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Vinci Partners Investments Ltd. (VINP)
:VINP
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Vinci Partners Investments
(NASDAQ:VINP)
Rating:80Outperform
Price Target:
$12.00
▲(22.45% Upside)
Positive Factors
Cross-Selling Opportunities
There are positive cross-selling opportunities from a complementary client base in terms of product and region, leveraging both companies’ regional distribution capabilities.
Market Position
The combination puts the company in an attractive position as one of the largest alternative asset managers in Latin America, with a presence in seven countries and expansion of its LP base by almost 3x.
Valuation
Valuation is attractive especially on a P/FRE basis, as Vinci's FRE is expected to grow at a similar pace to US peers.
Negative Factors
FRE Margin
While the combination should lead to a lower FRE margin, there are opportunities for margin expansion as the company combines its operations, merging back offices and eliminating duplicate roles.
Vinci Partners Investments (VINP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$629.92M
Dividend Yield6.43%
Average Volume (3M)46.83K
Price to Earnings (P/E)25.0
Beta (1Y)0.72
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees244
SectorFinancial
Sector Strength72
IndustryAsset Management
Share Statistics
EPS (TTM)0.22
Shares Outstanding48,778,420
10 Day Avg. Volume43,493
30 Day Avg. Volume46,827
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit0.92
Enterprise Value/Ebitda2.29
Forecast
1Y Price Target
$14.00Price Target Upside42.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Vinci Partners Investments Business Overview & Revenue Model
Company DescriptionVinci Partners Investments (VINP) is a leading alternative investment platform based in Brazil. The company operates across a diverse range of sectors including private equity, real estate, infrastructure, credit, and public equities. Vinci Partners provides investment management services and offers a comprehensive suite of financial products designed to meet the needs of institutional and individual investors. With a focus on delivering strong returns and sustainable growth, VINP leverages its deep market expertise and strategic insight to capitalize on opportunities within the Brazilian and global markets.
How the Company Makes MoneyVinci Partners Investments generates revenue primarily through management fees and performance-based incentives associated with the assets they manage across various investment funds. The company earns management fees as a percentage of the total assets under management (AUM), providing a steady income stream. Additionally, Vinci Partners may earn performance fees which are contingent upon the investment funds achieving certain benchmarks or returns above a predefined threshold. The firm's diversified strategy across multiple asset classes allows it to mitigate risks and capitalize on market opportunities, further enhancing its revenue potential. Strategic partnerships and joint ventures within its sectors also play a significant role in expanding its investment reach and securing lucrative deals that contribute to overall earnings.
Vinci Partners Investments Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: -0.20%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with robust earnings, strategic exits, and favorable macroeconomic conditions, despite some currency challenges and a slower first quarter.Q2-2025 Updates
Positive Updates
Strong Fee-Related Earnings
Vinci Compass generated fee-related earnings of BRL 65.2 million or BRL 1.03 per share and adjusted distributable earnings of BRL 75.8 million or BRL 1.20 per share for the second quarter of 2025.
Successful Strategic Exits
The company executed a series of strategic exits across multiple verticals, including the full divestment of FIP Transmissao and the full exit of Camarada Camarao, marking significant achievements in their real asset and private equity segments.
Robust Capital Formation
Vinci Compass reported BRL 12 billion in capital formation and appreciation during the quarter, with notable inflows in Global IP&S and credit strategies, highlighting the scalability of their distribution capabilities.
Launch of Infrastructure Climate Change Fund
The company announced the final closing of their Infrastructure Climate Change fund, raising close to BRL 2 billion, aimed at expanding investments in renewable energy projects.
Positive Macroeconomic Environment
Improvements in the macroeconomic landscape in Latin America, including declining real interest rates in Brazil and interest rate cuts in countries like Chile and Colombia, create a favorable backdrop for alternative investments.
Negative Updates
Currency Headwinds
The 5% appreciation of the Brazilian real against the U.S. dollar during the quarter created a currency headwind, resulting in approximately BRL 12 billion in negative variation, impacting the AUM and management fees.
First Quarter Slowdown
The first quarter was slower than expected, with negative TPD Liquid outflows, impacting the overall fundraising for the year.
Company Guidance
During the call, Vinci Compass provided guidance on various key metrics, showcasing a strong performance for the second quarter of 2025. The company reported fee-related earnings (FRE) of BRL 65.2 million or BRL 1.03 per share, and adjusted distributable earnings of BRL 75.8 million or BRL 1.20 per share. They declared a quarterly dividend of BRL 0.15 per common share. The quarter highlighted significant accomplishments including BRL 12 billion in capital formation appreciation and robust inflows, particularly BRL 2.3 billion from Global IP&S strategies. Despite a 5% appreciation of the Brazilian real against the U.S. dollar, which posed a currency headwind, the firm ended the quarter with BRL 304 billion in assets under management (AUM). Vinci Compass also completed strategic exits, such as the full divestment of FIP Transmissao and the exit of Camarada Camarao in private equity, contributing to a BRL 50 million pretax boost to cash earnings. The company anticipates continued growth in credit and Global IP&S segments and plans to leverage improving macroeconomic conditions in Latin America, with expectations of significant future gains from proprietary fund commitments. Additionally, Vinci Compass announced the final closing of their Infrastructure Climate Change fund, raising nearly BRL 2 billion, and highlighted ongoing integration and operational advancements, including the inauguration of a new office in São Paulo.Vinci Partners Investments Financial Statement Overview
Summary
Vinci Partners Investments shows strong financial performance with significant revenue growth and robust profitability metrics. The balance sheet is stable with solid equity and manageable leverage, while cash flows are healthy, supporting operational and strategic initiatives. Despite some fluctuations in net income, the company is well-positioned in the asset management industry.Income Statement
Vinci Partners Investments shows a strong financial performance with a significant revenue growth rate of 32.2% from 2023 to 2024. The gross profit margin remains robust at 100%, indicating efficient cost management. However, the net profit margin decreased to 19.7% due to a notable decline in net income. Despite this, EBIT and EBITDA margins remain healthy, supporting profitability.82
Very Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of 54.2% in 2024. The debt-to-equity ratio increased to 0.5, suggesting higher leverage, but remains manageable. Return on equity decreased to 6.1% due to lower net income, impacting profitability slightly. Overall, the balance sheet is stable with a sound equity base.75
Positive
Cash Flow
Vinci Partners Investments demonstrates a solid cash flow position with a consistent operating cash flow to net income ratio of 1.77. The free cash flow grew by 7.3% from 2023 to 2024, indicating strong cash generation capabilities. However, the free cash flow to net income ratio is slightly lower at 1.61, showing room for improvement in converting earnings to cash flow.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 749.19M | 665.10M | 564.78M | 502.27M | 493.44M | 348.72M |
| Gross Profit | 587.15M | 453.51M | 399.28M | 358.73M | 339.41M | 274.35M |
| EBITDA | 234.77M | 260.82M | 210.61M | 302.77M | 284.14M | 238.24M |
| Net Income | 127.40M | 118.20M | 220.61M | 219.42M | 208.62M | 170.20M |
Balance Sheet | ||||||
| Total Assets | 3.43B | 3.59B | 2.30B | 1.77B | 1.65B | 328.52M |
| Cash, Cash Equivalents and Short-Term Investments | 1.65B | 1.75B | 1.83B | 1.38B | 1.48B | 91.70M |
| Total Debt | 941.99M | 981.00M | 689.90M | 261.50M | 85.54M | 106.20M |
| Total Liabilities | 1.54B | 1.64B | 918.95M | 391.41M | 232.13M | 309.29M |
| Stockholders Equity | 1.89B | 1.94B | 1.38B | 1.37B | 1.41B | 19.22M |
Cash Flow | ||||||
| Free Cash Flow | 83.11M | 190.45M | 177.44M | 111.42M | 285.60M | 193.31M |
| Operating Cash Flow | 107.47M | 209.77M | 214.18M | 117.90M | 288.69M | 195.33M |
| Investing Cash Flow | -25.43M | -232.13M | 138.03M | 131.84M | -1.32B | 75.31M |
| Financing Cash Flow | -454.85M | -429.23M | 175.02M | -215.51M | 1.05B | -193.55M |
Vinci Partners Investments Technical Analysis
Positive
9.80
Price Trends
9.68
Positive
9.63
Positive
9.74
Positive
Market Momentum
0.10
Negative
50.11
Neutral
64.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VINP, the sentiment is Positive. The current price of 9.8 is above the 20-day moving average (MA) of 9.78, above the 50-day MA of 9.68, and above the 200-day MA of 9.74, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VINP.
Vinci Partners Investments Risk Analysis
Vinci Partners Investments disclosed 107 risk factors in its most recent earnings report. Vinci Partners Investments reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Until the completion or termination of the Compass Transaction, we and Compass are prohibited from entering into certain transactions and taking certain actions that might otherwise be beneficial to us, Compass and/or our respective shareholders. Q4, 2023
2.
Failure to complete the Compass Transaction could negatively impact our stock price and our future business and financial results. Q4, 2023
3.
The market price for our Class A common shares following the completion of the Compass Transaction may be affected by factors different from, or in addition to, those that historically have affected or currently affect the market prices of our Class A common shares. Q4, 2023
Vinci Partners Investments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $629.92M | 24.96 | 7.67% | 6.43% | ― | ― | |
74 Outperform | $1.12B | 7.13 | 17.31% | 12.89% | 31.43% | 30.85% | |
73 Outperform | $780.35M | 12.14 | 4.76% | 9.81% | -18.39% | -45.23% | |
70 Outperform | $561.85M | 12.72 | 5.98% | 12.79% | -7.13% | -56.63% | |
68 Neutral | $752.88M | 9.22 | 11.80% | 10.63% | -14.09% | -27.46% | |
58 Neutral | HK$110.85B | 6.44 | -4.87% | 3.92% | 9.01% | -47.48% | |
58 Neutral | $608.01M | ― | -1.48% | 19.05% | -48.53% | 73.29% |
* Financial Sector Average
Performance Comparison
VINP
Vinci Partners Investments
9.78
-0.66
-6.32%
FDUS
Fidus Investment
21.22
3.51
19.82%
NOAH
Noah Holdings
11.87
4.55
62.16%
TCPC
BlackRock TCP Capital
7.10
-0.65
-8.39%
CCAP
Crescent Capital BDC
15.14
-1.20
-7.34%
TRIN
Trinity Capital
15.77
3.55
29.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.