Brazilian asset manager Vinci eyes deals at home after U.S. IPO

Vinci Compass Investments

28/01/2021 19:27

By David French and Tatiana Bautzer
    NEW YORK/SAO PAULO, Jan 28 (Reuters) - Vinci Partners
Investment Ltd  VINP.O  will use proceeds from its $250 million
U.S. initial public offering to expand in its home Brazilian
market, an executive at the alternative asset manager said on
Thursday.
    The Rio de Janeiro-based firm intends to acquire rivals to
expand its product suite, including in real estate, equities,
and some credit strategies, Head of Private Equity Bruno Zaremba
said in an interview.
    The company sold 13.9 million shares at $18 each in its IPO
on Wednesday, valuing Vinci, which offers investments in private
equity, real estate and other fund classes, at $1 billion. The
stock was down 3.3% on its first day of trading on Nasdaq. 
    Brazil's financial services landscape, long dominated by
traditional banks, has been redrawn in the last decade by new
firms emerging and offering Brazilians easier access to services
and products.
    Zaremba said growth opportunities in the country are
enormous, with record-low interest rates and the hunt for yield
accelerating the ongoing shift of Brazilians away from
government bonds.
    "In the past few years, we have seen the beginnings of a
transformation change in how Brazilians save, both retail and
institutions," Zaremba said, noting Vinci's assets under
management have grown to nearly 50 billion reais ($9.23 billion)
from 20 billion reais three years ago.
    Being a listed company supports Vinci's growth ambitions as
it can buy other platforms with its stock, he added.
    Vinci, whose offering was 16-times oversubscribed, joins the
steady stream of Brazilian financial firms listing on U.S.
markets. Earlier this month, fellow alternatives manager Patria
Investments Ltd  PAX.O  raised $326 million from its IPO, while
digital brokerage XP Inc  XP.O  listed at the end of 2019.
 urn:newsml:reuters.com:*:nL1N2JX2SO
    Zaremba said the U.S. listing gave it access to global
investors who understood the alternatives model and were already
owners of international peers including Blackstone Group  BX.N .
    "We do not have listed alternative asset managers in Brazil,
so the comparables are in the U.S. market."

($1 = 5.4162 reais)

 (Reporting by David French in New York and Tatiana Bautzer in
Sao Paulo; Editing by Richard Chang)
 ((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters
Messaging: davidj.french.thomsonreuters.com@reuters.net))