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.