaluated the financial investment portfolio on September 30, 2024 and December 31, 2023, through stress scenarios according to the main risk factors related to its investments, as presented in the table below:

 

      Financial Impact (**)  
Risk Factor Variation in Stress Scenario (*) 09/30/2024 12/31/2023
Current inflation Inflation index  -100bps   7.5 12.3
Exchange traded real estate funds Share prices  -10%   (10.6) (14.4)
Brazilian stock prices Share prices  -10%   (5.8) (9.3)
Fixed-rate offshore rates US yield curve  -100bps   (49.9) (34.9)
Foreign exchange rate Foreign exchange rates  10% (***)   (0.8) (0.4)
Domestic base overnight rate Domestic base overnight rate  -100bps   (5.6) (6.0)
           

 

(*) bps - basis point (1bps = 0,01%)

 

(**) In millions of Brazilian reais

 

(***) Brazilian reais devaluation against US Dollars

 

An equal change in the opposite direction of the stress scenario would have affected the financial investment portfolio by a similar amount, on the basis that all other variables remain constant.

 

5Financial instruments

 

This note provides information about the group's financial instruments, including:

 

- an overview of all financial instruments held by the Group

 

- specific information about each type of financial instrument

 

- accounting policies

 

- information about determining the fair value of the instruments, including judgements and estimation uncertainty involved.

 

The Group classifies its financial assets in the following measurement categories:

 

those measured at fair value or through profit or loss, and

 

those measured at amortized cost.

 

The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.

 

F-15 

 

For assets measured at fair value, gains and losses will be recorded in profit or loss.

 

Recognition and derecognition

 

Regular way purchases and sales of financial assets are recognized on trade date, being the date on which the group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.

 

Measurement

 

At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

 

The Group holds the following financial instruments:

 

Financial assets   Section   09/30/2024   12/31/2023 (Restated)
             
Accounts receivable   (a)   86,889   118,161
Other financial assets at amortized cost   (b)   39,856   24,339
Cash and cash equivalents   (c)   534,406   660,305
Financial assets at fair value through profit or loss (FVPL)   (d)   1,441,282   1,175,501
        2,102,433   1,978,306
             
Financial liabilities            
             
Liabilities at amortized cost   (e)   90,853   114,752
Lease liabilities   (e)   58,788   72,812
Loans and financing   (e)   649,662   617,091
        799,303   804,655

 

The Group's exposure to risks associated with the financial instruments is discussed in Note 4. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above.

 

a)Accounts receivable

 

Current assets 09/30/2024   12/31/2023
Accounts receivable from contracts with customers 73,186   101,673
Loss allowance (150)   (150)
       
Non-current assets      
Accounts receivable from contracts with customers 13,853   16,638
  86,889   118,161

 

Accounts receivables are recognized initially at the amount of consideration that is unconditional and are not submitted to any financial components. They are subsequently measured at amortized cost, less loss allowance.

 

F-16 

 

Current accounts receivable are amounts due from customers for services performed in the ordinary course of business. They are generally due for settlement within 30 days and are therefore classified as current in its entirety. Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

 

Non-current accounts receivable comprised by unrealized performance fees and other receivables. Unrealized performance fees are recognized when the management, with accumulated experience, estimate that it is highly probable that a significant reversal will not occur. Vinci expects the unrealized performance fees will be received during 2024. However, as the period for its realization is subject to uncertainty, the balance is presented as a non-current receivable.

 

Monthly, the Entity evaluates the revenues and receipts for each customer (Funds). Additionally, on quarterly basis Vinci analyzes the outstanding balances to calculate expected credit losses and the exposure to credit risk from receivables are reviewed. Accounts receivable allowance for expected credit losses are presented in general and administrative expense.

 

The loss allowances for accounts receivable as of September 30, 2024 and December 31, 2023 reconcile to the opening loss allowances as follows:

 

  09/30/2024   12/31/2023
Opening loss allowance on January 1 (150)      (166)   
Decrease in accounts receivable allowance recognized in profit or loss -   16
Closing loss allowance on December 31 (150)   (150)

 

Accounts receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan with the group, and a failure to make contractual payments. The Entity has not written any amount of accounts receivable during 2024 and 2023. Subsequent recoveries of amounts previously written off are credited against the same line item.

 

b)Other financial assets at amortized cost

 

Financial assets at amortized cost refer to the following debt instruments:

 

  09/30/2024   12/31/2023
       
Employees loans (Note 6 (i)) 10,947   5,519
Receivable from employees (Note 6 (v)) 28,909   18,820

 

These amounts generally arise from transactions outside the usual operating activities of the group. Interest may be charged at commercial rates and collateral is not normally obtained.

 

All the financial assets at amortized cost are denominated in Brazilian currency units. As a result, there is no exposure to foreign currency risk. There is also no exposure to price risk as the investments will be held to maturity.

 

See note 6 for more details.

 

c)Cash and cash equivalents

 

  09/30/2024   12/31/2023
       
Cash and bank deposits        24,336    15,896
Financial instruments at fair value through profit or loss (i)      112,011    173,300
Financial instruments at amortized cost (ii)      398,059    471,109
       534,406   660,305

F-17 

 

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, bank deposits held at financial institutions, and highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

 

(i) Comprises certificates of deposits issued by Banco Bradesco (credit rating AAA evaluated by Fitch Ratings) with an interest rate of 100.5% of CDI (interbank deposit rate). The certificates are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

 

(ii) Comprised of US Treasury Bills.

 

d)Financial assets at fair value through profit or loss

 

The group classifies the following financial assets at fair value through profit or loss (FVPL):

 

-Mutual funds;

 

-Private markets funds;

 

-Real Estate Investments

 

Financial assets measured at FVPL include the following categories:

 

    09/30/2024   12/31/2023
         
Current assets   1,367,066   1,168,355
Mutual funds (i)   1,367,066   1,168,355
         
Non-current assets   74,216   7,146
Private markets funds (ii)   23,752   7,146
Real Estate Investments (iii)   50,464   -

 

The following table demonstrate the funds invested included in each category mentioned above.

 

(i) Mutual funds          

    09/30/2024   12/31/2023
         
Vinci Monalisa FIM Crédito Privado IE (2)   1,025,736   991,470
Vinci Multiestratégia FIM   1,251   11,642
Vinci International Master Portfolio SPC - Reflation SP   -   606
Vinci Institucional FI RF Referenciado DI   2,964   62,687
Vinci Argentina Opportunity Fund II   11,890   -
Vinci Reservas Técnicas FI RF DI   6,439   2,199
Retirement services investment funds (1)   309,167   85,554
FI Vinci Renda Fixa CP   9,619   14,197
    1,367,066   1,168,355

 

(1)These funds refer to the financial products as part of the Company's retirement plans services. See Note 15 for further information.

 

(2)Vinci Monalisa FIM Crédito Privado IE (“Vinci Monalisa”) is a mutual fund incorporated in Brazil and wholly owned by the Company. Vinci Monalisa’s balances are the following:

 

F-18 

 

    09/30/2024   12/31/2023
Net Asset Value               1,025,736   991,470
Real estate funds                  224,334   234,245
Mutual funds                  454,275   535,430
Private equity funds                  212,891   136,810
Other assets/liabilities                  134,236   84,985

 

The Vinci Monalisa’s portfolio is comprised of liquid and illiquid investee funds with different redemption criteria. Over 66% of its investments are liquid and may be redeemed and 34% are non-redeemable investments. The following tables demonstrate the funds invested by Vinci Monalisa:

 

Mutual funds

 

Vinci Monalisa holds investments in several mutual funds to seek profitability through investments in various classes of financial assets such as fixed income assets, Brazilian government bonds, public equities, derivatives financial instruments, investment funds and other short-term liquid securities. As of September 30, 2024 and December 31, 2023, Vinci Monalisa holds R$ 454,275 and R$ 535,430 of investments in mutual funds, respectively, which are distributed in the following classification:

 

    09/30/2024   12/31/2023
Mutual Funds’ classification        
Interest and foreign exchange (a)   82.55%   84.93%
Foreign investments (b)   6.41%   4.56%
Macro (c)   4.97%   3.96%
Specific strategy (d)   6.08%   6.55%
    100.00%   100.00%

 

(a)Funds that seek long-term returns via investments in fixed-income assets, admitting strategies that imply interest risk, price index risk and foreign currency risk.

 

(b)Funds that invest in financial assets abroad in a portion greater than 40% of their net asset values.

 

(c)Funds that operate in various asset classes (fixed income, variable income, foreign exchange, etc.), with investment strategies based on medium and long-term macroeconomic scenarios.

 

(d)Funds that adopt an investment strategy that involves specific risks, such as commodities, futures of index, etc.

 

Real Estate funds            

    09/30/2024   12/31/2023
         
Vinci Credit Securities FII (a)   68,798   70,049
Vinci Imóveis Urbanos FII (b)   43,108   53,884
Vinci Offices FII (c)   23,123   34,639
Vinci Fulwood DL FII (d)   66,321   52,849
Other real estate funds (e)   22,984   22,824
    224,334   234,245

 

(a) The fund invests in real estate receivable certificates, bonds and other real estate assets;

 

(b) The fund’s investment strategy is to acquire properties in the retail, general markets, health and education sectors located in large urban centers that, in the Manager's view, generate long-term value;

 

(c) The fund invests in controlling corporate buildings, mostly leased, which, in the Manager's view, generate value for the properties.

 

(d) The fund’s strategy is to provide its shareholders with profitability resulting from the sale of properties, as well as the eventual commercial exploitation of properties. The Fund may carry out renovations or improvements to properties with the aim of enhancing the returns arising from their commercial exploitation or eventual commercialization.

 

(e) Comprised of funds that allocate their capital in diversified portfolios of shares of real estate funds, real estate receivable certificates, bonds, securities and other real estate assets.

 

F-19 

 

Private markets funds  

    09/30/2024   12/31/2023
         
Vinci Crédito Infra Institucional Fundo Incentivado – Infraestrutura (a)   62,213   46,844
Vinci Infra Água e Saneamento Strategy FIP – Infraestrutura (b)   50,742   50,698
VCP IV Master FIP B (c)   41,334   -
Vinci Infraestrutura Transporte e Logística FIP   19,004   10,486
Vinci Infra Coinvestimento I FIP - Infraestrutura   7,376   10,290
Vinci Impacto Ret IV FIP Multiestratégia   6,296   4,687
Other funds   25,926   13,805
Total private markets funds   212,891   136,810

 

(a) The Fund aims to increase the value of its shares through the subscription or acquisition, on the primary or secondary market, predominantly of debentures issued by privately held companies, for the purpose of raising funds to implement projects relating to the implementation, expansion, maintenance, recovery, adaptation, or modernization of infrastructure projects.

 

(b) The Fund's investment policy is the acquisition of shares, subscription bonuses, debentures convertible or not into shares, or other securities, convertible or exchangeable into shares issued by companies, publicly or privately held in the water sector and basic sanitation.

 

(c) The Fund's investment policy is to invest in securities issued by the National treasure, fixed income securities issued of financial institutions, repo operations, investment fund shares that invest in assets who invest, directly and/or indirectly, in private credit.

 

(ii) Private markets            

    09/30/2024   12/31/2023
         
Vinci Capital Partners III Feeder FIP Multiestratégia   4,290   4,262
Nordeste III FIP Multiestratégia   3,427   2,884
Fundo Garantidor de Infraestrutura – FGIE – Class A   3,194   -
Fundo Garantidor de Infraestrutura – FGIE – Class B   12,841   -
Total Private markets   23,752   7,146

 

(iii) Real Estate Investments            

    09/30/2024   12/31/2023
         
Vinci US RE Corporation (a)   50,464   -
Total Real Estate Investments   50,464   -

 

(a)During the year of 2024, Vinci invested in several properties through its subsidiary Vinci US RE Corporation. The investments are intended to develop real estate properties for capital appreciation through income or sale of the respective properties.

 

During the year, the following gains were recognized in profit or loss:

 

    Nine months ended September 30   Three months ended September 30
    2024 2023   2024 2023
Fair value gains on investments at FVPL recognized in finance income   50,111 73,403   8,569 8,680

F-20 

 

e)Financial liabilities

 

    09/30/2024   12/31/2023
         
Current   122,069   210,498
Trade payables   1,265   1,869
Labor and social security obligations (Note 12)   75,124   101,506
Loans and obligations (Note 14)   14,852   76,722
Lease liabilities (Note 10)   23,010   24,381
Accounts payable (Note 11)   7,818   6,020
         
Non-current   677,234   594,157
Lease liabilities (Note 10)   35,778   48,431
Labor and social security obligations (Note 12)   6,646   5,357
Loans and obligations (Note 14)   634,810   540,369
         
    799,303   804,655

 

Fair value hierarchy

 

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

 

    On September 30, 2024
Recurring fair value measurements   Level 1   Level 2   Level 3   Total
Financial Assets                
Certificate of deposits   -   112,011   -   112,011
Mutual funds   -   1,367,066   -   1,367,066
Private equity funds   -   -   23,752   23,752
Real Estate Investments   -   -   50,464   50,464
Total Financial Assets   -   1,479,077   74,216   1,553,293

 

    On December 31, 2023
Recurring fair value measurements   Level 1   Level 2   Level 3   Total
Financial Assets                
Certificate of deposits   -   173,300   -   173,300
Mutual funds   -   1,168,355   -   1,168,355
Private equity funds   -   -   7,146   7,146
Total Financial Assets   -   1,341,655   7,146   1,348,801

 

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded real estate funds) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

 

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

 

Vinci Monalisa is a financial instrument classified as level 2. Its portfolio is comprised of items that could be classified as level 1, level 2 and level 3, in the amount of R$ 134,584, R$ 588,956 and R$ 302,196, respectively (2023: R$ 151,200, R$ 627,788 and R$ 212,482, respectively).

 

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

 

F-21 

 

Valuation techniques used to determine fair values

 

Specific valuation techniques used to value financial instruments include:

 

- the use of quoted market prices

 

- for level 3 financial instruments – discounted cash flow analysis.

 

All non-listed assets fair value estimates are included in level 2, except for private equity funds and Real Estate Investments, where the fair values have been determined based on fair value appraisals for fund's investments, performed by the fund's management or a third party hired by the Fund’s Administrator. The most part of the level 3 financial instruments evaluation uses discount cash flows techniques to evaluate the fair value of the Fund's investments. The appraisals performed by a third party are reviewed by Vinci or its subsidiaries (fund's management). Frequently, Investments made less than one year than the reporting date are maintained at cost value, except if certain facts and circumstances indicates it must be evaluated by fair value.

 

Fair value measurements using significant unobservable inputs (level 3)

 

The following table presents the changes in level 3 items for the period/year ended September 30, 2024 and December 31, 2023:

 

  Fair Value
Opening balance January 1, 2023 5,985
Capital deployment 947
Sales and distributions (247)
Gain recognized in finance income 461
Closing balance December 31, 2023 7,146
Capital deployment 61,487
Sales and distributions (45)
Gain recognized in finance income 5,628
Closing balance September 30, 2024 74,216

F-22 

 

6Other assets

 

    09/30/2024   12/31/2023
         
Employees loans (i)   10,947   5,519
Sundry advances   168   152
Advances to projects in progress (ii)   12,162   12,771
Other prepayments   1,413   319
Related parties’ receivables (iii)   12   4
Guarantee deposits (iv)   561   494
Receivables from employees (v)   28,909   18,820
Sublease receivables   232   224
Others   17   233
         
    54,421   38,536
         
Current   26,813   19,109
Non-current   27,608   19,427
         
    54,421   38,536

 

(i)Refers to amounts receivable from employees.

 

(ii)Refers to costs incurred by projects related to funds administered by Vinci, that are initially paid by the Group and subsequently reimbursed.

 

(iii)Refers to an intercompany transaction. See Note 21 (b) for more details.

 

(iv)Refers to the security deposit of a lease.

 

(v)Refers to an intercompany transaction. See Note 21 (d) for more details.

 

F-23 

 

7Investments

 

(a)Business Combination

 

Compass Business Combination

 

On March 07, 2024, Vinci announced an agreement for a combination with Compass. Once closed, the transaction will create a full-service Latin American alternative asset manager with more than US$50 billion in assets under management, across private markets, investment products and solutions, public equities, and corporate advisory segments. Founded in 1995, Compass is a leading independent asset manager and investment advisory firm in Latin America, currently present in seven countries in Latin America, the United States and United Kingdom.

 

On October 29, 2024, Vinci announced that is has completed the business combination with Compass. Please see more detail in the subsequent event note.

 

(b)MAV Business Combination

 

On April 25, 2024, Vinci announced an agreement for a combination with MAV Capital Gestora de Recursos SS Ltda. (“MAV” or “MAV Capital”). The transaction was closed on June 28, 2024, and had a total cash consideration of R$5,000 and an obligation of R$10,000 segregated in two payments in each deal anniversary until 2026, respectively. The transaction increased Vinci participation in the agribusiness, improving a segment that is raising in a short period of time. At the closing date, MAV had R$ 540 million assets under management in private markets sector.

 

Details of the purchase consideration, the net assets acquired, and goodwill are as follows:

 

Cash paid     5,000
Consideration payable     10,000
Contingent consideration (Earn-out)     18,010
       
Total purchase consideration     33,010

 

The assets and liabilities recognized as a result of the acquisition are as follows:

 

Cash and cash equivalents     285
Other assets and liabilities     (221)
Management contracts     3,245
Net identifiable assets acquired      3,309
       
Goodwill     29,701
Net assets acquired     33,010

 

As the MAV Business Combination is still under its measurement period, the Group revaluated the purchase price allocation for the third quarter and adjusted the disclosure when compared to the information presented in the second quarter. Up to the end of the year, additional assets or liabilities can be recognized if new information is obtained about facts and circumstances that existed as of the acquisition date. The measurement period ends as soon as Vinci receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date.

 

F-24 

 

(b)Non-controlling interests (NCI)

 

Set out below is summarized financial information for each subsidiary that has non-controlling interests. The amounts disclosed for each subsidiary are before inter-company eliminations.

 

    Vinci Asset Allocation   Vinci Holding Securitária   Total
    09/30/2024   12/31/2023   09/30/2024   12/31/2023   09/30/2024   12/31/2023
Summarized Balance Sheet                        
                         
Current assets   501   232   320,898   100,873   321,399   101,105
Current liabilities   (525)   (707)   (2,985)   (2,816)   (3,510)   (3,523)
Current net assets   (24)   (475)   317,913   98,057   317,889   97,582
                         
Non-current assets   601   601      19,497   13,549      20,098   14,150   
Non-current liabilities   (2,750)   (1,550)   (331,751)   (96,805)   (334,501)   (98,355)
Non-current net assets   (2,149)   (949)   (312,254)   (83,256)   (314,403)   (84,205)
                         
Net assets   (2,173)   (1,424)   5,659   14,801   3,486   13,377
                         
Accumulated NCI   (543)   (356)   848   2,220   305   1,864

F-25 

 

Summarized statement   Vinci Asset Allocation   Vinci Holding Securitária   Total
of comprehensive income   09/30/2024   09/30/2023   09/30/2024   09/30/2023   09/30/2024   09/30/2023
                         
Revenue   289   26   273   20   562   46
                         
Profit for the period   (750)   (778)   (9,143)   (1,423)   (9,893)   (2,201)
                         
Total comprehensive income   (750)   (778)   (9,143)   (1,423)   (9,893)   (2,201)
                         
Profit/(loss) allocated to NCI   (188)   (195)   (1,371)   (213)   (1,559)   (408)

F-26 

 

8Property and equipment

 

                        09/30/2024  
    Furniture   Improvements in properties   Computers       Work of arts and others      
    and fittings   of third   and peripherals -   Equipment        
    stuffs   parties   improvements   and tools     Total  
                           
Cost                          
At January 1, 2024   12,858   48,963   7,634   10,325   791   80,571  
-                        
       Acquisitions, net of disposals   341   734   920   129   (342)   1,782  
       Foreign Exchange variations of property and equipment abroad   -   2,313   -   666   -   2,979  
-       Write-off of fully depreciated items   (4,609)   -   (5,046)   (3,415)       (13,070)  
At September 30, 2024   8,590   52,010   3,508   7,705   449   72,262  
                           

Accumulated depreciation

 

At January 1, 2024

 

  (9,303)   (43,205)   (6,128)   (9,344)   -   (67,980)  
    Depreciation   (631)   (2,265)   (397)   (192)       (3,485)  
    Foreign Exchange variations of property and equipment abroad       (2,287)       (636)       (2,923)  
    Write-off of fully depreciated items   4,609       5,046   3,415       13,070  
At September 30, 2024   (5,325)   (47,757)   (1,479)   (6,757)   -   (61,318)  
                           
Net book value                          
At January 1, 2024   3,555   5,758   1,506   981   791   12,591  
                           
At September 30, 2024   3,265   4,253   2,029   948   449   10,944  
                           
Annual depreciation rate - %   10   From 10 to 20   20   10   -   -  

F-27 

 

                        12/31/2023  
    Furniture   Improvements in properties   Computers       Work of arts and others      
    and fittings   of third   and peripherals -   Equipment        
    stuffs   parties   improvements   and tools     Total  
                           
Cost                          
At January 1, 2023   11,782   47,824   7,113   10,241   873   77,833  
       Acquisitions   1,076   2,574   521   496   (82)   4,585  
       Foreign Exchange variations of property and equipment abroad   -   (1,435)   -   (412)   -   (1,847)  
                           
At December 31, 2023   12,858   48,963   7,634   10,325   791   80,571  
                           

Accumulated depreciation

 

At January 1, 2023

 

  (8,473)   (42,188)   (5,707)   (9,514)   -   (65,882)  
    Depreciation   (830)   (2,447)   (421)   (229)   -   (3,927)  
    Foreign Exchange variations of    property and equipment abroad       1,430   -   399   -   1,829  
                           
At December 31, 2023   (9,303)   (43,205)   (6,128)   (9,344)   -   (67,980)  
                           
Net book value                          
At January 1, 2023   3,309   5,636   1,406   727   873   11,951  
                           
At December 31, 2023   3,555   5,758   1,506   981   791   12,591  
                           
Annual depreciation rate - %   10   From 10 to 20   20   10          

F-28 

 

9Intangible assets

 

Intangible assets include expenditures with the development of the software, placement agent, management contracts and the goodwill generated by the acquisition of SPS and MAV Capital.

 

The software development comprises mainly the following assets:

 

-Products for Risk System and Portfolio Allocation, whose purpose is to evaluate the risk of the funds and to allocate the clients' portfolio; and

 

-Systems and applications which are being developed to support retirement services applications.

 

The Entity assesses at each reporting date whether there is an indication that an intangible asset may be impaired, If any indication exists, the Entity estimates the asset's recoverable amount. There were no indications of impairment of intangible assets for the period ended September 30, 2024 and for the year ended December 31, 2023.

 

  09/30/2024
  Software development Placement Agent (a) Goodwill (b)   Management Contracts (c)   Total
               
Cost              
At January 1, 2024 40,333 20,722 162,290   22,049   245,394
Additions 9,950 129 29,701   3,245   43,025
Foreign exchange variation of intangible assets abroad 963 218 -   -   1,181
      Write-off of fully amortized items (14,711) - -   -   (14,711)
               
At September 30, 2024 36,535 21,069 191,991   25,294   274,889
               
Accumulated amortization              
At January 1, 2024 (24,686) (1,896) -   (4,064)   (30,646)
Amortization (2,943) (1,573) -   (2,286)   (6,802)
Foreign exchange variation of intangible assets abroad (927) (55) -   -   (982)
       Write-off of fully amortized items 14,711 - -   -   14,711
               
At September 30, 2024 (13,845) (3,524) -   (6,350)   (23,720)
               
At January 1, 2024 15,647 18,826 162,290   17,985   214,748
   At September 30, 2024 22,690 17,545 191,991   18,944   251,170
               
Amortization rate (per year) - % 20% (a) (b)   (c)   -

F-29 

 

(a) Refers to amounts capitalized relating to agreements with investments placement agents relating to funds raised from investors in funds managed by the Group. These amounts are amortized based on the estimated duration of the related funds. When a Fund has an undefined useful life (Perpetual funds), placement agent costs are amortized within 10 years. In case of an early liquidation of the funds, the amortization period is adjusted, or if there is an indication of impairment, an impairment evaluation is performed and recognized, if necessary.

 

(b) Goodwill has an indefinite useful life and are not subject to amortization. Goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. On December 31, 2023, goodwill was tested and no provision for impairment losses was identified by Vinci.

 

Key assumptions to determine the fair value of goodwill include discounted cash flow calculations based on current performance and considering current market indicators listed below. There were no significant changes to assumptions between acquisition and reporting date.

 

Inputs to determine fair value of SPS Goodwill:

 

Annual inflation rate – Brazil 4%
Discount Rate 12,5%

 

(c) Refers to the purchase price allocated to Fund’s Management Contracts as a result of SPS and MAV acquisition.

 

SPS: These amounts are amortized based on the duration of the related funds, from September 2022 to December 2030.

 

MAV: These amounts are amortized based on the duration of the related funds, from July 2024 to December 2029.

 

Other assets than Goodwill are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

 

F-30 

 

    12/31/2023
    Software development   Placement Agent (a)     Goodwill (b)       Management Contracts (c)   Total
                           
Cost                          
At January 1, 2023   28,250   1,359     162,290       22,049   213,948
Additions   12,684   19,469     -       -   32,153
Foreign exchange variation of intangible assets abroad   (601)   (106)     -       -   (707)
                           
At December 31, 2023   40,333   20,722     162,290       22,049   245,394
                           
Accumulated amortization                          
At January 1, 2023   (23,629)   (65)     -       (1,016)   (24,710)
Annual amortization   (1,636)   (1,863)     -       (3,048)   (6,547)
Foreign exchange variation of intangible assets abroad   579   32     -       -   611
                           
At December 31, 2023   (24,686)   (1,896)     -       (4,064)   (30,646)
                           
At January 1, 2023   4,621   1,294     162,290       21,033   189,238
                           
   At December 31, 2023   15,647   18,826     162,290       17,985   214,748
                           
Amortization rate (per year) - %   20%   (a)     (b)       (c)   -

F-31 

 

10Leases

 

This note provides information for leases where the Group is a lessee. The notes also provide the information of subleases agreements where the Group is a lessor, once part of the assets leased by the Group is subleased to third parties.

 

(i)Amount recognized in the balance sheet

 

The balance sheet shows the following amounts relating to leases:

 

    09/30/2024   12/31/2023
Sub-lease receivable        
Rio de Janeiro Office - BM 336   2,808   5,538
Total   2,808   5,538
         
Current   2,808   4,071
Non-current   -   1,467
Total   2,808   5,538
         
Right of use assets        
Rio de Janeiro Office - BM 336   45,104   48,741
São Paulo Office – JRA   5,853   8,780
NY Office - Third Avenue   221   787
Total   51,178   58,308
         
Lease liabilities        
Rio de Janeiro Office - BM 336   (50,439)   (61,051)
São Paulo Office – JRA   (8,079)   (10,821)
NY Office - Third Avenue   (270)   (940)
Total   (58,788)   (72,812)
         
Current   (23,010)   (24,381)
Non-current   (35,778)   (48,431)
Total   (58,788)   (72,812)

 

Additions to the right-of-use assets until September 30, 2024 were R$ 121 (reductions of R$ 2,045 during 2023 financial year).

 

F-32 

 

(ii)Amount recorded in the statement of profit or loss

 

The statement of profit or loss shows the following amounts relating to leases:

 

    Nine months ended September 30   Three months ended September 30
    2024 2023   2024 2023
             
Right of use assets depreciation    (7,007) (7,437)   (2,333) (2,246)
Financial expense   (6,223) (7,542)   (1,931) (2,394)
    (13,230) (14,979)   (4,264) (4,640)

 

The total cash outflow for leases until September 30, 2024 was R$ 20,335 (R$ 19,257 until September 30, 2023).

 

The Group’s leasing activities and how these are accounted for are disclosed in the Group’s annual consolidated financial statements as of December 31, 2023.

 

11Accounts payable

 

    09/30/2024   12/31/2023
         
Dividends payable   3,791   3,791
Lease payable – prior month expense   2,122   2,161
Treasury shares acquisition   810   -
Other payables   1,095   68
         
    7,818   6,020

 

12Labor and social security obligations

 

         
    09/30/2024   12/31/2023
         
Profit sharing   63,834   93,611
Labor provisions   17,936   13,252
         
    81,770   106,863
         
Current   75,124   101,506
Non-current   6,646   5,357

 

Except for the profit sharing related to the unrealized performance fees, the accrual for profits sharing payable on December 31, 2023 was paid in January 2024. Profit sharing is calculated based on the performance review of each employee plus the area performance, in accordance with the Entity policy. Vinci Management estimated the profit sharing as of September 30, 2024 based on the management and advisory net revenue recognized and the realized performance fee up to September 30, 2024.

 

F-33 

 

Since the second quarter of 2022 labor provisions are being impacted by provisions and social charges related to Restricted Share Units Plan (RSUs). The non-current amount comprises the provisions and social charges for the RSUs which the vesting dates are over than 1 year. Please see note 24 for more details.

 

13Taxes and contributions payable

 

    09/30/2024   12/31/2023
         
Income tax   14,206   14,467
Social contribution   4,996   5,061
Social Contribution on
     revenues (COFINS)
  2,253   2,780
Social Integration Program (PIS)   492   606
Service tax (ISS) on billing   732   1,742
Withholding Income Tax (IRRF)
     deducted from third parties
  159   103
Others   157   94
         
    22,995   24,853

F-34 

 

14Loans and obligations

 

  09/30/2024   12/31/2023
         
Convertible Preferred Shares (i)   500,504   431,333
Commercial Notes (ii)   53,139   73,189
Consideration payable (iii)   10,268   48,199
Contingent consideration (iv)   85,751   64,370
         
    649,662   617,091
         
Current   14,852    76,722
Non-current   634,810   540,369

 

(i)Convertible Preferred Shares

 

On October 10, 2023, Vinci and Ares Management Corporation (“Ares”) announced an agreement to form a strategic partnership to accelerate the growth of Vinci's platform in Latin America and to collaborate on distribution, product development and other business opportunities. In connection with the formation of the strategic partnership, an affiliate of Ares invested US$100 million (R$ 500,550) in new Series A Convertible Preferred Shares issued by Vinci.

 

The Series A Convertible Preferred Shares will be entitled to cumulative dividends payable quarterly in cash at a rate of 8.00% per annum. The dividend rate is subject to increase to 10.00% per annum in the case of certain breaches by the Company of its obligations under the Certificate of Designations.

 

The Series A Convertible Preferred Shares will be convertible at the option of the holders at any time after the closing of the issuance into Class A Common Shares at an initial conversion rate of 73.5402 Class A Common Shares for each Series A Convertible Preferred Share, which represents an initial conversion price of approximately $13.60 per Class A Common Share.

 

Under certain conditions, Vinci may redeem, following the dissolution or termination of the strategic partnership with Ares, and prior to the one-year anniversary of such dissolution or termination, for cash all, or, if Ares no longer holds all Series A Convertible Preferred Shares, all of the Series A Convertible Preferred Shares held by Ares and any whole number of Series A Convertible Preferred Shares held by such other holders. On or around October 1, 2033, if not earlier repurchased, redeemed or converted, the Company will redeem, in whole but not in part, all of the outstanding Series A Convertible Preferred Shares for an amount in cash equal to the stated value of the Series A Convertible Preferred Shares.

 

Under the terms of IAS 32, this agreement was evaluated by the Management and classified as a compound instrument, having both a liability and an equity component from the issuer's perspective. Based on it, the component parts were accounted for and presented separately according to their substance. The split was made at issuance and not revised for subsequent changes in market interest rates, share prices, or other event that changes the likelihood that the conversion option will be exercised.

 

F-35 

 

The following table presents the changes in the Convertible Preferred Shares up the period ended September 30, 2024:

 

Fair value of the convertible preferred shares, net of transaction costs 439,651  
Net foreign exchange loss/(gain) (16,513)  
Interest expense  8,195  
Closing balance December 31, 2023  431,333  
Net foreign exchange loss/(gain) 61,242  
Interest expense 36,032  
Interest paid (28,103)  
Closing balance September 30, 2024 500,504  
   
Current 32,228
Non-current 468,276
       

 

On January 1, 2024, the Entity paid the total amount of R$ 6,993 related to the dividends of the series A convertible preferred shares.

 

On April 1, 2024, the Entity paid the total amount of R$ 9,992 related to the dividends of the series A convertible preferred shares.

 

On July 1, 2024, the Entity paid the total amount of R$ 11,118 related to the dividends of the series A convertible preferred shares.

 

(ii)Commercial notes

 

On August 15, 2022, Vinci Soluções de Investimentos Ltda., a subsidiary of Vinci, issued 80,000 commercial notes in the total amount of R$ 80,000 (R$ 1,000,00 reais for each commercial note). The commercial notes were subject to public distribution 90 days after the issuing date. The main characteristics of the financial instrument are indicated below:

 

Term and expiration date: 5 (five) years, ending on August 15, 2027.

 

Interest rate: 100% of the daily rates of interbank deposits (“DI”) plus a spread of 2.15% on an annual basis.

 

Amortization: On semi-annually basis, beginning on February 15, 2023.

 

Commercial Notes comprises a financial liability evaluated at amortized cost. Interest expense is calculated using the effective interest method and is recognized in profit or loss as part of financial expense.

 

Accordingly, to the terms of the agreement, the Group is committed to be compliant with financial covenants, on an annual basis and beginning on December 31, 2022. The entity was in compliance with the covenants as of September 30, 2024 and December 31, 2023.

 

The following table presents the changes in the Commercial Notes up the period ended September 30, 2024 and December 31, 2023:

 

F-36 

 

Closing balance December 31, 2022  83,212
Interest expense 10,841
Interest paid (11,975)
Principal paid (8,889)
Closing balance December 31, 2023 73,189
Interest expense 6.641
Interest paid (8,912)
Principal paid (17,779)
Closing balance September 30, 2024 53,139
   
Current 9,712
Non-current 43,427

(iii)       Consideration payable

 

SPS Capital Gestão de Recursos Ltda.

 

According to Note 7(a), Vinci acquired SPS Capital Gestão de Recursos Ltda, on August 16, 2022. As part of the deal, Vinci assumed a financial obligation to be paid on the second anniversary of the closing date. The amount as of September 30, 2024 and December 31, 2023 is R$ 9 and R$ 48,199, respectively.

 

On August 16, 2024, the amount of R$ 51,336 was paid as part of the liquidation of the obligation.

 

Consideration payable is financial liability evaluated at amortized cost. Interest expense is calculated using the effective interest method and is recognized in profit or loss as part of financial expense.

 

MAV Capital Gestora de Recursos SS Ltda.

 

According to Note 7(a), Vinci acquired MAV Capital Gestora de Recursos SS Ltda, on June 28, 2024. As part of the deal, Vinci assumed a financial obligation to be paid in two installments on the first anniversary and second anniversary of the closing date. The amount as of September 30, 2024 is R$ 10,259.

 

Consideration payable is financial liability evaluated at amortized cost. Interest expense is calculated using the effective interest method and is recognized in profit or loss as part of financial expense.

 

(iv)Contingent consideration

 

SPS Capital Gestão de Recursos Ltda.

 

Vinci shall pay an additional consideration in VINP’s Class A shares through an earnout structure to be paid in 2027, up to a maximum number of 1.7 million shares, subject to the achievement of certain fundraising and incremental management fee revenue targets. The amount reflects the fair value of the obligation, based on the terms of the purchase agreement and how the current economic environment is likely to impact it, accordingly to Vinci’s best estimate.

 

On September 30, 2024, Vinci reevaluated the fair value of the obligation based on the economic conditions at that date, resulting in an increase of the contingent consideration fair value. The variation was recognized as an expense in the financial result in the amount of R$ 3,371 for the nine months period ended September 30, 2024 (expense of R$ 11,796 for the nine months period ended September 30, 2023).

 

F-37 

 

MAV Capital Gestora de Recursos SS Ltda.

 

Vinci shall pay an additional consideration through an earnout structure to be paid in 2027 subject to the achievement of certain fundraising and incremental management fee revenue targets. The amount reflects the fair value of the obligation, based on the terms of the purchase agreement and how the current economic environment is likely to impact it, accordingly to Vinci’s best estimate. See below the calculation of the contingent consideration:

 

On September 30, 2024, Vinci the fair value of the obligation based on the economic conditions at that date is R$ 18,010.

 

15Retirement plans liabilities

 

In 2023, the subsidiary Vinci Vida e Previdência S.A. started its retirement services operations. As of September 2024 and December 2023, active plans are principally accumulation of financial resources through products PGBL (Free Benefit Generator Plan) and VGBL (Free Benefit Generator Life) structured in the form of variable contribution, for the purpose of granting participants with returns based on the accumulated capital in the form of monthly withdraws for a certain term or temporary monthly withdraws.

 

In this respect, such financial products represent investment contracts that have the legal form of retirement plans, but which do not transfer insurance risk to the Group. Therefore, contributions received from participants are accounted for as liabilities and balance consists of the balance of the participant in the linked Specially Constituted Investment Fund (“FIE”) at the reporting date (Note 5). On September 30, 2024, the Retirement plan liabilities are R$ 309,170 (R$ 85,554 as of December 31, 2023).

 

16Equity

 

(a)Capital

 

The capital comprises 42,447,349 Class A shares and 14,466,239 Class B shares with a par value of US$ 0.00005 each and 100,000 Series A convertible preferred shares.

 

The Class A common shares have been approved for listing on the Nasdaq Global Select Market, or Nasdaq, under the symbol "VINP," Vinci has two classes of common shares: Class A common shares and our Class B common shares.

 

Class B common shares carry rights that are identical to the Class A common shares, except that (1) holders of Class B common shares are entitled to 10 votes per share, whereas holders of our Class A common shares are entitled to one vote per share; (2) holders of Class B common shares have certain conversion rights; (3) holders of Class B common shares are entitled to preemptive rights in the event that additional Class A common shares are issued in order to maintain their proportional ownership interest; and (4) Class B common shares shall not be listed on any stock exchange and will not be publicly traded.

 

Series A Convertible Preferred Shares will be convertible at the option of the holders at any time after the closing of the issuance into Class A Common Shares at an initial conversion rate of 73,5402 Class A Common Shares for each Series A Convertible Preferred Share, which represents an initial conversion price of approximately $13.60 per Class A Common Share.

 

F-38 

 

Fair value option of convertible preferred shares

 

As informed on note 14 (i), when the initial carrying amount of a compound financial instrument is allocated to its equity and liability components, the equity component is assigned the residual amount after deducting from the fair value of the instrument determined for the liability component. At the transaction date, the fair value of the stock option and the amount of transaction cost were allocated to the equity in the amounts of R$ 34,141 and 1,958, respectively.

 

(b)Transactions costs

 

Transactions costs comprises the expenses incurred by the Entity in connection with the IPO and the issuance of the convertible preferred shares.

 

(c)Retained earnings

 

Retained earnings comprises the net profit generated by the Entity which were not distributed to their shareholders or approved to be distributed by the Entity management.

 

(d)Other reserves

 

Other reserves are comprised by the following operations:

 

(i)Exchange variation on investees

 

Comprises the exchange variation in investments made on investees which have a functional currency other than Brazilian Reais, the Entity functional currency. When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

 

(ii)Share-based payments

 

Benefits to its employees through a share-based incentive.

 

(e)Dividends

 

On February 7, 2024, Vinci declared a quarterly dividend distribution of US$ 0.20 per common share to shareholders as of February 22, 2024, totalizing US$ 10,756 (R$ 53,357), paid on March 5, 2024.

 

On May 7, 2024, Vinci declared a quarterly dividend distribution of US$ 0.17 per common share to shareholders as of May 23, 2024, totalizing US$ 9,085 (R$ 45,978), paid on June 5, 2024.

 

On August 6, 2024, Vinci declared a quarterly dividend distribution of US$ 0.17 per common share to shareholders as of August 21, 2024, totalizing US$ 9,027 (R$ 51,026), paid on September 5, 2024.

 

Once dividends are declared and approved by the board of directors, they will be paid on proportional basis to the owners of the common shares.

 

(f)Treasury shares

 

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity and the resulting surplus or deficit on the transaction is presented within the additional paid-in capital.

 

F-39 

 

On February 14, 2023, the Company announced a new share buyback plan and a share repurchase plan to buy back up to R$60.0 million of the Company's outstanding Class A common shares across both plans. The new buyback and repurchase plans will commence on the expiration date of the legacy plans and will not have specified expiration dates (other than when the R$60.0 million buyback limit is reached).

 

In October 2023, the Company suspended for undetermined time the Repurchase Program, in compliance with SEC Rule 10b5-1.

 

On February 7, 2024, the Company announced a new share buyback plan and a share repurchase plan to buy back up to R$60.0 million of the Company's outstanding Class A common shares which shall be executed through open market transactions or privately negotiated purchases. The plan is approved to replace the share buyback and repurchase plans approved on February 14, 2023, which expired on the date that the R$60.0 million buyback limit set thereunder was reached.

 

On September 26, 2024, the Company announced a new share buyback and share repurchase plans to buy back up to US$15.0 million of the Company’s outstanding Class A common shares which shall be executed through open market transactions or privately negotiated purchases. The plans are approved to replace the share buyback plan announced on February 7, 2024, which expired on the date that the R$60.0 million buyback limit set thereunder was reached.

 

During the year of 2024, the Company bought back 533,981 shares from its shareholders, in the amount of R$ 28,302.

 

In September 2024 the Company holds 4,042,974 Class A common shares in treasury.

 

F-40 

 

(g)Basic and diluted earnings per share

 

    Nine months ended September 30   Three months ended September 30
a) Basic earning per share   2024   2023   2024   2023
From continuing operations attributable to the ordinary equity holders of the Entity   2.19   2.80   0.78   0.57
Total basic earning per share attributable to the ordinary equity holders of the Entity   2.19   2.80   0.78   0.57

 

    Nine months ended September 30   Three months ended September 30
b) Diluted earning per share   2024   2023   2024   2023
From continuing operations attributable to the ordinary equity holders of the Entity   2.12   2.71   0.76   0.55
Total basic earning per share attributable to the ordinary equity holders of the Entity   2.12   2.71   0.76   0.55

 

c) Reconciliations of earnings used in calculating earnings per share        

 

    Nine months ended September 30   Three months ended September 30
Basic earnings per share:   2024   2023   2024   2023
Profit attributable to the ordinary equity holders of the Entity used in calculating basic earnings per share:                
From continuing operations   116,983   156,483   41,907   32,005
    116,983   156,483   41,907   32,005
                 
    Nine months ended September 30   Three months ended September 30
Diluted earnings per share:   2024   2023   2024   2023
Profit from continuing operations attributable to the ordinary equity holders of the Entity                
Used in calculating basic earnings per share   116,983   156,483   41,907   32,005
Used in calculating diluted earnings per share   116,983   156,483   41,907   32,005

 

d) Weighted average number of shares used as the denominator

 

    Nine months ended September 30   Three months ended September 30
    Number 09/30/2024   Number 09/30/2023   Number 09/30/2024   Number 09/30/2023
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share:   53,367,970   55,864,239   53,732,029   56,172,891
Adjustments for calculation of diluted earnings per share:   1,733,042   302,851   1,733,042   302,851
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share   55,101,012   56,167,090   55,465,071   56,475,742

F-41 

 

17Revenue from services rendered

 

    Nine months ended September 30   Three months ended September 30
    2024   2023   2024   2023
                 
Gross revenue from fund management   339,002   314,052   114,089   112,543
Gross revenue from performance fees   10,188   15,648   1,948   2,119
Gross revenue from advisory   30,089   22,686   6,557   2,499
                 
Gross revenue from services rendered   379,279   352,386   122,594   117,161
                 
In Brazil   299,770   285,915   101,338   97,603
Abroad   79,509   66,471   21,256   19,558
                 
Taxes and contributions                
COFINS   (13,341)   (13,109)   (4,471)   (4,705)
PIS   (2,893)   (2,844)   (969)   (1,021)
ISS   (8,124)   (7,455)   (2,548)   (2,349)
                 
Net revenue from services rendered   354,921   328,978   114,606   109,086
                 
Net revenue from fund management   317,339   293,391   106,750   104,745
Net revenue from performance fees   9,776   14,786   1,890   2,058
Net revenue from advisory   27,806   20,801   5,966   2,283

18       General and administrative expenses

 

    Nine months ended September 30   Three months ended September 30
    2024   2023   2024   2023
                 
Personnel (a)   (54,527)   (53,176)   (19,088)   (17,650)
Share-based payments (b)   (15,955)   (10,718)   (4,147)   (5,118)
Profit-sharing (a)   (65,775)   (64,883)   (20,135)   (19,671)
    (136,257)   (128,777)   (43,370)   (42,439)
Third party expenses (c)   (42,974)   (23,267)   (12,007)   (7,964)
Right of use depreciation (d)   (7,007)   (7,437)   (2,333)   (2,246)
Depreciation and amortization (e)   (10,180)   (7,342)   (3,800)   (3,536)
Travel and representations   (5,025)   (2,743)   (1,852)   (959)
Condominium expenses   (2,099)   (2,377)   (789)   (607)
Other operating expenses (f)   (9,342)   (8,857)   (3,527)   (3,987)
                 
    (212,884)   (180,800)   (67,678)   (61,738)

 

(a)Personnel and profit-sharing

 

According to the profit-sharing program and based on Law 10,101 of December 19, 2000 and on objectives established at the beginning of each year, management estimated the payment of profit sharing in the amount of R$ 65,775 (R$ 64,883 on September 30, 2023) for the nine-months period ended September 30, 2024.

 

(b)Share-based payments

 

See Note 24 for more details.

 

F-42 

 

(c) Third party expense

 

Third party expenses are composed for accounting, advisory, information technology, marketing, and other contracted services. Third party expenses also include expenses related to business combinations.

 

(d) Right of use depreciation

 

See Note 10 for more details.

 

(e) Depreciation and amortization

 

The amount is mainly comprised by property and equipment depreciation and intangible amortization.

 

(f) Other operating expenses

 

The amount is mainly comprised of office expenses, including energy, cleaning, maintenance and conservation, among others several expenses.

 

F-43 

 

19Finance profit/(loss)

 

  Nine months ended September 30   Three months ended September 30
  2024   2023   2024   2023
               
Investment income (i) 50,111   73,514   8,569   8,680
Financial revenue through amortized cost 17,875   501   6,192   501
Foreign currency variation income 2,293   -   2,293    
Financial revenue on sublease agreements 451   493   121   233
Contingent consideration variation (iii) -   4,051   -   -
Other finance income 1,732   613   445   404
               
Finance income 72,462   79,172   17,620   9,818
               
Financial expense on lease agreements (6,223)   (7,542)   (1,931)   (2,394)
Interest expense on loans and financing (ii) (46,075)   (11,736)   (15,650)   (3,898)
Bank fees (100)   (84)   (67)   (33)
Interest and arrears (3)       (3)    
Investment losses (i) -   (111)   -   -
Fines on taxes (3)   -   (1)   -
Interest on taxes (85)   -   (1)   -
Foreign currency variation expense (7,073)   (775)   -   -
Contingent consideration variation (iii) (3,371)   (15,847)   8,248   (8,569)
Other financial expenses (386)   (80)   (81)   (80)
               
Finance costs (63,319)   (36,175)   (9,486)   (14,974)
               
Finance profit/(loss), net 9,143   42,997   8,134   (5,156)
               

 

(i)Investment income and losses comprises the fair value changes on the financial instruments at fair value through profit or loss, Segregated investment income result is demonstrated below.

 

    Nine months ended September 30   Three months ended September 30
    2024   2023   2024   2023
Mutual funds and fixed income investments (a)   48,523   73,153   8,038   8,350
Private equity funds   1,588   361   531   330
    50,111   73,514   8,569   8,680
                 
Mutual funds   -   82   -   190
Private equity funds   -   (193)   -   (190)
    -   (111)   -   -

 

(a)Vinci Monalisa corresponds to the most part of the Group’s investment income.

 

(ii)Interest expense on loans and financing comprises the financial result on the Commercial notes, the consideration payable related to SPS acquisition and interest expense on the convertible preferred shares. Please see note 14 for more detail.

 

(iii)Variation on contingent consideration comprises the financial result of the fair value evaluation. Please see note 14 (iv) for more detail.

 

F-44 

 

20Income tax and social contribution

 

As an exempted company incorporated in the Cayman Islands, Vinci Partners Ltd is subject to Cayman Islands laws, which currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty or withholding tax applicable to us.

 

Vinci Partners Ltd subsidiaries, except for certain subsidiaries, are taxed based on the deemed profit.

 

Vinci has tax losses and negative basis resulting from previous years and deferred income tax and social contribution credits are recognized since there is expectation of future tax results for these companies, The tax credit arising from the tax loss and negative basis under the taxable profit regime on September 30, 2024 is R$ 6,066 (R$ 6,066 on December 31, 2023).

 

The income tax and social contribution charge on the results for the year can be summarized as follows:

 

    Nine months ended September 30   Three months ended September 30
    2024   2023   2024   2023
                 
Current income tax   (29,494)   (30,527)   (9,648)   (10,601)
Current social contribution   (10,718)   (10,965)   (3,505)   (3,769)
                 
    (40,212)   (41,492)   (13,153)   (14,370)
                 
Deferred income tax   3,276   4,899   (397)   2,997
Deferred social contribution   1,180   1,493   (143)   998
                 
    4,456   6,392   (540)   3,995
                 
    (35,756)   (35,100)   (13,693)   (10,375)

 

Deferred tax balances

 

    09/30/2024   12/31/2023
Deferred tax assets        
Tax losses   6,066   6,066
Leases   605   1,084
RSU   2,619   2,188
Interest expense on obligation for acquisition   3,190   2,121
Amortization on management Contracts   2,159   1,382
Contingent consideration   3,896   646
Total   18,535   13,487

 

Deferred tax liabilities        
Financial revenue   (1,690)   (1,147)
Estimated revenue   (1,168)   (1,570)
Leases   (802)   (351)
Total Income Tax   (3,660)   (3,068)
         
Estimated revenue   (609)   (815)
Total (Taxes and contribution)   (609)   (815)
         
Total deferred tax liabilities   (4,269)   (3,883)

F-45 

 

Movements

 

                           
Deferred tax assets   Tax losses   Leases   RSU   AVP   Managemnt Contract   Contingent Consideration   Total
As at December 31, 2022   4,912   1,805   1,628   550   346   -   9,241
to profit and loss   1,154   (721)   560   1,571   1,036   646   4,246
As at December 31, 2023   6,066   1,084   2,188   2,121   1,382   646   13,487
to profit and loss   -   (479)   431   1,069   777   3,250   5,048
As at September 30, 2024   6,066   605   2,619   3,190   2,159   3,896   18,535

 

(*) Comprises deferred taxes related to interest expense on obligation for ownership acquisition, amortization on management contracts and contingent consideration.

 

Movements

 

Deferred tax liabilities

 

  Financial Revenue   Estimated Revenue   Leases   Contingent consideration   Total
As at December 31, 2022   (973)   (2,568)   (49)   (4,750)   (8,340)
to profit and loss   (174)   183   (302)   4,750   4,457
As at December 31, 2023   (1,147)   (2,385)   (351)   -   (3,883)
to profit and loss    (543)    608       (451)   -    (386)
As at September 30, 2024    (1,690)    (1,777)    (802)   -    (4,269)

F-46 

 

(a)Tax effective rate

 

 

  Nine months ended September 30   Three months ended September 30
  2024   2023   2024   2023
               
Profit (loss) before income taxes 151,180   191,175   55,062   42,192
Combined statutory income taxes rate - % 34%   34%   34%   34%
Income tax benefit (expense) at statutory rates (51,401)   (65,000)   (18,721)   (14,346)
Reconciliation adjustments:              
Expenses not deductible (144)   (606)   (45)   (542)
Tax benefits 107   173   (39)   131

Share based payments

Unrecognized tax loss credits

(1,144)

(3,321)

  (329)

(459)

(1,115)

  (76)
Effect of presumed profit of subsidiaries (i) and offshore subsidiaries 19,984 30,570   6,583   4,498
               
Other additions (exclusions), net 163   92   103   (40)
               
Income taxes expenses              
Current (40,212)   (41,492)   (13,153)   (14,370)
Deferred 4,456   6,392   (540)   3,995
  (35,756)   (35,100)   (13,693)   (10,375)
               
Effective rate 24%   18%   25%   25%
                     

 

(i)Brazilian tax law establishes that companies that generate gross revenues of up to R$ 78,000 in the prior fiscal year may calculate income taxes as a percentage of gross revenue, using the presumed profit income tax regime. The Entity's subsidiaries adopted this tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries.

 

F-47 

 

21Related parties

 

(a)Key management remuneration

 

The total remuneration (salaries and benefits) of key management personnel, including the Executive Committee, amounted to R$ 5,493 for the nine-month period ended September 30, 2024 (R$ 5,313 for the nine-month period ended September 30, 2023).

 

According to Vinci internal policy, the key management is entitled to receive a profit-sharing compensation for the current year. As informed in Note 12, Vinci accrued a provision for profit sharing for the Group as of September 30, 2024.

 

(b)Receivables from related parties

 

The Entity receivables from related parties as of September 30, 2024 and December 31, 2023, as shown in the table below:

 

  09/30/2024   12/31/2023  
Cagliari Participações S,A, 4   4  
Catania Participações Societárias S.A 8   -  
  12   4  

 

(c)Employees loans

 

As presented in Note 6(i), Vinci may advance payments to its employees.

 

(d)Receivables from employees

 

During 2023, Vinci sold part of its treasury shares to employees. The amount will be received from January 31, 2025, in annual installments until January 31, 2029, and a monetary variation will be charged by inflation index.

 

During the second quarter of 2024 Vinci sold additional treasury shares to its employees. The amount will be received from January 31, 2026, in annual installments until January 31, 2030, and a monetary variation will be charged by inflation index.

 

22Segment reporting

 

The Entity's reportable segments are those business units which provide different services and are separately managed since each business demands different market strategies.

 

The main information used by management for assessment of the performance of each segment is the profit by segment for the analysis of the return of these investments.

 

The information on assets and liabilities by segment is not disclosed in these financial statements because it is not used by management when managing segments. Management does not make an analysis by geographical areas for the management of the Entity's business.

 

In 2024, the Entity reassessed the allocation of certain revenues and expenses across its segments and restated the segment reporting as of September 30, 2023, for comparative purposes.

 

Segments are independently managed, with professionals specifically skilled allocated in each segment.

 

F-48 

 

The Entity's operations are segmented according to the organization and management model approved by management, and they are divided as follows:

 

Private Market Strategies

 

Comprises the investments in illiquid funds, as described below:

 

(i)Private Equity

 

The private equity segment has a generalist and control-oriented approach, focusing on growth and turnaround. The primary strategy is value creation pursuing transformation of invested companies, with changes in the growth of revenue, productivity, profitability and management profile, using a proprietary methodology ("Value from the Core").

 

Another strategy of the segment is focused on sectors resilient to different investment cycles and minority holdings in small and medium enterprises with business models that exhibit high growth potential and clear, mensurable ESG (Environmental, Social and Governance) goals.

 

(ii)Real Estate

 

The Real Estate Investment Funds segment is focused on shopping centers, logistics, offices, urban real estate and funds of funds, and seek to achieve differentiated returns through an active management of a diversified and quality portfolio. The segment’s objective is also the development of real estate properties, following up to five key steps: origination of opportunities, analysis, execution, monitoring and asset sale.

 

(iii)Infrastructure

 

The infrastructure segment has exposure to real assets through equity and debt instruments, active in the following sub-segments: power, oil & gas, transportation & logistic and water & sewage. The strategy invests across two sub-strategies: sector-focused funds and structured credit. The fund’s investments are periodically monitored, including the evolution of ESG metrics, financial and operational metrics.

 

(iv)Credit

 

This credit segment is focused on fundamental credit analysis, consistency, and long-term value creation to investors. The area dynamic approach is to tactically allocate capital between asset classes and adapt to different cycles. It is also sourcing of credit instruments with resilient structures and sound collateral packages. The credit strategy investments include for core sub-strategies: infrastructure debt, real estate debt, structured credit and exclusive mandates, following four key steps: origination, analysis, structuring and monitoring.

 

(v)Special situations (SPS)

 

This Special situation segment is focused in complex situations in which financial and human capital are employed to generate superior returns, maintaining adequate risk levels and preserving the interests of all parties involved.

 

F-49 

 

Public Equities

 

This segment seeks return through investments in liquid funds and manages long-term positions based on fundamental analysis of Brazilian publicly traded companies, trading bonds, public stocks and derivatives, among other assets.

 

Investment products and solutions

 

Investment products and solutions segments offer financial products on an open platform basis providing portfolio and management services considering medium/long term risk allocation. The strategy aims to provide an advanced investment strategy with alpha generation according to the clients’ targets. The strategy is divided in five sub-strategies: separate exclusive mandates, commingled funds, international allocation, pension plans and hedge funds. Monitoring and risk control are based on different techniques such as: use of options for high conviction trades, monitoring liquidity conditions for each position, VaR monitoring, scenarios simulations (including stress test), stop loss rules on individual positions and on the portfolio level.

 

Corporate advisory

 

The corporate advisory services objective is including high value-added to financial and strategic advisory services to entrepreneurs, corporate senior management teams and boards of directors, focusing primarily on IPO advisory and M&A transactions for Brazilian middle-market companies. The corporate advisory services team serves as trusted advisors to clients targeting local and/or product expertise in the Brazilian marketplace.

 

Vinci retirement services

 

The retirement services focus on planning and building long-term investment portfolios that assist investors to achieve their retirement goals. The retirement services segment started its operations during the first semester of 2023.

 

F-50 

 

    Nine-month period ended 09/30/2024
  Private Market Strategies Public Equities Investment Products and solutions Corporate Advisory Vinci Retirement Services Corporate Center Total
In Brazil 180,567 45,982 57,427 15,195 599 - 299,770
Abroad 57,254 4,762 7,361 10,132 - - 79,509
Gross revenue from services rendered 237,821 50,744 64,788 25,327 599 - 379,279
Fund Advisory fee 3,535 - 1,227 25,327 - - 30,089
Fund Management fee 230,325 44,925 63,153 - 599 - 339,002
Fund Performance fee 3,961 5,819 408 - - - 10,188
Taxes and contributions (13,707) (2,961) (5,832) (1,821) (37) - (24,358)
Net revenue from services rendered 224,114 47,783 58,956 23,506 562 - 354,921
(-) General and administrative expenses (40,739) (10,295) (17,127) (8,755) (9,835) (110,178) (196,929)
Share-based payments (61) (13) (10) - - (15,871) (15,955)
Operating profit 183,314 37,475 41,819 14,751 (9,273) (126,049) 142,037
Finance income             72,462
Finance cost             (63,319)
Finance result, net             9,143
Profit before income taxes             151,180
Income taxes             (35,756)
Profit for the period             115,424

F-51 

 

    Nine-month period ended 09/30/2023 (Restated)
  Private Market Strategies Public Equities Investment Products and solutions Corporate Advisory Vinci Retirement Services Corporate Center Total
In Brazil 148,874 53,517 63,822 19,654 48 - 285,915
Abroad 51,133 3,826 9,407 2,105 - - 66,471
Gross revenue from services rendered 200,007 57,343 73,229 21,759 48 - 352,386
Fund Advisory fee 900 - 27 21,759 - - 22,686
Fund Management fee 195,931 47,861 70,212 - 48 - 314,052
Fund Performance fee 3,176 9,482 2,990 - - - 15,648
Taxes and contributions (11,589) (3,612) (6,401) (1,805) (1) - (23,408)
Net revenue from services rendered 188,418 53,731 66,828 19,954 47 - 328,978
(-) General and administrative expenses (34,180) (12,213) (21,368) (7,460) (5,607) (89,254) (170,082)
Share-based payments (614) (144) 125 - - (10,085) (10,718)
Operating profit 153,624 41,374 45,585 12,494 (5,560) (99,339) 148,178
Finance income             79,172
Finance cost             (36,175)
Finance result, net             42,997
Profit before income taxes             191,175
Income taxes             (35,100)
Profit for the period             156,075

F-52 

 

    Three-month period ended 09/30/2024
  Private Market Strategies Public Equities Investment Products and solutions Corporate Advisory Vinci Retirement Services Corporate Center Total
In Brazil 61,730 15,452 18,494 5,418 244 - 101,338
Abroad 16,812 1,624 2,820 - - - 21,256
Gross revenue from services rendered 78,542 17,076 21,314 5,418 244 - 122,594
Fund Advisory fee 529 - 610 5,418 - - 6,557
Fund Management fee 78,000 15,306 20,539 - 244 - 114,089
Fund Performance fee 13 1,770 165 - - - 1,948
Taxes and contributions (4,663) (954) (1,887) (469) (15) - (7,988)
Net revenue from services rendered 73,879 16,122 19,427 4,949 229 - 114,606
(-) General and administrative expenses (13,640) (3,231) (5,494) (2,006) (3,424) (35,736) (63,531)
Share-based payments - - - - - (4,147) (4,147)
Operating profit 60,239 12,891 13,933 2,943 (3,195) (39,883) 46,928
Finance income             17,620
Finance cost             (9,486)
Finance result, net             8,134
Profit before income taxes             55,062
Income taxes             (13,693)
Profit for the period             41,369

F-53 

 

    Three-month period ended 09/30/2023 (Restated)
  Private Market Strategies Public Equities Investment Products and solutions Corporate Advisory Vinci Retirement Services Corporate Center Total
In Brazil 57,893 16,748 20,734 2,189 39 - 97,603
Abroad 15,842 1,378 2,338 - - - 19,558
Gross revenue from services rendered 73,735 18,126 23,072 2,189 39 - 117,161
Fund Advisory fee 300 - 10 2,189 - - 2,499
Fund Management fee 72,944 16,680 22,880 - 39 - 112,543
Fund Performance fee 491 1,446 182 - - - 2,119
Taxes and contributions (4,674) (1,129) (2,082) (189) (1) - (8,075)
Net revenue from services rendered 69,061 16,997 20,990 2,000 38 - 109,086
(-) General and administrative expenses (12,143) (3,273) (6,558) (980) (2,299) (31,367) (56,620)
Share-based payments (176) (36) (30) - - (4,876) (5,118)
Operating profit 56,742 13,688 14,402 1,020 (2,261) (36,243) 47,348
Finance income             9,818
Finance cost             (14,974)
Finance result, net             (5,156)
Profit before income taxes             42,192
Income taxes             (10,375)
Profit for the period             31,817

F-54 

 

23Legal Claims

 

As of September 30, 2024 and December 31, 2023, the Entity is not aware of disputes classified as probable chance of loss.

 

Find below the disputes classified as possible chance of loss segregated into labor, tax and civil,

 

  09/30/2024   12/31/2023  
           
Tax   22,904   22,095  
Labor   188   780  
Total   23,092   22,875  

 

Tax Claims

 

Vinci Gestora de Recursos Ltda, is a party to a tax administrative proceeding in course arising from the payment of social security contributions (employer's portion and Work Accident Insurance (SAT)) in 2011, charged on amounts paid by virtue of quota of profits and results, totaling R$ 3,811 (December 31, 2023: R$ 3,652).

 

In the second quarter of 2024, Vinci Equities Gestora de Recursos Ltda, settled its one proceeding related to the requirement of ISS (excise tax) under rendered services to investment funds located abroad (December 31, 2023: R$ 266).

 

On December 21, 2018, the Brazilian federal revenue opened a tax assessment against Vinci Equities for the collection of open debts of IRPJ, CSLL, PIS and COFINS in the amount of R$ 19,093 (December 31, 2023: R$ 18,154) for the calendar year of 2013.

 

24Share-based payments

 

The Entity provides benefits to its employees through a share-based incentive. The following item refers to the outstanding plan on September 30, 2024.

 

Stock Options

 

May 2021

 

On May 6, 2021, the Entity launched a Stock Option Plan (“SOP” or “Plan”) in order to grant stock options to certain key employees (“Participants”) to incentivize and reward such individuals. These awards are scheduled to vest over a three-year period and the holders of vested options are entitled to purchase shares at the market price of the shares at grant date. This right may be subject to certain conditions to be imposed by the Entity and aims at aligning the interests of the Entity's shareholders with those of the Participants. Each option will entitle the Participant to acquire 1 Class A common shares issued by the Company.

 

The issue or purchase price of the shares to be subscribed or purchased by the Participants (“Exercise Price”) will be US$18.00. The Exercise Price will be reduced by the amount in dollars per share distributed to its shareholders from the date of execution of this Plan, whether as dividends, interest on equity, redemption, capital reduction or other events defined by the Board of Directors.

 

As of September 30, 2024, there are stock options outstanding with respect to 1,482,753 Class A common shares. All the stock options were vested on February 1st, 2024, and the Participants have a period of 12 months to exercise their vested options from February 1, 2024 (“Exercise Deadline”).

 

The total expense recognized for the programs for the nine- month period ended September 2024 was R$ 119 (September 30, 2023, was R$ 804).

 

February 2023

 

In February 2023, the Board of Directors approved a second Stock Option Plan, which aims to grant up to 1,150,000 options, each entitling the beneficiary to purchase one Class A common share, Such options have an exercise price per share equal to US$9.96; provided that, unless otherwise provided for in an option agreement, this exercise price will be reduced by the amount per share distributed to our shareholders from the date of the grant of the option, whether as dividends, interest on capital, redemption, capital reduction or others. Options will become eligible to be exercised in May 2026. During the second quarter of 2023 the Entity and its subsidiaries issued stock option in connection to the related Plan.

 

F-55 

 

As of September 30, 2024, there are stock options outstanding with respect to 1,103,396 Class A common shares (1,116,884 as of September 30, 2023).

 

The total expense recognized for the programs for the nine-month period ended September 2024 was R$ 2,879 (September 30, 2023, was R$ 1,482).

 

January 2024

 

In January 2024, the Board of Directors approved a third Stock Option Plan, which aims to grant up to 1,274,000 options, each entitling the beneficiary to purchase one Class A common share. Such options have an exercise price per share equal to US$11.04; provided that, unless otherwise provided for in an option agreement, this exercise price will be reduced by the amount per share distributed to our shareholders from the date of the grant of the option, whether as dividends, interest on capital, redemption, capital reduction or others. Options will become eligible to be exercised in January 2027. During the first semester of 2024 the Entity and its subsidiaries issued stock option in connection to the related Plan.

 

As of September 2024, there are stock options outstanding with respect to 1,260,892 Class A common shares (1,273,492 at the grant date).

 

The total expense recognized for the programs for the nine-month period ended September 2024 was R$ 4,871.

 

Restricted Share Unit (RSU)

 

a)Restricted Shares Units Plan

 

On April 04, 2022, the Entity announced its Restricted Share Unit Award Plan (“Plan”). The purpose of this Plan is to provide the opportunity for officers and employees of Vinci and its Subsidiaries, as elected by the Executive Compensation Committee, to receive restricted Shares (“RSU”). Shares representing up to 1.65% of the total amount of the capital stock of the Company, which equals, on this date, approximately 950,000 shares.

 

Under the Plan, stocks are awarded to the recipient upon their grant date. Subject to the terms of the Plan, each RSU shall grant the beneficiary the right to receive one (1) share, subject to the satisfaction of the conditions for acquisition of the shares. The RSUs awarded to the beneficiary shall be vested in different tranches, as long as the service condition is fulfilled and verified. The vesting dates may vary from 1 to 6 years after the granted date, accordingly to the dates defined in each Restricted Share Unit Award Agreement.

 


If an eligible participant ceases its relationship with the Group, within the vesting period, the rights will be forfeited, except

 

in limited circumstances.

 

b)Fair value of shares granted.

 

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model and underlying assumptions, which depends on the terms and conditions of the grant and the information available at the grant date.

 

The Company uses certain assumptions to determine the RSUs fair value at the granted date, including the following:

 

Market value of the shares at the granted date.

 

Estimative of dividend yield and the US interest rate for the years comprised from the granted date until the vesting dates.

 

These estimates also require determination of the most appropriate inputs to the valuation models including assumptions,

 

regarding the expected life of a share-based payment.

 

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c)Outstanding shares granted and valuation inputs.

 

The total RSUs awarded for this Plan was 781,881. The table below summarize the activity for the year ended December 31, 2023, and for the nine-month period ended September 30, 2024.

 

  09/30/2024   12/31/2023
         
RSU outstanding on January 1st   688,779   781,881
Forfeited   (4,310)   (35,689)
Vested   (68,311)   (57,413)
RSU outstanding on September 30/December 31   616,158   688,779

 

d)As of September 30, 2024, total compensation expense of the plans was R$ 8,088 (R$ 8,432 as of September 30, 2023), including R$ 3,526 (R$ 2,812 as of September 30, 2023) of social charges provisions.

 

25Deferred Revenue

 

In accordance with the Partnership Agreement of Vinci Private Equity and Vinci Impact and Return Offshore Funds, management fees are payable in advance semiannually on January 1 and July 1. The revenue fees are recognized monthly on a linear basis during the semester. The deferred revenue balance in March is R$13,444.

 

26Subsequent Events

 

a)Repurchase of Class A common shares

 

According to the Repurchase Program (Note 16(f)), from October 01, 2024, to October 31, 2024, 240,759 Class A common shares were repurchased by the Entity, in the amount of R$13,678.

 

b)Compass acquisition

 

On October 29, 2024, Vinci announced that is has completed its previously announced combination with Compass (“Transaction”), a leading asset manager and investment advisory firm in Latin America. The Transaction creates a full-service Latin American alternative asset manager with more than US$52 billion in assets under management across Private Markets, Investment Products and Solutions, Public Equities and Corporate Advisory segments.

 

The transaction had a total upfront consideration of 11,783,384 shares of VINP Class A common stock, and a cash consideration of US$35,2 million, in the form of VINP Class C redeemable common stock. 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.

 

Based on Compass closing balances as of September 30, 2024 (latest accounting statements available), and the information available until the issuance of these financial statements, Vinci estimated the purchase consideration, the net assets acquired, and the goodwill. However, since the Business Combination is still under its measurement period, the Group has not concluded the purchase price allocation for the Transaction, which includes, if applicable, fair value adjustments for assets and liabilities acquired and other identifiable intangible assets in connection to the Transaction. Vinci has hired an external advisor to assist in preparing the purchase price allocation, which expect to be concluded until the issue of the annual audited financial statements.

 

Details of the estimated purchase consideration, the net assets acquired, goodwill and other intangible assets (if applicable) are preliminary as follows:

 

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Cash paid (Class C Redeemable Shares) 201,373
Shares issued (Class A Shares) 692,155
   
Total purchase consideration 893,528

 

The assets and liabilities recognized as a result of the acquisition are as follows:

 

Cash and cash equivalents 41,512
Financial Instruments at fair value through profit and loss 107,515
Trade Receivables 114,086
Other assets, net of liabilities 17,582
Net identifiable assets acquired  280,695
   
Goodwill and other intangible assets to be identified (*) 612,833
Net assets acquired           893,528

 

(*) According to the preliminary analysis made by the Group, the intangible assets to be identified are comprised mainly by management contracts, clients and brand.

 

The table above does not consider the contingent consideration (earn-out) evaluation, which comprises Class A shares up to an additional 7.5% stake in the combined entity. The financial effect of the contingent consideration will be indicated as soon the purchase price allocation is concluded.

 

c)Lacan Ativos Reais acquisition

 

On November 4, 2024, Vinci announced the signing and closing of an agreement to acquire Lacan Ativos Reais (“Lacan”), an alternative asset manager with a leading franchise in the forestry segment in Brazil and guided by an experienced senior management team with a proven track record.

 

Lacan manages closed-end investment vehicles with long-term lockups of at least ten years and a fee rate that exceeds the average for Vinci's Private Markets strategy, with approximately R$1.5 billion in assets through a flagship strategy that includes three vintages raised, in addition to the fourth vintage currently in fundraising process.

 

The acquisition will include an initial cash component of R$ 70 million, with additional cash considerations through earnout structures over a period of up to four years, contingent upon fundraising and incremental management fee revenues.

 

Since the business combination is still under its measurement period, the Group has not concluded the purchase price allocation for the acquisition, which expect to be concluded until the issue of the annual audited financial statements.

 

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