Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q1 2024 Earnings Presentation
28 slides from Patria Investments's earnings presentation, May 2, 2024
Slide 1: Patria's First Quarter 2024 Earnings Presentation
Patria’s First Quarter 2024 Earnings Presentation MAY 2, 2024 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 2024 Results
Patria Reports First Quarter 2024 Results MAY 2, 2024 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the first quarter ended March 31, 2024. Dividend Patria has declared a quarterly dividend of $0.175 per share to record holders of common stock at the close of bu
Slide 4: Patria's First Quarter 2024 IFRS Results
Patria’s First Quarter 2024 IFRS Results ▪ IFRS Net Income attributable to Patria was $15.4 million for 1Q24 (US$ in millions) 1Q23 1,2 1Q24 Revenue from management fees 57.7 63.9 Revenue from incentive fees 0.1 0.0 Revenue from performance fees (1) 15.5 - Revenue from advisory and other ancillary f
Slide 5: 1Q24 Message from Patria's CEO – Alex Saigh
1Q24 Message from Patria’s CEO – Alex Saigh “The first quarter of 2024 marked a great start for the year, and I’m very pleased with the performance we delivered. We generated over $35 million of Fee Related Earnings, representing a 13% increase from 1Q23, with only 20% of this growth coming from acq
Slide 6: Patria's First Quarter 2024 Summary
Patria’s First Quarter 2024 Summary ▪ Fee Related Earnings (“FRE”) of $35.1 million in 1Q24, up 13% compared to $31.2 million in 1Q23 ▪ Distributable Earnings (“DE”) of $31.3 million in 1Q24, compared to $40.1 million in 1Q23 Financial driven by Performance Related Earnings (“PRE”) of $10 million in
Slide 7: Patria's First Quarter 2024 Earnings
Patria’s First Quarter 2024 Earnings ▪ Distributable Earnings (“DE”) of $31.3 million in 1Q24 (US$ in millions) 1Q23 1 1Q24 %Δ Management Fees 57.5 62.9 9% (+) Incentive Fees 0.1 (0.1) (+) Other Fee Revenues 0.5 1.3 (–) Taxes on Revenues (1) (1.0) (1.2) (–) Rebates (1.1) (2.5) Total Fee Revenues 56.
Slide 8: Fee Related Earnings (FRE)
Fee Related Earnings (“FRE”) (US$ in millions) +8% ▪ Fee Related Earnings of $35.1 million in 1Q24 were $60.6 up 13% compared to 1Q23 Total Fee Revenues $56.0 million million ▪ 1Q24 Fee Revenues were $60.6 million, up 8% Operating Expenses 24.8 compared to 1Q23 driven by FEAUM and 24.4 management fe
Slide 9: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $514 million on March 31, 2024, up 18% YoY from $437 million in 1Q23 ▪ Net Accrued Performance Fees decreased by 4% QoQ from $535 million to $514 million, mainly driven by the share price of our publicly listed companies and the deprec
Slide 10: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $32.0 billion as of March 31, 2024, up 17% from $27.3 billion one year ago ▪ LTM growth was driven by capital inflows of $5.1 billion, together with a positive valuation impact of $3.0 billion and $1.5 billion of acquisitions, partially offset by outflows
Slide 11: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) (Invested + Reserved) 2Q23 3Q23 4Q23 1Q24 1Q24 LTM ▪ $849 million deployed in LTM, primarily related Total 214 479 113 42 849 to new investments of our latest flagship Private Equity 194 36 9 - 238 Infrastructure and Private Equity funds In
Slide 12: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $23.9 billion in 1Q24 was up 20% from one year ago driven by $5.1 billion of inflows including $1.5 billion from acquisitions, in addition to $1.5 billion of positive valuation impact, partially offset by $2.2 billion of outflows ▪ Man
Slide 13: 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 $6.5bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 92% / 8% 1.7% Hybrid: Committed/ 91% Drawdown Funds Deployed Capital
Slide 14: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate GPMS Total March 31, 2024 ($mn) Distribution1 AUM 1Q23 10,593 5,950 4,705 2,205 1,337 - 2,509 27,299 Reclassifications - - 24 104 232 2,149 (2,509) - AUM 1Q23 10,593 5,950 4,729 2,3
Slide 15: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate GPMS Total March 31, 2024 ($mn) Distribution1 FEAUM 1Q23 6,414 3,323 4,698 2,207 1,413 - 1,837 19,894 Reclassifications - - 24 84 134 1,594 (1,837) - FEAUM 1Q23 6,414 3,323 4,723
Slide 16: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Committed Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) Capital + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (U
Slide 17: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Excess Return Asset Class Strategy YTD Since Currency (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam Equities (2008) USD 1,414 (4.3%) 20.4% 4.5% 3.8% 3.6% Benchmark: Latam Equities Index (3.0
Slide 18: Reconciliations and Disclosures
Reconciliations and Disclosures 18
Slide 19: Share Summary
Share Summary 1Q23 2Q231 3Q23 4Q232 1Q243 Class A Common Shares 54,247,500 54,930,241 54,930,241 55,308,508 57,784,383 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,875,671 147,875,671 148,253,938 150,729,813 + Shares Issued in
Slide 20: Patria's Earnings – 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Management Fees 57.5 61.6 61.7 64.7 62.9 (+) Incentive Fees 0.1 0.0 0.0 3.9 (0.1) (+) Other Fee Revenues 0.5 0.5 1.1 0.7 1.3 (–) Taxes on Revenues (1) (1.0) (1.3) (1.2) (1.4) (1.2) (–) Rebates (1.1) (1.3) (2.3) (1.8) (2.5)
Slide 21: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Management Fees 57.5 61.6 61.7 64.7 62.9 (+) Incentive Fees 0.1 0.0 0.0 3.9 (0.1) (+) Other Fee Revenues 0.5 0.5 1.1 0.7 1.3 (–) Taxes on Revenues (1.0) (1.3) (1.2) (1.4) (1.2) (–) Rebates (1.1) (1.3) (2.3) (1.8)
Slide 22: IFRS Balance Sheet
IFRS Balance Sheet (US$ in millions) 31-Mar-24 31-Dec-23 (US$ in millions) 31-Mar-24 31-Dec-23 Assets Liabilities and Equity Cash and cash equivalents 17.3 16.1 Client funds payable 13.7 17.1 Client funds on deposit 13.7 17.1 Consideration payable on acquisition (8) 29.2 59.1 Short term investments
Slide 23: Patria's First Quarter 2023 IFRS Results Reclassification
Patria’s First Quarter 2023 IFRS Results Reclassification 1Q23 (US$ in millions) 1Q23 1 Δ Adjusted Revenue from management fees 58.8 57.7 (1.1) Revenue from incentive fees 0.1 0.1 - Revenue from performance fees (1) 15.5 15.5 - Revenue from advisory and other ancillary fees 0.5 0.5 - Taxes on revenu
Slide 24: Reconciliation of IFRS to Non-GAAP Measures – 1Q23 Reclassification
Reconciliation of IFRS to Non-GAAP Measures – 1Q23 Reclassification 1Q23 (US$ in millions) 1Q23 1 Δ Adjusted Management Fees 57.5 57.5 - (+) Incentive Fees 0.1 0.1 - (+) Other Fee Revenues 0.5 0.5 - (–) Taxes on Revenues (1.0) (1.0) - (–) [Rebates] - (1.1) (1.1) Total Fee Revenues 57.1 56.0 (1.1) (–
Slide 25: Notes
Notes Notes to page 4 – Patria’s First Quarter 2024 IFRS Results and Page 23 – Patria’s First Quarter 2023 IFRS Results Reclassification (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 i
Slide 26: Notes
Notes Notes to page 9 – Net Accrued Performance Fees (1) Beginning with 1Q23, we are reporting Net Accrued Performance Fees balances net of related compensation and revenue taxes only. Disclosures in prior periods were also reflected net of related corporate income taxes and for comparative purposes
Slide 27: Notes
Notes Notes to Page 21 – Reconciliation of IFRS to Non-GAAP Measures and Page 24 – Reconciliation of IFRS to Non-GAAP Measures – 1Q23 Reclassification (1) Deferred Taxes are temporary taxable differences mostly from non-deductible employee profit sharing expenses, performance fees and quarterly reva
Slide 28: 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