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- **$50 billion AUM milestone**: Symbolizes 3.5x growth since IPO, driven by organic and inorganic expansion.
- **$6 billion YTD fundraising**: Exceeds 2024 pace, with 6% annualized organic growth.
- **FRE guidance**: 2025 target $200-225 million, 2026 $225-245 million (15% YoY growth).
- **Performance fees**: $15 million Q4 2025, total $120-140 million through 2027.
- **Strategic initiatives**: $14 billion 3-year M&A target, U.S. market expansion, and data center infrastructure investments.

**【CEO Summary Section】**
- **$50 billion AUM milestone**: Achieved as of Q3 2025, up 3.5x since IPO in 2021.
- **Organic fundraising momentum**: $1.5 billion raised in Q3, $6 billion YTD, surpassing 2024's $4.6 billion.
- **Net organic growth**: $1.4 billion YTD net inflows, 6% annualized organic growth rate.
- **Fee-related earnings (FRE)**: $49.5 million in Q3 (22% YoY growth), guided to exceed $200 million for 2025.
- **Performance fees**: $15 million expected in Q4 from Infrastructure Fund III, total year-to-date $16 million.
- **Strategic focus**: Expanding in credit, real estate, and U.S. markets; $14 billion 3-year fundraising target (2025-2027).

**【CFO Financial Commentary】**
- **Revenue**: $84.6 million (11% YoY growth), driven by fee-earning AUM growth to $38.8 billion.
- **FRE margin**: 58.5% in Q3 (up 170bps QoQ), guided to 58-60% for 2025.
- **Operating expenses**: $34.4 million (flat YoY), reflecting cost control.
- **Debt**: $108 million (0.6x net debt/FRE ratio), well below 1x target.
- **Dividend**: $0.65 per share for 2026, up 8% from 2025's $0.60.

**【Q&A Highlights】**
- **Capital deployment**: $3.2 billion pending fee-earning AUM to be deployed over 12-18 months, primarily in infrastructure.
- **Inorganic growth**: Focus on credit, real estate, and U.S. expansion; $14 billion 3-year M&A target.
- **FRE guidance**: Full year 2025 FRE to exceed $200 million, 2026 target $225-245 million.
- **Performance fees**: Infrastructure Fund III expected to generate $120-140 million through 2027.
- **Share buyback**: 1.5 million shares purchased via total return swap, guided to offset dilution.
- **GPMS cross-sell**: 8% YoY AUM growth, with new co-investment fund launching in 2026.

Patria Investments Limited(PAX)-20251104-2025 Q3 Earnings call transcript

- **Fundraising Surpass**: Q2 2025 fundraising of $1.3 billion, raising full-year target to $6.3-$6.6 billion (+5%-10%), driven by credit and infrastructure strategies.
- **Organic Growth Acceleration**: $600 million Q2 organic net inflows, 8% annualized organic growth rate, and 34% YoY reduction in redemptions.
- **Strategic Acquisitions**: $600 million Brazilian REITs acquisition and initial Mexico foray highlight M&A as a growth driver.
- **Resilience to Tariffs**: Minimal impact on operations despite U.S. tariffs, with 30% of assets in Brazil and 90% of AUM in sticky vehicles.
- **Financial Strength**: Q2 distributable earnings of $38.8 million (+15% YoY), with no dividend increase planned as focus remains on debt stability and growth.

**【CEO Summary Section】**
- **Fundraising Momentum**: Q2 2025 fundraising of $1.3 billion, with H1 total reaching $4.5 billion, exceeding the original $6 billion annual target by 5%-10% to $6.3-$6.6 billion. Credit and infrastructure strategies led the charge, with infrastructure fundraising up 3x YoY.
- **Fee-Related Earnings (FRE)**: Q2 FRE of $46.1 million (+17% YoY, +8% QoQ), with full-year guidance of $200-$225 million. Organic net inflows of $600 million in Q2, $1.3 billion YTD, and $2.4 billion LTM, driving an 8% annualized organic growth rate.
- **AUM Growth**: Fee-earning AUM reached $37.2 billion (+20% YoY, +6% QoQ), supported by net organic inflows and reduced redemptions (-34% YoY). 20% of AUM in permanent capital vehicles, enhancing resilience.
- **Strategic Acquisitions**: Acquired 7 Brazilian REITs for $600 million of high-margin AUM, exemplifying M&A as a growth driver. Initial steps in Mexico with a $26 million FIBRA acquisition targeting logistics real estate.
- **Macroeconomic Resilience**: Business model insulated from U.S. trade policy uncertainty, with 30% of invested assets in Brazil and minimal exposure to export-focused businesses. 90% of fee-earning AUM in vehicles with limited redemption features.

**【CFO Financial Commentary】**
- **Financial Performance**: Q2 distributable earnings of $38.8 million (+15% YoY, +5% QoQ), driven by higher FRE and lower net financial expenses. Effective tax rate of 8%, expected to hover around 10% annually.
- **Leverage Management**: Net debt of $130 million, well below 1x debt-to-FRE ratio. Share repurchase program authorized for up to 3 million shares to offset dilution from stock-based compensation.
- **Dividend Policy**: Quarterly dividend of $0.15 per share maintained, with no immediate plans for increase due to focus on debt stability and organic growth.

**【Q&A Highlights】**
- **Mexico Expansion**: Initial foray through a $26 million FIBRA acquisition, targeting logistics real estate. Long-term view on Mexico as a growth market, though contributions to AUM will be gradual.
- **Deployment Pipeline**: $3.3 billion of uncalled capital, with infrastructure (34%) and GPMS (42%) as key deployment areas. Infrastructure Fund V and co-investments driving $2.5 billion in commitments.
- **Tariff Impact**: U.S. tariffs on Brazil expected to reduce GDP growth by 0.2%-0.4%, but minimal impact on Patria's operations. 12% of Brazilian exports to the U.S., with 45% exempt from tariffs.
- **2026 Outlook**: Confident in achieving 2027 targets of $70 billion AUM and $260-$290 million FRE, supported by strong fundraising momentum and organic growth.


Patria Investments Limited (PAX) Q2 2025 Earnings Call Transcript

- **$3.2B Q1 Fundraising Record**: Driven by $1B SMAs with Asian sovereign wealth funds, FEAUM up 46% YoY to $35B. 
- **8.6% Organic Growth**: $700M net inflows highlight platform resilience despite global uncertainty. 
- **Trade Resilience**: <10% AUM exposed to U.S. tariffs; 90% FEAUM in sticky vehicles. 
- **$6B Annual Target**: On track to exceed 2024's $7.4B 12-month fundraising. 
- **FRE Guidance**: $200-225M for 2025, supported by 58-60% margin guidance. 
- **Pending Capital**: $3.5B to deploy, with 20% of FEAUM in permanent vehicles.

**【CEO Summary Section】**
- **Record Fundraising**: Q1 2025 fundraising of $3.2 billion, with $1 billion from Asian sovereign wealth funds in customized SMAs, driving fee earning AUM (FEAUM) growth to $35 billion (46% YoY, 6% QoQ). 
- **Organic Growth**: $700 million net organic inflows (8.6% annualized), marking second consecutive quarter of positive growth. 
- **Trade Uncertainty Resilience**: <10% of AUM exposed to U.S. tariffs; 90% of FEAUM in vehicles with no/redemption features. 
- **Guidance Reaffirmation**: On track for $6 billion annual fundraising target and $200-225 million FRE guidance. 

**【CFO Financial Commentary】**
- **FRE Performance**: Q1 2025 FRE of $42.6 million ($0.27/share), up 21% YoY, driven by 46% YoY FEAUM growth. 
- **Operating Expenses**: $35 million (36% YoY increase), with 75% due to acquisitions. 
- **Margin Guidance**: Full-year FRE margin expected to remain within 58-60% range. 
- **Pending FEAUM**: $3.5 billion committed capital to be deployed over next 12-18 months. 

**【Q&A Key Highlights】**
- **Macro Impact**: Latin America benefits from low tariff exposure (10% max) and growing FDI share (14.5% in 2023 vs. 4% in 1990). 
- **Fundraising Outlook**: $6 billion target achievable despite Q1 outlier; 20% of FEAUM in permanent capital vehicles. 
- **Integration Progress**: 2025 as "integration year"; HR, payroll, and ERP systems fully unified across 800+ employees. 
- **Credit Fund Momentum**: Flagship U.S. dollar high-yield credit fund sees strong demand amid regional inflation stabilization. 
- **Infrastructure Fundraising**: Infrastructure V on track to exceed $2.5 billion; GPMS SMA inflows driving organic growth.

Patria Investments Limited (PAX)-2 May 25-2025 Q1 Earnings call transcript

- **Record Fundraising**: Exceeded 2024 target with $5.5B raised, including $300M in advisory fees. Fee-related earnings up 15% YoY to $170M.
- **PRE Success**: $60M realized from Aguas Pacifico sale, with $40M recognized in Q4. Additional exits in Infrastructure Fund III expected.
- **Local Growth**: 70% of 2024 fundraising from local investors in local strategies. Local currency EBITDA at private equity portfolio companies +14% YoY.
- **2025 Outlook**: Targeting $200-225M in fee-related earnings. Developing local private equity and infrastructure funds to capture $1.5T+ Latin American pension AUM growth.
- **FX Resilience**: Fee-related earnings margin of 58.8% (Q4) despite 30% decline in net accrued performance fees due to dollar appreciation.

**【CEO Summary Section】**
- **Record Fundraising**: Exceeded 2024 target with $5.5 billion raised, including $300 million in advisory fees. Fee-related earnings reached $170 million ($1.12 per share), up 15% YoY.
- **2025 Outlook**: Targeting $200-225 million in fee-related earnings ($1.27-1.43 per share). Generated $41 million in performance-related earnings (PRE) from Infrastructure Fund III sale.
- **Resilient Growth**: 38% YoY fee-earning AUM growth to $33 billion. 70% of 2024 fundraising came from local investors in local strategies.
- **FX Impact**: Net accrued performance fees declined 30% due to dollar appreciation, but local currency EBITDA at private equity portfolio companies rose 14% YoY.

**【CFO Financial Commentary】**
- **Profitability**: Fee-related earnings margin of 58.8% (Q4) and 56.5% (FY24), within 56-58% guidance. Non-GAAP EPS of $1.08 exceeded expectations.
- **Cost Control**: Operating expenses rose 23% YoY to $128 million, driven by acquisitions. Personnel expenses up 10% due to salary increases and bonuses.
- **Tax Management**: Effective tax rate of 6.5% (vs. 4.9% in 2023), expected to trend toward 10% by 2027. Distributed $189 million in earnings ($1.24 per share).
- **Capital Structure**: Ended 2024 with $190 million net debt, targeting debt-to-FRE ratio <1x. No M&A planned for 2025.

**【Q&A Highlights】**
- **PRE Realization**: $60 million from Aguas Pacifico sale, with $40 million recognized in Q4. Additional exits in Infrastructure Fund III (thermal plant, toll roads) expected in 2025.
- **Redemption Trends**: Minimal redemptions in credit strategies; Q4 public equity redemptions reversed in Q1 via SMA reinvestment.
- **2025 Fundraising**: $6 billion target achievable via diversified strategies (GPMS, credit, infrastructure). 70%+ of 2024 fundraising from local investors.
- **Debt Management**: Using PRE proceeds to reduce M&A-related debt. Stock buybacks to offset dilution from stock-based compensation.
- **Pension Reform Impact**: Chilean, Colombian, and Mexican pension reforms could double Latin American pension AUM to $1.5 trillion by 2030. Developing local private equity and infrastructure funds to capture inflows.
- **Real Estate Strategy**: Security-focused REITs (CRIS) outperforming brick-and-mortar in high-rate Brazil. Chilean real estate benefiting from falling interest rates.

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