SAO PAULO, July 28 (Reuters) - Vinci Compass is

in talks to buy Verde Asset Management, one of Latin America's

most established hedge funds, Verde told Reuters on Monday,

confirming earlier news reports.

The move, set to be carried out through a share swap, would

put Vinci, a Nasdaq-listed firm focused on alternative

investments such as private equity, and Verde under the same

roof.

News outlet Brazil Journal first reported the potential

deal, citing sources. The two firms combined manage nearly $58

billion in assets, according to data on their websites.

The two Brazilian asset managers reached an initial agreement

for a joint venture that would give Vinci control of Verde after

five years, Verde confirmed.

Verde's management would remain autonomous during that period,

and Verde co-founder Luis Stuhlberger is set to remain as

partner, it added.

Vinci did not immediately respond to a request for comment

sent outside normal business hours.