Patria Investments (PAX) Investor Day 2024 summary

Strategic Progress, Business Evolution, and Vision

• Aims to double fee-earning AUM to $70B by 2027, scaling from $7.7B at IPO to $34B by Q3 2024, with a 25% CAGR over the next three years and strong fundraising momentum.

• Diversified product offerings and geographic reach, with permanent capital over 20% of AUM, hard currency exposure above 70%, and Brazil's share of assets expected to fall to 14-15% by 2027.

• Strategic focus on global investors in LatAm, local products for local investors, and enabling local capital to access global alternatives, leveraging a diversified platform across asset classes and currencies.

• Built a scalable, resilient platform with strong cash flow, disciplined capital allocation, and ongoing M&A to drive growth, with 16 partners from M&A now leading half of business verticals and high employee retention.

• Responsible investment and ESG are core pillars, with a legacy in renewables, economic mobility, governance, and diversity initiatives increasing female representation to 35%.

Financial Guidance and Targets

• On track to deliver or exceed all major 2022-2025 targets a year ahead, including $27B capital formation (vs. $20B target), $44B AUM (vs. $50B 2025 target), and $34B FEAUM (vs. $35B 2025 target).

• New 2025-2027 guidance targets $35B capital formation, with $21B from organic fundraising and $14B from M&A, aiming to double FEAUM to $70B.

• FRE expected to grow from $170M in 2024 to $260-$290M by 2027, with FRE per share rising from $1.11 to $1.60-$1.80, and margins maintained at 58-60%.

• Over 90% of FEAUM is in locked-up or long-duration vehicles, supporting resilient growth and asset stickiness.

• Capital management prioritizes dividends ($0.60/share in 2025), share repurchases, and selective M&A, with flexibility to adjust based on opportunities and a stable share count.

Business Verticals and Growth Drivers

• Credit platform has $6.5B FEAUM, 24% CAGR since 2022, with strong outperformance versus benchmarks and a roadmap targeting $29B+ FEAUM.

• Real estate AUM increased ninefold since IPO to $6.1B, with ~90% in permanent capital, leading independent REIT manager in LatAm, and plans for further expansion in Colombia, Chile, and Mexico.

• Infrastructure vertical addresses a $2T+ market need by 2030, with a $400B actionable pipeline, $20B CapEx track record, and diversified products across development, core, credit, and energy trading.

• Private equity holds over 50% market share in LatAm, with a 30-year track record, 17% net USD returns, and a platform spanning flagship funds, SMAs, co-investments, and thematic funds.

• GPMS manages $10.3B, focusing on primaries, secondaries, and co-investments, leveraging 250+ GP relationships and a scalable platform with $2B+ annual investment capacity.