Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q1 2022 Earnings Presentation
26 slides from Patria Investments's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings
São Paulo Bogotá Montevideo Santiago First Quarter 2022 Earnings MAY 10, 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 First Quarter 2022 Results
3 Patria Reports First Quarter 2022 Results “Patria’s results for the 1 st quarter reflect excellent momentum to start the year, and resiliency amid a challenging global backdrop. Our platform secured new capital inflows of $1.5 billion across a diverse range of products, strong investment performan
Slide 4: Patria Reports First Quarter 2022 Results
4 Patria Reports First Quarter 2022 Results MAY 10, 2022
Slide 5: Patria's First Quarter 2022 IFRS Results (unaudited)
5 Patria’s First Quarter 2022 IFRS Results (unaudited) ▪ IFRS Net Income was US$18.3 million for 1Q22 and US$126.4 million for the LTM 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 docu
Slide 6: Highlights
6 Highlights FRE of $32 mn in 1Q22 up 85% compared to 1Q21… and on track for our 2022 guidance $0.24 DE per share … Up 90% from 1Q21 $0.20 dividend per share $503 mn Net Accrued Performance Fees as of March 31 st … up 45% from 4Q21 and doubled from one year ago Total AUM up 96 % YoY $1.5 billion rai
Slide 7: Patria's First Quarter 2022 Summary
7 ▪ Total Assets Under Management (“AUM”) of $27.6 billion as of March 31, 2022, up 16% compared to 4Q21 and 96% from one year ago ▪ Fee - Earning AUM (“FEAUM”) of $19.0 billion as of March 31, 2022, up 6% compared to 4Q21 and 136% from one year ago ▪ Performance Revenue Eligible AUM (“PREAUM”) of $
Slide 8: Patria's First Quarter 2022 Earnings
8 Patria’s First Quarter 2022 Earnings See notes and definitions at end of document . Totals may not add due to rounding . ▪ Distributable Earnings (“DE”) of $35.0 million in 1Q22, and $159.3 million for the LTM (US$ in millions) 1Q21 1Q22 % Δ LTM 1Q21 LTM 1Q22 % Δ Management Fees 31.3 54.6 74% 120.
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 . ( 1 ) FRE margin would be 52 % for LTM 1 Q 21 when adjusting for comparable compensation structure 57% $17.3 million $31.9 million +85% 1Q 21 1Q22 58% FRE Margin ▪ 1Q22 FRE of $31.9 mil
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees • Net Accrued Performance Fees were $503 million or $3.40 per share on March 31, 2022, up 45% from $348 million on December 31, 2021, and have nearly doubled from $253 million one year ago • The increase in 1Q22 was primarily driven by portfolio appreciation in our Pr
Slide 11: Total Assets Under Management
11 8.6 11.6 4.7 5.6 5.3 2.5 ▪ Total AUM of $27.6 billion as of March 31, 2022, up 96% compared to $14.1 billion one year ago and up 16% from $23.8 billion on December 31, 2021 ▪ 32% of the AUM increase over the last twelve months was organic ▪ LTM AUM increase included $1.5 billion of fundraising an
Slide 12: Portfolio Activity - Drawdown Funds
12 Portfolio Activity - Drawdown Funds ▪ Over $2 billion deployed from drawdown funds over the LTM period, driven by significant new capital allocations from Private Equity Fund VI and Infrastructure Fund IV o $55 million deployed in 1Q22 driven by our Credit drawdown fund o While we did not have ne
Slide 13: Fee Earning Assets Under Management
13 45% 24% 3.8 5.3 3.3 3.7 5.1 Fee Earning Assets Under Management (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $19.0 billion up 136% from one year ago, and 28% on an organic basis ▪ Management Fees of $54.6 million in 1Q22 were up 74% compared to 1Q21, driven by deployment in our flagship funds a
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 $3.7bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.4% 84% / 16% 0% / 100% Hybrid: Committed/ Deplo
Slide 15: Total AUM Roll Forward (unaudited)
15 Total AUM Roll Forward (unaudited) Three Months Ended March 31, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 4Q21 9,017 5,060 4,982 2,142 366 2,248 23,815 Acquisitions 1 - - - - - - - Inflows 2 1,035 - 256 130 - 62 1,482 Outflows 3
Slide 16: Total FEAUM Roll Forward (unaudited)
16 Total FEAUM Roll Forward (unaudited) Three Months Ended March 31, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 4Q21 4,942 3,521 4,927 2,136 414 1,991 17,930 Acquisitions 1 - - - - - - - Inflows 2 459 241 102 130 - 62 994 Outflows
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 1yr 3yr 5yr Since Incep. Latam High Yield (2000) USD 3,349 2,318 9.4% 4.8% 5.3% 11.5% Benchmark: CEMBI Broad Div Latam HY 1.0% 4.0% 4.3% 7.5% 403 bps Latam Local Currency Debt (2009) USD 857 857 9.4% 1.5% 0.5% 3.6% Benchmark: GBI Broad Div Latam 4
Slide 19: Reconciliations and Disclosures
19 Reconciliations and Disclosures
Slide 20: Patria's Earnings – Quarter View
20 Patria’s Earnings – 5 Quarter View See notes and definitions at end of document (US$ in millions) 1Q21 2Q21 3Q21 4Q21 1Q22 LTM 1Q21 LTM 1Q22 Management Fees 31.3 33.0 38.2 42.1 54.6 120.3 167.9 (+) Incentive Fees - - 0.0 4.9 0.0 3.5 5.0 (+) Other Fee Revenues - - - 0.7 1.1 (0.2) 1.9 (–) Taxes on
Slide 21: Reconciliation of IFRS to Non-GAAP Measures (unaudited)
21 Reconciliation of IFRS to Non - GAAP Measures (unaudited) 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) 1Q21 2Q21 3Q21 4Q21 1Q22 LTM 1Q21 LTM 1Q22 Manage
Slide 22: IFRS Balance Sheet Results (unaudited)
22 IFRS Balance Sheet Results (unaudited) 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 3/31/2022 (US$ in millions) 12/31/2021 3/31/2022 Assets L
Slide 23: Notes
23 Notes Notes to page 5 – Patria’s First Quarter 2022 IFRS Results (unaudited) (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 ac
Slide 24: Notes
24 Notes Notes to page 12 – Fundraising & Portfolio Activity (1) Total Deployment represents the incremental capital invested or reserved for investments in drawdown funds during the period Notes to page 15 – Total AUM Roll Forward (unaudited) 1) Acquisitions reflects the Total AUM for acquired enti
Slide 25: Notes
25 Notes Notes to Page 21 – Reconciliation of IFRS to Non - GAAP Measures (unaudited) (1) Income Taxes have been adjusted to remove Deferred Taxes which are excluded from Distributable Earnings . Deferred Taxes arise from taxable temporary differences mostly derived from non - deductible employee pr
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