A quick overview of Vinci Partners’ investments

Vinci Partners Investments (VINP) went public in January 2021, raising approximately $250 million in a U.S. IPO at $18.00 per share.

The company provides investors with access to various types of investments in Brazil.

For investors willing to accept the company’s somewhat “lumpy” payout outlook with a current projected annual dividend yield of around 5.2%, my outlook is a buy VINP at around $12.80 per share.

Company

Vinci, based in Rio de Janeiro, Brazil, was founded in 2009 to operate as a private equity firm, building a portfolio of private and public investments.

Management is headed by co-founder and chairman Gilberto Sayao da Silva, who was previously a partner at Banco Pactual and led the segments of investments, corporate finance and hedge fund activities.

The company’s main investment offerings include:

• Capital investment

• Infrastructure

• Immovable

• Credit

• Public actions

• Hedge funds

• Financial advice

The company is looking to increase its assets under management [AUM] to invest in promising alternative investment categories across Brazil.

Private equity firms in the region benefited from a drop in nominal interest rates in Brazil from 14.25% to 2.25%.

Market & Competition

According to a 2025 market research report by Chambers & Partners, the volume of private equity investment in 2019 was estimated at $12.8 billion in Brazil.

A number of highly regarded companies matured in 2019, including logistics company Loggi, health and fitness company Gympass, real estate technology company Quinto Andar and fintech company Ebanx.

While the Covid-19 pandemic hit the economy hard, the country already had an extensive digital infrastructure in place, so alternative investment firms such as Vinci were positioned to continue pushing deals forward despite blockages.

Additionally, private equity firms may be changing their deal criteria, focusing on more resilient companies and those that focus on how customer behavior has changed and will change as a result of the pandemic.

Major competitors or other industry participants include:

• International Advent

• Patria Investments (PAX)

• Kinea Investments

• Perfect

• XP (XP)

• BTG Pactual Bank

• Credit Suisse (CS)

• Brazilian banks

Recent financial performance of VINP

(Source data for GAAP financial tables above)

Over the past 12 months, VINP’s share price has fallen 26.4% against the 9.4% rise in the US S&P 500 index, as shown in the chart below:

(Source)

Evaluation metrics for Vinci

Below is a table of relevant capitalization and valuation figures for the company:

(Source)

For reference, a relevant public comparable would be Patria Investments (PAX); Below is a comparison of their main evaluation metrics:

(Source)

Comment on Vinci

In its latest earnings call, covering third quarter 2021 results, management stressed that it would start distributing dividends on a quarterly basis starting in the third quarter.

CEO Horta said the company had recently faced “quite volatile market conditions in Brazil” and that diversifying its investments has helped overcome this volatility.

Notably, fundraising was also robust for the company’s listed REIT product and VINP is actively preparing a new listed product in the private credit fundraising sector.

As for its financial results, its assets under management reached $11.2 billion (up 19% year-over-year) thanks to various net inflows and successful fundraisings for products specific.

Perhaps most importantly, the firm’s assets under management are well diversified by asset class, duration and distribution channel.

On the expense side, expenses grew more slowly than revenue growth, so VINP produced a 48% year-over-year increase in Fee Related Earnings (FRE) margin.

Going forward, public equity markets continue to be volatile, so the company’s activities in private markets should offset some of this volatility.

Regarding valuation, VINP is currently valued by the stock market at a discount to its partial competitor Patria Investments, likely in part due to its lower rate of revenue growth.

The main risk to the company’s outlook is continued volatility in public markets due to both changes in the interest rate environment and geopolitical events such as the war in Ukraine.

However, given the company’s apparent strong diversification across all axes, VINP looks reasonably priced with a new quarterly dividend schedule.

For investors willing to accept the company’s somewhat “lumpy” payout outlook with a current forecast annual dividend yield of around 5.2%, my outlook is a buy on VINP at around $12.80.