Vinci Compass merges in Argentina, doubles in size in the country, and expands in Latin America.

Vinci Compass, which has R$354 billion in assets under management, has just taken a significant step in its regional consolidation strategy. The asset management firm, led by Alessandro Horta, exclusively announced to NeoFeed the merger of its asset management operation in Argentina with BACS, a firm linked to Banco Hipotecario, a move that doubles the company's size in the country.

With this transaction, Vinci Compass increases its assets under management in Argentina to approximately US$1.6 billion, compared to a base of around US$800 million. The operation did not involve cash and was carried out via a share swap. BACS becomes a shareholder in the combined asset manager with more than 40% participation. Vinci Compass, in turn, retains control and management of the business.

The deal involves an earn-out in which the Argentinian partners increase their stake, linked to the growth of assets and revenues generated by the distribution channels of BACS and Banco Hipotecario. Vinci Compass will retain control of the business in this scenario.

“Argentina is a market that has shrunk significantly over the years, but whose potential remains intact. And we believe the country is entering a cycle of improvement,” says Alessandro Horta, CEO of Vinci Compass, to NeoFeed . “We see Argentina as a promising market, after a long series of crises, now with clearer signs of economic normalization.”

With the merger, the Vinci Compass brand will be retained by the new combined asset manager, and management will remain with the team that already led the firm's Argentinian operations. The gain in scale is only one part of the rationale behind the transaction.

“There is a very clear complementarity. They bring strong distribution, especially through the banking channel. And we bring know-how in alternative products, which is something they wanted but didn't have the scale to develop on their own,” says Bruno Zaremba, partner and president of finance and operations at Vinci Compass.

This complementarity stems primarily from two points. The first is the fact that Vinci Compass's asset management firm has a strong presence among institutional investors. BACS, on the other hand, is strong in the retail market and among Argentine companies.

The second point is that, with the transaction, Vinci Compass can bring to Argentina strategies already consolidated in Brazil, such as private credit, infrastructure, and real estate. The new size of the operation, Zaremba affirms, is crucial to making this move viable. “Having more scale helps to launch alternative products. This is an objective not only in Argentina, but in other Latin American countries as well,” says Zaremba.

The merger also deepens Vinci Compass's access to the Argentine financial and business ecosystem. In addition to incorporating the asset manager BACS, the agreement establishes a long-term partnership with Banco Hipotecario, which will remain a significant shareholder and business partner. "We gain access to a customer base that we didn't have before, and this greatly increases our reach in the country," says Zaremba.

Banco Hipotecario is controlled by Argentine businessman Eduardo Elsztain, one of the most influential figures in local capitalism. He has been the bank's president since 2009 and leads Grupo IRSA, Argentina's largest real estate conglomerate. With 140 years of history, Banco Hipotecario has approximately 1,500 employees, over 1 million clients, and total assets of around US$3 billion.

The move comes at a time when Vinci Compass sees a gradual improvement in the Argentine macroeconomic environment, after years of instability. The asset manager already has a recent track record of high returns in the country with its Vinci Argentina Opportunity Fund II, which focuses on special situations.

“Argentina has always been a profitable operation for us, because asset management is a financial service that holds up even in difficult cycles. This makes us comfortable with this move,” says Horta.

Furthermore, the operation was structured conservatively from a risk perspective. “There was no capital injection. We used the existing operation to make this corporate combination. It's a way for us to position ourselves to capture market improvements with greater depth and more product options,” says Zaremba.

Regional expansion on the radar

The operation in Argentina is not an isolated case. It is part of a broader expansion strategy by Vinci Compass in Latin America, intensified after the business combination with Compass in 2024. Today, the asset manager has a presence in countries such as Argentina, Chile, Colombia, Peru, and Uruguay, with different areas of operation.

“In the IPO, we had two main priorities: to grow our strategies and to regionally diversify the platform. Solving the regional issue is fundamental to generating value for the customer,” says Zaremba.

According to Zaremba, Chile is the most developed market outside of Brazil, with a strong presence in private credit. Colombia and Peru are gaining relevance through credit funds and joint ventures with local partners.

In the Colombian case, the asset manager formed a joint venture with KFS, which involves raising a private credit fund in the country. If the fund reaches a certain established value, Vinci Compass may acquire the asset manager.

In addition to organic growth, the asset manager keeps an active radar for new acquisitions and partnerships in the region. Vinci Compass is looking at similar opportunities to that in Argentina in markets such as Chile, Colombia, Peru, and Mexico. "Combining organic growth with acquisitions greatly accelerates our strategy," says Zaremba.

In Brazil, Vinci doesn't see only tactical moves like those expected in other Latin American countries and should focus more on organic growth. Since its IPO, when it raised US$250 million on Nasdaq, the asset manager has carried out a series of M&As that have helped the company enter new areas.

In November 2024, it acquired Lacan Ativos Reais, a forestry fund manager in Brazil. In April 2024, it acquired MAV Capital and increased its presence in agribusiness. In 2022, it entered into special situations with SPS Capital.

The most emblematic deal was the acquisition of 50.1% of Verde Asset, owned by Luis Stuhlberger , for R$ 46.8 million plus a portion in shares. The agreement also foresees the purchase of the entire company within five years, for up to R$ 127.4 million, depending on the achievement of certain targets.