Patria Investments (PAX) Q1 2026 earnings summary

Executive summary

• Achieved strong operating performance in Q1 2026, raising $2.1 billion and growing Fee-Earning AUM to nearly $46 billion, up 31% year-over-year, driven by organic fundraising, acquisitions, and differentiated investment performance.

• Fee Related Earnings grew 19% year-over-year to $50.5 million, with a margin of 54.6%.

• Distributable Earnings per share rose 14% year-over-year to $0.27, with total Distributable Earnings at $42.4 million.

• Total AUM reached $59.3 billion, up 29% from Q1 2025.

• Strengthened balance sheet with inaugural $350 million fixed-rate long-term debt issuance, extending maturity profile and reducing reliance on short-term credit.

Financial highlights

• Total fee revenues were $92.6 million, up 20% year-over-year and 3% sequentially, excluding seasonal incentive fees.

• Management fees increased 21% year-over-year to $95.2 million.

• IFRS Net Income attributable to shareholders was $2.3 million for Q1 2026.

• Net Accrued Performance Fees stood at $281 million as of March 31, 2026.

• Personnel and G&A expenses rose 22% year-over-year, mainly due to acquisitions and business investments.

Outlook and guidance

• Reaffirmed full-year 2026 FRE guidance of $225 million-$245 million and 2027 target of $260 million-$290 million.

• FRE margin expected to improve to 58%-60% through the year as integration and expense growth moderate.

• Cumulative performance-related earnings (PRE) for Q4 2024–Q4 2027 now expected at $80 million-$100 million, with upside if market conditions improve.

• Pending Fee-Earning AUM of $3.3 billion expected to be deployed within the year, supporting future management fee growth.

• Management remains confident in achieving full-year objectives, citing strong fundraising, diversified asset base, and increased investor engagement.