Patria Investments (PAX) Q1 2025 earnings summary

Executive summary

• Achieved record fundraising of $3.2 billion in Q1 2025, supporting a $6 billion annual target and driven by strong demand from Asian sovereign wealth funds and a diversified investor base.

• Fee-related earnings (FRE) reached $42.6 million ($0.27/share), up 21% year-over-year, with FRE margin at 55.1%.

• Assets under management (AUM) grew 43% year-over-year to $46 billion, with fee-earning AUM up 46% to $35 billion.

• Net income attributable was $13.6 million for Q1 2025.

• The business benefits from increased diversification, expanded product capabilities, and a resilient platform amid global macro uncertainty.

Financial highlights

• Q1 2025 FRE per share was $0.27, up 16% year-over-year; distributable earnings were $36.8 million ($0.23/share), up 12%-17% year-over-year.

• Management fees were $78.8 million in Q1 2025, up 25% year-over-year.

• Total fee revenue was $77.3 million, up 28% year-over-year, but down 17% sequentially due to seasonal incentive fees.

• FRE margin was 55%-55.1% in Q1, with full-year margin expected in the 58%-60% range.

• Net debt reduced to $143 million at quarter-end; net debt to FRE ratio remains well below 1x.

Outlook and guidance

• Confident in achieving $6 billion fundraising and $200-$225 million FRE targets for 2025.

• FRE per share guidance for 2025 is $1.25-$1.50, implying ~20% year-over-year growth at the midpoint.

• Management fee rate expected to trend toward 90 bps over time, from current 96 bps, due to evolving business mix.

• Pending fee-earning AUM of $3.5 billion expected to be deployed over the next 4-6 quarters, mainly in Infrastructure and GPMS verticals.

• Management remains confident in three-year targets set at December 2024 Investor Day.