Brazil’s Vinci Partners expands into forestry with Lacan acquisition

In a strategic move to strengthen its position in Latin American alternative investments, Brazil’s Vinci Partners has acquired Lacan Ativos Reais, a leading forestry asset manager with approximately R$1.5 billion ($260 million) in assets under management. The transaction, which closed on Nov. 4, 2024, marks Vinci’s entry into the forestry sector and follows closely on the heels of its recent merger with Compass.

Lacan, founded in 2000, has established itself as a prominent Timberland Investment Management Organization (TIMO) in Brazil. The firm currently manages 130,000 hectares of planted forests and preserved areas across four Brazilian states, with all operations maintaining FSC certification. The company focuses on sustainable practices, specifically targeting cleared or degraded lands for its plantations.

“Brazil offers numerous competitive advantages in the forestry sector, holding an impressive 8% share of the global roundwood market,” said Luiz Augusto Candiota, founding partner and chairman of Lacan. “The country’s eucalyptus cultivation process is not only unique but also the most efficient in the world.”

For Vinci Partners, the acquisition represents another step in its regional expansion strategy. The firm recently completed a merger with New York-based Compass, creating a full-service Latin American alternative asset manager with over $52 billion in AUM across private markets and public equities as of June.

“The combination with Compass allows us to expand our focus beyond Brazil and into the broader Latin American market, a region we believe is one of the most compelling globally for future growth with the increasing penetration of alternative investments,” said Vinci Partners CEO Alessandro Horta.

The Lacan acquisition comes at a time of increasing interest in Latin American forestry investments. Just six months ago, BTG Pactual’s Timberland Investment Group closed its BTF II fund with $1.24 billion in equity commitments, targeting forestry assets across Brazil, Chile, and Uruguay.

The deal structure includes an initial cash payment followed by potential earnout payments over four years, tied to fundraising and management fee revenue targets. Vinci Partners expects the acquisition to immediately boost its Fee Related Earnings and Distributable Earnings per share.

“We have always regarded the forestry sector in Brazil as a prime opportunity for capital deployment,” said Horta. “With the team and strong track record of Lacan, we believe there is opportunity to expand the strategy outside of Brazil.”

Lacan’s existing business includes three vintages of closed-end investment vehicles with minimum ten-year lockup periods, and a fourth vintage currently in fundraising. The firm has built strong relationships with institutional investors from both Brazil and Europe.