Compass merges with Brazilian Vinci Partners

An asset management giant is growing in Latin America, now Chile compass announced Merging its business with Brazilian Vinci PartnersExpertise in options, which will result in a A company with $50 billion in assets under management.

The holding companies of Compass, announced to the market through an essential fact, signed a merger agreement with Vinci Partners Investments, a company based in the Cayman Islands. The goal is to combine their businesses and capabilities Alternative assets, private equity, investment products and solutions, public offering tools and corporate advisory.

According to the letter sent to the regulatory body, he said the outcome would leave him as a “leading actor in the field”. Financial Markets Commission (CMF).

Subject to approval by relevant regulators, part of the transaction involves Compass Chile will become an indirectly owned subsidiary of Vinci, In addition, its existing shareholders will become shareholders of the Brazilian company. top executive manuel jose balbontin And jaime de la barraespecially, Will join the board of directors of Brazilian,

In its essential facts, the Chilean firm assured the transaction Does not consider changes in functional or administrative structure Manager’s. Specifically in the distribution business, one of the relevant branches of Compass – where they distribute to large international management companies, e.g. Wellington And ninety one– will remain unchanged, according to sources familiar with the matter.

However, he expects the merger to be advised Goldman Sachs And Morgan Stanley– He Concrete in the third quarter of 2024As detailed in a press release.

regional load

declaration makes a prediction Heavyweight player For the investment landscape in Latin America. Moreover, according to the firms, this decision Will create “the largest alternative asset management gateway” nearby.

This merger also Will expand Vinci’s geographic network to eight countriesStrengthening its regional presence, with a view to becoming a platform for local, Latin American and global investors.

Established in 1995, Compass is a leading independent investment manager and advisor. In Latin America, with operations in seven countries in the region, in addition to the United States and the United Kingdom. However, they have a $37 billion AUMWith two main businesses: Investment Products & Solutions and Latin American Asset Management.

Thus, the Chilean company adds $29.6 billion in AUM in its distribution business From third parties – as described on their institutional portal – and others It has $7.2 billion in its wealth management unit.

This transaction, as outlined by Vinci, is in line with strategic development plan Expanding your presence and becoming what they describe “An authentic pan-regional platform.” Thus, they plan to increase the distribution reach of their strategies through Compass’ broader platform.

development plan

In turn, this agreement will allow the Chilean company to offer world-class managers and global and regional investment solutions Vinci’s extensive customer base in Brazil.

“This combination with compass symbols One of the most important milestones “In our long-term strategic development plan presented at our investor day, that will allow us to expand our presence in Latin America, one of the most attractive markets for alternative assets,” he announced. Alessandro Horta, CEO of Vinci PartnersIn the press release.

Along these lines, the executive indicated that the operation would strengthen the combined business, “through complementary products, broader geographic coverage and a more diverse contributor base.”

Jaime Marti, Partner and CEO of CompassOn its part also celebrated the decision. “The combination with Vinci is the perfect complementary step, because we get Access to a diverse range of alternative investment opportunities in Brazil“, he commented.

The executive said they see “A” “Significant Growth Opportunities in Latin America”. And this merger will allow them to develop new regional products and expand their product base in Brazil through Vinci’s distribution relationship.