Latin American asset manager Patria Investments Limited ( PAX ) is a leader in the Latam market. It has grown steadily by acquisition since its IPO in 2021 and, as I discussed in my latest article, recently passed the landmark of $50bnThe author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his ...

Acquisition solidifies Patria’s position as the leading manager of listed REITs in Brazil while further enhancing Patria’s scale in strategically critical credit and multi-asset strategies. Pro-forma for the transaction, permanent capital vehicles will account for approximately 22% of total Fee Earning Assets under Management (“FEAUM”)GRAND CAYMAN, Cayman Islands, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Patria Investments Limited (“Patria”) (NASDAQ: PAX), a global alternative asset manager, announced today the ag ...

Investors interested in stocks from the Financial - Investment Management sector have probably already heard of Patria Investments (PAX) and Carlyle Group (CG) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank fav ...

Core Viewpoint - The article highlights Patria Investments Limited (PAX) as a strong value investment opportunity, showcasing its favorable valuation metrics compared to industry averages [4][5][6][7][8][9]. Valuation Metrics - PAX has a P/E ratio of 10.79, significantly lower than the industry average of 13.86, indicating potential undervaluation [4]. - The PEG ratio for PAX is 0.73, compared to the industry's average of 0.88, suggesting that PAX is undervalued relative to its expected earnings growth [5]. - PAX's P/B ratio stands at 1.63, well below the industry average of 3.13, further supporting the notion of undervaluation [6]. - The P/S ratio for PAX is 2.42, compared to the industry's average of 3.52, indicating a more favorable valuation based on sales [7]. - PAX has a P/CF ratio of 18.91, which is lower than the industry average of 35.19, suggesting a solid cash outlook [8]. Investment Outlook - The combination of these metrics positions PAX as likely undervalued, making it one of the strongest value stocks in the market based on its earnings outlook [9].

Core Insights - Patria Investments Limited has agreed to acquire 51% of Solis Investimentos, a Brazilian investment manager specializing in CLOs, adding approximately US$ 3.5 billion in Assets Under Management (AUM) [1][2] - The acquisition will increase Patria's total Credit Fee-Earning AUM by over 40% to more than US$ 11.7 billion, solidifying its position as a leading Credit platform in Latin America [2] - The partnership aims to enhance Solis's growth by leveraging its credit origination and analysis capabilities with Patria's platform, expanding access to local and global capital [3][6] Company Overview - Solis Investimentos, founded in 2015, is a market leader in the CLO segment in Brazil, known for its strong market relationships and access to capital [3] - Solis serves a diversified investor base, including asset managers, bank treasuries, family offices, and wealth management clients, managing over 120 funds and serving more than 30,000 investors [4][7] - The funds managed by Solis have experienced a compound annual growth rate (CAGR) of approximately 45% since 2021, surpassing the market's average of 35% [7] Strategic Implications - The acquisition is expected to be accretive in the first year, enhancing Patria's origination capabilities in a rapidly growing market for non-bank, asset-backed instruments like CLOs [6][8] - The integration of Solis's expertise with Patria's sector intelligence and capital access is anticipated to strengthen both platforms and improve service to clients [6][7] - The leadership team at Solis will remain intact post-acquisition, ensuring continuity and the preservation of the company's operational DNA [5][7]

Patria Investments Limited ( PAX ) is a Latin American focused asset manager, which has been growing rapidly. I have been covering Patria for some time now, after my introductory article back in early 2024 with a Buy rating. I mostThe author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his pers ...

Core Insights - Patria Investments (PAX) is a rapidly growing asset manager focused on the Latin American market [1] Company Overview - Patria Investments has been covered by analysts for some time, with a positive outlook since an introductory article in early 2024 that assigned a Buy rating [1] Analyst Background - The author of the analysis has an honours degree in economics and politics, specializing in economic development, and possesses 36 years of executive management experience [1]

Core Viewpoint - Investors are comparing Patria Investments (PAX) and KKR & Co. Inc. (KKR) to determine which stock offers better value for investment at the current time [1] Group 1: Zacks Rank and Earnings Outlook - Patria Investments has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while KKR has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that PAX is likely experiencing a more favorable earnings outlook than KKR [3] Group 2: Valuation Metrics - PAX has a forward P/E ratio of 12.00, significantly lower than KKR's forward P/E of 23.03, indicating that PAX may be undervalued [5] - The PEG ratio for PAX is 0.81, while KKR's PEG ratio is 1.17, suggesting that PAX offers better value relative to its expected earnings growth [5] - PAX's P/B ratio is 1.5 compared to KKR's P/B of 1.58, further supporting the argument that PAX is a more attractive investment option based on valuation metrics [6] Group 3: Overall Value Assessment - Based on various valuation metrics, PAX holds a Value grade of A, while KKR has a Value grade of D, indicating that PAX is currently the superior value option [6]

Financial Data and Key Metrics Changes - Patria's assets under management (AUM) exceeded $50 billion, representing a growth of over 3.5 times since its IPO in 2021 [6][7] - Organic fundraising surpassed $1.5 billion in Q3 2025, with year-to-date totals reaching $6 billion, indicating strong momentum [8][11] - Fee earning AUM grew to approximately $38.8 billion, up 4% sequentially and 14% year-over-year [19][20] - Fee related earnings (FRE) for Q3 2025 were reported at $49.5 million, reflecting a 22% increase year-over-year and a 7% increase sequentially [22][23] - Distributable earnings reached $46.9 million, up 34% year-over-year and 22% sequentially [26] Business Line Data and Key Metrics Changes - The infrastructure and credit businesses led the organic fundraising efforts, contributing significantly to the overall growth [8][12] - The infrastructure Fund V raised $2.9 billion, marking a 40% increase compared to the previous vintage, making it the largest dedicated infrastructure fund focused on Latin America [12][13] - The credit business surpassed its total 2024 fundraising by nearly 15%, reaching $1.6 billion in 2025 [12] Market Data and Key Metrics Changes - The depreciation of the U.S. dollar against other currencies is seen as a catalyst for international portfolio diversification, prompting investors to seek exposure in regions with stronger fundamentals [10][11] - There is increased global interest in infrastructure investments in Latin America, benefiting Patria as a leading infrastructure investor in the region [11][12] Company Strategy and Development Direction - The company aims to raise $21 billion from 2025 to 2027, with specific targets of $6 billion in 2025, $7 billion in 2026, and $8 billion in 2027 [16] - Patria plans to focus on organic growth in 2025, with a potential restart of acquisition efforts in 2026 and 2027, particularly in real estate and credit sectors [35][36] - The company is looking to expand its GPMS (Global Private Market Solutions) business, particularly in the U.S. and Mexico, to enhance its global presence [36][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the high end of the 2025 fundraising target of $6.6 billion, supported by strong fundraising momentum [16][18] - The company expects to generate approximately $15 million in performance-related earnings in Q4 2025, with potential for more monetization events [10][24] - The overall macroeconomic environment, characterized by persistent inflation and high interest rates, is seen as favorable for fundraising efforts [12][13] Other Important Information - The effective tax rate for Q3 2025 was reported at 3.3%, with expectations to hover around 10% annually in the coming years [26] - The Board approved an annual dividend of $0.60 per share for 2025, with a declared dividend of $0.15 per share for Q3 [27] Q&A Session Summary Question: Update on capital deployment pacing with $3.2 billion in pending fee earning AUM - Management indicated that the pending AUM will likely be deployed over the next 12 to 18 months, primarily in infrastructure investments [30][33] Question: Update on inorganic growth and asset classes of interest - Management stated that no acquisitions are planned for 2025, with a focus on organic growth, and potential acquisitions in real estate and credit sectors in 2026 and 2027 [34][35] Question: FRE guidance for the year and potential upside in Q4 - Management expects around $10 million to $12 million from incentive fees in Q4, which will be a significant contributor to surpassing the $200 million FRE target [44][46] Question: Update on GPMS product cross-sell evolution - Management highlighted successful phases in gaining client confidence and attracting new investments, with plans to launch new products in the GPMS structure [66][75]

Financial Data and Key Metrics Changes - As of the end of Q3 2025, the company's assets under management (AUM) exceeded $50 billion, representing a growth of over 3.5 times since the IPO in 2021 [4] - Year-to-date organic fundraising reached $6 billion, with a strong Q3 contribution of $1.5 billion, positioning the company to exceed its full-year target of $6.6 billion [5][11] - Fee-earning AUM grew to $38.8 billion, reflecting a 4% sequential increase and a 14% year-over-year growth [8][19] - Fee-related earnings (FRE) for Q3 2025 were reported at $49.5 million, up 22% year-over-year and 7% sequentially, with a per-share increase of 8% sequentially and 19% year-over-year [8][23] - Distributable earnings reached $46.9 million, or $0.30 per share, marking a 31% year-over-year increase [9][28] Business Line Data and Key Metrics Changes - The infrastructure and credit businesses led the organic fundraising efforts, contributing significantly to the overall growth [5][12] - The infrastructure fund 5 raised $2.9 billion, making it the largest dedicated infrastructure fund in Latin America, with a 40% increase compared to the previous vintage [12] - The credit business surpassed total 2024 fundraising by nearly 15%, raising $1.6 billion year-to-date [13] Market Data and Key Metrics Changes - The company noted a trend of global investors seeking exposure to non-U.S. markets due to the depreciation of the U.S. dollar, which is expected to support fundraising efforts [11] - The company is experiencing increased interest in infrastructure investments in Latin America, benefiting from its position as a leading infrastructure investor in the region [12] Company Strategy and Development Direction - The company aims to diversify and grow its business both organically and inorganically, with a focus on expanding its investment strategies and geographic footprint [17][36] - The company plans to resume acquisition efforts in late 2025 or 2026 after a pause to integrate previous acquisitions and demonstrate organic growth [34][35] - The company is particularly interested in credit and real estate asset classes for future acquisitions, with a focus on expanding its U.S. presence [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the high end of the 2025 fundraising target and anticipates a strong performance in Q4, driven by incentive fees and increased management fees from fundraising [39][41] - The company expects to generate approximately $15 million in performance-related earnings in Q4 2025, with potential for more realizations from its infrastructure fund [10][49] - The management highlighted a favorable regulatory environment in Brazil for data centers, which could lead to significant investment opportunities [42][45] Other Important Information - The company has a share repurchase program authorized for up to 3 million shares, with a total return swap in place for 1.5 million shares [9][28] - The effective tax rate for Q3 was 3.3%, with expectations for it to hover around 10% annually in the coming years [27] Q&A Session Summary Question: How is the company thinking about the pacing of capital deployment with $3.2 billion in pending fee-earning AUM? - Management indicated that most of the pending fee-earning AUM will be deployed over the next 12 to 18 months, primarily in infrastructure investments [31][32] Question: What is the company's strategy for inorganic growth moving forward? - Management stated that they plan to restart acquisition efforts in late 2025 or 2026, focusing on credit and real estate asset classes, with a particular interest in expanding in the U.S. [34][36] Question: Can you provide an update on the FRE guidance for this year? - Management expects to surpass the $200 million FRE target, primarily driven by anticipated incentive fees and increased management fees from fundraising [39][41] Question: What is the mechanism behind the total return swap mentioned in the call? - Management explained that the total return swap involves purchasing shares on behalf of the company, which will be settled by mid-2026 [28]