Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q1 2023 Earnings Presentation
27 slides from Patria Investments's earnings presentation, May 4, 2023
Slide 1: Patria's First Quarter 2023 Earnings
Patria’s First Quarter 2023 Earnings MAY 4, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,
Slide 3: Patria Reports First Quarter 2023 Results
Patria Reports First Quarter 2023 Results MAY 4, 2023 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results “Patria generated solid results in the first for the first quarter ended March 31, 2023. Dividend quarter through Distributable Earnings of Patria has declared a quar
Slide 4: Patria Reports First Quarter 2023 Results
Patria Reports First Quarter 2023 Results MAY 4, 2023 4
Slide 5: Patria's First Quarter 2023 IFRS Results
Patria’s First Quarter 2023 IFRS Results ▪ IFRS Net Income attributable to Patria was US$19.4 million for 1Q23 (US$ in millions) 1Q22 1Q23 Revenue from management fees 54.6 58.8 Revenue from incentive fees 0.0 0.1 Revenue from performance fees (1) - 15.5 Revenue from advisory and other ancillary fee
Slide 6: Highlights
Highlights DE per share Dividend per share Fee Related Earnings $10 mn $0.27 $o.226 of $31 mn in 1Q23 of Performance Related 1Q23 1Q23 At a margin of 55% Earnings in 1Q23 …representing a 6+% annualized dividend yield1 Fundraising: Remain on track for of net accrued $390 mn of inflows in 1Q23 perform
Slide 7: Patria's First Quarter 2023 Summary
Patria’s First Quarter 2023 Summary ▪ Fee Related Earnings (“FRE”) of $31.2 million in 1Q23, compared to $31.9 million in 1Q22 ▪ Performance Related Earnings of $10.0 million in 1Q23 Financial ▪ Distributable Earnings (“DE”) of $39.1 million in 1Q23, compared to $35.0 million in 1Q22 Measures ▪ Net
Slide 8: Patria's First Quarter 2023 Earnings
Patria’s First Quarter 2023 Earnings ▪ Distributable Earnings (“DE”) of $39.1 million in 1Q23 (US$ in millions) 1Q22 1Q23 %Δ Management Fees 54.6 57.5 5% (+) Incentive Fees 0.0 0.1 (+) Other Fee Revenues 1.1 0.5 (–) Taxes on Revenues (1) (0.8) (1.0) Total Fee Revenues 55.0 57.1 4% (–) Personnel Expe
Slide 9: Fee Related Earnings (FRE)
Fee Related Earnings (“FRE”) +4% $57.1 ▪ 1Q23 Total Fee Revenues of $57.1 million Total Fee Revenues $55.0 million were up 4% compared to 1Q22 driven by million deployment in our drawdown funds and 26.0 inorganic growth Operating Expenses 23.1 ▪ 1Q23 Fee Related Earnings of $31.2 million compared to
Slide 10: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $437 million on March 31, 2023, compared to $478 million on December 31, 2022 driven primarily by public company valuation impact and realization activity in Private Equity Fund V ▪ $10 million of Performance Related Earnings (PRE) in
Slide 11: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $27.3 billion as of March 31, 2023, compared to $27.2 as of December 31, 2022, and $27.6 billion one year ago ▪ LTM capital inflows of $3.4 billion outpaced outflows of $(2.5) billion, but were additionally offset by $(0.7) billion of currency devaluation
Slide 12: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) ▪ $131 million deployed in 1Q23 and (Invested + Reserved) 2Q22 3Q22 4Q22 1Q23 LTM23 Total 655 - 635 131 1,421 more than $1.4 billion deployed in the Private Equity 450 - 515 - 965 LTM with new drawdown fund Infrastructure 199 - 120 127 446
Slide 13: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $19.9 billion was up 5% from one year ago mainly driven by deployment in our flagship funds, inflows across the platform and M&A, partially offset by Infrastructure Fund II reaching the contractual end of its fee term and redemptions i
Slide 14: Platform Overview by Asset Class
Platform Overview by Asset Class Currency Exposure Effective Mgmt. Asset Class FEAUM by Structure Fee Basis Duration Hard / Soft (%) Fee Rate Private Equity $6.4bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 97% / 3% 1.7% Hybrid: Committed/ 95% Drawdown Funds Long-dated & Illi
Slide 15: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total March 31, 2023 ($mn) Distribution AUM 1Q22 11,628 5,559 5,308 2,519 411 2,214 27,639 Acquisitions1 285 - - - 1,021 - 1,305 Inflows2 283 164 386 155 89 982 2,059 Outflows3 (93)
Slide 16: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total March 31, 2023 ($mn) Distribution FEAUM 1Q22 5,283 3,722 5,092 2,521 452 1,923 18,992 Acquisitions1 111 - - - 888 - 998 Inflows2 1,094 91 446 155 97 280 2,163 Outflows3 (75)
Slide 17: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Committed Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) Capital + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (U
Slide 18: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Excess Return Asset Class Strategy Since Currency (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam High Yield (2000) USD 3,126 -2.1% 11.0% 2.7% 10.8% Benchmark: CEMBI Broad Div Latam HY -3.3% 8
Slide 19: Reconciliations and Disclosures
Reconciliations and Disclosures 19
Slide 20: Share Summary
Share Summary 1Q22 2Q22 3Q22 4Q22 1Q23 Class A Common Shares 54,247,500 54,247,500 54,247,500 54,247,500 54,247,500 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,192,930 147,192,930 147,192,930 147,192,930 20
Slide 21: Patria's Earnings – 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 Management Fees 54.6 55.6 55.8 54.6 57.5 (+) Incentive Fees 0.0 0.1 0.1 5.9 0.1 (+) Other Fee Revenues 1.1 0.9 0.5 1.7 0.5 (–) Taxes on Revenues (1) (0.8) (0.9) (0.9) (1.1) (1.0) Total Fee Revenues 55.0 55.6 55.4 61.0 57.1
Slide 22: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 Management Fees 54.6 55.6 55.8 54.6 57.5 (+) Incentive Fees 0.0 0.1 0.1 5.9 0.1 (+) Other Fee Revenues 1.1 0.9 0.5 1.7 0.5 (–) Taxes on Revenues (0.8) (0.9) (0.9) (1.1) (1.0) Total Fee Revenues 55.0 55.6 55.4 61.0
Slide 23: IFRS Balance Sheet
IFRS Balance Sheet (US$ in millions) 12/31/2022 3/31/2023 (US$ in millions) 12/31/2022 3/31/2023 Assets Liabilities and Equity Cash and cash equivalents 26.5 30.8 Client funds payable 23.6 20.0 Client funds on deposit 23.6 20.0 Consideration payable on acquisition (9) 33.2 38.7 Short term investment
Slide 24: Notes
Notes Notes to page 5 – Patria’s First Quarter 2023 IFRS Results (1) Performance fees determined in accordance with the funds offering documents and/or agreements with Limited Partners, based on the expected value for which it is highly probable that a significant reversal will not occur (2) Taxes o
Slide 25: Notes
Notes Notes to page 10 – Net Accrued Performance Fees (1) These performance fees were crystalized in conjunction with the IPO of Lavoro. For this specific case, the limited partners of the fund and Patria agreed that as a consequence of successful completion of the transaction, part of Performance F
Slide 26: Notes
Notes Notes to Page 22 – Reconciliation of IFRS to Non-GAAP Measures (1) Deferred Taxes are temporary taxable differences mostly from non-deductible employee profit sharing expenses (2) Amortization of businesses acquisition costs allocated to intangibles assets, such as contractual rights, customer
Slide 27: Definitions
Definitions • Distributable Earnings (DE) is used to assess our performance and capabilities to distribute dividends to shareholders. DE is calculated as FRE deducted by current income tax expense, plus net realized performance fees, net financial income/(expenses). DE is derived from and reconciled