Good afternoon, and welcome to the Vinci Partners First Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions]. 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 Anna.

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 Sanju Pass, Chief Financial Officer. . Earlier today, we issued a press release, slide presentation in 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. 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 to certain non-GAAP measures and final reconciliations in the release. Also note that nothing on this call constitutes an not resell 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 very pleased to join you all today as we announce results for the first quarter of 2023. Adjust distributable earnings, totally, BRL 6 million or BRL 1.10 per share, an increase of 6% in our cash earnings per share year-over-year. Fee-related earnings totaling BRL 49 million in the quarter or $0.09 per share, representing an increase of 14% year-over-year on a per share basis. our FRE continues to grow, driven by our continued success in expanding our private markets platform through new capital raisings and inorganic growth. Vinci announced a quarterly dividend of $0.16 on the dollar per common share in the fourth quarter representing a dividend distribution of $0.70 on the dollar over the last 12 months. which as of May 9 stock price represents an appealing 8.5% dividend yield. We are posting another quarter of growth backed by healthy upward trends in our FRE results. Our front raising across private markets in the latest quarters remain one of the benches for dresses and have driven growth for the entire platform. Even in the tough macro scenario we have been experiencing in the last few quarters for what I believe to be one of our project achievements. We ended the first one of 2023 with over BRL 62 billion in assets under management, up 10% year-over-year, with highlights to the strong first closing of the ICC in infrastructure and additional commitments to VCP IV during the quarter. This quarter, we held the first closing for Vinci Climate Change or the VICC, our infrastructure climate-oriented fund between signed and approved, the fund has roughly BRL 1 billion in commitments. The VICC has overserved lots of traction with institutional LPs as they display great appetite to…

Thank you, Alessandro, and good afternoon, everyone. Starting on Slide 10, we will cover AUM trends for the first quarter. Vinci ended the quarter with BRL 62.2 billion in AUM, up 10% year-over-year boosted by growth in our private market strategies and the acquisition of ISPS. Our long-term AUM accounted for BRL 31.3 billion in the quarter. increasing 19% year-over-year and it currently represents roughly 50% of Vinci's total AUM. This is a direct result of our efforts into private market strategies as they carry AUM with longer lockups. The highlights to this quarter's fundraising was the first close held by Vinci Climate Change or we're seeing great traction with international fees for this product with several relevant soft circle commitments and we will come back with additional closing for this fund still this year. We are confirming our prior view that there is still significant dry powder available globally for climate transition strategies, which bodes well for the VICC's fundraising cycle. This quarter, we also had some new capital subscriptions in VCP IV. However, we are expecting heavier contributions from this product in the second half of the year as we have been experiencing a congested market worldwide for fundraising private equity. with several struggling with allocations due to the number of funds coming back to market and a temporary overallocation to the asset class. Although posting another quarter with positive growth trends in AUM on a year-over-year basis, we suffered this quarter with volatile markets that have negatively impacted real estate and liquid strategies. In fact, if you look at the AUM roll forward available in the material, most of the AUM fluctuation in the quarter can be traced to the mark-to-market in these 2 asset classes. The liked REIT industry, in particular, was heavily impacted by mark-to-market…

Thank you, Bruno. Turning to our segment highlights. As you can see in Slide 22, our platform remains widely diversified, which we believe should be the main contributor to the resilience of our business. Regarding the investments made in the VRS segment, 57% of our FRE over the last 12 months came from our private market strategies, followed by IP&S with 20% liquid strategies with 18% 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. We start with our private market strategy on Slide 23. FRE totaled BRL 31.6 million in the quarter, up 27% year-over-year driven by the strong fundraising cycle experienced over the last 12 months and the incorporation of Vinci SPS. The biggest achievement across private markets this quarter was the first closing of Finch climate change or VICC. The first close was backed by BNDES and international LPs, and we expect to announce new subscriptions over the next few quarters as we are seeing great traction for this product with the international base. Please note that the closing was held in the end of the quarter. Therefore, we will start to earn management fees in this second quarter. Bear in mind that the VICC has a retroactive fees clause. Thus, following commitments will retroactive fees to the start of the fund. Segment distributable earnings were BRL 37.5 million in the quarter, an increase of 39% year-over-year, boosted by FRE growth. TAUM was BRL 28.2 billion for the end of the quarter, up 34% year-over-year. Adding to the previously mentioned contribution from BNDES, we also had contributions throughout the year in our fourth vintage for our flagship private equity strategy, VCP IV. As anticipated by Bruno, we should expect more impactful…

[Operator Instructions]. Our first question comes from Daer Labarta from Goldman Sachs.

A couple of questions, I guess. Just on the outlook for fundraising, I know you're halfway through on the private market strategies. But I know the sand that you mentioned you're going into an easing cycle. However -- I mean this easing cycle likely may not be as strong as the last one, right, rate maybe in the year 12, I'm not sure how that will end up next year. How much of a reduction in rates do you think would really be needed to really see a lot more interest or for the liquor strategies, I guess, in particular, to do much stronger and for that to improve? I mean, do you need to get to single digits? Just to put it a little bit into context, given where we are in Brazil today? And then -- and also on the IT&S strategy, it was a big grower last year. had some outflows this quarter. Just to understand a little bit what happened this quarter with the outflows and how that strategy in particular should continue to evolve.

This is Alessandro. Thank you very much for the questions. First, starting with the fundraising for private markets and I would say the relation with the rates, that's my opinion, of course, is not a mathematical relationship. But I would say that we would see more like, I would say, more stronger flow not just for private markets, but I would say for all the other asset classes that we have, when we see not just starting the cycle and as you said, that probably will happen maybe not so strongly and fast as other cycles. But with some kind of targets in the high single digits. To the point that we expect that we can see these rates coming down to high single digits. I believe that we start a very important movement of capital. Having said that, we believe that we are already starting some dislocation, okay, on that direction. But we believe in the second half of the year, when we start seeing the rates going down nominally even if not strongly, we will start to see some movement to our asset classes, especially private markets. We will see, for instance, the REIT market on real estate recovering, we'll see more money going towards infrastructure, too. So I expect this to happen -- start happening in the second half of the year. But to see a more strong movement we need to see in our horizon, something on the high single digits as a target. And as for the second question regarding IP&S, I'll take this question, too. What we saw in the last quarter was more like redemptions coming from to, especially related with more like products that were distributed through some retail channels. But this is really not very relevant, and we are seeing already this is stabilizing. We expect the largest flow for IP&S will come together with the starting of the easing cycle when the pension funds, institutional clients as a whole, we started reallocating out from just fixed income, pure fixed income to rebalance the portfolio. So recently, we saw more redemption related with funds that we have distribution through retail. But going forward, we expect the biggest flow to start with institutional clients coming back to more structured portfolios.

Okay. Great. Alessandro. That's helpful. Maybe just one follow-up. Just on -- any color on the VRS segment and when that can become to -- start to be a contributor here?

Okay. That's a good question. As we mentioned in the call, we just started VRS, it's live -- from the end of the quarter, okay, so it's really recent. We are starting the activity of fundraising with our high net worth clients today. So we start seeing this AUM coming in, but still we are in a very, very, I would say, careful approach in terms of clients that we are reaching now. We will evolve that to other pools of capital to the end of the year. but we expect really that to be relevant in our numbers just next year when we start going for other pools of capital. As I said, like corporate plans like more like distribution channels, et cetera, et cetera. that till the end of the year, we will start seeing the numbers picking up very slowly because it's our intention to really have a soft opening this strategy because everything is really new and just became live recently. And there is a lot of technology that we invested in, that's really we believe that will be transformational for the industry. And this technology, of course, we are evolving that and testing that with clients that are more like wholesale near us, and then we evolved to a more broad group of clients.

[Operator Instructions]. This does concludes the question-and-answer section. At this time, I would like to turn the floor back to Mr. Alessandro Horta for any closing remarks. Please, Mr. Alessandro, you may proceed.

Thank you. I'd like to thank you all for attending our call today and for your continued support. As we said during the call, we are very proud of what we have been doing in the last few quarters, especially on the fundraising of private markets. And we believe that since we are more towards near the easing cycle, we believe that very soon, we'll have another important growth path to the firm in the -- until the end of the year. So thank you very much, and hope to see you soon next quarter. .

Vinci Partners conference call has now concluded. Thank you for attending today's presentation. You may now disconnect, and have a wonderful day. Thank you.