Vinci Deal Forges Latin America Megamanager Handling $50 bn

Mar 15, 2024 | News

Vinci Partners Investments Ltd., a Brazilian alternative asset manager, will acquire Compass Group LLC to expand its footprint across Latin America, creating a combined entity that will manage over $50 billion.

Vinci will hand over 11.8 million class A shares, worth about $127.4 million at Thursday’s closing price and a cash consideration of $31.3 million in the form of Class C redeemable common stock, according to a statement.

Compass partners are entitled to an additional earn-out of up to a 7.5% stake in the combined entity subject to pre-determined metrics to be paid in Class A stock until 2028.

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The deal allows Vinci to catapult into one of the biggest alternative asset managers in Latin America by adding Compass’ $37 billion under management to its platform. The transaction, which is expected to close in the third quarter, will also place Compass founders Manuel Balbontin and Jaime de la Barra on Vinci’s board of directors.

“This combination with Compass marks the most significant step so far in our long-term strategic growth plan,” Vinci Chief Executive Officer Alessandro Horta said in the statement, adding that Latin America is among the “most attractive markets for alternatives.”

Vinci, founded in 2009, does private equity, real estate, private credit, infrastructure, hedge funds and special situations among other activities. Based in Rio de Janeiro, the firm has traded on the Nasdaq in New York since a listing in 2021 with a current market cap of $581 million.

Last October, Ares Management agreed to from a strategic partnership with Vinci to accelerate the growth of its platform in Latin America. A month later, Ares reported that it had a 15.3% stake in Vinci Partners.

Read more: Yahoo Finance

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