3 facts before the IPO of Vinci Partners Investments (IPO OF VINP)

During the IPO of Vinci Partners Investments (IPO VINP), the company plans to place its shares at a price of $16-18 per share and raise $ 235.8 million in additional financing for the development of the company, which will allow it to receive a public valuation of the business at $944 million.
Vinci Partners is the leading alternative investment platform in Brazil, established in 2009.
The company operates in a variety of segments, including private equity, infrastructure, real estate, loans, hedge funds, public equity, and investment products.
But one of the main areas of the company Vinci is a consulting business, specializing in pre-IPO consulting services and mergers and acquisitions.
The listing for the Vinci Partners Investments ( VINP) IPO comes at a time when Brazilians are shifting a significant portion of their savings from government bonds to riskier assets to boost their returns. It is reported that the country’s base rate is below 2 %, which is a record low.
Brazil’s asset management industry totaled $ 1.13 trillion last year, according to the Brazilian Association of Financial and Capital Markets.
“We estimate that in Brazil, independent platforms account for almost 10 % of customer assets, and this share could grow to 25 % in 2024. As investment platforms expand, they will have the opportunity to take advantage of related markets such as payments, insurance, and credit, leverage the deep knowledge they create about their clients, nascent trust relationships, and use their easy and fast structure to provide more customized solutions than traditional institutions currently offer.”
None of the existing shareholders have expressed interest in acquiring shares at the IPO price.
As of September 30, 2020, Vinci Partners had $ 8.7 billion in assets under management.
The company’s current major investors include LACERA (Los Angeles County Retirement Association) and the Rhode Island Retirement Plan.
During the IPO of Vinci Partners Investments (IPO VINP), the company will raise 235.8 million, which is going to be directed to:
“We intend to use the net proceeds from this offering (1) to fund investments in our own products together with our investors; (2) to leverage opportunities for strategic transactions; and (3) for other general corporate purposes.
We will strive to allocate resources across products in order to achieve optimal returns for Vinci Partners, and therefore for our shareholders, through a combination of capital returns and increased overall fundraising for our investment strategies.”

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *