Core Viewpoint - Patria Investments Limited has successfully completed the acquisition of a 51% stake in Solis Investimentos, enhancing its position in the Latin American investment management sector [1]. Group 1: Acquisition Details - The acquisition adds approximately US$ 3.5 billion of Fee-Earning AUM (FEAUM) from Solis, increasing Patria's total Credit FEAUM by over 40% to more than US$ 11.7 billion [2]. - Solis will continue to operate under the leadership of its founders, Delano Macedo and Ricardo Binelli, with its team of over 100 professionals remaining in their current roles [3]. Group 2: Company Background - Patria is a global middle market alternative asset manager with over 37 years of experience and more than US$ 51 billion in assets under management, focusing on resilient and growth sectors [4]. - The company has a strong presence in Latin America and Europe, leveraging local expertise to identify unique investment opportunities [4].

Core Insights - In 2026, investors are expected to prioritize companies with consistent earnings growth, as this indicates profitability, but earnings acceleration is even more critical for driving stock prices higher [1][8] - Research shows that top-performing stocks often experience earnings acceleration before their share prices rise [1] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over time [2] - This metric helps identify stocks that have not yet attracted investor attention, which can lead to a price rally once they are recognized [3] Earnings Growth Trends - An increasing percentage of earnings growth suggests a company is fundamentally sound, while a stagnant or decelerating growth percentage may indicate consolidation or a slowdown, potentially dragging prices down [4] Screening Parameters - Stocks should be screened based on the last two quarter-over-quarter EPS growth rates exceeding previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to surpass prior periods [5][6] - Additional criteria include a current price of at least $5 and an average 20-day trading volume of 50,000 or more to ensure adequate liquidity [7] Top Stocks Identified - Screening for accelerating EPS growth narrowed the universe of approximately 7,735 stocks to just 11, with Silicon Laboratories Inc. (SLAB), Patria Investments Limited (PAX), and Fabrinet (FN) leading the list [8] - Expected earnings growth rates for 2026 are 197.8% for SLAB, 22.8% for PAX, and 16.1% for FN [8][9][10][11]

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched more than 1000 companies, focusing on metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1] - The analyst transitioned from writing a blog to creating a value investing-focused YouTube channel, where hundreds of companies have been researched [1]

Core Insights - Patria Investments Limited has announced a new corporate structure aimed at enhancing its global operating model and driving operational excellence [1] - The company is creating the role of Global Chief Operating Officer (COO) to lead this new structure, appointing Nikitas Psyllakis to the position [1] Company Developments - The new corporate structure is designed to better support Patria's strategic execution at scale [1] - The introduction of the COO role signifies a strategic move to improve operational efficiency within the organization [1]

Core Insights - Patria Investments Limited (PAX) is a leading asset manager in the Latin American market, having achieved significant growth through acquisitions since its IPO in 2021, recently surpassing $50 billion in assets under management [1] Group 1: Company Overview - Patria Investments Limited has established itself as a prominent player in the Latin American asset management sector [1] - The company has focused on growth through strategic acquisitions, contributing to its expansion since going public [1] Group 2: Financial Milestones - PAX has recently crossed the milestone of $50 billion in assets under management, indicating strong performance and market confidence [1]

Core Insights - Patria Investments has agreed to acquire RBR Gestão de Recursos Ltda, enhancing its position as the leading manager of listed REITs in Brazil and increasing its scale in credit and multi-asset strategies [1][3] - The acquisition will add approximately US$ 1.3 billion of Fee Earning Assets under Management (FEAUM), bringing Patria's total Real Estate FEAUM to US$ 8.5 billion pro-forma as of Q3 2025, reflecting a Compound Annual Growth Rate (CAGR) of over 65% since its IPO in early 2021 [2] Company Overview - Patria is a global alternative asset manager with a strong presence in Latin America and Europe, managing over US$ 51 billion in assets [4] - The company specializes in resilient and growth sectors, leveraging local expertise to identify compelling investment opportunities [4] Transaction Details - The acquisition is expected to close in Q1 2026 and is anticipated to be accretive to both Fee Related Earnings (FRE) and Distributable Earnings (DE) in the first year [3] - Post-acquisition, Patria will manage 12 funds, predominantly focused on Credit and Multi-Asset strategies, solidifying its leadership in the Brazilian REIT market [1][3]

Core Insights - Investors are evaluating Patria Investments (PAX) and Carlyle Group (CG) for potential undervalued stock opportunities [1] Valuation Metrics - PAX has a forward P/E ratio of 12.86, while CG has a forward P/E of 14.34 [5] - PAX's PEG ratio is 0.81, indicating a more favorable valuation compared to CG's PEG ratio of 1.44 [5] - PAX's P/B ratio is 1.62, significantly lower than CG's P/B of 3.05, suggesting PAX is undervalued relative to its book value [6] Earnings Outlook - PAX currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while CG has a Zacks Rank of 3 (Hold) [3] - The stronger estimate revision activity for PAX suggests a more favorable earnings outlook compared to CG [7] Value Grades - PAX has received a Value grade of A, reflecting its attractive valuation metrics, whereas CG has a Value grade of D [6]

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]

Core Insights - Patria Investments Limited (PAX) is a rapidly growing asset manager focused on the Latin American market [1] - The company has received a Buy rating from analysts, indicating positive sentiment towards its future performance [1] Company Overview - Patria Investments Limited specializes in asset management with a focus on Latin America [1] - The company has been under coverage for some time, highlighting its established presence in the market [1] Analyst Background - The author of the analysis has a strong academic background in economics and politics, with a focus on economic development [1] - The author possesses 36 years of executive management experience, particularly in insurance/reinsurance and global markets [1] Investment Position - The author holds a beneficial long position in PAX shares, indicating confidence in the company's future performance [2]