Ares and Vinci Partners to Collaborate on
Strategy to Accelerate Growth of Private Markets Offerings in Latin
America
Ares to Invest US$100 Million in New
Convertible Preferred Shares to Be Issued by Vinci Partners
Ares Management Corporation (“Ares”) (NYSE: ARES) and Vinci
Partners Investments Ltd. (“Vinci Partners” or “Vinci”) (NASDAQ:
VINP) announced today that they have reached an agreement to form a
strategic partnership to accelerate the growth of Vinci's platform
in Latin America and to collaborate on distribution, product
development and other business opportunities (the “Strategic
Partnership”). In connection with the formation of the Strategic
Partnership, an affiliate of Ares will concurrently make a US$100
million investment in new convertible preferred shares to be issued
by Vinci (the “Investment”), subject to customary closing
conditions.
Together, Ares and Vinci plan to primarily collaborate across
three strategically accretive areas:
Strategic Distribution: Ares and Vinci will collaborate
on fundraising to seek to broaden each of the respective company’s
limited partner relationship networks within Brazil and
globally.
New Product Development and Investment Collaboration:
Ares and Vinci will explore launching co-branded products and
investment strategies that leverage each platform’s unique
capabilities. Additionally, Ares and Vinci will collaborate on new
investment opportunities in Latin America that could be suitable
for the companies’ respective investment strategies.
Implementation of Operational and Strategy Best
Practices: Ares will provide Vinci with strategic guidance on
investment strategy, investor relations, business operations,
pursuit of strategic initiatives and other related functions with
the goal of driving continued growth of the platform.
In connection with the Investment and in order to drive success
of the Strategic Partnership and connectivity between the
platforms, a representative from Ares will be appointed to the
Vinci Board of Directors.
Vinci intends to use the proceeds from the Investment for
strategic initiatives, including ongoing organic growth efforts as
well as potential complementary inorganic opportunities within
Brazil and broader Latin America.
“We are pleased to announce this strategic partnership with a
leading multi-asset class investment manager in Latin America,”
said Michael Arougheti, Chief Executive Officer and President of
Ares. “We have known the Vinci team for over a decade and share
similar business building and investment DNA. Latin America is in
the very early innings of the adoption of private market
strategies, and we believe there are market forces that will
accelerate the growth of these asset classes over the coming years.
We are very impressed with the business that the Vinci team have
built over the last decade, and we believe that through this
partnership we can accelerate value for our respective firms,
investors and other key stakeholders.”
“We are very excited to form a strategic partnership with Ares,”
said Alessandro Horta, Chief Executive Officer of Vinci Partners.
“We admire the Ares team’s remarkable history and achievements to
create one of the leading alternative asset management firms
globally. We are confident that the lessons learned during their
journey will be extremely helpful to us in the coming years as
Vinci enters a new growth cycle and as opportunities in private
credit, in particular, continue to grow across Latin America. We
believe this will be a win-win partnership, through which Vinci
expects to open new growth avenues in Brazil and Latin America,
drive incremental fundraising to Ares and benefit from Ares’ best
practices, global footprint, knowledge and scale in key private
markets areas.”
Consummation of the Investment and the formation of the
Strategic Partnership is subject to the satisfaction of customary
closing conditions. Vinci expects the formation of the Strategic
Partnership and the issuance of the convertible preferred shares to
occur in late October 2023.
Jefferies acted as exclusive financial advisor to Vinci, and
Davis Polk & Wardwell LLP served as legal counsel. Wells Fargo
Securities, LLC acted as exclusive financial advisor to Ares, and
Kirkland & Ellis LLP served as legal counsel.
Vinci Partners Investor Day on October 11, 2023 Vinci’s
senior management team will discuss the Strategic Partnership as
part of its first Investor Day to be held in New York City on
Wednesday, October 11, 2023 at 8:30 AM ET.
Registration for on-site attendance is required. To request
on-site attendance and registration details please email
ShareholderRelations@vincipartners.com.
For those unable to attend in person, a live webcast of the
Investor Day will be accessible on Vinci Partners’ website at
https://ir.vincipartners.com/news-and-events/events-and-presentations/.
A replay will be available on the same section of the website
following the conclusion of the event.
About Ares Management Corporation Ares Management
Corporation (NYSE:ARES) is a leading global alternative investment
manager offering clients complementary primary and secondary
investment solutions across the credit, private equity, real estate
and infrastructure asset classes. We seek to provide flexible
capital to support businesses and create value for our stakeholders
and within our communities. By collaborating across our investment
groups, we aim to generate consistent and attractive investment
returns throughout market cycles. As of June 30, 2023, Ares
Management Corporation’s global platform had approximately US$378
billion of assets under management, with over 2,600 employees
operating across North America, Europe, Asia Pacific and the Middle
East. For more information, please visit www.aresmgmt.com.
About Vinci Partners Vinci Partners is a leading
alternative investment platform in Brazil, established in 2009.
Vinci Partners’ business segments include private equity, public
equities, real estate, credit, infrastructure, special situations,
hedge funds, investment products and solutions and retirement
services, each managed by dedicated investment teams with an
independent investment committee and decision-making process. We
also have a financial advisory business, focusing mostly on
pre-initial public offering, or pre-IPO, and merger and
acquisition, or M&A, advisory services for Brazilian
middle-market companies.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which reflect Ares’
and Vinci’s current views with respect to, among other things,
future events, operations and financial performance. You can
identify these forward-looking statements by the use of
forward-looking words such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “seeks,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates,”
“foresees” or negative versions of those words, other comparable
words or other statements that do not relate to historical or
factual matters. The forward-looking statements are based on Ares’
and Vinci’s beliefs, assumptions and expectations of our future
performance, taking into account all information currently
available to Ares and Vinci. Such forward-looking statements are
subject to various risks and uncertainties and assumptions relating
to Ares’ and Vinci’s operations, financial results, financial
condition, business prospects, growth strategy and liquidity. These
statements are not guarantees of future performance, condition or
results and involve a number of risks and uncertainties, including
the ability of Ares and Vinci to consummate the Investment, and to
achieve the expected benefits from the strategic partnership.
Neither Ares nor Vinci nor their affiliates, officers, employees or
agents undertake any obligation to review, update or confirm
expectations or estimates, or to release any revisions to any
forward-looking statement, to reflect events that occur or
circumstances that arise whether as a result of new information,
future developments or otherwise, except as required by law.
Further information on these and other factors that could affect
Ares’ and Vinci’s financial results are included in filings Ares
and Vinci have made and will make with the U.S. Securities and
Exchange Commission from time to time.
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version on businesswire.com: https://www.businesswire.com/news/home/20231010415146/en/
Ares Management Corporation Media: Priscila Roney,
+1 (212) 808-1185 media@aresmgmt.com
Investor Relations: Carl Drake, +1 (888) 818-5298
cdrake@aresmgmt.com or Greg Mason, +1 (314) 282 2533
gmason@aresmgmt.com
Vinci Partners Media: USA Media Contact Joele
Frank, Wilkinson Brimmer Katcher Kate Thompson, +1 (212)
355-4449
Brazil Media Contact Danthi Comunicações Carla Azevedo, +55 (21)
3114-0779 carla@danthicomunicacoes.com.br
Investor Relations:
ShareholderRelations@vincipartners.com USA: +1 (646) 559-8040
Brazil: +55 (21) 2159-6240
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