Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q2 2022 Earnings Presentation
26 slides from Patria Investments's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Earnings
São Paulo Bogotá Montevideo Santiago Second Quarter 2022 Earnings AUGUST 9, 2022
Slide 2: Disclaimer
2 Disclaimer This presentation may contain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . You can identify these forward - looking statements by the use of words such a
Slide 3: Patria Reports Second Quarter 2022 Results
3 Patria Reports Second Quarter 2022 Results “Patria continued to execute on both financial results and long - term strategic growth plans in the second quarter, despite the difficult backdrop across global financial markets. We remain on track for our 2022 Fee Related Earnings and fundraising targe
Slide 4: Patria Reports Second Quarter 2022 Results
4 Patria Reports Second Quarter 2022 Results AUGUST 9, 2022
Slide 5: IFRS income statement (US$ in millions)
5 (US$ in millions) 2Q21 2Q22 YTD 2Q21 YTD 2Q22 Revenue from management fees (1) 33.0 55.6 64.4 110.2 Revenue from incentive fees - 0.1 0.0 0.1 Revenue from performance fees (2) 86.8 0.0 86.8 0.0 Revenue from advisory and other ancillary fees - 0.9 - 2.0 Taxes on revenue (3) (0.8) (0.9) (1.6) (1.7)
Slide 6: Highlights
6 Highlights FRE of $62.9 mn YTD 2Q22 up 80% compared to YTD 2Q21… and on track to deliver our 2022 FRE guidance of 50% year - over - year growth $764 mn of capital inflows in 2Q22 and over … more than halfway to our fundraising target for the year $2.2 bn for the 1H22 Total AUM up 66 % YoY $650+ mi
Slide 7: Patria's Second Quarter 2022 Summary
7 ▪ Total Assets Under Management (“AUM”) of $26.3 billion as of June 30, 2022, up 66% compared to one year ago ▪ Fee - Earning AUM (“FEAUM”) of $18.8 billion as of June 30, 2022, up 126% compared to one year ago ▪ Total Fundraising of $764 million in 2Q22 and $2.3 billion for the LTM ▪ Total Deploy
Slide 8: Fee Related Earnings and Distributable Earnings summary
8 (US$ in millions) 2Q21 2Q22 % Δ YTD 2Q21 YTD 2Q22 % Δ Management Fees 33.0 55.6 68% 64.4 110.2 71% (+) Incentive Fees - 0.1 - 0.1 (+) Other Fee Revenues - 0.9 - 2.0 (–) Taxes on Revenues (1) (0.8) (0.9) (1.6) (1.7) Total Fee Revenues 32.2 55.6 73% 62.8 110.6 76% (–) Personnel Expenses (10.1) (15.7
Slide 9: Fee Related Earnings (FRE)
9 Fee Related Earnings (“FRE”) See notes and definitions at end of document . Totals may not add due to rounding . 55% $17.6 million $31.1 million +76% 2Q 21 2Q22 56% FRE Margin ▪ 2Q22 FRE of $31.1 million was up 76% from 2Q21 ▪ 2Q22 Total Fee Revenues of $55.6 million were up 73% compared to 2Q21 ▪
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $419 million on June 30, 2022, compared to $503 million on March 31, 2022, with the decreas e driven primarily by the appreciation of the U.S. dollar against local currencies ▪ Compared to one year ago, Net Accrued Performance Fees
Slide 11: Total Assets Under Management
11 9.7 10.2 5.1 5.5 4.8 2.1 ▪ Total AUM of $26.3 billion as of June 30, 2022, up 66% compared to $15.8 billion one year ago ▪ LTM AUM increase driven primarily by the acquisitions of Moneda and VBI in addition to $2.3bn of inflows, partially offset by $1 .2bn of outflows and $890 million of currency
Slide 12: Portfolio Activity - Drawdown Funds
12 Portfolio Activity - Drawdown Funds ▪ $655 million of Total Deployment in 2Q22 o $450 million deployed for the first thesis in our new vintage Private Equity fund o Approximately $200 million deployed from Infrastructure fund IV for the acquisition of 9 hydro power assets in Brazil ▪ Valuations f
Slide 13: Fee Earning Assets Under Management
13 44% 23% 3.8 5.3 3.4 3.7 4.6 2.1 1.3 1.8 Fee Earning Assets Under Management (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $18.8 billion up 126% from one year ago driven by deployment in our flagship funds and the addition of Moneda’s platform ▪ Management Fees of $55.6 million in 2Q22 were up 68
Slide 14: Platform Overview by Asset Class
14 Platform Overview by Asset Class FEAUM by Structure Effective Mgmt. Fee Rate Duration Currency Exposure Hard / Soft (%) Fee Basis Asset Class Infrastructure $3.7bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.4% 85% / 15% 0% / 100% Hybrid: Committed/ Deplo
Slide 15: Total AUM Roll Forward
15 Total AUM Roll Forward Three Months Ended June 30, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 1Q22 11,628 5,559 5,308 2,519 411 2,214 27,639 Acquisitions 1 - - - - 1,032 - 1,032 Inflows 2 35 - 137 70 - 522 764 Outflows 3 (28) - (3
Slide 16: Total FEAUM Roll Forward
16 Total FEAUM Roll Forward Three Months Ended June 30, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 1Q22 5,283 3,722 5,092 2,521 452 1,923 18,992 Acquisitions 1 - - - - 888 - 888 Inflows 2 3 3 179 70 - 63 318 Outflows 3 - - (345) (4
Slide 17: Investment Performance - Drawdown Funds
17 Investment Performance - Drawdown Funds Note : Patria will report investment performance for funds/strategies with Total AUM equal or above $ 500 million . This table includes funds below that threshold given their disclosure in our reporting since the IPO . Going forward, new funds will be repor
Slide 18: Investment Performance - Credit & Public Equities
18 Investment Performance - Credit & Public Equities Note : Includes investment performance for primary funds of strategies with Total AUM of $ 500 million or more 1yr 3yr 5yr Since Incep. Latam Equities (2008) USD 804 363 -29.0% -5.6% -0.6% 1.7% Benchmark: Latam Equities Index -18.7% -6.2% -0.4% -0
Slide 19: Reconciliations and Disclosures
19 Reconciliations and Disclosures
Slide 20: FRE and DE quarterly reconciliation (US$ in millions)
20 (US$ in millions) 2Q21 3Q21 4Q21 1Q22 2Q22 YTD 2Q21 YTD 2Q22 Management Fees 33.0 38.2 42.1 54.6 55.6 64.4 110.2 (+) Incentive Fees - 0.0 4.9 0.0 0.1 - 0.1 (+) Other Fee Revenues - - 0.7 1.1 0.9 - 2.0 (–) Taxes on Revenues (1) (0.8) (0.8) (1.5) (0.8) (0.9) (1.6) (1.7) Total Fee Revenues 32.2 37.4
Slide 21: FRE and DE quarterly reconciliation (US$ in millions)
21 (US$ in millions) 2Q21 3Q21 4Q21 1Q22 2Q22 YTD 2Q21 YTD 2Q22 Management Fees 33.0 38.2 42.1 54.6 55.6 64.4 110.2 (+) Incentive Fees - 0.0 4.9 0.0 0.1 - 0.1 (+) Other Fee Revenues - - 0.7 1.1 0.9 - 2.0 (–) Taxes on Revenues (0.8) (0.8) (1.5) (0.8) (0.9) (1.6) (1.7) Total Fee Revenues 32.2 37.4 46.
Slide 22: IFRS Balance Sheet Results
22 IFRS Balance Sheet Results Throughout this presentation all current period amounts are preliminary and unaudited . Totals may not add due to rounding . See notes and definitions at end of document . (US$ in millions) 12/31/2021 6/30/2022 (US$ in millions) 12/31/2021 6/30/2022 Assets Liabilities a
Slide 23: Notes to Second Quarter 2022 IFRS Results
23 Notes Notes to page 5 – Patria’s Second Quarter 2022 IFRS Results (1) Increase in management fee revenues from prior year due to an increase in capital deployed by Private Equity Fund VI and Infra IV, and management fees earned by acquired business (2) Performance fees determined in accordance wi
Slide 24: Notes
24 Notes Notes to page 10 – Net Accrued Performance Fees ( 1 ) Other includes Private Equity funds III, Infrastructure fund II and Moneda’s Alturas II Notes to page 12 – Portfolio Activity - Drawdown Funds (1) Total Deployment represents the incremental capital invested or reserved for investments i
Slide 25: Notes to Reconciliation of IFRS to Non-GAAP Measures
25 Notes Notes to Page 21 – 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,
Slide 26: Definitions
26 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 recon