Vinci Partners Investments (VINP 2.65%) reported second quarter 2025 results on Aug. 12, 2025, with 65.2 million Brazilian reals (BRL) in fee-related earnings (non-GAAP), BRL75.8 million in adjusted distributable earnings, and a declared $0.15 per share dividend. The company highlighted double-digit year-over-year growth in core fee revenues and performance-related earnings, substantial new capital formation of BRL12 billion, and progress on strategic business integration and fund realizations.
Key insights below detail advances in assets under management (AUM) growth, the impact of strong performance fee realizations, and Vinci Partners Investments' execution on its multi-channel Latin American asset management expansion.
AUM growth accelerates for Vinci Partners Investments
Vinci Partners Investments reported BRL12 billion in combined portfolio appreciation and capital formation, with BRL8 billion from portfolio appreciation and more than BRL4 billion in capital formation, while AUM in U.S. Dollar terms grew from $53 billion at the end of fiscal first quarter 2025 (period ended March 31, 2025) to $56 billion by year-end. Growth was diversified, with credit and global Investment Platforms & Solutions (IP&S) seeing particularly robust inflows, and the infrastructure climate change (ICC) fund achieved a final close near BRL2 billion.
"We are proud to share that we had BRL12 billion in capital formation appreciation during this quarter across different strategies, underscoring the breadth of our multi-strategy approach and the scalability of our distribution capabilities."
-- Bruno Zaremba, President of Finance and Operations
This capital formation trajectory underscores Vinci Partners Investments' unique platform scalability and its ability to capture cross-border investor demand, positioning the firm strongly for future regional AUM share gains in alternative assets.
Performance fees boost Vinci Partners Investments' earnings
Vinci Partners Investments recognized substantial realized gains from legacy private market commitments, notably the full divestiture of the FIP Infra Transmission asset, concluded during the quarter, the Nordeste III private equity exit, and new exits in VIGT, collectively contributing BRL50 million pretax to quarterly cash earnings. As of quarter end, BRL1.7 billion in unrealized performance fees (carry) remain on the balance sheet tied to escrow at quarter-end.
"This quarter, in addition to the performance recognized across liquid funds in equities and credit, we had the realization of performance fees coming from one of our infra funds. FIP infra transmission is a fund that was formed back in 2017 before our IPO, in which we made a small commitment from the company's balance sheet at the time and has been collecting its realized returns since 2022. This is the same capital deployment that we have been conducting at a larger scale since our IPO, through commitments to proprietary funds using our balance sheet capital."
-- Alessandro Horta, Chief Executive Officer
Unlocking these crystallized performance fees validates the compounding economic potential of Vinci Partners Investments' co-investment balance sheet strategy, bolstering distributable earnings and serving as a tangible indicator of future upside as newer proprietary fund commitments mature.
Margin outlook improves for Vinci Partners Investments
Although fee-related earnings (FRE) margin compressed due to transitional factors and nonrecurring expenses linked to integration, management reaffirmed a path to a low-30% fee-related earnings margin by fiscal second or third quarter 2026 (periods ending June 30, 2026, or September 30, 2026), driven by cost synergies from recent acquisitions, technology upgrades, and the winding down of retention plan provisions. Margin expansion remains supported by operating leverage as AUM scale returns.
"There are several drivers behind that. I think a lot of things on the IT side, a lot of things on corporate restructuring, a lot of things regarding projects and programs that we are optimizing as a combined company. So mostly on the system side. There are certain expenses that are flowing through our FRE today that are not recurring in nature, but we chose to not adjust the FRE. So we are treating them as recurring. But part of that is not gonna recur next year. I'll give you an example of that. For instance, there is a retention plan that was signed alongside with the Compass transaction for which we are building provisions every month. That ends in the fourth quarter of this year."
-- Bruno Zaremba, President of Finance and Operations
Sustained execution on expense discipline and integration milestones supports Vinci Partners Investments' outlook for expanding profit margins, potentially leading to meaningful operating leverage and enhanced earnings per share as organic revenue growth recovers.
Looking Ahead
Management guided for continued strong AUM inflows in the second half of 2025, targeting a return to double-digit FX-adjusted AUM growth despite a slow fiscal first quarter. Plans include the launch of flagship private equity (VIR V), Latin American fixed maturity and global credit products, and the completion of integration-driven cost initiatives, with full realization of margin improvement expected by fiscal third quarter 2026. Management will detail the timing and composition of general partner (GP) investment income and fund realization curves during Investor Day on October 7, 2025, in New York; no specific quantitative earnings per share or revenue guidance was provided in the transcript.
