Good afternoon, and welcome to VINCI Compass Third Quarter twenty twenty five Results 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 Ana Castro, Investor Relations Manager. Please. Go ahead, Ana. Thank you, and good evening, everyone. Joining us today are Alessandro Huerta, Chief Executive Officer Bruno Zaremba, president of finance and operations and Sergio Pazos.

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.vintucompass.com. I'd like to remind you that today's call may include forward looking statements. Which are answered and outside of the firm's control and may differ from our results materially. We do not undertake any duty to update these statements. 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 you find reconciliations in the release. Also note that nothing on this call constitutes an offer sale or solicitation of an offer to purchase an interest in any Venture Compass Fund. Our results for the third quarter, Vinci Compass generated February earnings of BRL77.1 million or BRL1.22 per share. FRE margin of 32.3% and adjusted distributable earnings of BRL73.1 million, or one point BRL1.16 per share. We declare a quarterly dividend of $0.15 on the dollar per common share, payable on December 9 to shareholders of record as of November 24. With that, I'll turn the call over to Alessandro. Thank you, Anna.

Good evening, and thank you all for joining our call. We appreciate you joining us. We hit important milestones for VINCI Compass this quarter. Before we start discussing our quarterly results, I would like to take a moment to highlight some important recent milestones. In October, we hosted our second Investor Day in New York. It was a great opportunity to catch up with analysts and investors, reinforce Vincicampa's long term vision showcase the strength of our integrated platform and provide greater transparency into each of our business segments. During the event, we shared how we are positioning the firm to growth across our core strategies, driven by disciplined capital allocation innovation in product development and continued focus on delivering value to our clients and shareholders. The strong engagement and positive feedback from participants reaffirmed investors' confidence in our differentiated model and growth prospects in Latin America. On the same day, we also discussed the acquisition of VERGI, a transaction that represents a significant milestone in our strategic expansion. This transaction further strengths Vinci Compass position as a leading alternative investment platform in Latin America by combining forces with the region's leader in global and local asset allocation with an exceptional investment track record. The transaction was very well received by the local community as well as global clients in our shareholder base. We had the opportunity to discuss the Investor Day and the Visa transaction in person with analysts and investors in the following days that week in New York, and the feedback was very constructive. We feel our constituents recognize the strategic and culture alignment between the two firms and the long term value creation potential for this combination. Leaving us very excited and confident about the future. We remain on track to close the transaction by the…

Thank you, Alessandra, and good evening, everyone. We are thrilled to share that we delivered BRL 19,000,000,000 in capital formation and appreciation this quarter. Global IP and S and credit were key growth drivers, we believe we are still in the early innings of a significant growth opportunity across all of our asset classes. We laid out this opportunity in detail during our Investor Day. Starting with SBS-four, we achieved important milestone this quarter. Our first offshore commitments and the launch of the offshore vehicle. With the fund live and seeded, follow on offshore commitments tend to accelerate. Our pipeline includes several foreign investors, and we expect to sign additional commitments by year end. We also secured our first Brazilian pension plan to the strategy, which we expect will catalyze a additional allocations from other local institutions. Our track record is a key driver to new commitments. The first vintage SPS one which recently returned additional capital to investors from a successful exit is currently delivering a DPI of 1.9x and a gross IRR of 25%, both in Brazilian reais. Further validation comes from SPS three, which distributed during October over 9% of total commitments. This vintage is still within its investment period, which ends only in the 2026, and has already started to return meaningful capital to LPs. Stealing private credit, we received additional commitments in our senior secured lending product in Peru, PEPCO two. We expect further commitments over the coming quarters in both Pepco two and Fai Peru, our semi liquid confirming and factoring funds. Our long standing presence in Peru together with our position as the largest fund in that market, gives us a clear edge to keep capturing opportunities. In addition to deepen engagement and showcase the full breadth of our regional platform, we hosted…

an increase of 4% quarter over quarter. Capital formation

and appreciation totaled billion dollars partially offset by a negative FX impact

of BRL6 billion. Had significant inflows coming from global IP and S, getting close to billion dollars in the quarter. A portion of those inflows came from TPD Alternative, generating million in advisory fees recognized onetime as upfront fees. We We expect another meaningful, though smaller, contribution from this line in next quarter. Reflecting the time of commitment signings. In addition, we recognized success fee in our real estate advisory business and million dollars in corporate advisory. On a management fee basis, we posted million in the quarter. We expect to continue delivering consistent growth supported by an active fundraise pipeline and to further enhance our revenue mix as we scale our recurring fee earning base. Total fee related revenues were million in the quarter, while fee related expenses were BRL161 million. This translated to BRL77 million of FRE and a 32.3% FRE margin, our highest in 2025. The increase in the FRE margin is a result of operating leverage from revenue growth some transaction costs that stopped impacting us this quarter, combined with cost reduction initiatives we have been working on since the beginning of the year, which have started to pay off now. Delivering what we set out to do is in our DNA, and we remain focused on further compounding growth with efficiency. Performance related earnings were 1,000,000 in the quarter, coming primarily from equity funds. As a reminder, most of our Brazilian open end funds crystallized performance fees semiannually in June and December. So the first and the third quarters typically show lower performance fee recognition. This is the first quarter that we highlight our investment related earnings. Or We introduced this metric in our Investor Day, and our objective is to be the most transparent as we can and highlight the realized and unrealized gains from our commitments in proprietary funds. IRE is an important value driver in our business model, designed to compound growth and create long term shareholder value through our GP commitments. IRE in the third quarter was BRL5 million, with leased REITs contributing to realized income and positive markups in funds supporting the unrealized component. Finally, putting it all together, adjusted distributable earnings totaled R73 million dollars or BRL1.16 per share. Representing a 28% increase year over year on a nominal basis and 7% growth on a per share basis. This quarter, underscores durable fee power and an improving margin profile validating our disciplined approach to growth. Expand allocate capital, leaving us well positioned for continued progress in the fourth quarter and 2026. With that, I would like to close our remarks and open the call for questions. Once again, we would like to thank you for joining our call. Please operator, you may proceed with the questions. Thank you. Thank you.

We are going to start the question and answer section for investors and analysts. If you wish to ask a question, please press the button Raise Hand. Our first question comes from William Parangia with Itau BBA. You can open your microphone.

Hey, hi. I have a question here regarding one of the things you mentioned.

During the call. The first Brazilian pension plan to commit in the SPS four. Right? And you also said that this first commit commitment should unlock for further ones from this type of pocket. Right? So I wanted to dive a little bit here So how fast do you think this new demand could come? And also, what kind of cross sell opportunities this this opportunity creates. Right? But more importantly here, how big do you think this pocket is this new opportunities? For for you guys?

Hi, William. That's Alessandro. Thank you for your question. That's that's true. That's the first pension fund commitment to SPS at all. Right? Not just in the Fund IV, but overall the whole history of SPS. Of course, we expect that would be an opportunity for raising money for this type of clients since, as you know, Vinci Compass main source of funds comes from institutional investors, both local investors, Latin America institution, and of course, international ones. We do expect further commitments for this strategy still in fund four, but we cannot predict exactly the size of it. But this strategy due to the uncorrelated nature and really very low penetration on the portfolios of this type of investors. Both local institutions and international institutions, both as first for SPS, we expect this to gain an important space on the overall AUM of the vertical.

Okay. Thank you. And if I could ask another one regarding your FRE margins, right, improved a lot quarter on quarter. Just wanted to hear from you if we should use this new level as the base for the next quarter or if there's any other effect that might decelerate this improvement, maybe lower advisory fees in the next quarter How should I think about the the evolution from here?

William, this is Bruno. Yes, there are some seasonality as well on the expense line. So we usually have second quarter that's a little bit stronger in terms of expenses. The third quarter is a little bit lighter from a seasonal standpoint. However, we did have some aspects of the combination in terms of cost that through the numbers during the past three quarters and started to reduce a little bit in the third. So looking forward to the fourth quarter, and beyond and obviously not considering the VEG acquisition because that's going to change a little bit the number. But thinking about VICI standalone, we should be able to see margins on the 30s going forward. So probably the fourth quarter would be a little bit smaller than that, but still above 30%. We hope be able to reach the 30% for the year. I think we are within that that distance at this point. I think it's a possibility. And then looking forward to '26 probably we should see margins in general above 30 without the combination with VEG. With November. So they will impact only one month of the fourth quarter. But starting in the beginning of next year, once we have them on board for the full year, the impact should be of several 100 basis points. So this 30 let's say, percent to 31% will push towards probably at least the mid-thirty percent level. So that's the expectation that we have once we have VEG onboard. But we expect the the continuation of better numbers in the margin level going forward.

All right. Very clear. Thank you.

Our next question comes from Lindsay Shima with Goldman Sachs. You can open your microphone.

Hi, good evening and thank you for taking my We saw exceptionally strong

global IP and S inflows this quarter. Just wondering about how much of this was related to the TPD alts then you mentioned that there should be a small percentage of the upfront fees in next quarter. But how should we think about this line kind of going forward? And then IPNS inflows more broadly in the future. Thank you.

Okay. So, this is Bruno again, Lindsay. Good to hear from you. So TPD was was very good. This quarter as was the case of the second quarter as well. The alts, this quarter we had billion positive impact There was this big check that we mentioned from from from a regional player into a U. S.-based closed end funds, which was very relevant. And although the fourth quarter is like it's going to be a little bit slower, mainly on the outside The liquid side started the quarter pretty strong. So the volume in the first month was similar to what we had in the third quarter on a monthly basis. And I think even more so when you look at this picture, for TPD In General Over The Medium And Long Term, I Think The Picture Is Quite Constructive. We Have In Chile and Mexico, which are two markets that are important for us, of course, we have very strong tailwinds from increased contribution to the local institutional plans. We have in general more interest from high net worth individuals into mainly alternatives. So this is also going to be a driver for mid to long term growth. And finally, in Brazil, we are starting from a very low base The penetration of this type of allocation is still very small. So we expect this also to be a positive tailwind for for TPD in the medium and long term. So so far fourth quarter flows continue to be strong and medium to long term we continue to be quite optimistic about the business line in terms of flows.

Lindsay, that's Alessandro, like to to add on top of what Bruno said that very, very quick quick comment. In global, APNs and TPDO specifically, we are seeing some I'd say rotation of portfolios from our clients in LatAm. Especially moving from more traditional to new verticals for them of course. Where we do have a very good good managers and products and give you an example like secondaries. So, this is also providing a very interesting opportunity in terms of allocation. And another point is that we are looking to the future As we mentioned during the call, we see an opportunity for more discretionary allocated allocation of funds and SMAs. In out on behalf of the same type of investors, ones that do not want to directly, but would like us to pick up the best managers and strategies for them. Thank you.

Once again, if you wish to ask a question, please press the button. Raise hand. Please wait while we poll for questions. The Q and A session is over. I would like to turn the floor back to Mr. Alessandro Orta for the closing remarks.

I'd like to thank you all once again your continuous interest and support. This was a very important quarter in which we were able to demonstrate the planned improvement in our operating margin and we remain optimistic that we will continue to deliver in line with the expectations we outlined at our Investor Day in New York. So, thank you again and have a good evening.

This does conclude today's presentation. We thank you all for participating and wish you a very good evening.