Patria Investments' Q4 2024: Contradictions in Redemption Trends, Fundraising Strategies, and Real Estate Fees

These are the key contradictions discussed in Patria Investments Limited's latest 2024Q4 earnings call, specifically including: Redemption Trends in Public Equities and Credit Strategies, Fundraising Strategy and Targets, Real Estate Management Fees, and Fundraising Plans:



Strong Fundraising Achievements:
- Patria Investments Limited reported raising $5.5 billion in 2024, surpassing their full year fundraising target of $5 billion.
- This success was driven by the introduction of new strategies and product offerings that did not exist at their IPO, along with a focus on diversification.

Fee Related Earnings Performance:
- The company achieved a full year fee related earnings target of $170 million, up 15% from 2023.
- The increase was due to the resilience of the business and the momentum built heading into 2025, reflecting the broader diversification of their platform.

Performance Related Earnings and Infrastructure Fund III:
- Patria realized over $41 million in performance related earnings in Q4, primarily from the sale of the Aguas Pacifico project in Infrastructure Fund III.
- This outcome positions the company on track to deliver on their updated cumulative performance related earnings guidance through 2027, with Infrastructure III expected to be the primary source of carry generation.

Increased Focus on Local Investments:
- Approximately 70% of fundraising in 2024 and 50% in the fourth quarter came from local investors investing in local products.
- This trend reflects efforts to diversify the business and increase its resiliency, by better serving shifting investor demands within the region.