VINCI PARTNERS COMPLETES ACQUISITION OF MAV CAPITAL

Rhea-AI Summary

Vinci Partners Investments, a leading alternative investment platform in Brazil, completed its acquisition of MAV Capital, a prominent asset manager in the agribusiness sector. This transaction, initially announced on April 25, 2024, adds approximately R$550 million in assets under management to Vinci's portfolio. The deal includes an initial cash component and an earnout structure payable in 2028, dependent on achieving specific management fee revenue targets. CEO Alessandro Horta highlighted the strategic importance of this acquisition in strengthening Vinci's presence in the agribusiness sector and aligning with its long-term expansion goals.

Positive

• The acquisition adds R$550 million in assets under management.
• Strengthens Vinci Partners' presence in the agribusiness sector.
• Aligns with Vinci's long-term goals of expanding business lines and building leading franchises.

Negative

• Additional consideration payable in 2028 is contingent on achieving incremental management fee revenue targets, adding future financial uncertainty.

Financial Analyst

The acquisition of MAV Capital by Vinci Partners signifies a strategic move to enhance its exposure to the agribusiness sector. This acquisition brings an additional R$550 million in assets under management, which strengthens Vinci's portfolio.

Short-term impact: Investors might see an immediate positive reaction in Vinci's stock price due to the expanded assets under management and the potential for increased revenue streams.

Long-term impact: The earnout structure, which is tied to incremental management fee revenue targets to be met by 2028, suggests that Vinci Partners is aiming for sustained growth and performance in the agribusiness sector. This could lead to more stable and predictable revenue in the future if the targets are met.

However, investors should also be aware of the risks: the dependability of MAV's performance in the agribusiness sector, potential integration challenges and the overall volatility in commodity markets. Agribusiness is often influenced by variables such as weather conditions and market prices, which could affect MAV's performance and, consequently, Vinci's earnings.

In summary, this acquisition appears to be a calculated move to diversify and strengthen Vinci’s investment portfolio, but it is essential to monitor MAV’s performance and the agribusiness market’s dynamics closely.

Market Research Analyst

The agribusiness sector in Brazil represents a significant portion of the country's economy, contributing heavily to both GDP and exports. By acquiring MAV Capital, Vinci Partners is strategically positioning itself in a lucrative and critical industry.

MAV's assets under management primarily being distributed across two vintages in its flagship strategy indicates a focused and potentially high-performing investment approach. This could mean consistent returns if MAV's strategies continue to perform well and align with market trends.

From a market research perspective, this acquisition aligns with the growing trend of investment firms seeking to diversify into sectors with tangible assets and growth potential. Agribusiness in Brazil benefits from the country’s vast arable land, favorable climate and strong global demand for agricultural products.

Investors should see this as Vinci Partners tapping into a sector with considerable upside potential but should also remain vigilant about sector-specific risks such as regulatory changes, environmental issues and international trade policies which could impact the agribusiness market.

This move indicates Vinci Partners' strategy to leverage MAV's expertise and established presence in agribusiness, potentially enhancing its market competitiveness and appeal to investors looking for diversified exposure.

RIO DE JANEIRO, June 28, 2024 /PRNewswire/ -- Vinci Partners Investments Ltd. (NASDAQ: VINP) ("Vinci Partners," "Vinci," "we," "us," or "our"), the controlling company of a leading alternative investment platform in Brazil, announced today that it has completed the previously announced acquisition of MAV Capital ("MAV", "Team"), an alternative asset manager focused on the agribusiness segment in Brazil.

As a result of the closing, Vinci will add approximately R$550 million in assets under management, distributed mainly across two vintages in MAV's flagship strategy.

"We are thrilled to announce the closing of the acquisition of MAV Capital.", said Alessandro Horta, Vinci Partners' Chief Executive Officer and Director. "We are confident that the MAV team is a valuable addition to our platform, strengthening our presence in agribusiness. This transaction aligns with our long-term goals of expanding business lines and building leading franchises."

Transaction Overview

The Transaction, which was announced on April 25^th, 2024, closed today and has an initial cash component, with an additional consideration in cash through an earnout structure to be paid in 2028, subject to the achievement of certain incremental management fee revenue targets.

About Vinci Partners

Vinci Partners is a leading alternative investment platform in Brazil, established in 2009. Vinci Partners' business segments include private equity, public equities, real estate, private credit, infrastructure, special situations, investment products and solutions and retirement services, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a corporate advisory business, focusing mostly on pre-initial public offering, or pre-IPO, and merger and acquisition, or M&A, advisory services for Brazilian middle-market companies.

About MAV Capital

MAV Capital is an alternative asset manager focused on the agribusiness sector, founded in 2021, led by a seasoned management team with an extensive track record, managing approximately R$550 million in assets through five investment funds.

Forward-Looking Statements

This press release contains forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside of our control. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. The forward-looking statements included herein speak only as at the date of this press release and we do not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, neither we nor our affiliates, officers, employees and agents undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time.

USA Media Contact

Nick Lamplough / Kate Thompson / Katie Villany

Joele Frank, Wilkinson Brimmer Katcher

+1 (212) 355-4449

Brazil Media Contact

Danthi Comunicações

Carla Azevedo (carla@danthicomunicacoes.com.br)

+55 (21) 3114-0779

Investor Contact

ShareholderRelations@vincipartners.com

NY: +1 (646) 559-8040

RJ: +55 (21) 2159-6240

View original content:https://www.prnewswire.com/news-releases/vinci-partners-completes-acquisition-of-mav-capital-302186119.html

SOURCE Vinci Partners Investments Ltd.

FAQ

What is Vinci Partners' stock symbol?

Vinci Partners' stock symbol is VINP.

When did Vinci Partners complete the acquisition of MAV Capital?

Vinci Partners completed the acquisition of MAV Capital on June 28, 2024.

How much in assets under management does MAV Capital add to Vinci Partners?

MAV Capital adds approximately R$550 million in assets under management to Vinci Partners.

What is the strategic importance of MAV Capital's acquisition for Vinci Partners?

The acquisition strengthens Vinci Partners' presence in the agribusiness sector and aligns with its long-term goals of expanding business lines and building leading franchises.

What are the financial terms of the MAV Capital acquisition?

The acquisition includes an initial cash component and an additional consideration payable in 2028, contingent on achieving certain management fee revenue targets.