Core Insights - Patria Investments (NASDAQ: PAX) has shown strong double-digit growth in assets under management (AUM) and earnings, transitioning towards a more shareholder-focused model, yet the stock performance remains flat despite macroeconomic developments [1] Company Overview - Patria Investments has been delivering robust growth in AUM and earnings, indicating a positive trend in financial performance [1] - The company is shifting its focus towards enhancing shareholder value, which may attract more investors in the long term [1] Analyst Background - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology, which provides a solid foundation for evaluating investment opportunities [2] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, further expanding the reach and depth of company research [2] Investment Position - The analyst currently holds no positions in PAX but may consider initiating a long position in the near future, indicating potential interest in the stock [3]

Core Insights - Patria will release its financial results for Q3 2025 on November 4, 2025, and will host a conference call at 9:00 a.m. ET [1] - The firm specializes in mid-market alternative asset management, focusing on resilient sectors in Latin America and Europe [2] Company Overview - Patria is a leading asset manager in Latin America with over $48 billion in assets under management and 37 years of experience [2] - The company emphasizes long-term investments that promote inclusive and sustainable development in its operating regions [2] Investment Focus - Patria's asset classes include Private Equity, Credit, Real Estate, Infrastructure, and Public Equities [3] - Key sectors of investment are Agribusiness, Power & Energy, Healthcare, Logistics & Transportation, Food & Beverage, and Digital & Tech Services [3] - The investment regions include Latin America, Europe, and the U.S. [3]

Core Insights - PAX Health, a prominent player in the behavioral healthcare sector, has announced its acquisition of Neuropsychology and Counseling Associates, expanding its service offerings in New Jersey [1] Company Summary - PAX Health is backed by HCAP Partners and funds managed by Hamilton Lane, indicating strong financial support and investment in the behavioral healthcare industry [1] - The acquisition targets a comprehensive outpatient mental health practice that serves a diverse demographic, including children, adolescents, adults, and families [1] Industry Context - The acquisition reflects a growing trend in the behavioral healthcare industry towards consolidation, aiming to enhance service delivery and accessibility for mental health services [1]

Group 1 - The event is the third edition of PAX Talks, focusing on Patria's Global Private Market Solutions (GPMS) and its approach to generating Alpha in middle market private equity [1][2] - Andre Medina leads the Shareholder Relations at Patria and introduces the session, while Charles Keenan, with a background in public markets portfolio management, will lead the Q&A [1] - Merrick Mckay, a partner and head of Private Equity for GPMS, has over 30 years of experience in the European private equity industry and is involved in various advisory roles [2] Group 2 - The format of the event is a fireside chat Q&A, allowing participants to submit questions for discussion [3] - There is a reminder regarding forward-looking statements, indicating that the information shared may not guarantee future performance [3][4]

Summary of Patria Investments (NasdaqGS:PAX) Update / Briefing Company Overview - **Company**: Patria Investments - **Event**: Third edition of Pax Talks, focusing on Global Private Markets Solutions (GPMS) business - **Date**: September 18, 2025 - **Key Speakers**: Andrea Medina (Shareholder Relations), Merrick McKay (Partner and Head of Private Equity for GPMS), Charles Keenan (Portfolio Manager at Long Light Capital) Key Points Industry and Business Model - **Industry**: Private Equity, specifically focusing on middle-market investments - **Business Model**: GPMS invests in middle-market private equity primaries, secondaries, and co-investments primarily in Europe and to a lesser extent in the U.S. [3][4] Financial Metrics - **Assets Under Management (AUM)**: As of Q2, GPMS had $13.9 billion in AUM, with $11.4 billion being fee-earning AUM, $1.4 billion pending fee-earning AUM, and $3 billion uncalled capital [3] - **Patria Private Equity Trust (PPET)**: Represents over $1.6 billion of permanent capital fee-earning AUM and has raised over $3.5 billion since the acquisition of Aberdeen's middle-market private equity solutions business [4] Growth Strategy - **Growth Target**: Patria aims to double GPMS fee-earning AUM within the next three years [4][53] - **Focus Areas**: - Maintain and grow the separate managed account (SMA) client base - Expand successful secondaries strategy (SOF) - Develop new pooled products and explore opportunities in LATAM [54][55] Market Dynamics - **Middle-Market Focus**: The mid-market has historically generated superior returns compared to large-cap investments due to lower pricing, more growth opportunities, and lower correlation with public markets [23][24] - **Investor Sentiment**: There has been a shift in focus from large mega-cap investments to mid-market opportunities as private equity returns have begun to decline [26][27] Client Relationships - **Client Base**: Predominantly consists of separate managed accounts (SMAs) and pooled products, with a strong emphasis on maintaining close relationships with clients [12][41] - **Investor Preferences**: Clients prefer tailored strategies that leverage Patria's expertise in specific market segments, particularly in Europe [17][18] Competitive Advantage - **Relationship-Driven**: The success of GPMS is heavily reliant on long-term relationships with both limited partners (LPs) and general partners (GPs), which are crucial for co-investment opportunities and secondary market transactions [40][42] - **Operational Efficiency**: Patria's ability to move quickly and adapt to market changes is highlighted as a significant advantage over larger, more bureaucratic institutions [70] Future Outlook - **Expansion Plans**: Patria aims to broaden its private market solutions beyond private equity to include venture capital, infrastructure, private credit, and real estate [62][63] - **LATAM Market Potential**: There is a significant opportunity for growth in the LATAM market, which is currently under-allocated to private equity compared to developed markets [55][66] Challenges and Considerations - **Market Conditions**: The dynamics in different LATAM countries vary significantly, affecting the pace of growth and investment opportunities [67] - **Investment Performance**: Maintaining strong performance is critical for client retention and attracting new investments [53] Additional Insights - **Historical Context**: The discussion reflects on the evolution of private equity, noting that the last decade has seen significant tailwinds that have now shifted, necessitating a focus on alpha generation rather than beta [36][38] - **Investment Philosophy**: Patria emphasizes the importance of sector specialization and operational value-add in mid-market investments, which differentiates them from larger players [24][25]

Group 1 - The Annual General Meeting of Shareholders for Patria Investments Limited is being conducted primarily on a virtual online platform to provide convenient access to all shareholders [3] - Olímpio Matarazzo Neto serves as the Chairman of the Board of Directors and is accompanied by the Chief Finance Officer and the VP of Shareholder Relations [2] - A quorum has been established for the meeting, allowing it to proceed with the transaction of business [4]

Core Insights - Patria Investments Limited (NASDAQ: PAX) has established significant momentum in the alternative asset sector, leveraging a diverse platform that includes private equity, infrastructure, credit, real estate, and solutions to drive growth [1] Company Overview - The company operates across multiple asset classes, which aids in its resilience and growth even in challenging market conditions [1] Investment Focus - The analysis emphasizes a disciplined approach to evaluating companies, focusing on numerical data and underlying business performance rather than narratives [1]

Core Insights - Patria Investments Limited (NASDAQ: PAX) has established significant momentum in the alternative asset sector, leveraging a diverse platform that includes private equity, infrastructure, credit, real estate, and solutions to drive growth [1] Company Overview - The company operates across multiple asset classes, which aids in its resilience and growth even in challenging market conditions [1] Investment Strategy - The focus is on providing a clear and disciplined analysis of companies, emphasizing the importance of understanding the underlying business and financial metrics rather than following market narratives [1]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, staples, REITs, and utilities [1]

Financial Data and Key Metrics Changes - Fundraising in Q2 2025 was $1.3 billion, contributing to a total of approximately $4.5 billion for the first half of the year, which is 75% of the original $6 billion target for 2025 [6][14] - Fee-related earnings for Q2 2025 were $46.1 million, reflecting an 8% sequential and 17% year-over-year growth, while fee-earning AUM grew 6% sequentially and 20% year-over-year [6][29] - Total AUM reached $48.7 billion, with organic net inflows of over $600 million in Q2 2025 and $1.3 billion year-to-date [7][10] Business Line Data and Key Metrics Changes - Fee-earning AUM rose to $37.2 billion, marking a 20% year-over-year and 6% sequential increase [10][24] - The company reported a 34% year-over-year reduction in redemptions, indicating improved organic growth capabilities [11] - Infrastructure fundraising in 2025 was approximately three times greater than in all of 2024, driven by strong demand for Infrastructure Fund V [15] Market Data and Key Metrics Changes - Local investors accounted for approximately 55% of fundraising in 2025, indicating a strong preference for local investment opportunities [21] - The company noted a shift in investor interest towards Latin America as a destination for capital allocation, influenced by geopolitical uncertainties in the U.S. [54][20] - The Brazilian REIT acquisitions are expected to add approximately $600 million in fee-earning AUM, enhancing the company's market position [66] Company Strategy and Development Direction - The company aims to achieve a full-year fundraising target of $6.3 billion to $6.6 billion, reflecting a 5% to 10% increase from the original target [6][21] - The strategy includes leveraging acquisitions to enhance growth, as demonstrated by the recent acquisition of seven listed REITs in Brazil [12][66] - The focus on resilient sectors such as agribusiness, food and beverage, and healthcare is expected to drive positive underlying business trends [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 fee-related earnings target of $200 million to $225 million, with a strong start to the three-year plan [21][30] - The company is well-positioned to navigate global macroeconomic uncertainties, with a focus on local consumption markets rather than export markets [17][20] - Management highlighted the importance of organic growth and the ability to generate revenue independent of M&A and investment returns [7][11] Other Important Information - The company reported a net accrued performance fee balance of $394 million, reflecting a 7% increase from the previous quarter [8] - The effective tax rate for Q2 2025 was 8%, with expectations to hover around 10% annually [31] - A quarterly dividend of $0.15 per share was approved for 2025, indicating a commitment to returning value to shareholders [32] Q&A Session Summary Question: Expansion plans in Mexico - Management acknowledged Mexico as an attractive long-term market and discussed potential local partnerships in real estate and credit sectors [36][42] Question: Deployment pipeline in infrastructure - Management indicated a strong pipeline in infrastructure, particularly in Brazil and Colombia, with significant capital available for investment [44][45] Question: Clarification on fundraising guidance - Management clarified that the increased fundraising guidance excludes the recent REIT acquisitions, with interest coming from Asian, Middle Eastern, and local investors [50][52] Question: Timeline for REIT acquisitions consolidation - Management confirmed that the REIT acquisitions are already closed and will start contributing to results in Q3 2025 [66]