Vinci Partners Investments Ltd.
Interim Financial Statements as of March 31, 2024
1
Vinci Partners Investments Ltd.
Consolidated balance sheets
All amounts in thousands of reais unless otherwise stated
Assets | Note | 03/31/2024 | 12/31/2023 |
Current assets | |||
Cash and cash equivalents | 5(c) | 531,988 | 660,305 |
Cash and bank deposits | 5(c) | 45,738 | 15,896 |
Financial instruments at fair value through profit or loss | 5(c) | 85,649 | 173,300 |
Financial instruments at amortized cost | 5(c) | 400,601 | 471,109 |
Financial instruments at fair value through profit or loss | 5(d) | 1,221,642 | 1,168,355 |
Accounts receivable | 5(a) | 89,701 | 101,523 |
Sub-leases receivable | 10 | 3,601 | 4,071 |
Taxes recoverable | 1,630 | 2,219 | |
Other assets | 6 | 25,169 | 19,109 |
Total current assets | 1,873,731 | 1,955,582 | |
Non-current assets | |||
Financial instruments at fair value through profit or loss | 5(c) | 57,965 | 7,146 |
Accounts receivable | 5(a) | 16,412 | 16,638 |
Sub-leases receivable | 10 | 1,079 | 1,467 |
Taxes recoverable | 1,139 | 325 | |
Deferred taxes | 20 | 16,395 | 13,487 |
Other assets | 6 | 19,556 | 19,427 |
112,546 | 58,490 | ||
Property and equipment | 8 | 11,924 | 12,591 |
Right of use - Leases | 10 | 55,917 | 58,308 |
Intangible assets | 9 | 215,527 | 214,748 |
Total non-current assets | 395,914 | 344,137 | |
Total assets | 2,269,645 | 2,299,719 |
The accompanying notes are an integral part of these interim consolidated financial statements.
F-2
Vinci Partners Investments Ltd.
Consolidated balance sheet
All amounts in thousands of reais unless otherwise stated
Liabilities and equity | Note | 03/31/2024 | 12/31/2023 |
Current liabilities | |||
Trade payables | 348 | 1,869 | |
Deferred revenue | 25 | 10,419 | - |
Leases | 10 and 5(e) | 25,104 | 24,381 |
Accounts payable | 11 | 6,052 | 6,020 |
Labor and social security obligations | 12 | 27,325 | 101,506 |
Loans and obligations | 14 | 78,138 | 76,722 |
Taxes and contributions payable | 13 | 18,618 | 24,853 |
Total current liabilities | 166,004 | 235,351 | |
Non-current liabilities | |||
Leases | 10 and 5(e) | 43,188 | 48,431 |
Labor and social security obligations | 12 | 6,784 | 5,357 |
Loans and obligations | 14 | 554,452 | 540,369 |
Deferred taxes | 20 | 4,303 | 3,883 |
Retirement plans liabilities | 15 | 144,782 | 85,554 |
Total non-current liabilities | 753,509 | 683,594 | |
Total liabilities | 919,513 | 918,946 | |
Equity | 16 | ||
Share capital | 15 | 15 | |
Additional paid-in capital | 1,408,438 | 1,408,438 | |
Treasury shares | 16(f) | (201,165) | (172,863) |
Retained earnings | 104,244 | 111,444 | |
Other reserves | 37,185 | 31,876 | |
1,348,717 | 1,378,910 | ||
Non-controlling interests in the equity of subsidiaries | 7(b) | 1,415 | 1,864 |
Total equity | 1,350,132 | 1,380,774 | |
Total liabilities and equity | 2,269,645 | 2,299,719 |
The accompanying notes are an integral part of these interim consolidated financial statements.
F-3
Vinci Partners Investments Ltd.
Interim consolidated statement of income
For the three-month period ended March 31
All amounts in thousands of reais unless otherwise stated
Statements of Income | Note | 03/31/2024 | 03/31/2023 |
Net revenue from services rendered | 17 | 109,087 | 102,308 |
General and administrative expenses | 18 | (61,658) | (54,130) |
Operating profit | 47,429 | 48,178 | |
Finance income | 19 | 32,611 | 4,253 |
Finance expenses | 19 | (23,948) | (6,844) |
Finance profit, net | 8,663 | (2,591) | |
Profit before income taxes | 56,092 | 45,587 | |
Income taxes | 20 | (10,384) | (12,881) |
Profit for the year | 45,708 | 32,706 | |
Attributable to the shareholders of the parent company | 46,157 | 32,737 | |
Attributable to non-controlling interests | (449) | (31) | |
Basic earnings per share in Brazilian Reais | 16 (g) | 0.84 | 0.58 |
Diluted earnings per share in Brazilian Reais | 16 (g) | 0.80 | 0.57 |
The accompanying notes are an integral part of these interim consolidated financial statements.
F-4
Vinci Partners Investments Ltd.
Interim consolidated statement of comprehensive income
For the three-month period ended March 31
All amounts in thousands of reais unless otherwise stated
03/31/2024 | 03/31/2023 | |
Profit for the year | 45,708 | 32,706 |
Other comprehensive income | ||
Items that may be reclassified to profit or loss: | ||
Foreign exchange variance of investees | ||
Vinci Capital Partners GP Limited | 4 | (3) |
Vinci USA LLC | 947 | (869) |
Vinci Capital Partners F III GP Limited | 22 | (22) |
GGN GP LLC | 2 | (3) |
VICC Infra GP LLC | 11 | (4) |
Vinci Capital Partners IV GP LLC | 58 | (48) |
VICC Infra GP (Lux), S.A.R.L. | (14) | - |
Total comprehensive income for the year | 46,738 | 31,757 |
Attributable to: | ||
Shareholders of the parent company | 47,187 | 31,788 |
Non-controlling interests | (449) | (31) |
46,738 | 31,757 |
The accompanying notes are an integral part of these interim consolidated financial statements.
F-5
Vinci Partners Investments Ltd.
Interim consolidated statement of changes in equity
For the three months ended March 31
All amounts in thousands of Brazilian Reais, unless otherwise stated
Share | Additional | Retained | Other | Treasury | Non-controlling | Total | ||
capital | Paid-in capital | earnings | reserves | shares | Total | interests | equity | |
At January 01, 2023 | 15 | 1,382,038 | 81,310 | 24,149 | (114,978) | 1,372,534 | 3,013 | 1,375,547 |
Profit for the year | - | - | 32,737 | - | - | 32,737 | (31) | 32,706 |
Other comprehensive income: | ||||||||
Foreign exchange variation of investee | - | - | - | (949) | - | (949) | - | (949) |
located abroad | ||||||||
Share based payments | - | - | - | 1,986 | - | 1,986 | - | 1,986 |
Treasury quotas bought | - | - | - | - | (17,988) | (17,988) | - | (17,988) |
Allocation of profit: | ||||||||
Dividends | - | - | (49,015) | - | - | (49,015) | - | (49,015) |
At March 31, 2023 | 15 | 1,382,038 | 65,032 | 25,186 | (132,966) | 1,339,305 | 2,982 | 1,342,287 |
At January 01, 2024 | 15 | 1,408,438 | 111,444 | 31,876 | (172,863) | 1,378,910 | 1,864 | 1,380,774 |
Profit for the year | - | - | 46,157 | - | - | 46,157 | (449) | 45,708 |
Other comprehensive income: | ||||||||
Foreign exchange variation of investee | - | - | - | 1,030 | - | 1,030 | - | 1,030 |
located abroad | ||||||||
Share based payments | - | - | - | 4,279 | - | 4,279 | - | 4,279 |
Treasury shares bought, net of shares sold | - | - | - | - | (28,302) | (28,302) | - | (28,302) |
Allocation of profit: | ||||||||
Dividends | - | - | (53,357) | - | - | (53,357) | - | (53,357) |
At March 31, 2024 | 15 | 1,408,438 | 104,244 | 37,185 | (201,165) | 1,348,717 | 1,415 | 1,350,132 |
The accompanying notes are an integral part of these interim consolidated financial statements.
F-6
Vinci Partners Investments Ltd.
Interim consolidated statements of cash flows
Three-month period ended March 31
All amounts in thousands of Brazilian Reais, unless otherwise stated
Notes | 03/31/2024 | 03/31/2023 | |
Cash flows from operating activities | |||
Profit before taxation | 56,092 | 45,587 | |
Adjustments to reconcile net income to cash flows from operations: | |||
Depreciation and amortization | 18 | 5,464 | 4,555 |
Investment income of financial instruments at fair value through profit or loss | 34,844 | 3,173 | |
Net foreign exchange on liabilities at amortized cost | 14(i) | 15,576 | - |
Interest expense on loans and obligations | 19 | 15,010 | 3,934 |
Loss/(gain) on remeasurement of contingent consideration | 19 | 5,756 | (4,051) |
Share based payments | 18 | 6,148 | 2,107 |
Financial result on lease agreements | 19 | 2,037 | 2,555 |
140,927 | 57,860 | ||
Changes in assets and liabilities | |||
Accounts receivables | 12,048 | (2,494) | |
Taxes recoverable | (225) | (568) | |
Other assets | (6,188) | (3,552) | |
Trade payables | (1,521) | (726) | |
Deferred revenue | 10,419 | 17,219 | |
Accounts payable | 32 | (85) | |
Labor and social security obligations | (74,623) | (62,473) | |
Taxes and contributions payable | (4,847) | (419) | |
Contribution for retirements plans | 58,000 | - | |
(6,905) | (53,098) | ||
Cash generated from operations | 134,022 | 4,762 | |
Income tax paid | (15,417) | (18,219) | |
Net cash inflow from operating activities | 118,605 | (13,457) | |
Cash flows from investing activities | |||
Purchases of property and equipment and additions to intangible assets | (3,302) | (4,196) | |
Purchase of financial instruments at fair value through profit or loss | (383,265) | (13,338) | |
Sales of financial instruments at fair value through profit or loss | 245,543 | 76,375 | |
Net cash (outflow) from investing activities | (141,024) | 58,841 | |
Cash flows from financing activities | |||
Interest payments of loans and obligations | 14(ii) | (11,955) | (5,943) |
Principal payments of loans and obligations | 14(ii) | (8,889) | - |
Treasury shares acquisition paid, net of treasury shares sold | 16(f) | (28,302) | (18,431) |
Lease payments, net of sublease received | (5,652) | (5,864) | |
Dividends paid | 16(e) | (53,228) | (48,474) |
Net cash (outflow) from financing activities | (108,026) | (78,712) | |
Net increase in cash and cash equivalents | (130,445) | (33,328) | |
Cash and cash equivalents at the beginning of the year | 5(c) | 660,305 | 136,581 |
Foreign exchange variation of cash and cash equivalents in subsidiary | 2,128 | (2,051) | |
Cash and cash equivalents at the end of the year | 5(c) | 531,988 | 101,202 |
Non-cash financing activities
Dividends declared and not yet paid until March 31, 2024 and 2023 were R$ 3,791 (Note 11), respectively.
Consideration payable and contingent consideration (earn-out) as of March 31, 2024 and 2023 were 119,552 and 82,123 (Note 14), respectively. Vinci expects to pay the contingent consideration through its equity instruments. However, accordingly to IAS 32, the earn-out obligation was classified as a financial liability.
The accompanying notes are an integral part of these interim consolidated financial statements.
F-7
Vinci Partners Investments Ltd.
Notes to the interim consolidated financial statements
All amounts in thousands of Brazilian Reais, unless otherwise stated
-
Operations
Vinci Partners Investments Ltd. is an exempted company incorporated in the Cayman Islands (referred to herein as "Entity", "Group" or "Vinci"). The Group started its activities in September 2009. Its objective is to hold investments in the capital of other companies as partner (shareholder). The investees are specialized in rendering alternative investment management, asset allocation, corporate advisory services and retirement services.
The registered office of the Entity is at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands.
- Summary of significant accounting policies
2.1 Basis of preparation and presentation
The unaudited interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB").
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as of December 31, 2023.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
The unaudited interim condensed consolidated financial statements are presented in Brazilian reais ("R$"), and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated.
The issuance of these financial statements was authorized by the Entity's management on May 9, 2024.
-
Interim consolidated financial statements
Vinci operates as an asset management firm. The Group focuses on private markets, public equities, corporate advisory, investment products and solutions, and retirement services, which comprise the main activity of the Group.
The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.
Also, the Entity holds interest in subsidiaries whose main purpose and activities are providing services that relate to the Entity's activities. Therefore, the Entity consolidates these subsidiaries.
Ownership interest in subsidiaries on March 31, 2024 and December 31, 2023 are as follows:
F-8
Vinci Partners Investments Ltd.
Notes to the interim consolidated financial statements
All amounts in thousands of Brazilian reais, unless otherwise stated
Interest - % | ||
03/31/2024 | 12/31/2023 | |
Subsidiaries | ||
Vinci Partners Investimentos Ltda. | 100 | 100 |
Vinci Assessoria financeira Ltda. (1) | 100 | 100 |
Vinci Equities Gestora de Recursos Ltda. (1) | 100 | 100 |
Vinci Gestora de Recursos Ltda. (1) | 100 | 100 |
Vinci Capital Gestora de Recursos Ltda. (1) | 100 | 100 |
Vinci Soluções de Investimentos Ltda. | 100 | 100 |
Vinci Real Estate Gestora de Recursos Ltda. (1) | 100 | 100 |
Vinci Capital Partners GP Limited. | 100 | 100 |
Vinci Partners USA LLC | 100 | 100 |
Vinci GGN Gestão de Recursos Ltda. (1) | 100 | 100 |
Vinci Infraestrutura Gestora de Recursos Ltda. | 100 | 100 |
Vinci Capital Partners GP III Limited. | 100 | 100 |
GGN GP LLC | 100 | 100 |
Vinci APM Ltda. (1) | 100 | 100 |
Vinci Monalisa FIM Crédito Privado IE (2) | 100 | 100 |
Vinci Asset Allocation Ltda. | 75 | 75 |
VICC Infra GP LLC | 100 | 100 |
Vinci Capital Partners IV GP LLC | 100 | 100 |
Vinci Holding Securitária Ltda. | 85 | 85 |
Vinci Vida e Previdência S.A. (3) | 85 | 85 |
Vinci SPS Capital Gestão de Recursos Ltda. (4) | 100 | 100 |
VICC Infra GP (Lux), S.A.R.L. | 100 | 100 |
VINCI US RE Corporation (5) | 98 | - |
- Minority interest represents less than 0.001%.
- Under the terms of IFRS 10, the Entity does not consolidate its investment in Vinci Monalisa FIM Crédito Privado IE and measures at fair value through profit or loss in accordance with IFRS 9.
- Vinci has an indirect interest at Vinci Vida e Previdência of 85% through its subsidiary Vinci Holding Securitária Ltda., which holds 100% of ownership interest at Vinci Vida e Previdência. Vinci Vida e Previdência commenced its operations in April 2023.
- On 16 August 2022, Vinci Soluções de Investimentos Ltda. acquired 90% of the issued share capital of SPS Capital Gestão de Recursos Ltda. The acquisition gives to Vinci Soluções de Investimentos the right of 100% on the economic interest of SPS Gestão de Recursos Ltda.
- Under the terms of IFRS 10, the Entity does not consolidate its investment in Vinci US RE Corporation and measures at fair value through profit or loss in accordance with IFRS 9.
Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated balance sheet respectively.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
F-9
Vinci Partners Investments Ltd.
Notes to the interim consolidated financial statements
All amounts in thousands of Brazilian reais, unless otherwise stated
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in another reserve within equity attributable to owners of Entity.
When the Group ceases to consolidate an investment or account for it under equity method because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.
2.2 Segment reporting
In 2021, the members of the Board of Directors of Vinci Partners Investments Ltd were appointed. Under the supervision of the Board of Directors, the CEO is responsible for the decision-making process related to executive themes, resources allocation and strategic decisions of Vinci.
The strategic decisions of the Group comprise five distinct business segments: (i) Private market strategies, (ii) Public equities, (iii) Investment products and solutions; (iv) Corporate advisory and (v) Vinci retirement services (Note 20).
Strategies were sorted out within business segments following technical and strategic similarities among funds' attributes, such as management and performance fee structures, liquidity constraints, targeted returns and investor profile.
-
Accounting estimates and judgments
The Entity makes estimates and assumptions concerning the future, based on historical experience and other factors, including expectations of future events. The resulting accounting estimates will, by definition, seldom equal the related actual results. The main estimations and assumptions made by the Entity is included as follow: - Allowance of expected credit losses of accounts receivable.
- Provision for profit sharing.
- Consolidation of subsidiaries.
- Fair value measurement of financial assets.
- Provision for contingent liabilities.
- Impairment for goodwill and other intangible assets.
- Fair value measurement of contingent consideration.
- Fair value of share-based payments.
- Financial evaluation of compound instruments.
-
Financial risk management
The main risks related to the financial instruments are credit risk, market risk, and liquidity risk, as defined below. The management of such risks involves various levels in the Entity and comprehends a number of policies and strategies. The Group's risk management focuses on the unpredictability of financial markets and seeks to mitigate potential adverse impacts on the Group's financial performance.
F-10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Vinci Partners Investments Ltd. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 20:03:23 UTC.