Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. The acquisition of Navi's Real Estate funds deepens presence in the Multi-strategy Real Estate segment, providing necessary scale to compete for follow-on offerings in supportive markets.
The combination with BACS Asset Management leverages extensive corporate and retail distribution networks to capture growth in Argentina's evolving financial system. Management attributes the 36% year-over-year growth in fee-related earnings to operating leverage, where revenue from acquisitions and organic fundraising outpaces cost growth. Elevated real interest rates in Brazil are creating attractive entry valuations for private market deployment, allowing for disciplined capital allocation with downside protection.
The firm is intentionally calling capital for proprietary funds, which temporarily reduces short-term financial income but builds long-term value through future management fees and carry. Management notes that technical pressure from capital rotating into U.S. technology and AI sectors is easing, potentially benefiting the firm's Equities segment. Full-year fee-related earnings margins are expected to remain in the mid-30s range, supported by the full-period contribution of the higher-margin BACS operation.
The second half of 2026 is projected to see improved revenue in Corporate Advisory as the team works through an extensive pipeline of mandates expected to close. Fundraising momentum is expected to accelerate for flagship strategies including COPCO, VIR V, and Credit Infra across the Credit and Real Assets segments. Management anticipates the beginning of a meaningful capital return cycle from GP commitments, which will allow for recycling capital into new proprietary investments.
The firm expects to receive an indemnification payment of BRL 90 million to BRL 100 million related to the Galeao airport concession in the second half of 2026. The Navi acquisition will add approximately BRL 800 million in AUM, primarily in perpetual and long-term lock-up vehicles, with closing expected in Q4 2026. Outflows in the Third-Party Distribution business were partly driven by Chilean pension funds rebalancing portfolios due to regulatory limits on offshore exposure.
Seasonal costs related to third-party services and one-time severance payments for cost-reduction initiatives impacted the FRE margin in the second quarter. Unrealized GP investment income was weighed down by mark-to-market adjustments in Real Estate funds during the period. Nvidia-level potential. 30M+ investors trust Moby to find it first.
Extract — continue reading at the source.
