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 - 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 increase and a 17% year-over-year growth [6][29] - Total AUM reached $48.7 billion, with fee-earning AUM growing 6% sequentially and 20% year-over-year [7][11] - The company generated over $600 million in organic net inflows into fee-earning AUM in Q2 2025, totaling $1.3 billion year-to-date [7][11] Business Line Data and Key Metrics Changes - Fee-earning AUM rose to $37.2 billion, with a 20% year-over-year increase and a 6% sequential increase [11][25] - The company reported a 34% year-over-year reduction in redemptions, indicating improved organic growth [12] - 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 - The company noted a shift in investor interest towards Latin America and Europe due to geopolitical uncertainties and high inflation concerns in the U.S. [17][20] - Local investors accounted for approximately 55% of fundraising in 2025, up from 68% in 2024 [21] 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][22] - The strategy includes leveraging acquisitions to enhance fee-earning AUM, as demonstrated by the acquisition of seven listed REITs in Brazil [13][70] - The company is focusing on expanding its presence in Mexico, particularly in real estate and credit sectors, while maintaining a cautious approach to growth [37][43] 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 year [22][30] - The company highlighted the resilience of its business model, which is designed to grow regardless of macroeconomic conditions [12][20] - Management noted that the current high interest rate environment is driving demand for credit and infrastructure investments [12][18] Other Important Information - The company reported a net accrued performance fee balance of $394 million, which rose approximately 7% from the previous quarter [9] - The effective tax rate for Q2 2025 was 8%, with expectations to hover around 10% annually [31] Q&A Session Summary Question: Expansion in Mexico - The company sees Mexico as an attractive long-term market and is looking for local partners in real estate, credit, and infrastructure [36][37] - A small acquisition of a Mexican real estate fund was made, with plans to expand into logistics real estate [38][39] Question: Deployment Pipeline in Infrastructure - The company has a significant pipeline in infrastructure, particularly in Brazil and Colombia, focusing on toll roads and energy projects [45][46] Question: Fundraising Guidance Clarification - The increase in fundraising guidance is separate from the REIT acquisitions, with strong interest from Asian, Middle Eastern, and local investors [52][54] - The company is experiencing a shift in capital allocation towards Latin America due to geopolitical uncertainties [56] Question: Timeline for REIT Consolidation - The acquisition of REITs is already closed, and the numbers will be reflected in Q3 results [70]