© Reuters.
RIO DE JANEIRO – Vinci Partners Investments Ltd. (NASDAQ: NASDAQ:), a prominent Brazilian alternative investment platform, announced today a strategic business combination with Compass, a leading independent asset management firm in Latin America. The merger will result in a full-service Latin American alternative asset manager with over $50 billion in assets under management.
Compass, established in 1995, manages $37 billion across various asset classes and has a significant presence in seven countries, including the U.S. and U.K. The agreement will see Vinci Partners reinforce its position as a gateway to alternative investments in Latin America, offering a range of local and global investment opportunities.
The combined entity will capitalize on Compass’s strong reputation and extensive distribution network in Latin America. Vinci Partners CEO Alessandro Horta emphasized the significance of the transaction as part of Vinci’s strategic growth plan, enhancing geographic reach and diversifying revenue sources.
Compass executives, including partner and CEO Jaime Martí, expressed enthusiasm for the partnership, noting the complementary strengths of both firms. The transaction is expected to be immediately accretive to Vinci’s Fee Related Earnings per share.
The deal includes an upfront consideration of 11,783,384 Vinci Class A common shares and $31.3 million in cash. Compass partners may earn an additional stake of up to 7.5% in the combined entity, based on performance metrics, until 2028.
Upon closing, expected in the third quarter of 2024, Compass founders Manuel Balbontín and Jaime de la Barra will join Vinci’s Board of Directors. Compass’s senior management will continue in their roles, aligning with Vinci’s long-term strategic plan.
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