Patria Private Equity Trust Plc · LSE:PPET
Patria Private Equity Trust — FY2024 Earnings Presentation
46 slides from Patria Private Equity Trust's earnings presentation, December 2024
Slide 1: A Year of Positive Annual Results to 30 September 2024
PPE T rari A Year of Positive ¢ Annual Results to 3 re ber 2024 Patria Private Equity Trust plc
Slide 2: Overview
Overview Investment Strategy Performance Update Capital Allocation Policy Summary Appendices
Slide 3: Investment Objective
Investment Objective European Launched FTSE 250 To achieve long-term total returns mid-market 2001 company through holding a diversified portfolio of focused private equity funds and direct investments into private companies alongside private equity managers, a majority of which will have a European
Slide 4: A diversified portfolio of private equity funds and direct investments
A diversified portfolio of private equity funds and direct investments into private companies, principally focused on the European mid-market. Primary Funds A commitment to a newly established private equity fund, TMENT TYPE which has no existing assets at the INVES ents 26% Prima ry F start, but wh
Slide 5: Investment Strategy
Investmen PPET
Slide 6: Investment strategy highlights
– Invests alongside 15 carefully selected core private equity manager relationships – Provides daily liquidity – Flat management fee of 95bp of NAV with no performance fee – Patria Capital Partners LLP* has managed PPET since its inception – 65 professionals across Europe and US – Deep networks buil
Slide 7: Manager selection and performance dispersion
100% 8% 13% 90% 80% 15% 17% % of investments 70% 60% 38% 50% 38% 40% 30% 20% 38% 32% 10% 0% TVPI IRR n = 71 n = 71 Top Second Third Fourth Past performance does not predict future returns Source: 1Patria, 30 September 2024. 2From TVPI perspective; TVPI defined as Total Value overpaid in capital, rep
Slide 8: Highly experienced investment management team
PPET Key Executives Other Senior Members of the Investment Team Alan Gauld Marco D’Ippolito Merrick McKay Colin Burrow Lead Investment Manager and Head of Global Private Markets Head of Private Equity Europe Head of Co-investments Senior Investment Director Investment Committee member Investment Com
Slide 9: Private Equity Market Segmentation
Private Equity Market Segmentation Venture Growth Small Cap Lower Mid- Upper Mid- Large & Mega Capital Buyout Market Buyout Market Buyout Buyout Emerging trends Emerging trends Attractive entry Less leverage Institutionalised High dry dynamics approach powder Longer durations Technology focus Clear
Slide 10: Reasons to invest in the PE mid-market
10 Focus There are multiple reasons why we believe the private equity mid-market to be the most attractive part of the PE market 2 Lower pricing & leverage Target rich Growth and environment exit options 1 Q © 5 O Lower Outperformance correlation to @ © public markets Reasons to invest in the PE mid
Slide 11: Total return track record over two decades
PPET NAV per share (total return) 12 PPET share price (total return) PPET has a history and track record of FTSE all share (total return) more than two decades 10 1,000 A rigorous and disciplined approach to 8 investment analysis that has delivered 800 consistent long-term NAV returns across Total r
Slide 12: Performance
12 Performance Year to 30 Sep émber 2024 PPET
Slide 13: Year to September 2024 performance summary
‒ Share price - performance driven by a narrowing of the share price discount, aided by the share buyback programme. 24.9% 2.4% (2023: 5.4%) ‒ NAV - performance negatively impacted (2023: 11.7%) by currency FX (strengthening GBP), with the PPET portfolio continuing to perform solidly in local curren
Slide 14: Annual NAV TR and portfolio return in local currency
‒ Portfolio return of 8.8% in local currency over Annual NAV TR and Portfolio Return in Local Currency 2024, at similar levels to 2020, 2022 and 2023 50% (record performance in 2021). 45% 40% ‒ Appreciation in GBP during the period (relative to USD and EUR) provided a headwind to NAV 35% Total Retur
Slide 15: Largest investments and distributions
IK VIII - £16.6m Nordic Capital Evolution Fund - £10.8m CVC VII - £14.0m PAI VIII - £9.4m Advent International Global Private Equity VIII - Goodlife (Co-investment) - £7.8m £7.8m Cinven VI - £7.6m EDG (Co-investment) - £7.7m Hg Saturn 3 - £6.4m Permira V - £6.5m IK Partnership II - £6.3m Altor V - £
Slide 16: Portfolio distributions and secondary sale proceeds
350.0 30% 26% 300.0 25% 24% 250.0 22% 20% 20% 15.7 143.7 200.0 1.1 18% 53.0 15% 150.0 10% 100.0 197.6 210.2 140.7 149.9 148.6 5% 50.0 0.0 0% FY20 FY21 FY22 FY23 FY24 Fund distributions Secondary sale proceeds Portfolio distributions and secondary sale proceeds as % opening value Source: Patria, 30 S
Slide 17: Exit uplifts
41% 26% 22% 20% 18% 2020 2021 2022 2023 2024 Source: Patria, 30 September 2024. 1Calculated as gross multiple realised on exit compared to gross multiple 2 quarters prior. © owned by each of the corporate entities named in the respective logos. Companies selected for illustrative purposes only to de
Slide 18: Secondary sale of fund investments
In September 2024, PPET agreed the sale of 14 fund investments, representing 13% of the Company’s portfolio at 31 August 2024. £180m 5% The transaction results from a competitive sales process run by an established secondary intermediary with a number of high- quality secondary players participating
Slide 19: New investment deployment in 2024
New investment deployment in 2024 • Primary funds – new investment of £112.9m during £120m the year across six new funds. 112.9 • Fund secondaries - £27.8m committed into two new £100m fund secondaries. • Direct investments - £45.5 million to six new direct £80m investments (2023: £17.0 million) and
Slide 20: Direct investment follow-ons
(follow-on) (follow-on) Undisclosed (follow-on) Undisclosed Company Company (follow-on) Source: Patria, 30 September 2024. © owned by each of the corporate entities named in the respective logos. Companies selected for illustrative purposes only to demonstrate the investment management style describ
Slide 21: Portfolio evolving toward direct investments
100% 90% 19% 19% PPET’s portfolio is evolving toward direct investments 26% 29% (co-investment and single-asset secondaries) 80% 11% 10% Direct investment provides additional benefits to PPET, 70% 9% 10% including: 60% – Greater control over capital deployment and cash 50% management 40% – Targeting
Slide 22: Top companies portfolio metrics
Median valuation Median leverage Average LTM Average LTM EBITDA Top companies % portfolio multiple multiple revenue growth growth 10 17.6% 17.4x 3.5x 13.5% 23.3% 30 36.1% 14.2x 3.8x 12.5% 20.0% 50 46.1% 13.5x 3.9x 11.3% 18.2% 100 63.9% 13.5x 3.9x 12.4% 18.1% Past performance does not predict future
Slide 23: Top 10 underlying companies
No. Company Sector Geography (HQ) Investment Type % of NAV 1 Consumer staples Netherlands Direct 2.4% 2 Healthcare Germany Direct 2.1% 3 Consumer Discretionary France Direct 2.0% 4 VISMA Technology Norway Direct 1.9% 5 Technology United Kingdom Fund 1.7% 6 Industrials Germany Fund 1.6% 7 Consumer St
Slide 24: Sector exposure and holding period
10% 1 year Healthcare 21% Industrial 23% 18% 2 years 12% 3 years Consumer Discretionary1 4 years Information 12% Technology 23% 5 years 10% Consumer Staples >5 years 11% 26% Utilities 1% Financials 8% 19% Telecommunication Services 1% Materials 4% Energy 1% 1Based on the latest available information
Slide 25: Geographic exposure
– There portfolio continues to have a United Kingdom weighting to Northwestern Europe (67%) 14% – Only 9% of underlying portfolio company exposure in Southern and Eastern Europe. – North America equates to 23% of the Nordic portfolio, with exposure to the region 16% through European private equity O
Slide 26: Cash, deferred consideration and liquidity
– £158.4m1 of cash and deferred consideration as at 30 September 2024 30% – £159.4m of PPET’s £300m debt facility remained undrawn as 27.0% at 30 September 2024. Therefore, short-term available resources totalled £317.7m at financial year end 25% – Post period end, PPET extended its revolving credit
Slide 27: Outstanding commitments movement
700 +195.8 (31.7) (121.4) (10.6) +10.9 650 652.0 652.7 600 550 (42.3) 500 £ million 450 400 350 300 250 200 Outstanding Fund investment Direct investment New commitments Foreign exchange Secondary sales Other Outstanding commitments as at drawdowns and secondary impact commitments as at 01 Oct 2023
Slide 28: Capital Allocation Policy
28 Capital All Policy / PPET
Slide 29: Dividend per share and yield
1 18 4.5% 4.1% 16 4.0% 3.6% 3.6% 3.6% 3.5% 3.5% 14 3.1% 3.5% 2.7% 12 3.0% 2.5% 10 2.5% 2.2% 2.0% 8 2.0% 6 1.5% 4 1.0% 2 0.5% 5.00 5.25 5.40 12.00 12.40 12.80 13.20 13.60 14.40 16.00 16.80 0 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Full year dividend per share Dividend Yield Past p
Slide 30: Share buyback programme
‒ The Board of PPET announced in January 2024 that it would use a portion of the €34.6 million of proceeds realised from a partial sale of PPET’s direct investment in Action to 2.2m £11.5m commence a buyback programme. shares bought back1 amount invested by PPET into buybacks since ‒ The ability to
Slide 31: Summary
31 Summary PPET
Slide 32: Summary
Access – a carefully selected portfolio of top- performing private equity managers, built from 65% years of strong relationships and independent 14.8% 12.6% research 10 year annualised 10 year annualised of portfolio value in NAV total return share price total return mid-market Expertise – highly ex
Slide 33: Appendices
33 Appendic PPET
Slide 34: Investindustrial fund commitment overview
Overview Founded in 1990 out of an industrial conglomerate owned by the Bonomi family and with more than €15 billion of raised fund capital, Investindustrial is one of Europe’s leading private equity managers. The firm is focused on taking majority or control positions in midmarket companies, primar
Slide 35: Nutripure direct investment overview
Overview • Founded in 2017, Nutripure is a digital brand which offers a comprehensive range of food supplements and sports nutrition products. This includes products such as whey protein, multivitamins and health nutrition bars. • Whilst initially focused on serving athletes, the brand has broadened
Slide 36: Patria SOF V overview
Overview Patria SOF V (“SOF V”) will target secondary transactions in the private equity lower and mid-market, principally across Europe and North America. First established in 2014, Patria’s SOF strategy has since deployed $1.5 billion of capital from prior SOF funds into over 50 secondaries transa
Slide 37: Top direct investments
Entity Description Fund/co-investment Year of Investment3 % of NAV Action Non-food discount retailer 3i 2020 Co-investment 1 SCSp 2020 2.4% Wundex Home care provider Capiton VI Wundex Co-Investment / Capiton VI 2021 2.1% ECG European leader in outdoor accommodation market ECG Co-invest SLP / PAI Eur
Slide 38: ESG and sustainability initiatives
Established dedicated team coverage for Actively building a pipeline of sustainability- impact- or sustainability-focused fund and focused fund and company level (co- company-level investments to enhance our investments and secondaries) investments capacity to track market trends and best across key
Slide 39: +35 Years of Private Markets History
+35 Years of Private Markets History 2.4 #1 2024 Expansion of Global Private Markets Solutions Platform1 6.5 12.7 2022 Expansion into Real Estate REITs, Growth Listed (2021-Today) -23 Capital and Venture Capital Global Private Markets Solutions (GPMS) IPO: PAX @Nasdaq 44.7+ Bn* 2021 Expansion into C
Slide 40: Smaller funds have outperformed larger funds
+0.5 x +975 bps +266 bps +0.1 x Median Outperformance Top Quartile Outperformance Median Outperformance Top Quartile Outperformance FUNDS <$5B HAVE SIGNIFICANTLY OUTPERFORMED FUNDS >$5B OVER THE LAST 20+ YEARS Source: Preqin. PE buyout funds 2000 – 2021 vintage. Funds post 2022 are considered too im
Slide 41: Net IRR distribution by fund size
100% 100% 5% 90% 19% 90% 9% 80% 80% 8% 70% 70% 29% 16% returned 14% % of funds % of funds 60% 60% an IRR of >20% 50% 50% 30% returned 19% 41% returned 25% returned 40% an IRR of <10% 25% 40% an IRR of >20% an IRR of <10% 15% 30% 30% 20% 13% 20% 26% 10% 5% 10% 7% 0% 4% 0% 0% Net IRR Net IRR Source: P
Slide 42: Annualised and cumulative performance
1 year 3 years 5 years 10 years Since inception PPET NAV TR 2.5% 9.8% 14.5% 14.8% 11.0% PPET Share price 24.9% 5.8% 12.7% 12.6% 9.7% FTSE All-Share Index 13.4% 7.4% 5.7% 6.3% 5.7% 1 year 3 years 5 years 10 years Since inception PPET NAV TR 2.5% 32.5% 96.8% 297.6% 1036.4% PPET Share price 24.9% 18.4%
Slide 43: Risk factors
• The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment trusts are specialised investments and may not be appropriate for all investors. • There is no g
Slide 44: MSCI information notice
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recom
Slide 45: Important information
Past performance does not predict future returns. The value of investments, and the income from them, can go down as well as up and clients may get back less than the amount invested. The information contained in this document should not be considered as an offer, solicitation or investment recommen
Slide 46: Contact details
Senior Investment Director Marketing Manager and Investor Relations Email: Email: PPETInvestorRelations@patria.com PPETInvestorRelations@patria.com
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