Vinci Compass Investments Ltd. (VINP) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to Vinci Compass Investor Day 2025. My name is Anna Castro, from Shareholder Relations Manager for Vinci Compass. We're thrilled that you could join us today [indiscernible] present here with us in New York at Nasdaq market site as well as those watching us online for the webcast. We'll start in just a moment before that, I just have to share some important disclaimers with you. Today's event may include forward-looking statements, which are uncertain and outside of the firm's control and may differ from actual results materially. Except as required by applicable law, we do not undertake any duty to update these statements. For a discussion of some of the risks that could affect our results, please see the Risk Factors section of our 20-F. We will also refer to certain non-GAAP measures, and you'll find reconciliations at the end of the presentation. Also note that nothing on this call constitutes an offer sell or solicitation of [indiscernible] purchase an interest in Vinci Conpass fund. Moving on to our agenda for today. We'll have 3 blocks of presentations. We'll start off with a strategic overview covered by our CEO, Mr. Alessandro Horta, who will then follow to discuss the Vinci Asset Management acquisition announced yesterday after market close. We'll then have a session presented by Mr. Jaime Marti, Head of our Client Relations Group to cover our client relations team and the Latin American investment opportunities. To finalize the first block, we have a session dedicated to macro in Latin American opportunities presented by our Chief Strategist, Mr. Jose Carlos Carvalho. In the second block, we'll cover our business units presented by the heads of each of our strategies, starting with Global IP&S, equities, real assets, private equity and then credit. In the third and final block, Mr. Bruno Zaremba, President of Finance and Operations, will cover a dedicated session to IRE in a financial overview, followed by a Q&A session at the end. On a final note, for those attending in person, I'd like to highlight, we'll not be taking questions during the presentation. We'll have a condensed Q&A session at the end. And for -- for those watching us online, I welcome you to submit your questions for the platform, and we'll go for those as well in the Q&A at the end. With that said, I'd like to thank you all for your support and for your participation. And I'd like to welcome to the stage our CEO, Mr. Alessandro Horta to begin our presentation. Thank you.

Thank you, Anna. Thank you all, and welcome to our -- another Investor Day. We hope that you enjoy the content that we'll present today. We are very optimistic and keen about the prospects of the firm moving forward. As I said earlier today, this was an important year for us, a year of [ trial and trial ], but yet, reach and its rewards. And I will cover this today what we expect to the future. And I'll talk, of course, with our more recent developments like the [ Verde ] transaction. So what are the key messages that we aim to deliver to you today, and we will try our best to do it. First, we are the gateway to alternatives in LatAm. We have an unmatched platform brand and distribution across the whole region. Again, we would like to highlight our earnings power as a firm, 3 complementary earnings streams, FRE, PRE and IRE shows a resilient and balanced business model, and we'll go this in further detail later. And the future growth of the platform of the firm. We have a very, very disciplined expansion to deliver very durable value creation to the shareholders. So we believe that we are building an investment platform for Latin America future. How we are doing that? We today have a footprint in Latin America, really a complete footprint to take advantage of any opportunity that could arise, especially on the alternative space. We have today more than BRL 320 billion of AUM around and spread in 12 offices, 630 employees, 8 countries and more than 60 partners that create this deep bench of talent that are really the key of our future. We have more than 50 active strategies across alternatives, liquids and global solutions, diversified, both from asset class, geography, and taking consideration investor profile. We have more than 30 years, providing investment solutions across Latin America, serving institutions, pensions and family offices. The total addressable market that we aim to reach is an addressable market of $7 trillion that today, the alternatives is just $87 billion. That has been growing, of course, since 2010, 4x, but still not very important in terms of overall addressable market. The firm today has deep access to Latin American global LPs, so we have here in this graph, our country breakdown AUM by funding. We'll come back a few times for this specific chart that's very relevant today to show how we are diversified today, not just in terms of AUM, but I'll show you later in terms of revenues. We have a big portion of our AUM coming from the main markets in Latin America, Chile and Brazil, but also an important part of our AUM comes from international LPs and then from the other countries in LatAm. This is just the AUM volume, and we'll show you later about the revenues. We have -- this is important to show that we have scale distribution capabilities, local on-the-ground coverage across the 8 markets plus our global coverage. We have a direct relationship with more than 2,800 LPs and more than 80% through proprietary relationships. This is very, very strong and creates a relationship with each of these LPs that's long term with a high-quality relationship, understanding their needs and the specific characteristics of each one of them. We have also a huge relationship with high net worth individual intermediaries with more than 300 direct relationships with family office and ultra-high net worth individuals across the region. And of course, more than 500 intermediaries distributing Vinci Compass strategies. So in terms of institutional investors, we will come back to that a few times today, too. We are a very institutional investor, I would say, service provider. The majority of our AUM today comes from this type of investors where we have deep access to Latin America pension funds, including 100% penetration. So 100% of the institutional investors, the main pension funds in Chile, Peru, Colombia, Argentina and Uruguay are our clients. And this -- we do have also a very important percentage and, I would say, the largest for independent asset manager in Brazil for the same type of investors. In Brazil, of course, the market is much more [ pulvarized ] in terms of the number, in terms of investors, but the majority of them are Vinci Compass clients. We have established distribution through global platforms and direct mandates, strong position within insurance companies, and a lot of relationship with the main sovereign wealth funds, endowments and financial institutions in the world that want to have exposure to the region or at least have interest and understanding what's going on in Latin America. We'd like to say that our business, our service providing asset management platform have a few different dimensions. The first one is local to local. So offering customized investment solutions and investment thesis for local clients are in the local markets. So we have money raised from Brazilian clients, investing in Brazil; Chilean clients, invest in Chile, Mexico and so on. So the first dimension that's very important to us since we have a very strong presence underground all of these countries is local to local. The other dimension is local to global. I would say after our combination of Vinci and Compass and forming Vinci Compass, we are one of the main players in the region, connecting the local markets to the global opportunities. Leverage long-standing relationships with top-tier global managers around the world, as you know, we manage allocation money through global solutions in the international markets, but also we have long-term partnerships with the top-tier global managers allocating money from local investors from all of these countries that we cover in the international markets. Then we attract global money in our global to local dimension that where we serve international clients with deep local expertise, delivering access to opportunities in each of the countries that we are established. So we attract global money to local markets. And finally, the final dimension, the fourth one, is global to regional, where we provide global investor access to pan regional mandates, especially covering all Latin America for different purpose or different strategies like infrastructure, private equity, equities, credit, [ ones ], we are more advanced than others, we are creating grounds to establish these global mandates. So we have been growing steadily since back in 2009 when we were founded, of course, Compass was founded before, but we took this opportunity to show from 2009. We have been growing from the beginning of BRL 2 billion to this BRL 320 billion that where we are today. We have been doing so through, of course, a series of milestones where we have been able to grow organically, but also through partnerships with groups or other firms like we did with SPS Capital and then our partnership with Ares, MAV, Lacan, Compass and finally, what we announced yesterday, Verde. So we are, as I said in the beginning, 1 year almost since we did the combination with Compass, and it was really a strategic combination, integration that was seamless and one of the, I would say, that corresponded a lot with what we thought when we decided to proceed both sides with this combination. We have been able to unlock value through a lot of complementary trends, so it's really the foundation of our long-term value creation really building this Latin America platform. We have a very strong Latin America distribution and relationships for both firms. We could leverage on the Brazilian investment manufacturing of products and strategies with cross-border know-how. So growing the asset management, deep asset manager -- especially in alternatives that we had in Brazil to the other countries. Channel global capital in Latin America opportunities, as I said, in a regional -- pan-regional mandates, proprietary research led strategy with the local edge. So now we have analysts, PMs, relationship people in all the countries. So we have really a very strong deep knowledge focus on specifically alternatives and asset management. And the third-party distribution at scale that we have been able to -- that was the history, very strong feature of Compass that we have been able to build in this combined company that we can leverage in other companies -- countries. So two things are very important here, and we will come back a lot to that is we could really leverage from our expertise of asset management and alternatives in different strategies from Brazil, in other Latin America countries. And at the same time, the success that we have been able to build especially through Compass in the other countries and exporting capital globally, we can do in Brazil that's still very parochial market that is still in the early days of exporting capital globally. And finally, with all this, I would say, knowledge, all this knowledge, we have been able to use a lot of cross-border instructing capabilities from both sides. We have 2 strong legacies for sure. And now we are building one integrated platform. One thing that since the beginning, we noticed is that we have a huge geographic and product complementarity. So we have very, very limited geographic overlap, starting from offices, up to source of funding and capital allocation standpoint. So we didn't have much overlap even from offices, we have to us in New York that we merged in one to Austin and Sao Paulo, but the rest of the other places, either one company was not or the other. So we have been able to build this integrated platform [indiscernible]. Of course, the Latin America geographic expansion is one of the most attractive and growing alternative asset classes. GDP of $7 trillion in the region with more than 660 million people and very, very underpenetrated in alternatives with overall under 5%. And we can really take advantage of that expanding in regional funds management and distribution. And we have a unifying long-term vision, becoming the leading one-stop shop platform for alternative investments in Latin America, establishing a local presence, both in local to local markets and import and export capitals into and out of Latin America. We are aiming for an optimized operating model for scalable growth. What have we achieved so far. Office footprint optimization, we already did it. So we optimize our office and physical presence, so overlapping of structured streamlined. They share the infrastructure since the beginning, we integrated it up front and support functions. So now we have just one firm on that sense. And we have a unified leadership structure. It's important to say that since the beginning, we did not have separate units or silos. We integrated completely. So some of my partners that we will be talking today, either they were part from Vinci or from Compass, but now they have rose for the whole institution. This is very important that, in a way, forced us since the beginning to integrate completely the leadership in the firm by consequence. What do we want to achieve moving forward? A LatAm wide product development. So we need and we are doing, as we speak, we have developed new regional and local alternative content across LatAm. So from the places that we didn't have specific products like private credit, real estate, infrastructure. Right now, we are aiming to build capabilities in the places that we didn't have before. So this is something that we're developing. It will be -- you'll be seeing us implementing as we speak. Now we are already discussing that. But moving forward, we need -- we'll work by this space for sure. Expanded fee capture. High take-rates through discretionary mandates in global IP&S. This is very important. We are seeing an important opportunity to not just export capital from Latin America for specific products in our TPD business, third-party distribution, but creating really discretionary mandates for different types of clients from institutionals, high net worth, intermediaries where we are the engine of this asset allocation being a discretionary manager of these mandates moving forward where we can attract higher fees through this strategy. And finally, scaling our international distribution. Broader capital formation through Compass Latin America footprint. So this is immediate because we do have a possibility to bring all this distribution effort to really scale our international distribution footprint and, of course, as a consequence, more AUM coming in our own products. So we are one firm, one culture, and we have a governance that scales. Culture, shared value since the beginning, we noticed that. So we have culture alignment, long-term thinking and strong fiduciary mindset. This is not very common in the region, but we have been able to attract 2 firms that converge on this specifically thinking. Of course, meritocracy and ownership, it's part of our ethos. So a partnership model was preserved. Ownership mindset reinforced. So we have equity exposure to all the main people within the firm. We have been able to achieve a seamless integration team substantially integrated from day 1, collaboration across distribution, investments and structuring, as I said before. Talent, that's key for us since our business is based in talent. So we strengthen the leadership with the senior leaders with global experience. Now we have really a very seamless team that's hard to compare with other Latin America asset managers. Leading distribution strategy and expansion. Elevated in seniority, of course, we have people with different backgrounds with a lot of seniority and a lot of complementary strength from the talent, digital leverage on Compass institutional reach. Compass had, as I said, all in all these countries, 100%, I would say, access to institutional investors. And Compass, of course, enhances Vinci structure expertise. So we have been able to bring this from the best from the two. We have, of course, a very, very senior team with our reinforced governance bodies, institutional government for scale [indiscernible] decision-making, and a Board and executive committee integration with people from both firms from the Board to each of the committees. So it's important since the beginning that the senior leadership of the company are integrated in the same governance bodies. Earnings power that's really very important. So we have a very resilient and balanced business model. We have basically 3 complementary streams or pillars; FRE, PRE and IRE. Fee-related earnings coming from recurring management and advisory fees, a durable fee base, diversified and scaling. This is the core of our business that creates the stability and the growth that keep us moving forward. The PRE, so the performance-related earnings that earnings coming from performance fees realized from our management funds -- managed funds. Since IPO, of course, PRE from liquid funds has been predominant, but PRE from private funds set to kick in, in the next cycle, of course, have been raising money on the private funds. And now we are beginning to see that will be materializing PRE moving forward. In the final, it's very important, is the investment-related earnings. So earnings coming from GP capital gains that an embedded engine, not full price in our current valuation because they are -- the majority of this investment were made in our drawdown of private market funds, where that would translate in earnings moving forward in a current basis. But of course, we have a time this to mature. So we have these 3 main complementary streams that recurring cash flow today, significant gains coming from performance moving forward and also the GP commitments creating -- driving shareholder value creation moving forward and through different cycles. In terms of FRE, the high-quality fee engine, as we said, is very diversified, as you can see in this graph, with this FRE by segment being very well diversified, coming from private equity, global IP&S, real assets and credit almost with the same size of the pie. This is very important. So we can really be very, very stable during cycles and Latin America, of course, is cyclical. So with this, we believe that we can really show how we can continue to grow in any environment like we have been growing in the last few years. We've tough times, more benign times, but to have keep growing. And of course, the speed will vary, but we'll keep growing with a very diversified FRE base. So the key takeaways of this is, we are balanced across strategies and clients. We have this contracted and recurring fees. So the majority of the money is in the lockup for AUM for a long time. Private equities, we do have a sticky AUM and we just have a fresh flagship vintage extend federation moving forward and a very low concentration of risk and no single vertical dominates our FRE. We have been able to deliver sustainable growth and resilient growth since our IPO. As you can see, we multiply assets under management with this combination with Compass that was very important to that 6x, fee-related revenues, we grew 3x and fee-related earnings 2x. So since the IPO have been growing, all these metrics related to fee-related earnings are -- as the market developed and the firm continues to deliver. We have a proven capacity to scale revenue. This, as you can see, it's a 20% CAGR. And you can see for the calls that we have been able to do that in a very diversified way. Again, we do not depend on any specific streamline much. So this creates a really, really stable platform. We have been able to compound FRE since the IPO with this 13% CAGR of nominal FRE. Again, being resilient predictable cash flow, we have been able to distribute a lot of dividends along the way and reinvest part of the capital. And we have a broader platform distribution to support our margin expansion moving forward. Again, we have everything that we mentioned that we think what FRE can deliver to us. So recurring cash flows to fund dividends, self-funded growth, low concentration risk and resilient to cycles and a lot of visibility on cash flow. We have some proof points to really prove -- have a proof what I'm trying to say. It's a CAGR of 13% in the [indiscernible] per share, growing since the IPO and recurring fees around 84% of total fee AUM. What comes next? We have a cross-sell into Compass long-term LP relationships across Latin America and abroad, product expansion, scale existing vintages and expand regional asset allocation, as we said before. And the global IP&S mix due to higher return on asset strategy to lift fee yield through discretionary mandates of asset allocation. Another important point that till today has not -- hasn't been the main driver, but key for us is the PRE. So we have 2 value drivers. Liquids delivered in a tough cycle in private snacks. So having been resilient through the cycles, liquid strategy, sustained PRE in a high rate backdrop that we had, especially in Brazil. Private vehicles early in harvest that, as I said before, building a second driver of PRE, so we have the liquids while we had these high interest rates and building the next wave of PRE from the privates moving forward. So until now, PRE has been 80% liquid and 20% around that private. But moving forward, as you can see, the performance earning AUM is almost 50-50. So we should expect that the next cycle will be moving for more performance coming from the privates. And what is in the pipeline. As you can see, performance eligible AUM is highly diversified between different asset classes. And we have a gross accrued performance fees as the second quarter '25. That's, of course, the majority of them coming from private equity. But as you can see that we have already accrued than expected performance moving forward of more than BRL 340 million. The portfolio is seasoning. It's core assets maturing to realization phase. So we are seeing a closer realization event that would translate in this performance that I mentioned to you coming from private in a diversified performance eligible AUM across all these strategies. So today, we are introducing this concept and Bruno later will go with this in very further detail. That's very important to you to understand our business is the investment-related earnings. Our hidden growth engine. As you know, we have been making commitments and recommitments through as the GP of our fund, that it's very crucial. And one of the reasons that we did our IPO is really to have the balance sheet power to do it, where we are anchored in the fundraising process of especially the privates where we bring LP commitments alongside our anchor fundraising. And we put through capital call -- this capital to work in this fund that will translate in returns. We'll have these returns moving forward. So what IRE is earning from our GP commitments invested alongside LPs. Why it matters? It's anchors fundraising. First of all, so we raise more money, so we create more FRE by doing that, aligns interest with our LPs, completes the distributable earnings flywheel. FRE, PRE and IRE and how value is created, management fees, carry through PRE and finally, GP capital gains. So our business model is really built for resilience and long-term shareholder value creation through all the main asset classes. And with these 3 engines in streamlines of results, FRE, PRE and IRE. So we do have this broader platform, a stronger foundation for growth. So we have this pan-regional presence with diversified exposure and product offer funding and currency. So we have this highly diversified, as you can see, global IP&S in terms of AUM is by far the largest vertical through AUM. But when we translate this, of course, it's carried lower fees. When you translate this for fee-related revenues, you see that's very, very diversified. Client break bonds the same. As I said, the institutional part of our business is the main one, but of course, some institutional carries lower fees. So when it translates to fee-related revenues, still institutional clients are the most important in terms of revenues, but it's a little bit more diversified between other source of funding. And here, you can see the breakdown in terms of geography and our presence in terms of product offering, funding and currency. As you can see, the AUM by country, it's really diversified, but with the Chilean portion of the business being the largest and then Brazil and then global, but when we see in terms of fee-related revenues due to the exposure for self-managed alternatives in the Brazilian portion of Brazil, change with Chile in terms of revenues. And you have also the global portion of the business that where we are, I would say, benchmark in alternatives for the region, again, being very relevant in terms of exposure and how we generate revenues from this pool of capital. And in terms of asset allocation, where -- so the first portion is the liability side and the second graph is the asset side. Where we are investing this money? The majority, by far, part of our AUM are invested from Latin America outside, of course, because of the size of the market. But in terms of revenues, again, Brazil is very relevant, but highly diversified with 4%, 6% and then we have the international market and then the other markets. It's important to say that it's interesting because this creates a really diversified and the shock absorption of any specific countries or even the region because we have exposure to the international markets, too, and this is highly diversified. Of course, the U.S. being in the main market, but we have Europe, Asia and so for Latin America money and the other way around. So really today, we have a highly diversified platform, both in terms of funding and where we are investing the money in terms of AUM and in terms of revenues. And this is the complete graph. I always say that I love this graph here. I know my presentations. This shows you really how we are diversified in terms of both revenues and AUM. Each of the graph goes from AUM and fee-related revenues to show how we are diversified, both in terms of where we're investing from where the money is coming from in terms of clients, in terms of geography, so we are really diversified through Latin America and globally since we are locating the majority of the AUM that we manage and we advise globally. Private credit specifically, and we have a session later, it's one of the fast-growing allocation market. We have in Latin America a little bit late, but like what happened in -- in the international markets, the private credit market growing, and we will see the same in Latin America. Today, corporate lending, it's 70% to 80% bank-driven, and versus 40% to 50% in developed markets. So it's a huge opportunity, and we cover this through structured credit, infrastructure credit, agribusiness, high-grade real estate credit, diversified project credit and opportunistic capital solutions. Of course, we'll talk in more detail about this later. But this is a huge opportunity that we are adding BRL 13 billion in AUM by [ June 2025 ], just focus on the private credit opportunity. And we want to be a one-stop shop of private credit becoming more and more relevant, providing these credits so people are creating an important deal flow for us since we have been growing on that sense. And of course, we are very creative and versatile on providing structural opportunities. So we have a fast growing allocation market, as I said, the investor appetite is big. And the majority of the LPs, both global, and LatAm aim to allocate over 50% to private credit moving forward. Of course, still today, this is a spread market over a very high interest rates. But we are seeing and will listen from [indiscernible] later that we are seeing a possibility of all the markets moving interest rates down. Brazil and other Latin America counts already started this movement. But with that, the spread of credit will be more relevant in the composition of the total return of the investor on credit as a whole and private credit is already on the radar of the majority of these investors. We have -- the track record is important. So it's prevails where you have this track record. So our proven track record will help us to move ahead of the rest of the pack. We have unmatched pan regional distribution capability to really access this capital and deploy it and the proprietary LP relationships, we understand very well what the investors want even in this private credit space. So we have been leveraging revenue stream, as I said, generally, flows to higher free discretionary strategy. So a lot of products has been able to help us to deploy it. So on credit SPS IV, Credit Infra, CopCo and CHILPCO II, Infrastructure, Infra LatAm, VICC II that we plan to launch, Forestry LatAm IV and V, Private Equity VIR V and VCP V, real estate through the REIT since the interest rates will go down, we'll be able to raise more money from the REITs and also other opportunistic funds in real estate. So we are seeing ways to move our higher fee through this discretionary strategies, and we will cope this with the demand from global alternatives and locally through our capabilities in terms of distribution, both coming from Pan Regional, the relationship with the pension funds and global investors. We, of course, see across our products, convert relationships in [indiscernible] mandates and allocations, higher discretionary AUM mix with higher return on assets and more recurring, stickier management fees to these higher fee products normally drawdown funds with a longer horizon in longer lockup periods. So here, we'll cover this more in detail, but our 3-year targets at a glance. From the last 12 months number, we intend to move our fee-related revenues from BRL 800 million where we are today. We've a 22% CAGR moving forward to BRL 1.6 billion of fee-related earnings -- revenue, sorry, until 2028, full year, 23% CAGR in fee-related earnings from BRL 264 million the last 12 months to BRL 600 million. Second quarter numbers of 28% margin, up to 38% margin, moving 10 percentage points of the FRE margin and the fundraising target of this period of time from second half '25 to year -- full year of '28 of BRL 100 million. So summarizing, I would say, my points here, we have 3 main growth drivers as being the gate alternative investments in Latin America. First, regional expansion, penetrate existing Latin America relationships to distribute, managed alternative investments. Second, private credit is in all my presentations, I come back to this because it's a huge opportunity, and we are seeing this kicking. So capture the asset class secular growth in filling Latin America financing gap through a full-service private credit platform. Finally, leverage revenue stream, increase the percentage of AUM allocated to discretionary products with higher return on assets. So this is the 3 main growth drivers to really deliver the main metrics that I showed to you in the former slide. With that, I'll be quick here to talk about more our most recent, I would say, partnership that we just announced yesterday. Of course, we'll come back in more details later about this. But I like to give you the rationale and the main, I'd say, characteristics of the transaction with Verde Asset Management that we announced after the market. We really, as I said before, we really want to build the region's leader in global and local asset allocation that we believe we are underway to doing that. This strategic acquisition will provide that we will scale performance, distribution and profitability. So Verde will move us to BRL 320 billion of AUM. Verde is really an outstanding brand, very recognized with amazing reputation, one of the most recognized brands in the asset management industry space in Brazil. We are partnering with one of the most respectable and sort of teams for multi-strategy funds in the region. And we'll complement a lot, an important asset gap across our multi-strategy allocation product offering, bringing outstanding track record long ago in more detail and a stellar management team. And I'm saying that with all these objectives because it's true. And it's really recognized as so in the country. We will create a scale immediately in an AUM mix upgrade. The transaction adds scale to our multi-strategy funds immediately and pension plan strategy is very important. Within Global IP&S by bringing BRL 16 million of AUM with attractive [ hosts ] and -- of our AUM mix, reinforcing earnings quality and deepening the share of discretionary mandates in global IP&S. That will accelerate Vinci Compass with the leading multi-strategy player in the region. This creates a new avenue of growth and put us in a very, very enviable situation. We'll combine for us to create new strategies. So the Verde brand will help us to develop new products moving forward, combining origination and presence in the alternatives market from Vinci Compass with Verde's brand power across high net worth individuals and intermediaries. Analog distribution across that, I was just commenting before with my partner, [indiscernible] how we can really scale the Verde brand that's not just a brand in Brazil, but we need to really show to our international clients, especially in the other regions of Latin America how we can introduce these products and these allocation capabilities to them. Still, since until now was not the focus of Vinci so far. We will be building the region leaders in global localization, again, the transaction structure was, I would say, done to take in consideration, the characteristics of Verde and was structured in 2 phases with Vinci Compass acquiring 100% of Verde in 5 years and follows a price to fee-related revenues, multiple to protect against AUM oscillations, okay? We expect the transaction to be immediately accretive on a double-digit basis to FRE per share. The management team will be aligned completely and they create a retention model. They will be responsible to continue management change in offering in the management of the Verde's fund. But they will have a preserved independent -- investment management and risk management governance. And [indiscernible] be will join Vinci Compass as a partner in the other partners of the Verde too. Alongside our own roster of partners. The share received a part of the payment will be subject to lockups like traditional lockup. And the transaction, as I said, will be structured in 2 phases, 1 now and another 1 in 5 years from now, we acquired 50.1% and then the remaining 49.9% in the end of 5 years. Even the first payment, this 50.1% will be done one part now, another part in 2 years from now and the rest of the 49.9% would be acquired in 5 years in a kind of earn-out type of arrangement are linked to the revenues of the business. So Verde is an asset management of BRL 16 billion, has been -- the team has been working together for more than 25 years. The [indiscernible] of the fund is from 1997. So it's a very long track record, a very well-known in Brazil, 54 professionals. The majority of the AUM, it's Brazil multi-strategy. We have a portion of global multi-strategy, pension funds. They are the main, I would say, strategies of Verde. It's very well known, a very strong brand, a lot of media mentioning for the brand. So it's very interesting for our clients to have access to this type of product. The core strategies are like I described it, multi-strategy BRL 7.2 billion with an astonishing track record, global multi-strategy too, BRL 4.4 billion in AUM. And finally, the pension plan at BRL 2.9 billion that follows, in a way, the Brazil multi-strategy, I would say, at allocation, but of course, adapted for pension plans. So just to summarize the key transaction terms. We -- as I said, we're structuring 2 phases and follows a price to fee-related revenues in a way to amortize any AUM fluctuations. So the Phase I, we are acquiring 50.1% of Verde with total estimated consideration component of 2.1 million Class A shares and $46.8 million in cash, we'll pay this in 2 phases, 1 now, another 1 in 2 years. And the second payment in the earn-out structure to be paid over 5 years after closing to acquire the remaining 49.9% of Verde that will depend on several conditions in [ Tipco ] earnout structure. But today, the value that we've made for that is around BRL 127.4 million, that we could pay in our discretion in shares or in cash. The transaction -- voice structure for long-term transition. So who read the newspapers, you see that what [indiscernible] said. The idea is a minimum of 5 years of the commitment of [indiscernible], but he intends to stay as a partner of Vinci forever, basically mentioned his all words. He will continue to be the CEO and CIO of Verde. The team will be untouched. So it's really a very smooth transition. The financial impact will go over in more detail, but will be a double-digit basis FRE per share and low to mid-single-digit accretive to DE per share. The timing, we expect this to not have a lot of regulatory burden. So probably, we'll be closing this in the fourth quarter of '25. Of course, we have some regulatory approvals, customary conditions, but we don't expect much problem coming from this front. So with that, I would like to thank you and leave to the presentation of my part to Jaime Marti, about Latin America investment opportunities.

Thank you, Alessandro. Thank you very much. Very happy to be here, happy to share our views of the LatAm market and also our client relations team, okay? This team that you see here, the client relations team that we have 80 client relationship manager there, client-facing in 9 different countries, including 1 presence there in the United Kingdom with a lot of experience, 17 years of experience. Out of the 62 partners that we are in the combined entity 21 are part of the client relations team. So very significant, on average, working together, here at Vinci Compass for 15 years. So it has been -- there's been a lot of personal -- have been 29 years at the Compass when we started, right, many years ago. I mean when we were less than 15 people, so I'm part of the inventory. And I've been very fortunate to see the company grow significantly. And now it's -- I mean, 600 people firm sharing the same values and with the same partnership mentality, okay? Part of the team is also 35-plus professionals that play a key role in the relationship with our clients in marketing, client services, support and product specialists, okay? So a lot of experience there. And when you see here, the partners that are throughout the region, then you see sort of the 21 partners, I mean half of that -- the partners are based in Brazil there with plenty of experience there and all of us either native in Spanish or native in Portuguese. Now with the combined entity, we're all native in [indiscernible], right, obviously. So and very deep and strong diversified client base. Alessandro touched on that in terms of our institutional background, more than 40% of the revenue is coming from LatAm institutional clients. I mean, very deep coverage there, more than 100 insurance companies in the region, 1500 single-family offices, high net worth individuals and also ultra higher world in reals, everything there. So very important, it's the second largest revenue source. It was very important for Vinci, very important for Compass and for the combined entity, 23% of the revenue is super important. More than 460 financial intermediaries that it's a very efficient and very -- in a way, scalable way to access the mass affluent market in the region, and that's also roughly the same revenue source as the ultra high net worth individuals, 22%. And then finally, 10% coming from global investors that we're going to talk about later. So again, a very deep strong and diversified client base in the region. Here, LatAm market landscape, of course, after the merger, the sort of the addressable market doubled for the combined entity before with Vinci. I mean, mainly, mainly more than 90% of the assets were in the local to local strategies and the global to local, that we talked about before, Alessandro also touched on that, right, Brazilian investors getting into Brazilian strategies and also global investors investing in Brazil and Australia. That was mainly the case. Now it doubles because it's now LatAm, it's not only Brazil. Also the investment strategies now are -- I mean, our more investment strategies, more products there. And also, you see here the local to global gets very significant. Jaime de Barra will probably talk about that in terms of local investors investing globally. Globally, either through our discretionary global mandates and also the access to the third-party business to our global managers, super important for us now. And also global to regional. This is happening now, basically. We have global investors investing in our LATAM products, not only Brazil, for example, our Latin American corporate debt fund, but it's a $1 billion fund, roughly 30% of that fund is coming from global investors. So very significant. So this is super important. Here is just a sort of a double click on the addressable market by type of client, but it's the same message. I mean every type of client, the opportunity doubles in terms of that. And you see the map to your right, it's the darker the color is the larger the opportunity set or the larger of the market. And here is no surprise that Brazil and Mexico are the largest markets on that front, okay? Here, we see that on the bottom right, the LatAm addressable market that we talked about before, we expect it to keep on growing. It's going to get to $9 trillion by the end of 2030, and part of that driven by global investors. We believe that global investors also are underweight relative to the history in terms of investment in LatAm alternatives. And that, we've seen a lot of interest on global investors. I mean all the road shows that we're doing in Middle East, in Europe, in Asia, here in [indiscernible] and everything shows us that there is a tremendous interest in LatAm alternatives. And on the graph to your left, it's a very interesting exercise that we did is that we added up all the players of the addressable market, so LATAM institutionals, higher worth financial interments and we saw the asset allocation on an aggregate basis, how it looks like. And as you see there, if you add up the local alternative plus the global alternative assets is account to 7% of the assets. That's higher than 3 to 5 years ago, but we believe that the only direction here is going to go up. And that's basically our -- what we are thinking. Some examples in terms of growth opportunities here. Three examples, three very concrete examples, private wealth, private wealth increase in allocation to alternative. Why? Because global alternative managers are, I mean, changing the liquidity profile of the products, having the semiliquid funds, lowering the minimum tickets there, accessing platforms like [indiscernible] all that, all that is going into the private wealth accessing more and more the alternative investments. Global clients. We talked about that before, and we're going to talk a little bit more about that in terms of more interest in Latin American GPs. And finally, Latin American institutions give you two concrete examples in terms of the Mexican pension funds and the Chilean pension funds and the growth of the assets, driven by a higher contribution rates, okay? On the wealth side, investing in alternative assets more than giving you sort of a high-level projection or estimates is what we wanted to show you here is our own experience, okay? So these are numbers as the combined entity on a pro forma basis, 10 years ago. 2015, $1.7 billion we had with financial intermediaries, which again is a very efficient way to access the mass affluent market in the region, only 2% invested in alternative assets. Fast forward 10 years. Now we have in this channel, we have $9.3 billion. So a very significant growth on that channel. And not only that, 24% invested in alternative assets, either our own alternate products or the global alternative products in our third-party distribution business. So we believe that the trend of this -- of the growth on the financial intermediates, but also on the percentage on alternative investments is going to be basically keep on growing. Global investors. Here, again, this is our own example. It's not a high-level projection. It's on what has been our history on a combined basis. 2015, we had 5.4 billion of assets in our LatAm strategies, okay? Out of that, [ 800 million ] was coming from global investors, so 15%. Today, 13.6% is in our LatAm strategies or very significant growth. I mean -- I mean almost triple that. But [ 3.6 billion ] is coming from global investors. So that's 4.4x the growth on that. 26% of the assets of LatAm states are coming from global investors. There's a report a NASDAQ report, NASDAQ here of our host. So should be the best report so they can invite us again here to this audience there. The best report, 58% of global buy-side firms plan to increase their exposure to LatAm in the short to medium term. And again, we're seeing that in the visits in the one-on-one meetings with clients globally, okay? That is happening. And then finally, 2 examples. One is the Chilean pension funds early this year. There was a pension fund most of you probably know, a pension fund reform that was approved. And that, among other things, it increased the contribution rate that it was super long due. I mean it was ultra-neded because it was very low international standards, and it's going to increase gradually, right? And you see there the graph. And with that contribution rate increasing, we believe our estimates is going to get the size of the market of the Chilean pension fund market is going to get to $360 billion in 2035. That's roughly 90% of the GDP in 2035. So a pretty significant growth and a pretty significant industry PAUSE within the capital markets and within the size of the country. We're going to go to target date funds, just like in Mexico. So we're going to have that. And there's going to be a definition of the benchmarks being used by the regulator next year, September of 2026. And that's going to be key to assess their final exposure to the different asset classes, okay? And finally, the alternative investment limit increase. This was actually before the pension fund reform. This was said by the Central Bank. It has been increasing gradually there, and it's going to keep on increasing. And by August '27, we expect an additional allocation of $11 billion, which is pretty significant versus what is currently today used in alternative investments, okay? And finally, the Mexican Afore, the Mexican pension funds, strong growth. It's going to get to $850 billion there. Again, contribution rate is a key driver of growth. It's going to get to almost 40% of the AUM of that country, in part driven by a very large and young population, as you know there. And because in formality that it's very high in Mexico, it's going to go down the expectations there. So that's going to be super important for the growth of the assets there. And as you see there, the contribution rate has been already increasing because the pension fund reform in Mexico was done some years ago. It's going to get to 15% by 2030. So pretty sooner than Chile. And again, the alternative investment limit is going to go up. It's going to double there and probably it's going to have an impact -- a significant impact also on the local alternative pocket of the [indiscernible] which today, they have a minimum requirement and most probably that number is going to go up. So again, a very interesting opportunity on the Mexican Afores. So that's pretty much it. As you see, very interesting opportunities in the region that we believe that we're very well positioned to capture these opportunities. I mean, given our strong distribution capabilities, I mean, our very experienced client relations team. So that's it. Thank you very much [Foreign Language].

Thank you, Jaime. Now for 15 minutes overview of what you're seeing in macro in Latin America. So we have a more detailed presentation in the site because we're short of -- had to crunch it a little bit here for this talk. But I think I would say that we have at least 2 common themes all over Latin America. One is the interest rate opportunity. We saw at cutting rates here, you're going to cut even more in the near future. So countries are in different stages of [indiscernible] interest rates, some are more advanced. Brazil, as we -- we know haven't done anything at all. So we see a very good tailwind for Brazil coming from lower interest rates. Rates in Brazil are still at 15% nominal rate. We're talking about 10.5% real interest rates for the overnight rate. And we think that this is going to improve a lot. So that's a common trend all over different stages, as I said, but I have to look at it. And the other common trend is that countries are -- we are seeing countries moving more to the center of the political spectrum. And that was an opportunity in Argentina, in Chile, and we think that in Brazil that will be the case, too. So I'm going to go very fast here. This is why we look at Brazil first, and we think there is a big opportunity in Brazil, as I just mentioned, because we see the possibility of having a political change. The red line there is people who say the government -- rule of government is bad or terrible, the green line is people who say the government rule is great or good. [indiscernible] went through a very worsening situation of this evaluation by the population. The yellow line is the regular guys. And you see that right now has more people they have a negative view of [indiscernible] government, then a positive view. That shrink a little bit after Trump tariffs because [indiscernible] was very able to frame it as attacking our sovereignity, but I think these effects mostly done. And when we look at -- when we look at the chart on the right, how much is the approval of the government. Now, you relate that to the votes in the second round, it's amazing that Brazil is almost a straight line here. This is [indiscernible] in 2002. So we can see that had 28% and about 39% of the vote. This is also in [indiscernible], Lula 2006 and Lula right now has 32% of the great and good approval rate, and that would translate in about 44% -- 43% of the votes in the second round. So we see now that the political odds are like 60-40 for losing and that could be a good shift in Brazil. One amazing thing is that this thing is happening despite a very low unemployment rate, relative good growth in Brazil, short on the left and unemployment rate is very low in Brazil. We think that this unemployment rate is going to start to go up. Why is it going to start to go up? Because if you look at the interest rates in Brazil, I mentioned to you that the SELIC rate is at 15% nominal, but in real terms, it reached 15% and all came back to 10.3%. This is slowing down the Brazilian economy. Why we haven't seen it slowed off faster than we saw so far? Basically, because the government increased the fiscal deficit when Lula started. Lula, when he started his government, he asked an authorization for Congress to spend more money. So he increased the government expansion by 2% of GDP in just 1 year. So the fiscal deaths in 2023 was about 0, went all the way up to minus 2.5%. But that authorization was for just 1 year. So now we move back from minus 2.5% to 0. So getting back to my question, why rates went up so much here in this political cycle because in this inflation cycle because the Central Bank was trying to slow down the economy, but the treasury was increasing the fiscal deficit, and that was accelerating the economy. But now we are back to the fiscal policy in neutral terms. So therefore, now both engines of the economy are pushing the Brazilian economy backwards to help fight inflation. So that's going to be good for inflation, but that's probably going to be not so good for Lula's popularity. And we already started to see that in terms of GDP growth. That's a quarterly GDP growth in Brazil. That's the first quarter of the year, very strong because of agriculture. We had a very good agricultural year. But then second quarter, already 0.4% of GDP. The third quarter, the number has not been released yet, but we have almost all the components of GDP. So if we do our calculations, it's going to be around 0.1% growth, which is now very close to 0, could be 0, so I think the political headline is going to be very hot when -- by the end of this month, pops out Brazil grows 0. So all the talk about cutting rates, that's going to warm up in the press and in the markets. And for the last quarter of the year, we anticipate a 0.3% growth. So that means that we're going to see more below potential growth in Brazil for a while, which will help reduce inflation. Inflation in Brazil, the target is 3% and has a ceiling of 4.5%. So inflation in Brazil, the blue line has been observed, went all the way up to 5.5%. Latest number is 5.13%, and we think that by the end of this year, it's going to be 4.6% and then 4% by the end of next year. So that's the inflation going down that we will allow the Central Bank to lower rates in Brazil. And you might think, well, we just said 4.6% for this year. And you said before that the ceiling of the inflation target was 4.5%. So how do you think you're going to cut rates in that scenario? Because the Central Bank always talks about the relevant horizon for the Central Bank, which is 1.5 years ahead. So how do I know inflation 1.5 years ahead. So from the Central Bank model. Right now, they say that in the -- by the end of this year, in their relevant horizon inflation is going to be 3.4%. But when we get by December, this blue line is going to be starting from 4.6%, which is our forecast. And we're going to have another 6 months of very high interest rates, almost double the neutral rate. So we have our model to replicate the calculations of the central bank. And we think that by December, this number here is going to be around 3.1% or 3%. So that's why they're going to start the rate cuts by the end of the year. We already see the market forecast going down. So that's the inflation for this year from 150 financial institutions that report to the Central Bank. It's called the Focus survey. It was at 5.6%; right now, it's 4.81% and it's going down. These are -- our forecast I just told is 4.6%. So -- but these are 150 guys. So it's a little bit slower to review down. And people expect the Selic rate to be at 15% by the end of the year. So no cuts, I think they're going to be 1 cut in December, 25 basis points, but then 12%, 25% and 10% going down. How much is this correct? This forecast? Yes or no. If it's Lula, I think this is the number. If it is someone from the center right in Brazil with a very serious fiscal commitment, I think the premium that is embedded in interest rates of the fiscal risk, it's going to reduce and then think it's going to get much more if it's someone from the center right. So this is, I think, the major tailwind for Brazil for Brazilian assets, these rate cuts. And just to give you an example, this is the 10-year rate in Brazil, and this is the stock market in Brazil. I put a small cap index instead of the [indiscernible], but the main stock is Petrobras, depends on oil and government interference. The second biggest is value, which depends on China, not Brazil. So there's a better correlation with interest rates in the small caps. So you can see the darker the blue, the closer we are to today and the red dot here is the latest observation. So you can see that, of course, as rates went up, the stock market went down. The 10-year rate in Brazil reached -- the SELIC reached 15%, but the 10-year rate reached 15.3%. And then the stock market was at the lows at [ 1.8 ]. Then when we start to see the fiscal retrench that I showed you, the fiscal policy going backwards, the rates -- the 10-year rate came from 15.3% to 14.5%. So the stock market went up to [ 2,000]. And now we are around 13.7% and 13.5%, another big jump here. So we're going to see both cutting rates and assets in Brazil, take any cash flow. If you discuss any cash flow at 15% is one thing. If you discount any cash flow at 10% is a different thing. So assets in Brazil are going to be repriced as we start to see this interest rate cut in Brazil. I'd like also to talk about a few other markets. They are in different stages. So Argentina has been one example of this political change. And then one of the things that this political change translated into is an improvement in the fiscal account. So that's the -- how the fiscal deficits were very persistent in Argentina for a long, long time and how we change very fast when [ Mile ] was -- became present. So that's the good part of the story of Argentina, and we think that's a very good backbone for the long-term problem. However, we think that there is a problem in the short term because they relied a little bit too much in the currency appreciation to fight inflation. Just -- it's not -- I'll do the fiscal surplus and then everything else, I don't care. No, you have to care about other things too. So you see here, that's the real exchange rate in Argentina since 1998. So this is when Milei took off, healed the currency, but then he let the currency appreciate very, very much to help fight inflation. So opens you a few weeks -- 1 month ago, the exchange rate in Argentina was as appreciated as it was in 1998 during the convertibility area. So that was not right. And you don't have reserves to sustain it. So that's why they're coming out of the U.S. asking for more reserves. So we start to see the currency to devalue. Here, this is in real terms. This is in nominal terms. There is a band now, and they almost missed the band. They had no reserves to make significant interventions. They had to come here to the U.S. to help -- ask the help of [indiscernible]. So I think we're going to see in Argentina some bumps here is the interest rate right now. It was around 30%, went all the way up to almost 100% to fight the currency that was going out. But now they are starting to get back to 35%. So we think in Argentina, the backbone on the fiscal side is very good. They overdid the currency appreciation. I think after election is going to be late October -- [indiscernible] of October, they're going to -- they don't have reserves. They have to accumulate reserves. After elections are over, they're going to have to do it. So we think the currency will depreciate, inflation will go up a little bit, but they're going to have to use monetary policy to bring inflation down. And then I think we might start to see a better pattern from Argentina, and I think going to be very good for assets in Argentina. In the short term, we think there might be some troubles there. These are the elections I mentioned to you, is going to take place in October. If you look at the coalitions. If you get together, [indiscernible], the party of Milei and Pro, which is the party of [ Macri ], they're going to -- they have 41.7% of the vote. And if you get the [ Peronist ] altogether, PAUSE they have 40% of the vote. So it's going to be a very close election. Although I have to say, I follow these countries for quite some time right now. Brazilian poles are very bad, but Argentinian poles are -- I don't have words for it. They really miss big time, all the time, the numbers. So let's see what's going on there. Chile, Chile is always the good student of the class. It's not hard to talk about it. We're going to have elections right now, the same story as I just mentioned. It's never easy. We're going to see a first round where the communist candidate, [indiscernible] will probably come out ahead in the polls. Oh, gee, but he said he's moving to the center right, yes, but she has a very big rejection. And there is a lot of center right, [indiscernible] is a center-right candidate, [ Casas ] a center-right candidate. Kaiser is a more righteous like Milei candidates. So when we get the right together and you see the second round of votes, then we see a better profile there. I think that's going to be after -- we see that definition is going to be good for Chilean assets. In the short term, we start to see some concern about growth. Central Bank has cut rates, inflation is a little bit -- not high, but coming from Brazil, it's hard to say it's high, but it's within the target. So some concern, maybe you don't have room to cut much more. And the fiscal side, there is some concern about what's going on. But again, all those countries, we are talking about Chile, I'm so concerned about the fiscal. That's nothing compared to Latin America. And a last word here on Mexico. Also, we are always surprised by how Mexico is performing because there are a lot of issues going on, PEMEX and everything. One point that we think it's very concerning is the Supreme Court reform that happened in Mexico and all 9 Supreme Court judges are from [indiscernible] and they have been approving a list of leisure relations that which are not, I don't think, are very positive reforms and might charge some price in the longer run. So there are some micro things that are very interesting as Jaime Marti was just mentioning right now. But in the long term, we get a little bit concerned. The [indiscernible] should be more concerned is with this renegotiation of the trade agreement with the U.S. They are going on right now that might hurt growth a little bit. I just saw a couple of days ago, President Trump putting taxes on [ drugs ] imports, which will hurt Mexico. And with lower growth, we start to see some concern about the fiscal numbers. Maybe the fiscal numbers are going to miss the numbers less in '24, it was a pretty bad number. And if you don't see growth, we might see some concern in that area, too. Colombia is also more a political change thing -- political change story and Petro seems not to have been doing great. And I don't think that's going to be hurt also a fiscal concern, but they have already cut rates a little bit, but they might have some more room to cut rates if there is also a political change in elections next year. So I'm short of time, but this is a major overview of what we're seeing in Latin America. Again, we have in the site a much more detailed presentation about all those countries. I just want to give you a flavor of what's going on and put it in context. Now we have Jaime de Barra talking to us a little bit about IP&S.

Thank you very much, Jose Carlos. And great to be here for the first time. Very excited about the prospects of this integration that has already produced many good things, as Alessandro said. The Global Investment Products & Solutions unit is a testament of how complementary our 2 firms were. We now have an amazing platform for offering investors across Latin America and also global investors solutions for every single piece of their portfolio and for every single in a way, need, be discretionary, not discretionary any investors that are large and sophisticated enough that have large teams normally are nondiscretionary clients, investors that are sort of more midsized that are sophisticated, but want to focus on some strategies can give us a mandate on a discretionary basis. We also have a very interesting setup in terms of the experience of the teams. I had the area and I've been doing this for almost 30 years since we started Compass very shortly after we decided to take a strategic path to complement our own sort of asset management, manufacturing capabilities with the capabilities of a very large, sophisticated top-notch global managers. And we've been doing this for the last 30 years. In the case of our discretionary -- our discretionary practice, Fernando Lovisotto has also decades of experience, mostly in Brazil, dealing with Brazilian clients; Daniel Navajas has also 25 years of experience in the third-party distribution business. So this is a very experienced team, seconded by professionals that have been working either at Vinci or Compass for many years. And one exciting piece of news for us and that has been a bit surprising in a way is that the culture, the integration of how teams work has been remarkable. I mean, the -- it's the heritage of Compass IP&S business was mostly, I would say, multi-asset global, more like benchmark oriented trying to find alpha in some ways. And the Vinci heritage was more absolute return on the -- following the Brazilian heritage. And now with the transaction with Verde, I think we will be, for sure, the strongest and largest solutions provider for Latin American investors. In terms of the diversification, qualities that this business brings about, as Alessandro said in the beginning, the -- we can -- we are now able to provide any sort of solution that Latin America investor needs to invest globally or to invest locally. But we can also provide global investors with some solutions that are more sort of nuanced than the typical mandate or the typical fund to invest in each of the countries we are present. We're working on a Brazilian fixed income offering for Chilean investors. So we are able to be nimble and to offer, again, solutions to investors either globally or locally. We also have a very diversified type of offering in the solutions space. And that's a key feature of the combined entity. On the discretionary side, we basically serve individual investors that are larger, a bit more sophisticated than the traditional mass affluent investor endowments, retirement plans on a vast array of services. We offer customized solutions. We have our own proprietary research in economics, in strategy, in fund selection. So we have a very deep team that can act as an OCIO. We manage alpha-driven strategies. We also manage multi-manager funds either in a discretionary or nondiscretionary way. We have a special team to do that, that we -- I will talk about that later. So we have again, a team that can deliver a solution for investors that are investing either locally or globally on a multi-asset or single asset strategy. One of the amazing things that happened when we merged is that the heritage of Vinci in Brazil in a way it matched perfectly to what we're doing at Compass. The opportunistic sort of more absolute return views combined extremely well with what we were doing in terms of asset allocation, so we now have a very strong core layer of multi-asset optimized or tools to get optimized portfolios. We have a team, a very deep team that was complemented by the expertise of Vinci in selecting hedge fund managers to our expertise in selecting GPs and [ long-only ] asset managers. We were early adopters, and this is as a result of the connection between the discretionary part of our business and the nondiscretionary part of our business, we were pioneers in including illiquid or semi-liquid solutions into a multi-asset portfolios for our clients. And the Vinci heritage comes also with a very interesting experience in providing practical ways of executing opportunistic ideas. And there's an example about the -- about Argentina fund that from door to door produced close to 30% returns, and it was an opportunity that our teams saw when the new government took office, but that fund was liquidated 3 years after when the investment thesis was done. And that's a very interesting piece of this -- of this engine that produces multiple sources of alpha on the back of a very strong core allocation, very -- on a very systematic way. In Global IP&S discretionary, we have approximately BRL 50 billion of assets under management invested across markets all over the world. More than 1,000 mandates, 35 people team with a long experience and track record. Approximately 30% of our AUM come from institutional investors. And this is -- I mean, this is a very nice way of putting. I mean -- thank you [indiscernible] and team for putting this slide together, but we wanted to bring to your attention here is, is this the fact that after a year of being integrated, we have been able under the leadership of Fernando Lovisotto to make teams in Mexico, Chile, Brazil, New York work together, it's been amazing. And the results in the performance have been clearly demonstrating this -- our ability to bring what is now called this organizational alpha. We have a very broad offering in terms of strategies. One very interesting part is we can call it maybe a portable alpha type of mindset in which we tap the different expertise of the different parts of the team in terms of manager selection, in terms of the expertise in certain specific assets in Brazil and in Chile to offer a wide array of SMAs and commingled vehicles for our clients to access our knowledge. We have been recognized in Brazil many times as one of the top-tier managers and how we deliver, it's a Compass process, but we have been honing the joint efforts in risk management in -- also in working very closely with our client teams to try and identify the need of the client. And then it actually all starts there. What are the needs of the client or the investor and then we decide if a discretionary solution is the answer or a nondiscretionary solution is the answer, but it all starts with a very, very close relationship between Jaime's team and the product's team in the discretionary and nondiscretionary parts of the business. This is Vinci Strategic Partners is a very interesting part of our business. It's a new -- is, I would say, a newer initiative in which we try to bring to our clients in Latin America, all the experience that the Vinci team has in knowing GPs of alternative assets in Brazil and also globally and the experience we've had distributing GPs, global GPs for more than 15 years now. We started in 2010, and we've been having sort of the luxury of being in the kitchen with some of the most well-regarded and largest GPs in the world knowing how to select GPs for our clients. And we have invested in more than 150 funds. We have 15 -- more than 15 mandates in place. We are advising 40 large families in the region. And in a way, we want to be sort of an alternative to the Cambridge Associates or the step stones of the Hamilton lanes of this world for Latin American clients that prefer to deal with someone that is closer to their mindset. And in many times, they don't have the size to justify paying the fees of the likes of [ StepStone ] or Hamilton Lane or Cambridge Associates. In terms of the other part of the business that is important for us is the Global Investment Solutions unit, where we build multi-asset, multicurrency portfolios for investors in LatAm. We have BRL 18 billion of assets under management, more than 500 clients in 7 countries, exposure to a wide array of geographies and asset classes. And we invest in both public and private markets. And we believe that this business is also a very -- it's a highly potential growth business for us since the trends in savings are very positive and the trends in making portfolios, in large countries, making portfolios that are more global that require sort of a knowledge to invest internationally, considering that investing internationally, but providing returns in your own currency is somewhat tricky. We've been doing that for almost 30 years. The Brazil Investment Solutions is a very large team too, BRL 20 billion under management, 249 funds or vehicles. Almost 50% of that money comes from institutional investors, and we have a team that has been working together for a long time, and it's very senior. And the growth opportunities here are also very encouraging. We've been in a way crossing the dessert since 2022 when interest rates went up significantly in Brazil, I mean, when interest rates go up from 2% to 15%, it's a very challenging environment for investments that are not basically short-term fixed income or long-term fixed income, low risk. We've seen that happen in other countries of Latin America, too. But whenever interest rates start to fall, we think that there is a big opportunity in this market to grow. Because of the third-party distribution businesses is nondiscretionary, we have relationships with many institutional clients, many family offices and many intermediaries that they make their own decision on who manager on what the asset allocation they need. So when we interact with them, our way of leveraging the relationship with these clients is to offer top-notch exposure to GPs and liquid managers in the world. We are one of the leaders in this business. As I said before, we started back in 1999 when Chilean pension funds started to invest globally. And we have been honing our capabilities to do this business, and we have a very significant market share in all the markets that we participate. We have placed more than $100 billion for traditional managers and more than $72 billion for illiquid or alternative asset managers. What we do that is different and that -- it's provides us with the competitive advantage is basically we have been trying, and we have been successful in attracting top quality managers to maximize the share of wallet we have from the deep relationships we have with Latin American investors. We have a strategy that is not the strategy of a fund supermarket. We select a few GPs and a few managers that, obviously, there are some overlaps, but we try to make our offering as complementary as possible in order for us to know extremely well what their product offering is, to know extremely well what are the needs of our investors and try to match that. And that's, I think, what differentiates us from many other competitors. Jaime was referring to the deep team we have across countries in the relations with investors. And this is obviously a key competitive advantage. And we have been able, over the years, to pass on to our client relations team this mentality of looking at the investor's portfolio and translating that into what we can offer to them so we can have one of our own funds or one of our partners' funds in the portfolio of each one of our clients. The addressable market here is the world, and that's the basis of what Alessandro was saying about the power of diversification when Latin America is out of favor, and investors want investments outside of Latin America, we have an extremely powerful offering for that environment. The main opportunities we see, as Jaime was mentioning, there is a pension fund reform approved recently in Chile that will increase the contribution rate to 15%. In 2020, there was a pension fund reform in Mexico that also increased the contribution rate. In Uruguay, there is an increased need for making the portfolio is more international. Currently in Uruguay, portfolios of institutional investors are 100% domestic. And we think that that's something that needs to change given the small nature of the country, and those savings start to -- and we see -- we've seen this movie in other markets. We saw this move in Chile and Peru where the local market is small and the savings start to grow, so they need to diversify internationally. And in Brazil, there's a huge opportunity, as I was telling you before, when interest rates are 15% and real interest rates are 9%, the appetite of local Brazilian investors to invest internationally is obviously diminished. And we have seen this movie also in Chile, real rates in the '90s -- in the early '90s, we were 11%. Now they're 2% and the appetite for international investments now is sort of -- it's normal for any Chile investor. It has developed an ecosystem that is a CLP based multi-asset investment ecosystem. And we believe that in other countries, this trend will also provide us with a very interesting opportunity. As I was telling you before, one of the key aspects of our business is to have a broad and high-quality offering for each line item that our investors invest in. So we make sure that we have very good quality products for every asset classes, sub-asset class without turning into a fund supermarket. That's sort of the beauty of the model. As I was telling you before, we see opportunities in many of these markets. We think that the private market opportunity is huge. The penetration of alternative -- global alternative assets in the portfolios of some institutional investors and almost all private investors is still extremely low. So we see a huge opportunity there. As I was telling you before, the development of the semi-liquid products on the alternative side are super encouraging. And we -- I mean, it's -- our partners at RS are here, and we're doing a very interesting effort with very -- I mean, encouraging results to penetrate the wealth management market with their funds in LatAm. In the public markets, there's a challenging environment in terms of fees and the penetration of passive strategies. But we have a very interesting experience in trying to find asset classes where investors are still looking for alpha and that's where we put most of our attention in trying to find good managers that can provide alpha in the less, I would say, efficient markets in EM, in Europe and other markets. And the other opportunity also is in the markets that are more developed is to access sort of smaller, more niche strategies on the private side. And in the end, I mean, we will always be looking for strategies or managers that can provide or that can fulfill our investors' appetite for higher returns. That is not going to go away. I mean, interest rates have gone up, but investors need more return because, I mean, they're becoming older, the fact that the pension savings are not enough to provide for a decent retirement means that all of these investors will need to look for high returning investment strategies. And 33 seconds before my time, I would like to thank you again for listening to us and providing us with this opportunity to tell you what we do. Now I leave with you and my partner, Roberto Knoepfelmacher to talk to you about Latin American equities.

Hello, everyone. It's a pleasure to be here. I would like to start giving a little overview of the public equities area in Vinci. So we are one of the largest public equity managers within Latin America. Currently, we have an AUM of BRL 15.6 billion across different countries and in pan-LatAm strategy. We have 85% of our investor base composed of institutional investors that just like us have a long-term horizon. In terms of teams, we have one of the largest and most experienced by site teams in the region. Our partners have more than 25 years of experience. And we have a team composed of 6 PMs and 15 fully dedicated analysts working different in the main markets within the region. In Brazil, we have 8 analysts. We have analysts in Chile. We have analysts in Mexico. So we are with boots on the ground in the largest markets within the region. On top of that, we have a very important support from our macroeconomic team and data science team. Looking at our product suite, we have a full [ array ] of funds. We have a long-only strategy for Pan LatAm fund. And we also have long-only strategies in Argentina, Brazil, Chile and Mexico. In Brazil, we also have a dividend strategy, and we have a long bias strategy. In Chile, we are one of the leaders in small cap strategy too. And when we look at our track record, we have a very long and consistent performance that generated significant offer in all the regions. And this has put us in a top quartile position compared to our regional peers. And then moving on to the current market outlook. We are very constructive about our changes of raising new capital in the current environment. Starting by looking at the attractiveness of Brazil, our largest market, I wanted to highlight that Brazil is one of the most attractive markets in terms of multiples. We are having a 35% discount vis-a-vis the average of emerging markets. And I think that this is standing out and is the first factor that I would like to highlight. On top of that, the second factor would be our monetary cycle. We are in a stage where we are getting ready to start cutting rates. I think all of you have heard Jose Carlos presentation. But in this graph, what is really striking is that Brazil last year against the trend of all the rest of the emerging markets hiked rates. So we are in one of the highest level of interest rates on record. And -- so we are probably going to be one of the economies that will have more room to cut rates in the coming years. And historically, we have seen that in moments of easing cycle, the IBOVESPA has always performed significantly well. And we expect this to happen this time around. Actually, we are already seeing the market performing well in terms of returns in dollar, IBOVESPA is up 40%. The third factor is about flows, right? We -- when we analyze the domestic investors positioning, we are in a moment where the allocation to equities in Brazil is one of the lowest on record. This, of course, has to do with the very high interest rates we have right now. But it's striking that we are in a level compared to a very distressed moment, for instance, what happened in '15 and '16 when we had the impeachment of President Rousseff and that we had the worst recession in Brazilian history. So we believe that when interest rates start to come down, local investors will tend to increase their exposure to equities. On top of that, we are seeing already a significant flow of foreign investors to Brazil and to the region as a whole. And one of the leading factors for that is the relative valuation. First, we saw that Brazil positions well among the emerging markets. But now we are showing here a graph of the evolution of the relationship of the price earnings of the Brazilian market relatively to the S&P. And we can see that we are on the -- one of the highest discounts on record with almost 2 standard deviations below average. So we're seeing that this gap evaluation is starting to call attention and attract flows. And the good momentum stands through other countries such as Mexico and Chile, right? We've been hearing from Jaime and from [ Jaime ] that we had a very important pension reform in Chile. And also, we had a very significant pension reform in Mexico that will increase the part of the salary that goes to the pension funds from 7% in 2020 to 15% in 2030, which should lead to a steady domestic flow from growing pension AUM to the market. And when we think about the Chilean market, we are seeing very good prospects of economic growth on the back of important improvements in private investment which, in a way, are turbocharged by the increase in investments in mining projects such as in copper projects. So against this backdrop, we are seeing a very interesting opportunity to launch our own UCITS platform. The UCITS platform is an UA regulated structure with high investor protection, which is widely accepted by global allocators and by some of our most relevant LPs in other strategies, such as Chilean pension funds. We think that we are very well positioned to do so because we have a very strong distribution capability, and we have, as we've shown a very good track record on domestic funds. And we have a very experienced team with boots on the ground. And then in this UCITS platform, we have initially 2 products, which will be the LatAm fund and a Brazil fund. And we expect to raise around [indiscernible] across these 2 products. As we are expecting using some assumptions that we believe are conservative for our market share in this -- in these 2 addressable markets, each of them have a $10 billion AUM. And for the case of LATAM, we are assuming a 7.5% market share, which we believe is achievable since we, in Compass used to have in 2020, 16% market share. And as for the Brazil fund, we are expecting to have 5% market share, leading to $500 million. And we expect to have in the future other products such as a Mexican equity fund and local LatAm currency fixed income fund. So I now would like to call to the stage Luiz Candiota, the Head of our Forestry products.

Hello, everyone. Thank you very much for being here. It's a pleasure to be with you. I'm going to talk about the Brazilian forestry market and the opportunity is also in the LatAm forestry market and how we have been positioning ourselves to take advantage of the large opportunity that we see ahead. So Brazilian forestry market, well, there are more than $20 billion plan in terms of investments in the industry. Brazil leads the world in eucalyptus wood productivity, which is by far, at least 2x the productivity of the second country in the world, which is Chile and then compared with European and America even greater. We have 10.2 million hectares of planted forest on degraded land, 4.9 billion tons of carbon sequestrated and stored and implanted and conservative areas. And the first one, global exporter of pulp with more than $12.7 billion in terms of exports. Our presence in this market, let's say, we have currently $280 million in terms of assets under management. We do both planting commercial forests in clear or degraded land to supply sustainable wood to major forest-based companies with carbon credit as an upside. All of our forests are 100% FSC certified and also ecological restorations in the biomes of Cerrado and Mata Atlantica. We have presence in 4 different states of Brazil, the largest one in Mato Grosso do Sul with more than 85, 000 hectares planted to 280,000 hectares in terms of conservation areas. Mato Grosso, 13,000 hectares planted, 5,000 hectares in conservation areas. Mato Grosso is a state where we basically plan for biomass. This is another beauty of the timber market because things have been changing a lot during the last decades, not only wood for pulp and paper or traditional products, but now for renewable energy and many other types of products. Santa Catarina, we have been increasing the cluster there. We have more than 2,800 hectares planted, 2,400 hectares in terms of conservation areas and Sao Paulo state with 3,700 hectares planted and 1,300 hectares in terms of conservation areas. So we are kind of spread out. We don't have any plans of planting forest in the Amazon or in the Northeast of Brazil. We think there are many other different risks that are not attractive even if the region needs a lot of hedge protection in terms of not devastating areas. Well, what is the cycle that we see ahead. Let's say, this is -- this is not more a timber agenda. This is what we call a green investment agenda. So the market -- the total addressable market has multiplied by 10,000 times. The thing about decarbonization of the world is an agenda that it is in place. Most of the developed countries that have been highly involved with this process of the climate agenda. Global investors need to align to the green standards and the European taxonomy. The investment drivers following this is rising demand for forest products, [indiscernible] as a substitute of fossil products like, for instance, plastic, carbon credits as a value creator for new product use and rising GDP for capital that will create a large demand for wood in the next decades. Our region. Our target is, of course, LatAm as everybody talked about here. We have available land, high productivity, good governance in the sector. It's a 100% private sector in Brazil. We don't have any interferons of the public sector in the forest market, land in the terms of planted forests. And also a very good legal framework in place. Our growth strategy is basically to position ourselves as a leading nature-based solution platform in LatAm. So it's not a timber and forest product only. This is an NBS business, and that was -- has changed a lot during the last decades. So from a traditional, what we call TIMO to a leading manager of nature-based solution become a global reference in ESG standards, continue to follow the highest sustainable credentials like Article 9 under the SFDR regulation and IS Funds under the Brazilian local [ Anbima ] regulation. The opportunities that we see significant capital inflows towards green investments. LatAm, especially Brazil, because of Brazil's size and Brazil land availability is set to become the maker of green investments. This is already happening. Growth strategy. It's a mix of products of planted forests in terms of creating scalability and restoration for quality premium in carbon credits and biodiversity. We do believe that carbon credits, we're going to have carbon credits for gas emissions, and we're going to have carbon credits, what we call biodiversity credits. These are going to be 2 different markets. We basically position ourselves in both what we call greenfield markets and brownfield markets. So we have both portfolios. We have carbon-focused funds, so in a way that we do believe the agenda of carbon credit, there is not enough carbon credits available for the needs of all corporations, governments, development banks and et cetera. Products that go upstream and downstream into the value chain. As I was mentioning, it can go to pulp, to paper and packaging to panels, it can go to timber construction and many other different products. So the idea is to consolidation -- to become a consolidation platform for NBS in LatAm. So core business continues to be Brazil and the new market opportunities, mainly Chile, Uruguay, maybe Paraguay and then -- well, not -- we take a look at Argentina and Colombia as potential markets in the future, but not as a first priority now. So positioning ourselves, as I mentioned, as a nature-based solution platform in LatAm, Brazil is well positioned to supply that solution. I mean it's just -- it's -- if you look to the numbers, well, they tell by themselves. Brazil has the potential to be the largest carbon sink in the planet, thanks to its reforestration and afforestation capabilities. So not only in terms of forest, in terms of agriculture and what we call also wetland followed by China, Indonesia, European Union and the other countries that you see here. Well, what is the time line that we had, let's say, we launched our funds. The first one in 2012. We have been raising our force fund. We have been already trying to work hard in the Fund V and some other different types of products. But we came from a typical Brazilian TIMO institutional investor base, let's say, we have more than 45 institutional investors as LPs, probably we are the largest independent TIMO management company when we launched in terms of LP based institutional investors, 98% to 99% of our LP base institutional investors, both in Brazil and abroad. And now we are going to this, what we call this NBS phase. The client focus is the beginning just return and very low risk and very low volatility kind of decorrelated assets from other asset classes. And now it's not only return, it's also about decarbonization. Well, the total addressable market used to be in the beginning for us just the Brazilian pension fund industry. Now it's global NBS investors, which turns the market base, well, thousands of times larger. The fundraising, we used to have local and foreign institutional investors. Now we have DFIs, corporations, institutional investors, family offices, you name it. I mean it's just a large base of LPs on the market. The pocket size, the market was approximately $3 billion when we started, and now it's really [indiscernible] with NBN's market on place -- in place. Target region used to be Brazil, now LatAm, mainly Brazil, but we have been seeing some other opportunities in another country. So we don't want to lose them. I guess, that's basically it. I guess I'm ahead of time, and that's good. So I'm going to call Jose Guilherme Souza that's going to speak to us about infrastructure. Jose Guilherme, please come to the stage.

Thank you very much. Thank you very much, Knoepfelmacher. Nice to be here. I'm going to talk about the infrastructure strategy. A little bit of overview. The history of investing in infrastructure of the firm is kind of as long as the firm exists. We have been invested around BRL 5 billion in 8 different vehicles. And most of this capital is already being returned to investors over time. We have been focused in 3 sectors: energy, transportation and water and some of what we're going to present to you are related to those 3. We have 14 professionals all together dedicated to infrastructure strategy, both at the investment team and also at the company levels. We use some operating partners for that as well. And here, it's -- we brought the selected numbers of returns for you. Going from left to right, we have a snapshot of the full portfolio of investments in infrastructure. It's on the left, up until the active funds that we have so far. And we've been able to deliver solid and consistent returns over time in all of the strategies that we had invested, both when we compare to the stock exchange return and also to our base interest rate. As of today, we are managing basically 3 strategies within infrastructure. First one, typical private equity type investments in infrastructure, mostly core and core plus strategies. On the left is our most recent fund, Vinci Climate change last year. I spoke about it to you, we were fundraising. We just finalized fund raising in June this year, last closing. This is the USD 350 million fund that will invest in sustainable infrastructure in Brazil, mostly greenfield projects to bigger sectors, renewables and water and sanitation. Vinci Transport and Logistics is a fund that we are dedicating to invest in a port terminal in the south of Brazil. This is a greenfield project that will be one of the key container terminals in Brazil in the next coming years. We are still in the development phase of those -- of that project. Vinci Water and Sewage is the third one, is the one dedicated to this sector in Brazil. We have allocated 100% of that fund in a company that we now operate in Rio de Janeiro state. We are managing the water distribution and sewage collection and treatment for 18 municipalities under our states, serving roughly 2.5 million people there. Vinci Infratransmission, this is a fund that we had just finalized divestment. Vintage of this fund is 2017. We allocated in 2 power transmission greenfield assets, and we just sold the last one in the end of last year. So those are core and core plus strategies. Then we have an evergreen fund listed at the stock exchange that provides yield to retail investors with a tax benefit. Its portfolio is basically composed of brownfield power transmission and power renewable assets. And finally, we have an advisory business anchored in a federal government fund that aims to finance states and municipalities to structure their privatizations or concessions of infrastructure assets. We are now working in 3 different mandates; one for irrigation area, second one is for social infrastructure schools, and the third one that we are about to start is to structure the concession of several warrant surge in the state of Rio Grande do Sul. Those 3 are up and running. The pipeline is big. And also the advisory business has a bucket for structuring, collateral for our concessions and PPPs in the country. So I mentioned about the team. So the investment team, we are all together 10 people, most of us working for more than 7 years now together. My partner, Rodrigo leads the effort on the Vinci Climate Change Fund. And we also have the presence of 4 operating partners that are today working for us in our portfolio companies. So this chart probably you already saw, and these are for Brazil, but you can basically copy and paste for the other countries of Latin America as well. This is just to say that there is a huge gap of investment in this sector in the country. Historically, the country has been underinvesting in its infrastructure assets tremendously. You'll see that on average, we are basically investing roughly around 2% of our GDP every year. And the international average or rule of thumb is that you should have been investing at least double of that number just to cope with the depreciation of your assets. So our infrastructure inventory of assets has been depreciating over time a lot. So that creates a lot of opportunities. And over time, what we have been seeing in the country is that given the fiscal situation, the public sector has been prevented to invest in infrastructure assets. And it's been the same case for the other countries of Latin America. So that in Brazil, over the last decade, private capital has been called to invest in these types of assets in the country so that the most recent numbers that we have roughly 3 quarters of everything that is invested in the country in infrastructure is being deployed by private capital, both PAUSE industrial players and also financial sponsors. And this is a huge opportunity investments for us in this case. While investing in Brazil infrastructure now, 3 big drivers. A lot is being done in the energy transition space and renewables. Brazil has one of the most successful case stories of the insertion of renewable power in its matrix in the whole world. We have been a hydroelectric system forever. But over the last 20 years, the participation of wind and solar has increased a lot. So it's very important. The space to have more wind and solar is still very big. We are just beginning our history in energy storage systems, as you see in other countries as well to support the more renewable power into the system as well. And because Brazil is a huge country, we need a lot of power transmission. Basically to bring the whole renewable power from the northeast part of the country to the Southeast and South where the big consumption are. Transportation, we have huge needs in roads, airports and ports. As of now, we have been investing in the port business, as I mentioned to you before. More recently, we have acquired the controlling stake of Rio de Janeiro International Airport, which is a very substantial and strategic asset in the country, one of the leading airports to receive international passengers. And we understand that, that could be the first step in the consolidation of this market in Brazil. Not only that, but toll roads present a huge opportunity as well. The country has a tremendous network of roads, just a small part is paved. And even in smaller part, it's [indiscernible]. So the government is in a big push to transfer toll roads assets to the private sector for them to build, expand and maintain this infrastructure. And finally, digital infrastructure. Brazil is crowned with power, renewable and water to fulfill in this sector here. So data centers, cell towers, it's a big market for us in the future as well. So I just mentioned to you our most recent update is in the transportation sector. We have just acquired the controlling stake of [indiscernible] International Airport in a partnership with the Singaporean Operator [ Changi ]. And this airport, some highlights in here, it has a capacity to have 37 million passengers a year. 2025, it's going to process roughly 15 million passengers 2025, with a big chunk of international passengers. In fact, 2025 will be a record high for Rio de Janeiro receiving international passengers. There will be an auction of this new concession contract of this airport in March next year, and we are going to participate in that together with our partner to eventually acquire [indiscernible] 49% stake, which is a state-owned company that has been there since the privatization in the beginning of the [indiscernible]. So finally, going forward, the prospects for growth are basically expanding our strategy to the other countries of Latin America. It will have a very interesting mix of currencies, countries that are part of the OECD that Brazil is not. So that opens room for us to tap some of the investors' pockets that are prevented from investing, for example, in non-OECD markets. So Brazil is not able to access those buckets that we know with the LatAm portfolio or fund could eventually tap. So Chile, Mexico, Colombia, especially, both in renewables and transportation are very interesting markets for infrastructure with this combination of adverse diversification in OECD markets as well to build this portfolio. So this is exactly what I had for today. I would like to call here to the stage Rodrigo Coelho and Ilan Nigri, my partners to talk about real estate. Thank you very much.

Hello, everyone. It's a pleasure to be here today. I'm Rodrigo Coelho. I'm a partner and together with Ilan Nigri, we are co-heads of the real estate division at Vinci Partners. Today, we'll be speaking about the real estate division. So basically, it's the last real asset strategy after forest and infrastructure. So last but not least, and we are going to be speaking about what we're building at cx and the perspectives and opportunities that we see ahead of us. We are basically one of the largest real estate managers in Brazil, currently managing BRL 6.2 billion in equity. Roughly 80% of our AUM actually more than 80% of our AUM comes from perpetual capital vehicles, which, of course, is a very interesting for our business. And we invest across all key sectors in Brazil, such as shopping malls, industrial, office and residential for sale. Altogether, our portfolio comprises about 12.8 million square feet of [indiscernible] area in 65 properties, even though most of our vehicles have long-term perpetual capital that do not require divestments, we've been very active in recycling strategies. We've been -- we've done more than 80 transactions in total in acquisition and sale of assets. In 15 of them, we closed in the full cycle of the divestment achieving an IRR of 18% in those transactions in average. We've been a pioneer in the REIT market in Brazil, and we have a differentiated investor relations platform that kind of brings us to have now 460,000 investors in our client base. That number means that 1 out of the 5 investors that invest in the real estate market in Brazil has at least 1 code of 1 fund from Vinci. One of our great strengths, it's our team. We have 14 fully dedicated investment professionals with the skill sets that are very complementary, allowing us to execute in complex and large-scale transactions across multiple segments and strategies. Our structure position us to continuously identify and capture opportunities even in challenging macro environment, such as the ones that we faced in the last couple of years with high interest rates. We are also among the fastest organically growing real estate managers in Brazil. Our AUM grew approximately 25% CAGR since our first fund in 2013. Due to the nature of our business, as the chart shows, during the previous easing cycle from 2019 and '21, we expanded our AUM meaningfully. And it's also important to mention that we are able to sustain and even grow the AUM in a tougher macro years. So considering the expected macro scenario that [indiscernible] showed us today, pointing to the start of a new easing cycle, we believe that could open a new avenue of growth to our platform. Our 2 largest funds, VISC, folks in the retail shopping center strategy and [indiscernible], focus in the industrial segment, mainly distribution centers have experienced consistent returns since their IPO, outperforming the Brazilian REIT benchmark index IFX. Those funds are among the largest funds in the industry and are recognized as top tier funds in their peer group. As well, they are well positioned to grow in this new easing cycle ahead of us. With that, I turn to Ilan, who'll detail the real estate market opportunities in Brazil, where we should see growth avenues for Vinci and then I'll return at the end to detail the plans for the rest of Latin America.

Thank you, Rodrigo. Good afternoon, everyone. So let's dive into the REIT market opportunities now in Brazil. In the last easing cycle, we saw a growth of more than 40% in a compound annual growth rate in the REIT market in Brazil. This was between 2018 and 2021. During this period, we were able to grow our main funds and create new REIT strategies. However, we still see a huge gap between the REIT market in Brazil and other countries like U.S. in terms of market size and fund scale. Brazil REIT markets represents currently 2% of the country's GDP. This number could more than triple it reaches the share of the developed country like U.S. We could drive our market cap for more than BRL 500 billion. And the [indiscernible] Brazilian REIT market has generated a vast number of subscale funds. So when we look at the REIT numbers in Brazil and the average AUM per REIT, we clearly see an opportunity for a consolidation of the industry. And that translates to a potential inorganic growth for Vinci Compass. Considering that we are approaching a new easing cycle, Brazil interest rate could drop by 500 basis points between 2025 and 2028. With a lower interest rate, we can expect a higher valuation of our funds, a graded fundraising capacity, unlocking AUM growth, follow-on and new public offerings opportunities. So -- and for Vinci Compass, this scenario represents a potential AUM growth of around 28% without any new public offerings, and bringing our market cap close to BRL 7 billion. There's also opportunities on the investor side. We see that we could double the number of REIT ambassadors by exploring the stock market potential. In the past 6 years, the number of REIT investors in Brazil has increased 13-fold, reaching almost 2.8 million with a CAGR of around 28% between 2018 and 2024. And there is still room to grow. With more than 5 million individual investors in the stock market, there's an opportunity to migrate approximately 2.5 million individual investors to the REIT market. So considering tax incentives, daily liquidity and a stable cash flow, the REITs are one of the most attractive investment products to individual investors in Brazil capital market. But there are other opportunities beyond the REIT market. Our opportunistic development funds strengthens our diversification and earnings power. With focus on the industrial and residential segments, this strategy is important because it attracts institutional investors such as pension funds and family office and also complements our income strategies, adding carry optionality with clear repeatable exits. Now I'll pass back to Rodrigo, who will wrap up and share our broader vision across Latin America. Thank you.

[Foreign Language] So -- since the combination of business between Vinci Partners and Compass Group last year, we've been exploring the expansion of our platform beyond Brazil, leveraging both our experience in the real estate segment and Vinci Compass' strong local presence across the region. [ We identified ] 3 key markets: Mexico, Chile and Colombia. Each offers a compelling mix of scale, institutional depth, regulatory clarity and growth potential. Mexico is the second largest real estate market in Latin America. We see strong tailwinds coming from nearshoring and e-commerce. Most of these contracts are U.S. dollars denominated, which brings active participation from international investors, allowing the execution of sizable transactions in that market. Chile offers a stable and transparent market and environment with inflation-linked lease contracts, called the [ UF ], across different segments. There is also availability of long-term debt, which is cheap for Latin America country standards. We see possibilities in Chile that closely mirrors our successful mall and logistic strategy that we are doing in Brazil, basically partnering with local players to provide them capital to their growth while we benefit from the partner's expertise, in-depth team and structure locally. And lastly, Colombia, though a smaller market but has been improving its regulatory framework and expanding institutional participation, making it an attractive early mover opportunity for the medium term. To access those markets, we see two complementary paths, either inorganically through the acquisition of local well-established investment managers or to build small teams and to do local partnerships with the main players of each of the segments, like I mentioned in Chile as we are [ coping ] Brazil. With those strategies, we believe that we'll be able to leverage Vinci Compass reputation, investment capabilities and local relationship with investors due to our strong local presence in the region. So with that, I would like to thank you all for your attention and interest, and I'd like to invite to the stage Gabriel Felzenszwalb and Carlos Eduardo Martins, Co-Heads of the Private Equity division.

Hello. Good afternoon to you all. I'm Gabriel Felzenszwalb. This is my partner, Carlos. We run the private equity group at Vinci. It's a pleasure to be here with you. Well, real quick by the numbers. What is our private equity practice today? We are 41 professionals involved. The leadership has been working together for more than 20 years, very stable and cohesive team. I think it's very rare, especially in the region. We've done more than 50 investments in 8 funds with more than 100 platform add-ons subsequent to that. We've committed almost BRL 8 billion, and we have distributed back that amount to our LPs. Also, a level of DPI that is not common in the region. And we've been generating a lot of co-investment opportunities. We've generated BRL 1.5 billion in closed co-investment opportunities, and we have shown much more to our LPs. That's on the top of a very strong track record over that long period of time of a 44% net IRR to our LPs. PE is still a very underpenetrated market in the region, okay? Wherever you see in North America, U.S., Canada, you see 10% of AUM to GP ratio. In LatAm, this is 1%, 1% in Brazil, 1% in Mexico. In Chile, it's a bit above. But it's still a market that needs to grow a lot. We see a lot of fragmented industries, a lot of family-owned businesses that can benefit from a more professional management, from better capital allocation. We see a very similar situation of what was the U.S., 30, maybe even more years ago. And the playbook that we use in Brazil is different from what is the norm in more developed markets. We very rarely and very conservatively use leverage. So on average, LBOs in the U.S. are levered more than 5x. Our leverage is 1.4x in the latest vintages. The level of valuation is completely different. The average entry price in U.S. buyouts is north of 11x. The average enterprise in our latest buyout vintage is 4.6x. The value creation drivers are different. We rely much more in organic growth and core earnings growth. 92% of our value creation can be attributed to EBITDA growth, and only 8% most depreciation. This is not the norm in mature markets where most depreciation pays a more important role. And as we mentioned, the growth of PE-backed companies in the U.S. is still way lower as returns rely much more on leverage pay down. We rely much more on growth, 27% is the average growth in our Fund III portfolio since inception. What is the deals that we do? As you may understand, there are no traditional LBOs in Brazil. Leverage doesn't allow for that, and the volatility doesn't offer that. What we look for is to sponsor good businesses that are in industries that will increase in penetration in the economy and try to find the winners in those markets so we can also sponsor market share growth and also benefit from the growth in the economy. So it's a 3-pronged growth bet. So we basically target industries that are in secular growth profiles, macro-driven, behavior-driven, demographic-driven with proven business models where we can foster growth with the right capital allocation and the right people. This typically is focused on in the upper middle market in Brazil, where we have the good combination of enough critical mass to pay for talent, but also good growth opportunities. We always buy for strong governance with either control or very strong enforcement of our governance rights and accountability for results. We are able, since [indiscernible], we are able to structure our deals quite smartly. We do -- we use a lot of seller financing. So we pay in installments, mitigating FX risk. We also mitigate downside risks a lot and align ourselves with our partners through upside sharing mechanisms. So it's very much structured. As I mentioned before, we make very little use of leverage. And as a team, we are very hands on. We have a very concentrated portfolio and we're very hands on, helping our management teams perform, creating the opportunities for them to generate a lot of value. We tackle this opportunity with two strategies. We have the VCP strategy, which was our flagship and core strategy, which is basically our growth and buyout strategy where we target upper middle market companies with both primary and secondary capital, essentially control and co-control deals, where we have impact guidelines, but were not driven by impact. And we also have a minority oriented strategy called Vinci Impact and Return that does much smaller equity checks. So VCP writes BRL 300 million, BRL 500 million [ equity ] checks. VIR writes BRL 50 million to BRL 150 million [ equity ] checks. Essentially cash in deals, primary deals with first-time institutional partners to entrepreneurs in minority positions with also an impact mandate where we generate also positive impacts along a clear ESG framework. And the team that drives these two strategies is myself, Carlos and [ Pepy ], who runs the VIR strategy. We are backed as I mentioned, by a 41-strong team, including 9 senior investment professionals, 9 investment analysts who have all been working together with us for a very long period of time. The senior team has on average more than 10 years working with us. And also a very deep bench of operations team. I'd like to call on Carlos to follow with the rest of the presentation. Thank you.

All right. Thank you, Gabriel. So having said that, 1 of the things we would like to highlight today is our competitive advantage, which are based on 5 pillars. The first one is the fact that we are 1 of the pioneers in private equity in Brazil, so raising 8 different dedicated funds to address any type opportunity in the region, invested in more than 53 platform companies and over 100 transactions that we made, including all the add-ons, the very robust experience of the team as well. So we, as a senior partner, we have been working together for more than 20 years with more than 40 dedicated professionals involved in the private equity practice. Definitely, the track record put us in a position of a top quartile in the region, but also globally, generating over 62% gross IRR, which is 8x what public markets benchmark would have yields in the same period. And the important thing is that 98% -- as had Gabriel said here, 92% of the value creation comes from earnings growth. So the fact that we bought companies, bought business and help -- with the help of the management teams and our partners, we generated value to create those returns. The ability to return capital, so something that is we track, of course, our numbers, but the market and competitors as well. We're one of the few managers in the region that across the 8 funds, including the very recent allocations that we did in portfolio companies, we were one of the few ones that have a DPI on aggregate that is greater than 1, considering all the funds. And on the realized investments is over 3x in U.S. dollar terms. And a strong line of interest, which is a core value of Vinci Compass. In the case of private equity, we have committed over BRL 1 billion over time in the forefront and BRL 307 million in VCP IV, our latest vintage raise December last year. Our approach to generate that alpha that we mentioned is based on the identification of the secular trends that Gabriel also mentioned here, so things like aging population, circular economy, digitalization. So some of this themes, we have been tracking and investing from Fund II, Fund III, Fund IV, VIR as well, III and IV. We have been investing in companies that benefit from those 15, 20-plus years of important growth tailwinds. The proprietary origination being part of Vinci as a large firm that touch a diverse base of asset class generates a lot of opportunity to us. So 2/3 of all the deals we've done so far, they were proprietarily sourced.and with that comes the benefits of having a much better entry valuation levels with very relevant discount when compared to public markets of 50%. We have been implementing more and more, especially since the early days, of Fund II mechanisms to offset, for example, the FX variation and impact in our funds as we have an important base of LPs in U.S. dollars, so the sell finance mechanism that push capital calls over the years, downside protection, upside sharing mechanism so we can avoid overpaying for assets and align ourselves with partners over time in the returns that we generate in the investment, as well as preferred dividend mechanism where we can generate early DPI in the investments that we make and return that capital to investors. The operation and hands-on approach is another important pillar. We have been very active with the partnerships with management teams, entrepreneurs and the corporations that we partner over different investments that we made, fostering growth on those portfolio companies. The average of growth in our most recent fully invested fund, VCP III, is over 25%. The average of this strategy, including the 8 funds, it's over 20% growth of EBITDA since inception of all those funds. And all the levers that we typically touch to foster that growth, which includes helping companies implementing some strategic acquisitions, things around digital transformations, have been important, the building of the management teams are things that we touch extensively during the value creation agenda that we implement. And finally, our experience on divestments. So mostly through sales to strategic players, but we have done a lot on selling to other sponsors, which is different from developed markets like the U.S. You have more limited options in Brazil, but we're seeing more and more, that increasing. We have also the IPO market that from time to time, we have some windows that are open for us to do listen. And we had prior track record in doing several IPOs in Brazil as well as in the U.S., which allow us to maximize sometimes, returns. And as I mentioned, 92% of the value creation on the private equity strategy comes from earnings growth. Here, we have a table with some selected case of the portfolio, existing portfolio companies as well as companies that we have already divested. Some of the growth levers that include human capital, M&A, tech, things that we work around an expansion of the potential TAM for the Compass, where do they operate, as well as unit expansion and the results in terms of EBITDA. So we have the example of [ Agi ] that from the investment that we made in December 2020, the business has grown profit more than 10x to [ Achluach ] , which is most of the recent investments we made in Fund IV, we generated already almost 3x EBITDA growth in 2 years. And so several examples where all these things that we touch, we -- and helping management teams to develop over the years. They turn into EBITDA growth and those returns that we have has a track record for the private equity strategy to date. And talking about track record. Here we have the two different strategies that got Gabriel presented, the Vinci Capital Partners on the left hand side and VIR on the right side. Both strategies, we have a very important outperformance when compared both to public markets in an environment which is long term here, talking about more than 20 years of track record of several vintage where not only the realized returns, they were great, but looking at the full portfolio, which includes recent investment. And we don't need a very high GDP growth to being able to deliver such results in an environment where Brazil was growing like 2%. So we think that -- we've -- our investment philosophy and the opportunity we have in the market, we can continue to generate that return for many, many vintages to come. One important aspect is talking about our private equity business. We were able, since the inception of Vinci, started with a little less than BRL 1 billion in the AUM and multiplied to 22x, which was a growth of 23% per year to today's 16% AUM -- sorry, BRL 16 billion AUM that we have today. And the most recent milestone that we have includes the fundraising of VCP IV, which some between the fund and co-investment packet BRL 4 billion, exceeding our 2023 Investor Day guidance that was provided during our presentation. Also, capital commitments, they were very robust between the two strategies, both VCP allocating 40% of the latest vintage in 3 deals, BRL 1.2 billion, as well as VIR IV completed its investment cycle with 9 portfolio companies and investing over BRL 300 million in the last 2 years. And distributions, even in these very challenging markets for distribution in the private equity side globally and of course, in our region as well. We have total over BRL 0.5 billion in distributions, including sale of relevant portfolio companies from VCP and the VIR strategy as well as dividends from the portfolio companies. They are growing and also generating returns to us as shareholders. And looking ahead, we are very confident that the strategy is poised for further growth. The first thing we have as a next step is the launch of the -- and the fundraising of VIR V. So we are fully committed to work on a fundraising process in the next 18 months to have a fund kind of the same size, around 1 billion -- over BRL 1 billion in size as the next vintage for this strategy. We -- in the case of VCP, our idea is to close the investment cycle of VCP IV by early 2027 so we can launch VCP V campaign by end of next year, start some conversations with prospects LPs and the full campaign in early 2027. Another important thing that we have been working and think we're going to -- we have planted some seeds, and we should see some results and harvest some results is the regional expansion. We're engaged in conversations with some GPs in the region and in Latin America ex-Brazil. And that will be important as our target is to have a LatAm fund in Fund V and have some allocation ex-Brazil over the years. And of course, DPI is something as important as the results these days. And we are -- ourselves, myself and Gabriel as well as the team, fully committed in achieving a DPI greater than 1 in VCP III and IV in the coming quarters. So having said that, I would like to invite Alessandro to talk about credit. Thank you so much.

Thank you again. It's just a brief introduction to our Credit business and our call, the presentation for our heads of the different verticals of credit. So at a glance, our platform of credit has a LatAm reach is one of the business that we already have, the presence in Latin America, not just one specific country. We have a good strategy approach and institutional team. So the key takeaways, now we are in a new phase of growth, launching regional vehicles with a focus on private credit, access to new markets and LPs. So we are taking advantage of the Compass footprint to enable geographic expansion and a broad fundraising. Coverage across products, so public and private credit. So we are seeing opportunity and avenue for growth in both. On the ground team, of course, we have a very deep presence in each of the countries. And a cross-selling engine leveraging Compass and Vinci capabilities to really place private credit solutions. So our credit AUM to date is very diversified in terms of breakdown, local currency, high grade and high yield, hard currency, real estate and infrastructure, opportunistic credit solutions, structured credit and confirming, diversified private credit and finally, [indiscernible] business. We have a regional credit platform with BRL 11.3 billion in local currency high yield, [ 7.3 ] hard currency, high grade, [ circa come from ] BRL 2.7 billion and diversified private credit of [ 1.6 ], [ 3.3 ] in opportunistic capital solutions through SPS products. Agribusiness, almost BRL 1 billion. We have stayed a little bit under BRL 1 billion. And infrastructure, [ 2.6 ]. This go north from BRL 30 billion. So with that, I would like to invite my partner, Marcelo Mifano, to talk about opportunistic credit solutions.

Thank you, all. My name is Marcelo Mifano. I'm the partner responsible for our opportunity capital solutions. It's great to be here. So the idea is to share a few updates, especially the things that I think last year, we promised and now became a reality. The first thing is now we have 4 vintages. So we just had our first closing of Fund IV, it's the first fund that we raised since the acquisition by Vinci in 2022 of SPS. So now we currently manage BRL 3.3 billion among those 4 vintages with the same 18 professions, same core investment strategies and the same. So -- and the idea, as you may remember, is the first pillar, deliver equity-like returns with [indiscernible]. So we've been delivering mid- to high teens in dollars, even though a lot of those investments are marked at cost, very interesting DPI. So for example, Fund II, last week, we just reached close to 1x DPI. So we keep the same investment strategy of using that instruments to achieve those equity-like returns. So we have 3 main strategies on the left, which is the corporate side is basically we have a big credit mark in Brazil, close to 75% GDP, but highly concentrated banking system, close to 80% of the loans held by 5 banks. So we focus on the niches where banks don't want to participate for regulatory restrictions, complexity, et cetera. We do both new loans and buy loans in the secondary market. But on the new loans, always with collaterals, asset-based lending. We don't do lend to own, but always with uncorrelated assets as collateral. The second strategy, which is legal. We have a huge legal market in Brazil. So we have 20 million new lawsuits every year. And in many cases, people or a company have a lawsuit. They have a cash flow. They're going to receive a certain amount of money in a certain amount of time, and we are able to advance that cash flow given our legal expertise. And finally on the right side on the platforms is the idea that buying very small ticket assets, mainly from people, we are able to buy assets with very low, almost 0 credit risk at very interesting returns. For example, a person has either a collective savings account, which we call [ consorso ] or claiming the federal government. Instead of being 5%, 6%, 7% per month interest on a personal loan, they prefer to sell that asset to us at, let's say, 2% discount rate. We -- the average ticket is around $5,000, and we'll be investing almost $5 million per month. So imagine the number of transactions we do every month. It's like a machine platform that works every day. Going a little bit deeper on the corporate side. As I previously mentioned, 5 banks control close to 80% of the loans. So basically, they are very strong in the high-grade market, more traditional lending, and we focus on situations where they don't want to participate. And imagine, for example, if you look on the right side, now our base rate is 15%. If the company pays 5%, 10% spread, and let's say it's 4x net debt EBITDA, almost 100% of the EBITDA is just to pay interest. So it's a situation where we've been finding a lot of opportunities. In addition, the regulatory environment, banks in Brazil pay close to 50% income taxes, and they have incentives to sell those loans because they only have the tax shield when they sell the loans. So we've been very active in buying those loans on the secondary market. And also, banks don't want to participate in certain segments. For example, Chapter 11. They need to provision 100% if they make a loan to a company, Chapter 11. So we like Chapter 11 situations. But again, always with collateral, even though the loss stays at the dip is more senior than the other loans, even on a dip, we always do with collateral. And on the right side, it's just a number of companies filing for Chapter 11. Last year, we had over 2,000. Given the interest rate environment, we believe this year is going to be even higher, so that's a great environment for the corporate strategy. On the legal claims, it's basically what is the seller motivation to sell us. For example, last week, we received a large state claim that we had bought from a public listed company that wasn't in great shape. But why they want it? Because first, it's not their core business, the legal department, don't want to deal with a claim. They did with a profit sharing structure. We are able to receive that money earlier than if they were alone. So it's always with those win-win situations. And I would say most of the people -- most of the companies in Brazil, they have someone or they have in their balance sheet, a legal claim. So we are very active in buying those assets. And again, it's a cash flow business. We have -- the merits have already been defined. But you need someone to either wait to receive their money or help it to speed up the recovery. And on the platform side, these are a few examples. For example, on the consortium, which I mentioned is like a collective savings account, it's close to $60 billion issuance per year. And almost 50% of the people that hold consortia orders getting to default eventually. So we have a partnership with the largest banks and insurance companies in Brazil. And through technology, we are integrated with them, and they originate those assets to us, the [ consign ad ], et cetera. So we love that kind of opportunity that because of small tickets, most of the asset managers don't want to participate and look at that kind of transactions. And if we look at -- in terms of growth opportunities, a few of them, I would say, are already reality. So for example, Fund IV of SPS, we can invest up to 20% in countries outside Brazil. We don't have the obligation, but we have the possibility. The idea is to look for places where there is lower competition. Given the merger with Compass, now we have offices in several markets where we didn't have. And now we are local in those places. So we are -- we're already receiving some pipeline for those -- from those countries. And the idea is to keep on finding the best risk-adjusted deals. Second, I think that finding products and that to tailor what the demand of our LPs and also of our counterparties and the network of Vinci. So I would say that -- we have already done a few deals that have been originated by other groups of Vinci. They helped us in the due diligence, et cetera. And I think at the end of the day, doing those tailor-made products, even regional products. And on LP base, it's the first time I mentioned that we are offering this product abroad. In our first close, we already had a very important institutional investor offshore. We are starting to attract also onshore institutional investors. So this was an LP base that we didn't have access to prior to the Vinci's acquisition. And now we are able to offer this product and eventually do parts of those strategies to specific LPs in order to have something. In parts of, for example, now we're building a regional feeder in 1 of the countries where Compass is present because the clients demanded a local feeder. So now, we never expected to have so many vehicles and be able to offer a product to pillar to our LPs. So thank you very much. And I'm going to ask my partner, Tomas, to tell a little bit about LatAm ex-Brazil.

Thank you. Thank you, Marcelo. My name is Tomas Venezian. I run the LatAm ex-Brazil grade unit, both public and private. And I promise you after this 10 minutes, you will have a coffee break, okay? So very quickly, we're running about BRL 17 million in more than 40 strategies with 25 years track record. And we basically think about it in 3 different buckets. The first one, where we have BRL 7.1 billion is the LatAm hard currency corporates, right? That is a dollarized business. Then we have BRL 7 billion in country-specific local currency funds, design local for locals, local products for local investors. And now our latest bucket is the BRL 2.7 billion in private credit. That's the one that we launched last and it has been growing very fast over the last 3 years. So looking at the hard currency bucket. In the last 5 years, we have grown by 70% between a mix of local and international investors. But it's still mainly an institutional investor base with 63% of our investors. This is institutional. We have private wealth at 20%. And in the intermediaries business, we have around 17%. Just on the LatAm hard currency, we have basically 3 buckets. We're running LatAm corporates. Today, we have the largest UCITS, LatAm corporate debt strategy in the world. It's about $1 billion with more than 15 years' track record and a highly diversified investor base, and it's between -- it's a mix between investment grade and high-yield public bonds. Then we have our high-yield LatAm bucket, which -- where we ran BRL 2.2 billion. We already have -- some easing, how time goes by. We already have 10 years of track record. And it's a mix between purely high-yield bonds, special situations. And also, we are able to put private credit in those buckets. It's basically an institutional investor base, pension funds out of Chile, Peru, mainly and some large family offices. And it's a semi-liquid strategy, targeting SMB, LatAm plus 300 basis points, which has done really good over the last few years. And the newest baggage here is the LatAm fixed maturity, where we already launched 4 funds maturing in 2018 -- 2028, '29 and 2030. We already have around a little bit more than BRL 700 million, and it's designed to serve as a specific demand mainly coming from retail investors where they want to keep their bonds up to maturity. We believe this is a great asset class to be invested. If you look at against other high-yield alternatives in the world, it has done extremely well over the last 25 years. We used 25 years because it's all the data that we have in the [ semi ]. This is a relatively new asset class. So not only in absolute real, but also on a risk/return basis, it ranks extremely well in an asset class that has been growing quite significantly. And where Latin America is not the largest one in emerging markets, but it's the most liquid one. So it's the most investable one out of emerging markets. Our second bucket is the country-specific local currency strategies. So here, basically, what we have is we have public strategies in 3 countries: in Argentina, Mexico and Chile. In Argentina, we're running today more than 20 strategies, split in 4 different buckets. And here, is the strategy is to have a very diversified product offering because, as you know, anything can happen in Argentina. So you have to have a product for each moment. Right? So our clients move from 1 strategy to the other and it has been -- we have been in Argentina since 1998, and it's 1 of our most profitable operations even measuring in dollars. The second one is Mexico, where we have public funds and several SMAs, mandates with corporations. We're running BRL 2.7 billion there. And in Chile, we have 4 funds running BRL 1.2 billion, also through SMAs and funds. In Argentina, we still think that the opportunity is amazing. I mean whenever you look at it's a super undeveloped capital markets relative to the size. Look -- look, the capital market penetration in Argentina just compared with Brazil or Chile. So there's a lot of things to do. And here, the key is to see if the markets are going to normalize and deregulate over [ far ], and we believe if that happens, we're extremely well positioned to take advantage of that opportunity. In Mexico, as Jaime mentioned, and I think both as mentioned, actually, the Afores growth is just going to be quite impressive. And here, we do believe that there is an opportunity, especially for private markets. I mean, the Andean countries and Chile, nonbank asset management industry has to happen. Consolidation, it has to it has to happen. And still, the public markets, both in Peru and Colombia are still very undeveloped. So we believe that eventually it would be an opportunity there. And the third biggest bucket for us is the private credit strategies where we clearly is where we see the most growth going forward for the next few years. And here, what we currently have is 2 types of strategies, short term in confirming a [ factory ] strategy where we have, for example, the largest fund in Peru doing confirming, has been very successful with more than 15 years of track record, and we're running around BRL 1.5 billion there for you to have an idea and we have more than 10,000 suppliers, and we would like to -- we have a little bit of that business also in Brazil. But we believe that there is a huge opportunity to expand our capability in the confirming business to the other countries in the region. We're going to talk a little bit more about that in the next few minutes. And in the corporate direct lending business, we're also running BRL 1.3 billion. Today, we have 4 funds, 1 dedicated to LatAm, 2 in Peru and 1 in Chile, targeting both dollar returns, close to 14% in the case of Latin America. And in local currency returns, double -- low double-digit type of returns. Also here, the investor base is basically local. And we have been very successful, especially this year, launching new funds. And clearly, the private trade opportunity in LatAm, as you -- I'm sure that you have heard many times during the course of this day, is just amazing. I mean, the private credit penetration or AUM as a percentage of GDP is less than 1%. That's even lower compared to other emerging market regions and of course, lower compared to the U.S. and European markets. So we believe that there's a great opportunity going forward here. And last but not least, we're going to be focusing a lot over the next few years into this aspect. Mexico, we are about to launch our [ confirming ] fund there in the next -- in the remainder of the year, and we expect an important growth during 2026 and also look into direct lending -- corporate direct lending strategy in 2027. In Colombia, we are also about to launch our first Colombian fund called [ Copco ], basically with institutional investors. And in Chile, for 2026, we will have our second fund, direct lending fund in [ Chico ], the first one was extremely successful and is ending the investment period now. So -- and -- well, and in Peru, we just launched this year the [ Pepco ] tools. It's one of the biggest funds in the market, BRL 150 million. And probably next more in 2027, we will be launching the third version of that fund. So thank you very much. Now we do have, as promised, a quick coffee break. And after that, Mr. Zaremba is going to come present. Thank you very much. [Break]

Thanks so much for the time spent here with us today in our second Investor Day. I think the idea is to go through some of the numbers. You've heard from the heads of our business units, from Alessandro, the CEO. The idea here is to combine all of those in our medium-term forecast and give some background on where you're going to and how we get to those numbers. I'm going to start, dipping a little bit dive on this new concept, the IRE concept. We have thought about how to properly communicate the balance sheet of the firm without -- I'm talking to investors and shareholders, we felt that this is a part of the firm that probably has not been appreciated enough, and some of that likely comes back to us as the way that we have been presenting it. And looking at some peers, we saw that some of them referred to this as strategic holdings, the other ones as principal investments. So we came up with our term, which we're going to use going forward to release the results regarding the balance sheet, which is the IRE, right? So today, at Vinci Compass, we have 3 components in our results. FRE obviously is the fees that we receive from the management of our funds and consulting fees and advisory fees, placement fees on third-party distribution, minus our operating costs and bonus associated to those fees. This is the bulk of the result today. Last number that I remember, this was around 90% of our distributable earnings in the short term. So really, the significant part of our numbers today. Then we have PRE, which Alessandro talked about a little bit the fact that we have been, at least at this point, only recognizing PRE from our liquid strategies, which sometime I'm going to cover as well. And then we have the impact from IRE, which are the results coming from the balance sheet and also the impact on the amplification that these results imposed in both FRE and PRE. Today, we are in the middle of this chart, right? So we started the concept of the balance sheet position in our IPO. I think this is important. Prior to our IPO, the partners allocated capital to the individual funds through their personal commitments. So we had allocating capital directly to the funds. Each partner will decide how much they would allocate and in the IPO, we decided to institutionalize this capital allocation. So this creates a situation where the commitments that we have are very young because we raised the money 5 years ago, we started to deploy this money in the funds and this money -- this capital, this money is still not in a recurring way from a seasoned standpoint, right? We're still ramping up the capital deployments. We have gone through the initial phase which were the 2 years following the IPO where we committed the balance sheet capital. In that moment, you commit the capital, the money continues to be in our liquid funds or early results for district earnings, but has not been drawn down. It incurs the fundraising on a go-forward basis. And now we are in the second cycle here, which is when we start calling drawing down the capital into the closed-end funds. What happens with this is that this result, it basically disappears from our distributors because we're no longer earning short-term results in these numbers because in this capital because it's no longer earning distributable earnings in the short term. And at the same time, we still don't have investment related earnings because the funds are young and they are in their J curve. So we are basically city on about today, about BRL 800 million of capital that is not earning money, but it's a temporary effect. It's an important part of our asset base, which today is not showing up on reported numbers. And then hopefully, in the medium to long term, 5 years or so since the initial commitment. We're going to start seeing this money coming back that capital will impact cash RE. It will impact performance fees because the capital commitment will generate performance once the funds generate performance. we're going to realize that as the septal earnings once they come back. So this is the complete cycle on a graphical standpoint, the initial 2-year phase we commit to close-end funds, disclosing funds have the GPS and community. They raise money as we have done with DCP, as we have done with the ICC with SBS and other funds. This capital raise generates more FRE and expands our offering margin. We continue to have this capital allocated to short-term funds, so they continue to generate the stub earnings. So there's no panels to our short-term results. The second phase, which is where we are now, these funds start calling capital. So we have so far called about BRL 800 million of the capital that we have committed. This reduces temporarily our short-term cash earnings because of the liquidity draw from the from the liquid funds. This generates once the funds start appreciating, it generates unrealized IRE which is the impact of the improvement of the NAV of the funds to our balance sheet. But it does reduce short-term listings. So we are exchanging short-term liquidity funds into long-term capital gain funds, which are going to start appreciating over time in generating net earnings. And then once these funds start realizing proceeds, we're going to have a positive impact on the ship earnings from the realized the impact from carry from performance-related earnings of this capital. They are going to be recycled again into short-term funds. So we'll start generating again short-term results. and then be reallocated into future commitments. This year, we had an event that shows a little bit of how the mechanics is going to work. but with a very small commitment, which was a prep commitment that we had in [ Fitel ]. We're going to talk about this as a case example, but the sizes of the commitments are completely different because we are still private it was not how we used to do the commitments from the balance sheet, but it does give us an idea on how impactful this can be in the future for each compass. So we have allocated so far BRL 1.4 billion of commitments, which is quite diversified between real assets, credit, private equity and a little bit to our secondaries strategy. We see already opportunity to start monetizing recycling part of these commitments. So I would say probably some of the real estate commitments are a little bit more mature at this point in time. some of the REIT commitments that we did, some of the closed-end commitments in real estate as well. So that money should start being returned to the balance sheet, probably starting next year. I would say that's a pretty high probability but the closed-end funds are still drawing our capital. So we expect to have drawn down from the BRL 770 million that we have today on the that I mentioned another BRL 300 million to BRL 400 million next year, which is going to have all of the impact animation, so reducing the short-term financial income and started to compound as the NAVs of the closing funds go up. Then we have another BRL 200 million to BRL 300 million to be drawn down between '27 and '29. And by the end of 2019, we expect to have fully deployed the capital that we have committed to our funds. The anchor of this capital, the main anchors of this capital are 3 funds. They represent a little bit less than 50% of the capital committed, which are is before, our flagship private equity fund, the fourth vintage. This fund today is 40% allocated. I think Carlos and Gabriel talked about this. We are 40% allocated, 25% drawn down. We have 3 investments in this fund or lock both hospitality company, which is the owner of Outback Steakhouse in Brazil, [ Barato ] and a logistics operator called [ AGG ]. The entry multiple of these opportunities was below 7x EBITDA. The companies are growing nicely. We expect to continue to deploy this fund and to be 1 of the main drivers of value to IRE in the future. So the historical return of this strategy is 60%. But the target return of the strategy on a of base is 25% to 30% of -- so the idea for the simulations that we ran here is always to use the low end of the target. So in the case of BCP, 25% growth was the number that we use for the simulations. Then we have our climate transition fund we have anchored this with 100 million commitments of 1.8 billion funds. So 18x leverage in terms of third party against our mining. We have called 15%. We just approved in the IC last week to do diligence that we raise this number to close to 50%. There are 2 big opportunities that we have in the pipe infrastructure -- the target return here of the infrastructure, these are not greenfield development. So the IR a bit lower. There's no greenfield risk. It's really core plus type of assets -- so we are talking about a little bit lower return. In the case of the ICC, given the level of capital calls, this fund is for instance, 1 of the examples that we have where our fund is deep into the J curve. It's at the lowest point in the J curve to date. So this is impacting the unrealized IRA for us. And then finally, we have SPS for is still raising money. We are R1.3 billion, but we expect slow rate, hopefully, at least another BRL 1 billion for this fund. This fund has a very big net return historically. Mifano talked about the returns in his panel. In the first 3 vintages, we are now at $17 net. That number was 20 net a couple of months ago. So we expect it to run in the high teens to low 20s net. It's a very good strategy from a DPI standpoint. As you also highlighted, we have given that these are mostly credit structures, the capital return is quite good. It's also pretty early in the J curve. We deployed only 8% of the capital. It should continue to draw down capital over the next few years. We have done an exercise to try to go at and quantify the size of this opportunity. And what we did here, we're using the low end of the estimates for each of the funds. with the investment of the net present value of this investment cycle. So just as an issue, 14.4 billion without any recycling without a conversation of redeploying this capital once it comes back to the balance sheet. And we did a calculation of using those prospective returns, what would be the net present value impact to us. So the number that we're getting at is a number of about $1.20 a share. That would be the net present value of this first investment cycle without considering PRE, this is just a capital gain. And we expect to monetize this or most of it in the next 5 years. So this is just to give an idea, it's not a perpetuity math. It's not a recycling math. It's just using the first BRL 1.4 billion returning that capital to the balance sheet, that would yield 1.2 more or less dollars per share impact to us and obviously, this would be recycled after that. So this is the case study of the [indiscernible]. We realized this GP commitment into tranches, if I'm not mistaken, the first tranche probably was in 2022. And we had the second tranche 9/25. It was a small commitment. It doesn't compare to the size that we are doing now. This was a pre-IPO commitment, but it does show the upside of this part of the business, right, that today is not appearing anywhere. So we had a 50% -- 49% net IR at 3.2x net [ Amuci ], a total capital gain of close to BRL 30 million. It was committed in 2017 before IPO in 2021, and we returned capital 5 years later and then the rest of the capital 2 years later. So it's a very good case study because it shows the potential that this BRL 1.4 billion has in the overall business. And then when you look at our business today, and again, talking to investors and reflecting what is being priced given our current reality. Today, we have 2 parts of our business that are generating value to shareholders now. We have the FRA that I mentioned that is about 90% of our shipborne today, and we have our liquid period. So the purity of our liquid sites which was more significant to us prior to '22. We had very good years in '18, '19, 2020. Since the end of markets in the region were not as constructive and we didn't have as much contribution, right? But when you look at our entire earnings power, we are missing, I would say, probably half of the earnings part, but not taking into account the parts that are currently not generating value. But whilst we are in a more normalized run rate should also contribute to us. One is the area that I mentioned. So once we have this BRL 1.4 billion coming back to us, that's likely going to happen until most of it until 2031. That will impact us very favorably. If returns are within the ranges that we have estimated for each of the products. And once that happens in that capital returns, we're going to have a similar impact from PRE from the private side. So we have the BRL 49 billion of performance as for AUM, with half of it is private PRE. That should coincide with the balance sheet capital coming back. So we should have the 2 impacts at the same time, that should start picking up at some point in the next 3 to 5 years. So PRE -- sorry, I should be 1 of the main components of value for the business, the anchors fundraising after we commit. It generates LP commitments in new funds, and we're going to talk about some of those in the leverage that we're getting in a moment. We then deploy the capital harvest the returns and that impacts that the deal once we realize the capital gains, also PRE from these commitments. And then we have the liquid balance sheet again to reinvest and start the we gain, right? So it's an important component of our business and a component that today is really not appearing anywhere. So I think it's important that we have that disclosure, and we talk about this because once we start receiving this money back, it could be very material. So I just wanted to make sure that everybody has this information. So that's the main reason for this new IRE line. Before going to the future, let's say, we wanted to touch a little bit on the past and talk a little bit about some, let's say, of the things that we do with the balance sheet and the capital and also talk about some of the things that happened since our last Investor Day a couple of years ago. So from the capital standpoint, when we at the firm in 2021, in January '21, we were a Brazilian alternative manager with BRL 49 billion AUM. That was the picture of our IPO. And I think the game plan that we had from that point in time, was to create the IRE that I mentioned, to deploy the capital from the IPO into funds and leverage those funds into additional FRE from LPs. We had the objective of completing and continue to diversify our asset allocation capabilities in Brazil in complementary segments. And finally, we had an inspiration a target of becoming per regional. We had the experience of raising capital to Brazilian funds with global LPs. We felt that it was a very that's an important step for us to be in a position to address more of their needs and by servicing them in a different way, which was to have Latin American products at their disposal. I think we thought that, that was very important over time. And I think in the last 5 years, I think we were able to evolve a lot in those fronts. So we did a series of M&As that complemented our business mix in Brazil and also allowed us to become an regional. Those M&As used about BRL 420 million of capital. We returned between dividends and buybacks over BRL 1.2 billion of capital to our shareholders. So we returned BRL 900 million of capital through dividends. We returned of BRL 350 million in buybacks. We have committed the BRL 1.4 billion balance sheet capital that we had at a 15x leverage. So that means that for each real that we put in the funds, we raised 15x the same money from LPs, which was, by the way, exactly the target that we had a coincidence but it was exactly the target that we had at the IPO issued for the M&As as well. We issued 12 million shares. Those M&As, all of them had very clear strategic reasons and why we did what they were going to provide to the platform. So SPS, we had originally a high-grade credit business. We didn't have opportunistic capital solutions business, which in Brazil and Latin America is a very big asset class. SPS from the independent manager is probably the best one that we could find from an alignment of culture values and returns. So they were our first move. Then 2 years ago to this date in the Investor Day of 2023, we announced a partnership with Ares. Ares, we had a couple of objectives. They obviously capitalize the balance sheet, which we in turn use to finalize the combination with Compass. We use half of that capital to finalize the combination with comps that allowed us to become regional. And also, we have strategic partnership with a player that today is one of the leading GPs globally. So we have access to them to discuss anything and everything. So co-investment opportunities, investment strategies, talk about M&A, talk about bottom-up initiatives within the company, its distribution and it has been working very well. I think we have a very good fit with them also in the way that we think about the business, which are the priorities, how to develop people, how to invest capital for our clients. So the partnership has been really working very, very well so far. Then we included Mav in the mix, which is also a complementary transaction for us in the credit side. They come in to boost our agricultural business in lending, which as in Brazil and Latin America is a very big market. Lacan, we talked about a little bit of the strategy today. And it's a vertical that within real assets, we didn't have the big market in Brazil. in a potential big, even bigger market in Latin America. It's a market that we have a global competitive advantage. So we're eager to continue to grow this platform. And finally, the combination with Compass that raised us to pan regional stats, right? So today, we have offices across the region, distribution possibilities across the region. We brought in a very good liquid credit team in LatAm. We brought in an excellent group of partners in distribution. So it was what completed, I think this mix. With all these movements, we were able to partially neutralize the impact on the share count by the buybacks that we did. So of the 12 million shares that we issued the impact on our dilution for us in terms of dilution was only 6 million or a little bit more, 7 million in order to accomplish all of these transactions and the repositioning that we did with the company. And then looking forward, I think the capital allocation targets are going to be similar. I think we have a priority targets to continue to develop our alternative capability in Latin America. So we have been actually -- and I think you heard from the business unit has real estate, private equity, credit, where we have a big exposure, but Tomas talked a little bit about products that we're going to raise in Colombia and Mexico. So we need to increase our content in other markets. It's probably the top priority that we have today to increase our alternative content in other markets outside of Brazil. We want to continue to be a strong capital distributor to our shareholders. We are a business that generates a huge amount of cash flow, so we can continue to grow while returning capital to shareholders and exactly what we did. As I just showed before, we returned over BRL 1.2 billion in capital to shareholders. And in the same time we raised a lot of assets. We grew the company. We did generate excess cash flow to do other strategic initiatives. And then we want to continue to support our funds through the IR piece of the puzzle, right? So continue to have capital to all key to our funds. At the same point, we are doing a lot of work internally to boost our platform capabilities, right? So we are going to become SOx graded by next year. We are wrapping up the work to do this and believe it's worth a lot of work. We are in the process now of doing the same SOx compliance work in Compass. This has really transformed the business. We have everything now, all the processes are all much more efficient than they were before we were imposed this challenge. It comes alongside with being listed in the United States. So it's something that we need to comply. We have a fully integrated platform from all standpoints, operational, financial, IT, -- in IT, we were able to uncover huge synergies after the combination with Compass, several opportunities to streamline processes and systems, things that would unify and that we expect to start impacting our margins, hopefully, next year, and we talked about that, I think, in the last earnings call. And finally, a big push in AI, right? So we are and we want to lead AI deployment in the region. We have that as a very big and important agenda for the company. for portfolio companies as well. So we have those innovations happening across the portfolio in private equity. I'd say probably the one that today has more of an advanced position. But within each within the asset management firm, we have all of the lands and all of the AI suites available to our people on a sandbox basis. We just ran a company-wide review. And we have today about 8 million of our people of the 630 people that we have already using some sort of a tool in their day to day, be it Microsoft Copilot, be it an OpenAI sandbox or a Gemini or a Notebook LLM or a combination of those included in their daily tasks and I would say probably about 2/3 of the people today already use them on a daily basis. So it's something that also we are very, very focused, not only in heavy people use these tools, which are obviously transformational but also to explain to them why is available and how to use these to because most of the people really are trying to understand. Talking about the last 2 years, we had the Investor Day in 2023. And unfortunately, the market was very different than what were the expectations at the time. So the curve that we have, the 2 curves that we have here at the bottom is the future interest rate markets in October '23, and the one on the top is what happens. So we had an outlook of interest rates going down to 10% single-digit percentage. And we have probably a much more, let's say, challenging scenario in which the interest rates went actually up by a few 100 basis points it stayed up for a long period of time. This impacted our outlook at the time. We were very bullish on the REIT part of the business we had actually started to raise money just alongside the Investor Day, we raised money for fees because we raised money. I remember it was BRL 1.2 billion raise in the beginning of 2024 and we were very optimistic about raising BRL 2 billion to BRL 3 billion a year at that time for the REITs. And obviously, that prove impossible. So that was a big part of what first rated us in the past couple of years. And then obviously, on the liquid side, with a very high opportunity cost. The liquid side of the business also suffered, right? So those were 2 parts of the business that -- the local to local liquid side in Brazil specifically. Those were 2 parts of the business that suffered a little bit. We were able to compensate somewhat. We had a very successful private market cycle fund raising. So we raised the largest private equity vintage effort. We raised a new strategy in the ICC first-time funds. We raised a first-time fund in credit and credit for BRL 2 billion BRL 2 billion. We are in the middle of fundraising SPS IV with a lot of success in a new product in figures in infrastructure as well. So the private market went very well despite high opportunity costs we were to be successful in serving different fronts. And obviously, we complement it with the combination with Compass and the 2 transactions, Mav, Lacan and finally yesterday [indiscernible]. So despite that headwind, I think we were able to deliver interesting results. Obviously, these are not reflective of the potential of the platform, we did diversify a lot to the business. We did create a much more stable and a bigger platform in the past few years, but we would have liked to do more, I would say, mainly on an per share basis than what we did. So we grew revenues on a 30% -- 39% CAGR FRE, a 15% CAGR and FRE per share, 9% CAGR. And we believe the platform can do more, obviously, with the headwind it was tougher. But I think we are positioned with a little bit better environment to grow much more than this. And looking forward, immediate opportunities to scale the business. We are with a big platform to cover that in a second, now with competitor products, much larger number of strategies to date. We need to scale and increase the operating leverage and then take advantage of the operators of the business. We still see opportunity to launch complementary products in some markets. as we mentioned Colombia, Peru, Chile, probably the market that Mexico that we believe on the alternative side, we have opportunity. We have as a target to increase our discretionary mix. So increase average fees and focus on high return on asset products. When you look at the evolution of the platform, the number of products that we have between 2020 and 2025 is a significant transformation, many more strategies now that we can talk to LPs about and answer their capital allocation needs. Also in terms of scale we have -- scale and development of the products, we have shown that we are able to do that over time. So push emerging and last scale products into the scaled group. We have done that in self of our products. So the Brazil local currency high-yield infrastructure credit for products that in 2020, we're starting just to give a couple of examples. And that we have been able to scale and now obviously, with the combination of Compass and the acquisitions, the population around the products that we have to work and the operating levers that we have in the less skilled products, it increased substantially. A slide that Alessandro and covered that we are repeating here. So revenues grew at a 20% CAGR and diversified a lot. So in 2016, we were 37% per equity now we're at 12% private equity. We added a lot of different units in the business mix that were not present a few years ago. And then now talking about the future, right? First of all, talking a little bit about numbers regarding the Verde transaction. These numbers here, they are the economic impact to us, right? So I'm going to explain a little bit and a little bit the accounting impact. This is the economic impact of the 50.1% that we acquired. So the numbers for Verde are 50.1% of their results and the economic impact only reflects the 50.1%. So we are talking about a transaction which is immediately accretive to our FRE per share in the double digits, so 11%. We're using here the 2026 expectation for Verde, which is basically stable revenue at the current run rate that they are. So it doesn't either increase or decrease in terms of AUM at this point. And we have an impact of 2 percentage points in our FRE margin. The accounting treatment for this acquisition, given that we have the structure that we have on the shareholders agreement, et cetera, is that we're going to consolidate the company. So we're going to impact our FRE as if we had 100% of Verde today. So the impact to our FRA per share numbers is going to be roughly double of what we have here, right? So it's a 4 percentage point impact on the FRE margin and a 20% impact in the FRA per share. And then we're going to give back before the stable earnings the dividends that are not ours. So there's going to be a minority line before the ship earnings where we're going to distribute the dividends to them and recognize a reduction in the distributable earnings line. So the distributable earnings per share, it won't change. The distributable borrowings also won't change. But the FRE, we're going to fully consolidate in the income statement. I think that's important disclosure to give. In addition to that, these numbers, they don't include any goodwill amortization benefits. We should start to have some good amortization benefit at some point but they are not considering that amortization here. So looking forward into the model. So the model today that we're presenting today includes already the full impact of the engine. We expect the next cycle to have BRL 100 billion of fundraising disclosed until the end of 2028. About half of that will come from Global IP&S. Verde does not have any benefits nor reduction in this number. So we're considering the fundraising average to be 0. We expect the AUM to compound using fixed income rates in Brazil, but no new money in the strategy. And so the 55% that we have in Global IP&S does not include the Verde brands, products here. So that accounts for about BRL 55 billion of the fundraising. Then we have about 20% of the fundraising that comes from credit. As Alessandro mentioned, one of our main goals is to grow our credit business, and we believe there is a huge opportunity in Latin America to do this. We haven't even touched the surface. We don't have semi-liquid in Latin America is an area that we're starting to study to see how to tropicalize this product. So we're very liquid or closed end. It's obviously an evolution that our partners areas have benefited from in the United States and other big U.S.-based and European-based GPs. We expect to bring that to Latin America at some point. The advantage is that now that we have now all of the asset classes so to build a semi liquid platform is easier because we can allocate part of the origination of each of the verticals to create that product. Then we have 10% from the equities pocket. I think Roberto touched on this. We believe there's a huge opportunity in the Latin America usage product, the Brazil uses its product. It's an opportunity to where Compass used to have a big share, and we are planning to recover that share in the next few years. So it's something that we have been working on the use is already online. So we did that over the past 9 months. The platform is already online. Then we have 10% coming from real assets. All of the vintages and strategies reach to once again start to contribute to fundraising. We expect that to happen at some point between '26 and '27. Let's hope that it's '26. Some of our biggest REITs are already very close in [indiscernible]. So hopefully, with a real bit of appreciation, we can come back to market. And then finally, private equity, we have 5% of the fundraising. That combination, the combination of debt fundraising with appreciation leads to a 22% CAGR in fuel-related revenues until 2028. We have a big benefit from Global IP&S and credit or the 2 asset classes that are contributing the most here. The is to raise money and higher return on asset products, use the Verde platform to launch new products that allows us to increase the discretionary mix of our product lines bring some of that nondiscretionary asset base that we have into discretionary mandates. That's 1 of the goals that we have. We expect to have a big push in FRE margin. So the expectation is for a 10 percentage point expansion. This includes the 4 percentage points positive impact from the Verde. And on top of that, we expect to have another 6 percentage points organic expansion, and this comes basically from the operating leverage of the business. We talked about this in the past Investor Day from 2020 -- sorry, from 2015 to 2020. The cycle, the growth cycle that we had in those years when our AUM expanded from BRL 15 billion, BRL 16 billion to BRL 49 billion, our FRE margin grew 20 percentage points. So the business has a lot of operating leverage. What we need is to grow top line a little bit quicker. And with these numbers, I think it shows that we can do that. And that will allow us to drive margins way higher, right, which is what we're expecting with these new targets. And then an absolute target of BRL 600 million for FRE consolidated 100% of Verde by 2028. And finally, wrapping all of that up, so we have from $800 million in the last 12 months, fee-related revenues to BRL 1.6 billion. from BRL 264 million last 12 months FRA to BRL 600 million and a 10 percentage point increase in margin. That's going to be driven by BRL 100 billion of inflows, appreciation in the funds, which is mostly offset by capital returns. So the impact on a net basis is not that big. And also important to mention that this model does not include any M&A. So this is really on a fully organic basis. So from a takeaway standpoint, going back to the current cycle, we expect to have a positive net present an impact of approximately BRL 400 million or a little bit over $1 per share. We remain very focused on growing alternative capabilities across Latin America, so growing the ability to invest in infrastructure, private credit, private equity real estate in markets outside of Brazil. We have an inflow target of BRL 100 million, which will lead us to 10 percentage point expansion in our FRE margin and an absolute FRE target in 2028 of BRL 600 million. So with that, I'm going to call Alessandro for some closing remarks. And then we're going to open for questions.

So thank you very much. We have a very extensive day to day with a lot of information, a lot of say, perspectives. We shared our view for the firm. They see that we are today and the perspectives for the future. So in my closing remarks, I'll be very brief. Just to again remind some ideas and some concepts that we described today. So the main growth vectors of Vinci Compass, so a private credit expansion across LatAm. One of them is very, very important. We are seeing this market picking up and a huge opportunity ahead. Then they use its platform acceleration, especially for more liquid asset class cross-sell from relationships of the products that we already have, product scaling in higher fees strategies. And this, we are converting part of our Global IP&S business in more discretionary mandates. So these are the main growth factors for us. Then in terms of earning power, as Bruno explained in depth how we see the main factors for earning powers first, FRE that provides a predictable base for us, PRE that adds upside as we see realizations accelerating, especially in private markets and investor-related earnings that captures the embedded GP commitments and the returns as related to that, and we are to compound through the cycles that we see ahead. Finally, we would like to highlight again the distribution advantage that we have, the 2,800 LPs with direct relationships and senior local teams in each of the countries enabled capital formation it just in the local markets, but globally, [indiscernible] explains the behind us that we see and what we see forward renewed investment side called interest rates coming down, attractive entry points in terms of multiples to Latin America that we are at historical lows and also historic lows in terms of allocation from more risky assets, including equities and of course, the private markets. And finally, we would like to highlight that we have been very disciplined in terms of capital allocation. Bruno explained our path since the IPO. We have a clear framework. We will continue to focus on accretive M&A like we did in the past few years. And we will continue to focus on shareholder capital returns for dividends and buybacks eventually, but dividends for sure, and continue to have the invested investment-related earnings commitments moving forward that will return when we realized the investments in the cycle that we see forward. So with that, thank you very much. And we have a break and -- no on break, sorry. And we will direct for Q&A.

Hello, everyone. So we'll start the Q&A. Thank you. And I'll ask for those who are present here with us just to raise your hand and I'll take the mic to you. And just remember to everyone that's watching us online, just submit your questions for the webcast and then at the end, I'll run them through [indiscernible].

Bruno, Alessandro, congratulations on the positive outlook and the acquisition of Verde as well. I guess on the guidance, it you showed the chart on the guidance from 2023 expectations or rates were going to go to 9%. Now obviously, we are at a higher base. Do you still expect rates to come down to around 11% over the next couple of years. So I guess, what is the risk if that doesn't happen in rates do stay more elevated. Have you contemplated that in the guidance and the ability for the -- to meet that fundraising targets? And also , like, I guess, on the improvement in margin, right, because you had 10% improvement, very significant. What are some of the risks to get there? And maybe if there's like a time line, is that more in 2, 3 years? Or like in the shorter term, given you're still integrating with Compass, some of the shorter-term risk on the margin expansion.

Okay. Thank you, Tito. So when we look at the model, the benefit on the expansion of those more procyclical business lines, it's more down the road, right? So as I mentioned, the REITs, we are factoring in a restart of the issuances only 27. And we have very limited fundraising from IP&S. So the edge is 0. And even when you look at local to low IP&S, the numbers are not very big at this point. So those would be some more significant procyclical groups that we have. I think the equity opportunity, it really doesn't depend on operates in my view. I think it's really recovering the historical market share that we had. I think Global IP&S, as Jaime Marti talked a little bit high market talked a little bit. We have contracted growth in pension systems in Mexico and Chile. In Chile, we are very strong. So we should participate in that growth. in Mexico, the numbers are very big and we should participate on a, let's say, a market share basis standpoint as well. So I think there is a balanced the model is a balanced situation today between risks and opportunities. I think if markets go to those levels of interest rates, I think it's possible that we believe the better. And obviously, if they don't, we have risk in the numbers in '27 and '28. I would say mostly in recent a little bit of IP&S we have in the model, right? Those are the things that I believe. And from the 600 basis points that we have as a stand-alone, we mentioned in the last call, we have been acting on opportunities as a combined company over the past 12 months. on things that we have not adjusted in the FRE. They are flowing through the FRE. So we have some head count redundancies. We have a lot of IT costs. We have corporate restructurings, so things that were moving around a little bit to optimize the structure of the company. And when you add that all up, we are talking about at least 2 points of margin, which hopefully we're going to get that benefit next year. So we have 4 points of margin, which will come from operating leverage from the growth of AUM. So that's really the risk that we're talking about. So I think it's a balanced model. It's a doable number. The interest rates do impact us. But hopefully, this time, we're going to get a little bit more at least less headwinds. I think that would be more than enough than we had in the past 2 years.

Just to add on top of what Bruno said, one thing that I suspect and I have this view is that the global location coming from Brazil will not be so dependent on the level of interest rates, the base is so low that we see the, I would say, the internationalization of part of the assets from both the institutional investors, family office. And the general investor say, universe in Brazil moving up since it's very small. So our market share that to date is not very important because the market is not so big. I think, will not depend on the level of interest at directly because the base is so low. So this is something that we're seeing growing and becoming more reality. So in the next few years, we believe that also on that front, we will capture some part of this flow moving forward.

I have a couple of questions. So first, can you provide more details on the plan to increase the penetration on discretionary mandates for IP&S and talk a little bit about the difference in terms of ROA and for margins from the discretionary and the nondiscretionary? And for my second question, about the IRE, how should we expect also the evolution in terms of and realize I should be like every year type of adjustment that you reassess and how do you reach those calculations per year that affect the accounting earnings?

Okay. So starting with the IRE, the Brazilian closing funds, the equity funds, so looking at the ICC and DCP, which are the largest ones, they are audited once a year. So that's when we should have the impact on the earnings, right? So they are audited for the year-end statements. And obviously, once they are out of the J curve, we should expect those 2 to impact the earnings in the fourth quarter. The other funds like SPS is different because they accrue it's correct, right? So they accrue all the time. It's not a single mark. So you should have that over time impacting the numbers. We are, as I mentioned, in the case of CP IV, we are already 40% committed. So that fund is already with enough asset power to start appreciating more than the costs or be out of the J curve. So we should start seeing that impacting our numbers in the unrealized area number. And in the case we need the investments to increase a little bit, right? We are 50% invested now. That's a level where there's not enough assets in the portfolio to carry the NAV. We need a little bit more but I mentioned that we have 2 big operations in the pipe. We expect to push that percentage quicker to a number close to 50%. So if that happens in late '27, we should start having an impact on the unrealized IRE as well. And then other things that impact our unrealized from a quarter-to-quarter basis, we have the listed REITs that impacted the unrealized ROE from a quarter-to-quarter basis. We have some private credit fund that we account within IRE like credit info for instance, which also compounds over time because the credit products. But the 2 big ones a year events would be VCP and the ICC, which should happen at the audit number at the end of the year.

Yes. The other question relates to the focus on getting more ROE regarding the discretionary mandates of IP&S, Global IP&S. Today, we have a big portion of our business that's TPD, of course, and IP&S, Global IP&S discretionary mandates. We are seeing more and more interest from players to trust us to not just introduce them to global managers but also to do their asset allocation as a whole. And this create just a more sticky and long-term relationships, but also we can grow the fees related to this. Just to give you a perspective, from a typical TPD, we could have like for the same dollar allocation, we can grow almost double the fees related from one type nondiscretionary investment to another one that will create a discretionary mandate. Just could be even larger than that -- but I would say, will not go wrong doubling the fees related to that. And we have this steepness because they will continue to pay. Sometimes the TPD is just paid upfront like you see in our numbers. But we will cut over time, and this will translate in different type of approaches like rolling the mandates moving forward, just a specific allocation.

Yes, I think you can have from separate mandates that would charge a 30 to 40 bps on up to a VSP like funds, which would charge 1%. So if we're able to structure a fund of funds for private credit, for instance that we do the asset allocation as a coming vehicle, we're going to raise money from different investors like we could charge 5, 6x more than allocation into a passive figure.

Yes. And the mandate that he mentioned, it's exactly the 1 that's just to double from 15 to 30 bps or 40 bps. But if you have really a fund like VSP, you could have almost 100 basis points.

It's [ Rodrigo Pereira ] for Bank of America. You commented a little bit about the different gateways to your products for LPs. Can you talk a little bit about how the demand for country-specific funds compare versus the LatAm funds? And how do you expect that to change over the next couple of years? And if I can ask a second one. I know it's earlier on for the semiliquid opportunity for you guys, but can you talk about how you think about growing the sales force there to deal with financial advisers? Do you feel like you have this in place already? Or could you leverage, for example, your relationship with Ares to mirror what they've done there in that channel?

I think the demand on the products, it's local to local to LATAM. It caters to different clients. So what we see is that the cross demand from countries to other countries in Latin America is not necessarily very big. There are some opportunities like Brazil, you see its equities, for instance, that's a big opportunity. or you should have a fund like SPS, which is it's already a regional strategy and the dollar-based returns are very competitive. So in that case, you might see like a local to regional demands. But the main demand for the regional products, it comes from international investors, right? So we are in a position today that we have to competitive disadvantages, let's say. One competitive advantage that we have is that the LP that comes to the region looking for an investment opportunity. In most cases, we are only able to answer the data opportunity for Brazil. So let's say, there is an LP that wants to do climate transition but we want to check the block for the entire Latin America continent. Today, we are not checking that box, right? And this is a competitive disadvantage because it's much more trouble for this to potentially look at Brazil and then to solve the rest of the continent with someone else with a different GP. In some cases, there is not a different GP. But this is the first competitive message that we have. So being able to check the LatAm box has a lot of value because you simplify the life of the LP. He only has to deal with you. It doesn't have to -- have to do with a lot of different GPs. So that simplifies a lot. And the other competitive advantage is that the size of our funds on a country-specific basis, it creates limitations to some of the largest LPs. So we have like large or very large LPs that have minimum checks of $100 million, $150 million. And you funnel just in China. I'll give you an example, funnel was in China. The guy looked at his return, he said, "Oh, I want to invest." The problem is that my medium check is $150 million, and I cannot be more than 10% of the funds. So we are in a position where we need to be able to have a little bit bigger funds, right? If we do the idea behind the regionalization strategy, is a combination of providing better service to our LPs. So allowing them to check the box with just 1 GP potentially, if that's what they want. And the second one is to upsize the strategies to a point where we can have these big check investors as LPs of the funds. So these are 2 things that are affecting our capabilities in the, let's say, the LatAm marketplace, and that we see that addressing that by having the track record in LatAm, we're able to check those 2 points. But I do not expect that a big part of the demand from that -- for that local -- sorry, for that regional mandate is going to come from within Latin America. It's more likely that the inflators in Latin America, they're going to focus more in the local to local markets. So the Colombias investing in Colombia, the Mexico invest in Mexico, the Chilean vesting, the Brazilian investor Brazil either that or long-term savings in hard currency, right? That -- those are the 2 big pockets of flows for the regional piece. Do you have any more questions here?

Okay. So I'll go for the webcast questions in just a moment. We have a question on Guilherme Grespan from JPMorgan. So congratulations on the event. Actually, 2 questions. First question, is the FRE and the fundraising targets organic? Or if not, how much M&A accounts for it? And the second question will be in this context, how should we think about distributable earnings CAGR until 2028?

So the first is M&A. I think I made this comment that we are not including M&A in the those are just organic. Yes, it's 100% organic. And the second question, sorry.

How should I think about distributable earnings CAGR in 2028?

Distributable earnings? Okay. So distributable earnings has more impact, right? So we need to think about basically 3 triggers for distributable earnings in addition to FRE. We have a reduction of our cash IRE from the deployment into the funds. I mentioned that we're going to deploy the BRL 1.4 billion by 2029. So that's going to drain liquid funds from earnings short term distributable earnings, so cash IRE. So that's one impact. And then we have 2 potential positive impacts. We have cash IRE from realizations, which by the end of this forecasting period, it's likely that we're going to start seeing. If I'm not mistaken, there is expectation of capital returns from VCP. SPS, there is no expectation, but I think the team is being conservative, I would expect SPS to return capital as well by 2028. So we might have some cash carry from SPS as well. And then on top of that, we have a PRE from the privates. So we have funds that are as Alison showed with accrued carry. We with the group carrier, we have SBS II with a group carry. We have other products with a crude carrier that should start realizing in returning capital. And that's not also in the short-term numbers that we are releasing, right? So I would say we have the headwind of the cash from liquids in from the liquid part of the balance sheet being invested in closing funds earlier in the model. And then towards the end, we have cash vary from private and cash are from realizations of this first cycle. And the foreseeable future, I would say that the distributable earnings is really something that we should expect PRE in, I'd say, '26, '27. BCP III has one asset that some of the analysts that covers this segment, which is financial asset. We have an asset in [ Asian Bank ]. And Asian Bank, since our entrance in the cap table, the earnings number multiplied by 10x. So it's a transaction that's very, very optimistic about the outcome. And with markets at the state that they are now, there is a short-term opportunity window for us eventually to start monetizing that asset. And at relatively conservative level of valuation, that asset alone would amortize in entire BCP III funds. So that's an asset that we are very optimistic about for the next sort let's say, next 12 months. hopefully, we're going to have market conditions to start realizing that return.

Okay. So I see no further questions. So I think we're good to wrap up. Thank you all for participating for the line for supporting us, and see you next Investor Day. Thank you.