Financial Data and Key Metrics Changes - The third quarter of 2024 saw management fees reach approximately $78 million, up 26% year-over-year, while fee-related earnings reached almost $41 million, representing year-over-year growth of close to 13% [10][34] - Fee-related earnings per share in the quarter was $0.26, up more than 65% since 2021, with distributable earnings of close to $35 million or $0.23 per share [11][12] - Net fee revenue in Q3 reached $75.9 million, up 28% year-over-year, and $207.6 million year-to-date, up 19% [35] - The effective tax rate for Q3 2024 was 10.6%, higher than previous quarters, with a year-to-date rate of 8.8% [52][88] Business Line Data and Key Metrics Changes - Fee-earning AUM (Assets Under Management) rose to almost $34 billion, a 9% sequential increase and 58% year-over-year [13] - Real Estate Fee Earning AUM grew to over $6 billion, approximately 90% of which is permanent capital [24] - Credit fee earning AUM reached $6.5 billion, up 43% since the end of 2022, driven by strong organic net inflows and market appreciation [25] - GPMS (Global Private Market Solutions) raised over $1.8 billion in the second and third quarters, indicating strong fundraising momentum [27] Market Data and Key Metrics Changes - Approximately 40% of fundraising year-to-date has come from local investors within Latin America investing in local products managed by the company [21] - The company has returned close to $2 billion to investors in infrastructure funds since the start of 2023, indicating strong capital recycling [29] Company Strategy and Development Direction - The company aims to diversify and grow its business both organically and inorganically, with a focus on becoming the premier gateway for local investors to invest in locally managed alternatives [20] - The strategy includes expanding into new product structures and enhancing distribution capabilities, which has led to significant growth in fundraising [19][22] - The company is positioned to capitalize on the growing demand for alternative products within Latin America, particularly in infrastructure and credit [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the $5 billion fundraising target for 2024, with strong organic growth expected to continue into 2025 [8][16] - The company anticipates improvements in fee-related earnings and margins as it integrates newly acquired businesses and captures operating efficiencies [44][86] - Management highlighted the positive outlook for infrastructure investments in Brazil, despite broader economic challenges, citing successful auctions and foreign interest in local projects [95][100] Other Important Information - The company declared a $0.15 per share dividend for the quarter, with plans to maintain this through the fourth quarter of 2024 [17] - The company expects its debt to reach a peak of approximately $190 million at the end of the year, with a plan to reduce debt levels as cash generation improves [54][56] Q&A Session Summary Question: Fundraising and GPMS Contribution - Management noted that GPMS has significantly altered the organic growth trajectory, with strong fundraising momentum expected to continue [63][64] Question: Final Closes for Private Equity VII and Infrastructure V - Management confirmed that Private Equity VII is still targeting $2 billion, with the SMA from the Asian sovereign wealth fund not included in current numbers [72][73] Question: FRE Margin Expectations - Management expects FRE margins to improve in 2025, with a mid-50s number anticipated for Q1 and upper 50s by year-end [81][86] Question: Tax Rate Expectations - The effective tax rate is expected to be between 6% and 8% for the full year, with a gradual increase towards 10% in the coming years [82][88] Question: Infrastructure Fund Performance - Management indicated that the infrastructure segment is experiencing a mini boom, with successful auctions and strong foreign interest [95][100]

| --- | --- | --- | |------------------|------------------------------------------------|-------| | | | | | | | | | November 5, 2024 | | | | | | | | | PATRIA INVESTMENTS (NASDAQ: PAX) 3Q24 Earnings | | | | Presentation | | PATRIA PAX 3Q24 Earnings Presentation Disclaimer This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking ...

GRAND CAYMAN, Cayman Islands, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Patria (Nasdaq:PAX) reported today its unaudited results for the third quarter ended September 30, 2024. The full detailed presentation of Patria's third quarter 2024 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/. Alex Saigh, Patria’s CEO, said: “The third quarter of 2024 was another exciting quarter for Patria as Fee Earning AUM reached $34 billion representing year-over-year and sequential g ...

Alternative investment companies such as Blackstone ( BX ), Brookfield ( BN ), Apollo ( APO ) and KKR ( KKR ) have some of the best business models possible. They require little of their own capital and make vast amounts Analyst's Disclosure: I/we have a beneficial long position in the shares of PAX, APO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have n ...

GRAND CAYMAN, Cayman Islands, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Patria (Nasdaq:PAX) announced today that it will release financial results for the third quarter 2024 on Tuesday, November 5, 2024, and host a conference call via public webcast at 9:00 a.m. ET. To register, please use the following link: https://edge.media-server.com/mmc/p/emuekpt7 For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria's website at https://ir.patria.com/. Patria d ...

PeopleImages Editor's note: Seeking Alpha is proud to welcome Strategic Risk Mitigation Research as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. Click here to find out more » Introduction Following the last earnings release, I sold my entire position in Patria Investments (NASDAQ:PAX) after management announced immediate changes to their capital allo ...

Adam Gault Patria (NASDAQ:PAX) is a global alternative asset manager and industry leader in Latin America, with over 35 years of history, combined assets under management of $40.3 billion, and a global presence with offices in 10 cities across 4 continents. Patria aims to be the gateway for alternative investments in Latin America. Through a diversified platform spanning Private Equity, Infrastructure, Credit, Public Equities and Real Estate. Patria is a well-established leader in the Latin American alterna ...

Core Viewpoint - The article emphasizes the investment potential in Patria Investments Limited, highlighting its strong growth in fee-related earnings and undervaluation compared to peers in the alternative asset management sector [3][10][24]. Company Overview - Patria Investments is positioned as a leading asset management company in Latin America, focusing on private equity, infrastructure, and credit, with a significant growth trajectory [3][10][13]. - The company has a track record of growing its fee-related earnings per share by 21% annually since going public, despite distributing 80% of its distributable income in dividends [10][24]. Market Dynamics - The alternative asset management industry is projected to grow to $23 trillion by 2026, driven by increasing allocations from institutional investors [7]. - There is a growing trend of investors diversifying into alternative investments, with Brookfield Asset Management predicting allocations to alternatives will rise from 30% to over 60% by the end of the decade [6][7]. Competitive Position - Patria Investments is noted for its low valuation, trading at approximately 7x its fee-related earnings, which is considered attractive for a company with a growth rate exceeding 20% annually [12][24]. - The company has recently acquired two REIT managers, making it the largest REIT asset management company in Brazil, which is expected to enhance its revenue consistency and growth potential [17][18]. Financial Performance - The share price of Patria Investments has slightly declined by 8.97% over the past year, contrasting with the significant gains of its peers, indicating a potential buying opportunity [9][10]. - The company is expected to achieve a dividend yield of 6%-8% and aims to be debt-free by the end of the year, enhancing its financial stability [22][24]. Growth Opportunities - The article highlights the potential for substantial growth in alternative investments in Latin America, driven by trends such as nearshoring and geopolitical shifts [13][15]. - Patria Investments is well-positioned to capture market share in a less competitive environment, with a focus on regions with stable investment climates [13][23].

Patria Investments Limited (NASDAQ:PAX) Q2 2024 Earnings Conference Call August 1, 2024 9:00 AM ET Company Participants Rob Lee - Head of Shareholder Relations Alex Saigh - Chief Executive Officer Ana Russo - Chief Financial Officer Conference Call Participants Tito Labarta - Goldman Sachs Guilherme Grespan - JPMorgan Ricardo Buchpiguel - BTG Pactual Pedro Leduc - Itau BBA Operator Good day, and thank you for standing by. Welcome to the Patria Second Quarter 2024 Earnings Conference Call. At this time, all ...

| --- | --- | |----------------------------------|-------| | | | | | | | PATRIA | | | | | | | | | | | | Patria Investments (Nasdaq: PAX) | | | 2Q24 Earnings Presentation | | | August 1, 2024 | | PAX 2Q24 EARNINGS PRESENTATION Disclaimer This presentation may contain forward-looking statements within the meaning of Section 274 of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words suc ...