Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q3 2021 Earnings Presentation
22 slides from Patria Investments's earnings presentation, Nov 18, 2021
Slide 1: Third Quarter 2021 Earnings
São Paulo Bogotá Montevideo Santiago Third Quarter 2021 Earnings NOVEMBER 18, 2021
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 Third Quarter 2021 Results
3 Patria Reports Third Quarter 2021 Results “ Our results for the 3 rd quarter demonstrate the earnings impact of strong capital deployment in the first half of 2021, and that we are on track to deliver more than $75 million in Fee Related Earnings and $1.00 per share of Distributable Earnings for t
Slide 4: Patria Reports Third Quarter 2021 Results
4 Patria Reports Third Quarter 2021 Results NOVEMBER 18, 2021
Slide 5: Patria's Third Quarter 2021 IFRS Results
5 Patria’s Third Quarter 2021 IFRS Results ▪ GAAP Net Income was US$21.5 million for 3Q21 and US$108.0 million year to date (“YTD”) 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 documen
Slide 6: Highlights
6 Highlights Combination with Moneda Asset Management on track to close by year - end We are on track to deliver ~ $1.00 per share of DE in 2021, equivalent to a 5% yield at IPO price 25% FRE Growth 1 3Q21 vs 3Q20 22% FEAUM Growth 3Q21 vs 3Q20 Management fee growth of 23% YTD compared to prior YTD p
Slide 7: Patria's Third Quarter 2021 Summary
7 ▪ Total Assets Under Management (“AUM”) of $15.1 billion as of September 30, 2021, up 18% year - over - year ▪ Fee - Earning AUM (“FEAUM”) of $9.2 billion as of September 30, 2021, up 22% year - over - year - Additional $1.4 billion of Pending FEAUM as of September 30, 2021 - Approximately 80% of
Slide 8: Patria's Third Quarter 2021 Earnings
8 Patria’s Third Quarter 2021 Earnings DE per Share shown for 3 Q 20 and YTD 2020 for illustrative purposes only, using Patria’s post - IPO share count of 136 , 147 , 500 shares FRE - Adjusted for comparable compensation structure adjusts pre - IPO FRE to reflect post - IPO compensation structure fo
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 . 63% $21.0 million $21.8 million +25% 3Q 20 3Q21 58% FRE Margin $51.1 million $56.7 million 61% YTD 3Q20 YTD 3Q21 57% FRE Margin ▪ 3Q21 FRE of $21.8 million was up 25% from 3Q20 adjusted
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees • Net Accrued Performance Fees were $314 million at September 30, 2021, down slightly from $325 million at June 30, 2021, mainly driven by local currency fluctuation in the period • On a YTD basis the performance fee accrual grew by 14% net, and 35% when accounting fo
Slide 11: Total Assets Under Management
11 ▪ Total AUM of $15.1 billion as of September 30, 2021, up 18% compared to $12.7 billion one year ago ▪ $2.7 billion of year - over - year AUM increase was driven by the appreciation of underlying portfolio investments ▪ 84% of Total AUM is eligible to earn performance revenue ▪ Total AUM is compr
Slide 12: Fundraising & Portfolio Activity
12 Fundraising & Portfolio Activity Fundraising ($mn) Total Platform 3Q21 YTD 3Q21 LTM 3Q21 Total 2 151 274 Private Equity - - - Infrastructure - - 102 Country - specific 2 151 172 ▪ 2021 has been a year dominated by capital deployment, and lighter on fundraising (off cycle) and realizations ▪ $1.8b
Slide 13: Fee Earning Assets Under Management
13 3.3 4.9 3.3 3.4 0.9 0.9 7.5 9.2 Fee Earning Assets Under Management Fee earning AUM 3Q20 Private Equity Country - specific Strategies Infrastructure (US$ in billions) ▪ FEAUM of $9.2 billion are up 22% YoY and generated management fees of $38 million in 3Q21 ▪ $1.4 billion of Pending FEAUM eligib
Slide 14: Total AUM & FEAUM Roll Forward
14 Total AUM & FEAUM Roll Forward (Unaudited) See notes and definitions at end of document Total Assets Under Management (“AUM”) (US$ in millions) Three Months Ended September 30, 2021 Twelve Months Ended September 30, 2021 Total Fee Earning AUM (“FEAUM”) (US$ in millions) Three Months Ended Septemb
Slide 15: Closed-End Funds Investment Record as of 3Q21
15 Closed - End Funds Investment Record as of 3Q21 Deployed + Reserved Total Invested Unrealized Investments Realized Investments Net Returns Fund (Vintage) Total (USD) % Value (USD) Value (USD) Value (USD) Value (USD) Gross MOIC (USD) Net IRR (USD) Net IRR (BRL) Private Equity PE I (1997) 234,000 D
Slide 16: Reconciliations and Disclosures
16 Reconciliations and Disclosures
Slide 17: Fee Related Earnings and Distributable Earnings reconciliation
17 (US$ in millions) 3Q20 4Q20 1Q21 2Q21 3Q21 YTD 3Q20 YTD 3Q21 Management Fees 33.9 29.7 31.3 33.0 38.2 83.1 102.5 (+) Incentive Fees - 3.3 - - 0.0 0.1 0.0 (+) Advisory Fees and Other Revenues (0.1) 0.2 - - - 2.3 - (–) Taxes on Revenues (1) (0.7) (1.4) (0.7) (0.8) (0.8) (2.4) (2.4) Total Fee Revenu
Slide 18: Reconciliation of IFRS to Non-GAAP Measures
18 Quarter YTD LTM (US$ in millions) 3Q20 4Q20 1Q21 2Q21 3Q21 YTD 3Q20 YTD 3Q21 LTM 3Q20 LTM 3Q21 Management Fees 33.9 29.7 31.3 33.0 38.2 83.1 102.5 109.9 132.3 (+) Incentive Fees - 3.3 - - 0.0 0.1 0.0 5.3 3.3 (+) Advisory Fees and Other Revenues (0.1) 0.2 - - - 2.3 - 2.6 0.2 (–) Taxes on Revenues
Slide 19: IFRS Balance Sheet Results
19 IFRS Balance Sheet Results See notes and definitions at end of document (US$ in millions) 12/31/2020 9/30/2021 (US$ in millions) 12/31/2020 9/30/2021 Assets Liabilities and Equity Cash and cash equivalents (1) 14.1 44.3 Personnel and related taxes (4) 12.8 20.0 Short term investments (1) 9.9 250.
Slide 20: Notes
20 Notes Notes to page 5 – Patria’s Third Quarter 2021 IFRS Results (1) Increase in management fee revenues from prior year due to an increase in capital deployed by Private Equity Fund VI (2) Increase in revenues due to performance fees receivable determined in accordance with the funds offering do
Slide 21: Notes
21 Notes Notes to page 14 – Total AUM & FEAUM Roll Forward (Unaudited) (1) Inflows for FEAUM during the period reflect new fundraising for funds charging fees based on committed capital, plus deployed (or reserved) capital for funds charging fees based on deployed capital (2) Outflows for FEAUM duri
Slide 22: Definitions
22 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), and other income/(expenses) .