Investment firms Vinci Partners, Compass announce business combination

SAO PAULO, March 7 (Reuters) - Brazil-based investment management company Vinci Partners and independent asset manager Compass announced on Thursday a business combination expected to take place by the end of the third quarter this year.

The companies, who jointly would have more than $50 billion in assets under management, said the deal will be paid partly in cash and partly in equity.

Manuel Balbontín, chairman of Compass, and Jaime de la Barra, the vice chairman, will join Vinci's board when the transaction is completed. Compass was founded in 1995, and present in seven Latin American countries.

"This combination with Compass marks the most significant step so far in our long-term strategic growth plan presented at our investor day, allowing us to expand our footprint into Latin America, one of the most attractive markets for alternatives," said Alessandro Horta, Chief Executive Officer of Vinci Partners, in a press release.

Vinci says the transaction is fully aligned with its strategic growth plan to expand its geographic footprint into a true pan-regional platform.

Vinci will pay the transaction giving about 11.8 million Class A shares, and $31.3 million in cash through redememable stocks. (Reporting by Steven Grattan and Andre Romani; Editing by David Gregorio)