Good afternoon. And welcome to the Vinci Partners’ Second Quarter, 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder this call will be recorded. I would now like to turn the conference over to Anna Castro, Investor Relations Manager. Please go ahead.

Thank you, and good afternoon, everyone. Joining today are Alessandro Horta, Chief Executive Officer; Bruno Zaremba, Private Equity Chairman and Head of Investor Relations; and Sergio, Chief Financial Officer. Earlier today, we issued a press release, slide presentation and our financial statements for the quarter, which are available on our website at ir.vincipartners.com. I'd like to remind you that today's call may include forward-looking statements, which are uncertain and outside of the firm's control and may differ from actual results materially. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our 20-F. We will also refer some non-GAAP measures and you'll find reconciliations in the release. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Vinci Partners fund. With that, I'll turn the call over to Alessandro.

Thank you, Anna. Good afternoon, and thank you all for joining our call. We are extremely pleased to join you all today, as we announce results for the second quarter of 2022. Adjustable distributable earnings totaled BRL61.5 million in the second quarter or BRL1.10 per common share, when adjusted for non-recurring expenses related to our corporate M&A activities incurred in the quarter. This represented an increase of 11% year-over-year. Vinci announced a quarterly dividend of $0.17 on the dollar per common share. Since our IPO, Vinci had distributed $1 per common share to shareholders as dividend proving our resilience and ability to generate significant amount of cash flow even in the most challenging macro scenarios. Considering yesterday's closing share price, Vinci Partners, stock is currently trading at close to 6.5% last 12 months dividend yield. The yield is secured by a highly visible management fee-driven revenue stream in a very conservative investment policy on our balance sheet’s cash position. We continue to deliver solid results quarter-after-quarter, thanks to our asset-light and diversified business model, which translates into substantial amounts of cash flow and an attractive dividend distribution to our shareholders. Vinci ended the second quarter with BRL60 billion in assets under management or a BRL62 billion proforma considering recently announced transaction with SPS Capital. AUM expansion in the quarter is a result of BRL4.6 billion in total fundraising coming from both private and liquid sides of our business. Fundraising comes from all across our platform once more reinforcing the diversification of our business. The second quarter is an evident example of the power of this diversification, when we have different pools of capital working together and contributing to our AUM growth. Our IP&S business raised BRL2.4 billion in AUM in the quarter. This AUM came from different parts of capital,…

Thank you, Alessandro. And good afternoon, everyone. Starting on Slide 9, we’ll go through AUM rollforwards for the quarter. Vinci ended the quarter with BRL60 billion in AUM up 5% year-over-year. During the second quarter, we raised BRL4.6 billion with BRL2.9 billion coming from our private market strategies. We started fundraising efforts for our VCP IV, as Alessandro previously mentioned, and we'll continue to do so for the next 12 to 18 months, with all fees being charged retroactively to the fund start date. This quarter, we had another transaction effect in our AUM in private equity. We absorbed a non-fee earning vehicle from the structuring of Evino’s investment. Our final investment in our third vintage flagship fund VCP III. Lastly, our credit segment launched its new product Vinci Credit Infra, raising BRL900 million backed by an anchor commitment from a local institutional investor. This fund has also been approved for a BRL500 million commitment from BNDES, which will impact the fund second closing expected for the second half of this year. Moving on to the liquid side of the business, Vinci reported a BRL1.7 billion net inflow in the quarter, driven by strong fundraising in our pension plan strategy within IP&S. As we have stated in prior calls, we believe Vinci has a great long-term opportunity to grow in private pension allocation in Brazil. And we will continue to look for ways to capture this opportunity. Our liquid strategies’ AUM remains resilient while navigating through this turbulent market scenario, having witnessed small outflows against what has been substantial market redemption cycle. However, the negative market performance has impacted us in a different way. Our AUM was impacted by depreciation of BRL1.7 billion in the second quarter, coming from the mark-to-market effect of liquid funds, tied to the Ibovespa index,…

Thank you, Bruno. Turn into our segment highlights. As you can see in Slide 23, our platform remains highly diversified, which we believe should be main contributor to the resilience of our business. 53% of our FRE individually came from our Private Market strategies followed by IP&S with 22%, liquid strategies with 21%, and financial advisory contributing with 4%. The same level of diversification is reflected in our segment distributable earnings. Moving on to each of the segments is starting with our Private Market strategies on Slide 24. FIE totaled BRL24.3 million in the quarter, down 16% over the prior period. Driven by a combination of the following factors, our one-off advisory fee contribution in real estate during the second quarter of 2021, and the success of capital return was BRL1.1 billion in FIP Energia during the first quarter of 2022. The infrastructure vertical is in the process of raising a new strategy VICC, which we expect should be more than compensate management fee revenues for this recent capital return. Segment distributable earning were BRL57.3 million over the year-to-date, an increase of 6% compared to the same period last year, boosted by higher contributions from dividend distribution in our proprietary position across listed REITs totaling around was BRL24 billion at the end of the quarter, up 16% year-over-year, driven by strong fundraising in Private Market strategies. As previously discussed most of these capital raises or activate at the end of the product. Therefore we should start to see a positive impact for management fees across Private Market strategies from the third quarter going forward. Moving on to Slide 25, the go over results for liquid strategies. Fee related earnings over the year-to-date totaled BRL19.9 million, down 14% when compared to the same period last year. This decrease was driven by…

And our first question comes from the line of Ricardo Buchpiguel from BTG. Your question please.

Good afternoon everyone and congrats on a good results. I have two questions on my side. First can you please talk about what you expect in terms of fundraising and inflows for the second half of the year, both in terms of private market and liquid strategies? And also we saw BRL7 million loan synergy investment income mainly on realize impact, so I wanted you to understand a little bit more what drove this impact? Thank you.

Hey Ricardo that's thank you for your question. That's Alesandro, and I'll take the first part of your question and leave Bruno to cover about the investment on the unrealized results on the investment side. Talking about the fundraising for the second half of the year we expect to continue the fundraising for the private market products as Bruno said before doing the presentation. We believe that we probably could have another closing for VCP for during the second half of the year. So probably have more on that front. Probably we have the first closing of VICC, that's the other important product that we are launching and we'll have a first closing probably in the second half of the year. Also on the private credit we'll have probably a few new closings and fundraisings for our other products. So we are pretty much optimistic about the prospects on the private market side. Talking about the, the liquid side as you saw we have been able to continue to raise money on the IP&S, so have a very strong pipeline for IP&S that we probably activate new mandates during the second half the year. And we are seeing a more benign environment for equities. So we are seeing that we are not having important redemptions and we are starting to see net inflows. So we believe that the prospect for the second half of the year on the equity side also will be good. So we are pretty much optimistic about the fundraising activity doing the second half on both fronts. On the private side, because we have a very strong pipeline of new products that will probably do subsequent close or new or first closing doing the second half and also on the liquid side.

Okay. This is Bruno. Thanks for the question. So the investment – unrealized investment income mainly has to do with the GP commitment, we did on our listed REITs. So there were a few opportunities of capital raising that happened in the course of the last quarters that were attached to transactions and that were levered with additional capital from the markets. So we committed capital to those capital raises to anchor those capital raises and to anchor those transactions and since then, what happened was that the exchange – sorry, the interest rate in Brazil widen quite substantially. We obviously had the correction in the stock market and those REITs are trading a little bit below the levels that we invested. So that's the unrealized explanation of the income statement. We obviously expect that over time these prices are going to come back up and we're going to recover these losses.

Thank you. Very clear.

Thank you. And our next question comes to line of Tito Labarta from Goldman Sachs. Your question please.

Tito, are you there? Let's make sure we are not hearing you at this point. I think we can go to the next one operator probably we lost Tito.

And our next question comes to line of Kaio Prato from UBS. Your question please.

Hello everyone. Good evening. Thank you for the opportunity for asking questions. I have two on my side, please. The first one is when could we expect this new fundraising especially in the private market strategy to positive contribute in terms of net management fees going forward? And the second one, if I may, we saw an increase of almost 14% in core

And our next question comes from the line of Kaio Prato from UBS. Your question, please.

Hello everyone. Good evening. Thank you for the opportunity for asking questions. I have two on my side, please. The first one is when could we expect this new fundraising especially in the private market strategy for next year please?

Okay. Thank you for your question. that's Alessandro speaking here. And on the first part of the question regarding when we start to kick in the revenues for the fundraising? We will start already on the third quarter, because for example, the – some closings regarding VCP IV for example, start charging from the first closing. Of course as we do subsequent closings we'll have this retroactive, but will be booked in the quarter to come. That will be the reality for some of the other products including the VICC for example and even the credit fund that they start to invest. So we expect some of the, of course not the full effect, but we start having an effect of this fundraising already on the third quarter. And regarding the corporate expenses is more like a seasonality. We are talking about expenses regarding to travel expenses because doing the fundraising of this products, we start traveling with the teams after the COVID we start getting present – in present with the client. So we are traveling more regarding the fundraising, but it’s not specific to any important expenses, really more like seasonal. And of course, we have the decision, the correction of the compensation, the fixed compensation that kick it in also in this quarter

Kaio, just to add to what Alessandro said and going back to the prepared remarks, the fundraisers that we had this quarter, they were very like towards the end of the quarter, right. So we had the closing VCP IV was at the very end of the quarter and the inflow – that the strong inflow that we had in IP&S wasalso during the last month or the last half of the quarter. So the impact on the – on these fundraisings, although we did see a maturing impact in AUM at the end of the quarter. We did see quarter-on-quarter acceleration for a year, growing high-single digits against the last quarter. We expect the management feedback to be more pronounced in the third quarter. Then we signed the second. So that’s – I think that’s another factor that just prefer to have in our mind. Thank you.

Okay, great. Thank you very much, Alessandro and Bruno.

Thank you. And we have returning to the queue Tito Labarta from Goldman Sachs. Your question, please.

Hi, try again, I don’t know if you can hear me now.

Yes, Tito. We can hear you fine. Thank you.

Okay. Yes. Sorry. I don’t know what happened before. But yes, thanks for the call, taking my question. Just curious on the a crew performance fees seem to have some increase there in terms of the ability to realize performance fees sort of like for the rest of the year and going forward.

Okay. Tito, so the slide that we present on the accrued performance fees that encompasses basically our private market fund, right? So we have there are two main components. We have VCP III. VCP III, the fund is already within the carry parameters. So any increase in NOC going forward is going to impact positively our expected performance. And we have reached full colocation in the fund now. So now we have a 100% of the capital being committed into portfolio companies. And this will likely I mean as companies go and grow their equity value. We should be able to see this line going up. For VCP III specifically, we might see increase beginning of a capital return cycle. Probably let’s say between this year and next year, but for us to be able to realize the carry of that particular fund is going to take a little bit longer because we need to return 100% of the called capital. So it takes some time before we’re able to start monetizing on those performance fees. The other components in that slide is our other assets in the infrastructure funds, transmission funds and that asset is closer to being realized and that’s capital has already been returned. So what we have in that fund is only carry, right? So the point here is really monetizing the assets. It’s something that we – I think you remember, we had an impact in the fourth quarter of last year, which was the let’s say the initial half of that fund being realized, and we expect this other asset to be realized in the next several quarters, probably between two and four quarters. We’re going to be able to realize this last asset in the fund, which will likely have a very interesting…

Okay. That’s helpful. Thanks, Bruno.

Thank you. And this does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Alessandro for any further remarks.

Thank you very much for your continuous support and for attending our call and we are very happy with the results that we got during this quarter, and we are very optimistic for the rest of the year. So thank you very much and have a good night.

Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.