VINCI PARTNERS TO EXPAND AGRIBUSINESS FOOTPRINT WITH THE ACQUISITION OF MAV CAPITAL

Rhea-AI Summary

Vinci Partners is set to expand its agribusiness footprint with the acquisition of MAV Capital, an alternative asset manager with R$550 million in assets under management. The transaction aims to solidify Vinci's position in the agribusiness segment in Brazil, a key global player in the industry. The acquisition will enhance Vinci's credit segment and create a dedicated vertical to the agribusiness sector, aligning with the company's long-term growth plan.

Positive

• The acquisition of MAV Capital will enable Vinci Partners to strengthen its presence in the agribusiness segment in Brazil.
• Brazil is recognized as a key global player in agribusiness, making it a strategic market for Vinci Partners to expand its product offering.
• The transaction with MAV Capital aligns with Vinci's long-term growth plan by enhancing its credit segment and creating a dedicated vertical to the agribusiness sector.
• MAV Capital, with R$550 million in assets under management, will bring a seasoned team with extensive experience in the agribusiness sector to Vinci Partners.
• The acquisition is expected to have an initial cash component with additional considerations through an earnout structure, subject to certain revenue targets.
• Seneca Evercore acted as financial advisor to Vinci, with Lefosse Advogados and Themudo Lessa Advogados providing legal counsel for the transaction.

Negative

• None.

Insights

Financial Analyst

The acquisition of MAV Capital by Vinci Partners is a strategic move to bolster Vinci's position in the Brazilian agribusiness investment sector. Such a move is likely to diversify Vinci's asset portfolio and enhance its private credit offerings, which could result in a broader revenue source. Notably, agribusiness contributes significantly to Brazil's GDP, indicating the sector's potential for growth and profitability. However, since the acquisition isn't expected to have an immediate, meaningful impact on Vinci's short-term results, investors should weigh the long-term benefits against potential integration risks and market volatility.

Agriculture Industry Expert

Brazil's agribusiness sector offers a competitive edge due to its vast fertile lands and favorable climate. The entry barriers for credit access in this sector create an opportunity for alternative asset managers like Vinci, which could provide them with a steady flow of opportunities for private credit investments. The expertise of MAV's team might give Vinci an upper hand in capitalizing on these opportunities. Investors should monitor Brazil's agribusiness trends, regulatory changes and trade agreements that could influence the performance of Vinci's new agribusiness vertical in the future.

M&A Strategy Consultant

Adding MAV Capital's sector-specific expertise to Vinci's broader alternative investment platform can be seen as a play to harness synergies and provide more comprehensive solutions to clients. The earnout component of the deal is indicative of Vinci's performance-based approach to acquisitions, aligning interests with MAV's management team for future growth. This type of structure could serve as an incentive for MAV to continue enhancing its performance, potentially leading to increased management fee revenue for Vinci. From a retail investor perspective, the success of this acquisition will likely hinge on the seamless integration of MAV's operations and culture with Vinci's existing framework.

• MAV Capital is an alternative asset manager focused on agribusiness with approximately R$550 million in assets under management in sector specific private credit funds, led by a best-in-class and highly seasoned team with extensive experience in the sector;
• The transaction aims to consolidate Vinci's position across the agribusiness segment in Brazil, a substantially underserved segment by the investment industry;
• Brazil exhibits numerous competitive advantages and is currently recognized as a key global player, while locally agribusiness and related activities are a meaningful contributor to the country's GDP;
• The acquisition is aligned with Vinci's long-term growth plan, enabling Vinci to further expand its product offering by enhancing its credit segment and creating a dedicated vertical to the Agribusiness sector;

RIO DE JANEIRO, April 25, 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 an agreement ("Transaction") to acquire MAV Capital ("MAV," "Team"), an alternative asset manager focused on the agribusiness segment in Brazil, with approximately R$550 million in assets under management.

"We are thrilled to announce this transaction and welcome the MAV team to our platform. We firmly believe that MAV's exceptional team will be a great addition to the platform and will act as a powerful catalyst to solidify our presence in the agribusiness landscape" said Alessandro Horta, Vinci Partners' Chief Executive Officer and Director.

"The agribusiness impact in Brazil is substantial, with the country being recognized as a key global player and a major exporter, thanks to its competitive advantages like extensive fertile land and favorable climate conditions.

Access to credit poses a significant challenge for producers, driving them towards private credit and capital markets, which translates into a sizeable market opportunity to Vinci. Having a dedicated, first-class team with extensive experience and a proven track record deploying capital to the sector allows us to expand our franchise and tackle this opportunity. This transaction is aligned with Vinci's long-term goals of broadening its business lines and building leading franchises."

Founded in 2021, MAV Capital is an alternative asset manager focused on the agribusiness sector, led by a seasoned management team with an extensive track record. The Team manages roughly R$550 million in assets, through five investment vehicles comprising more than 35 in-house structured credit operations across a number of sectors, such as Agribusiness, Real Estate and Infrastructure.

MAV´s senior management team boasts more than 20 years of experience, under the leadership of André Ito, a respected professional with a background in major banking institutions. The Team manages capital pools through closed-end fund structures, featuring long-term lockups extending up to ten years. Their flagship strategy revolves around acquiring debt securities within the agribusiness sector, with two vintages raised between 2021 and 2023.

"We are extremely happy to join Vinci, as we see a strong business and cultural fit. Combining our extensive expertise in originating operations across the agricultural sector with Vinci's well-established platform and distribution capabilities will be pivotal in expanding the franchise and crafting a leading solutions provider in the segment." said André Ito, founding partner and CEO of MAV Capital.

Transaction Overview

The Transaction will have 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.

The Transaction is expected to close in the third quarter of 2024, subject to regulatory approvals and other customary closing conditions. The acquisition of MAV Capital is not expected to have a meaningful impact to the company's short-term results.

Seneca Evercore acted as financial advisor to Vinci, with Lefosse Advogados as legal counsel. Themudo Lessa Advogados acted as legal counsel for MAV Capital.

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, 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 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.

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-to-expand-agribusiness-footprint-with-the-acquisition-of-mav-capital-302128140.html

SOURCE Vinci Partners Investments Ltd.

FAQ

What is the significance of the acquisition of MAV Capital by Vinci Partners?

The acquisition of MAV Capital will enable Vinci Partners to strengthen its presence in the agribusiness segment in Brazil.

What are the competitive advantages of Brazil in the agribusiness sector?

Brazil is recognized as a key global player in agribusiness, making it a strategic market for Vinci Partners to expand its product offering.

Who is MAV Capital and what assets do they manage?

MAV Capital is an alternative asset manager with R$550 million in assets under management focused on the agribusiness sector.

What are the expected outcomes of the transaction with MAV Capital for Vinci Partners?

The transaction with MAV Capital aligns with Vinci's long-term growth plan by enhancing its credit segment and creating a dedicated vertical to the agribusiness sector.

What are the financial terms of the acquisition of MAV Capital?

The acquisition is expected to have an initial cash component with additional considerations through an earnout structure, subject to certain revenue targets.

Who provided financial and legal advisory services for the transaction with MAV Capital?

Seneca Evercore acted as financial advisor to Vinci, with Lefosse Advogados and Themudo Lessa Advogados providing legal counsel for the transaction.