Vinci Partners Impact and Return Strategy Announces Investment in DM Card

Rhea-AI Summary

Vinci Partners Investments Ltd. (NASDAQ: VINP) announced a R$ 100 million investment from its fund, Vinci Impacto e Retorno IV, to acquire a minority stake in DM Card, a fintech focusing on credit for low-income populations in Brazil. This investment is VIR IV’s fifth, representing 43.7% of the Fund’s R$1 billion commitments. DM Card, operational since 2002, has partnerships with over 1,100 retailers across 14 Brazilian states. The partnership aims to enhance financial services for low-income individuals while promoting financial inclusion and ESG goals.

Positive

• Invested R$ 100 million in DM Card, expanding its portfolio in the fintech sector.
• VIR IV's investment represents 43.7% of its total R$1 billion capital commitments, indicating strong fund deployment.
• DM Card has a significant market presence with over 1,100 retailer partnerships in 14 states, highlighting growth potential.
• The investment aims to promote financial inclusion and provide tailored financial solutions to low-income clients.

Negative

• None.

RIO DE JANEIRO, Brazil, Feb. 21, 2022 (GLOBE NEWSWIRE) -- Vinci Partners Investments Ltd. (NASDAQ: VINP) (“Vinci Partners”, “we”, “us” or “our”), the controlling company of a leading alternative investment platform in Brazil, announced today that “Vinci Impacto e Retorno IV”, or “VIR IV” (“the Fund”), the Impact family of funds managed by Vinci Partners’ Private Equity strategy, entered an agreement to invest a R$ 100 million in an investment round for the acquisition of a minority stake in DM Card (“DM” or “the Company”), a fintech focused on credit to low income population and one of the main Private Label card issuers to retailers in Brazil.

VIR IV has a unique strategy in Brazil, with a dual mandate to generate favorable market returns as well as impact, through the acquisition of minority holdings in small-and-medium sized Brazilian enterprises, that exhibit growth potential and clear measurable environmental, social and governance, or ESG, goals. This transaction marks VIR IV’s fifth investment, resulting in a 43.7% gross allocation of the Fund’s R$1 billion in total capital commitments.

DM Card was founded in 2002, focusing on Private Label credit card. Nowadays, the business holds an extensive geographic footprint, having presence across 14 states in Brazil and partnerships with over 1,100 small and medium-size retailers within +2,300 stores through the country.

From VIR IV’s investment contribution, we expect to support DM Card to amplify its impact and become the financial services company of choice for low-income classes, being a reference on credit and productive microcredit to entrepreneurs, providing simple, tailored, and accessible solutions, promoting client diversity, providing financial education, and contributing to economic development.

José Pano, partner and head of the VIR strategy for Vinci Partners, said, “We are excited to partner up with DM, a company with extended expertise on credit for low-income clients that translates into a proven and profitable business model and foreseeable expansion. We believe there’s an opportunity for the Company to develop new products and channels as well as to become a digital-focused and omnichannel provider with a client relationship-oriented model. VIR’s investment creates a positive impact aligned with the Fund’s impact strategy, such as the promotion of financial inclusion to low-income individuals and the development of specific credit programs destined to education, home renovation and healthcare.”

About Vinci Partners Private Equity

Vinci Partners’ Private Equity strategy has a sector-agnostic approach focused on growth equity investments in Brazil. The main strategic focus is value creation by promoting revenue, productivity and profitability growth through significant operating and management changes in portfolio companies. The private equity strategy invests through two sub-strategies: Vinci Capital Partners, which focuses on control and co-control investments, and Vinci Impact and Return, that focuses on minority investments in small-to-medium enterprises with dual mandate of generating ESG impact as well as market returns.

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, credit, infrastructure, hedge funds, and investment products and solutions, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a financial 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.

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

FAQ

What is the recent investment made by Vinci Partners (VINP)?

Vinci Partners announced a R$ 100 million investment in DM Card to acquire a minority stake, focusing on credit for low-income populations.

How much has Vinci Partners (VINP) allocated to its fund, Vinci Impacto e Retorno IV?

Vinci Impacto e Retorno IV has committed R$ 1 billion, with the recent investment in DM Card representing 43.7% of this total.

What is DM Card's focus in the fintech market?

DM Card specializes in providing credit solutions to low-income individuals and is one of Brazil's main private label card issuers.

How does Vinci Partners (VINP) plan to support DM Card post-investment?

Vinci Partners aims to help DM Card enhance financial services, promote financial inclusion, and develop new credit products for low-income clients.