Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q3 2022 Earnings Presentation
27 slides from Patria Investments's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Earnings
São Paulo Bogotá Montevideo Santiago Third Quarter 2022 Earnings NOVEMBER 3, 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 Third Quarter 2022 Results
3 Patria Reports Third Quarter 2022 Results “Patria’s results for the third quarter reflect progress in our key growth drivers and the resilience of our business model through today’s challenging environment. We have raised more than $2.7 billion this year across a diverse range of products and our
Slide 4: Patria Reports Third Quarter 2022 Results
4 Patria Reports Third Quarter 2022 Results NOVEMBER 3, 2022
Slide 5: IFRS income statement results
5 (US$ in millions) 3Q21 3Q22 YTD 3Q21 YTD 3Q22 Revenue from management fees (1) 38.2 57.4 102.5 167.6 Revenue from incentive fees - 0.1 0.0 0.2 Revenue from performance fees (2) 2.5 0.0 89.3 0.1 Revenue from advisory and other ancillary fees - 0.5 - 2.5 Taxes on revenue (3) (1.0) (1.1) (2.6) (2.8)
Slide 6: Highlights
6 Highlights FRE of $94.6 mn YTD 3Q22 up 67% compared to YTD 3Q21… and on track to deliver our 2022 FRE guidance of 50% year - over - year growth $507 mn in 3Q22 … including R$ 1 bn raised from Brazilian retail investors for our next vintage PE fund $2.7 bn of capital inflows YTD Total AUM up 76 % Y
Slide 7: Patria's Third Quarter 2022 Summary
7 ▪ Total Assets Under Management (“AUM”) of $26.5 billion as of September 30, 2022, up 76% compared to one year ago ▪ Fee - Earning AUM (“FEAUM”) of $18.6 billion as of September 30, 2022, up 101% compared to one year ago ▪ Total Fundraising of $507 million in 3Q22 and $2.8 billion for the LTM ▪ To
Slide 8: Financial results: FRE and Distributable Earnings
8 (US$ in millions) 3Q21 3Q22 % Δ YTD 3Q21 YTD 3Q22 % Δ Management Fees 38.2 55.8 46% 102.5 166.0 62% (+) Incentive Fees 0.0 0.1 0.0 0.2 (+) Other Fee Revenues - 0.5 - 2.5 (–) Taxes on Revenues (1) (0.8) (0.9) (2.4) (2.6) Total Fee Revenues 37.4 55.4 48% 100.2 166.0 66% (–) Personnel Expenses (12.1)
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 . 58% $21.8 million $31.7 million +46% 3Q 21 3Q22 57% FRE Margin ▪ 3Q22 FRE of $31.7 million was up 46% from 3Q21 ▪ 3Q22 Total Fee Revenues of $55.4 million were up 48% compared to 3Q21 ▪
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $428 million on September 30, 2022, up from $419 million on June 30, 2022, with the increas e driven primarily by the positive valuation impact in our Infrastructure Fund III and Private Equity Fund VI portfolios offset by the depre
Slide 11: Total Assets Under Management
11 9.3 10.6 5.0 5.7 4.5 2.2 ▪ Total AUM of $26.5 billion as of September 30, 2022, up 76% compared to $15.1 billion one year ago ▪ LTM AUM increase driven primarily by the acquisitions of Moneda and VBI in addition to $2.8bn of inflows, partially offset by $1.7bn of outflows and $347 million of curr
Slide 12: Portfolio Activity - Drawdown Funds
12 Portfolio Activity - Drawdown Funds ▪ While we did not allocate capital to new investment theses in 3Q22, our portfolio remained active: o $247 million of capital previously reserved for Private Equity called for investments in 3Q22 o $82 million of capital previously reserved for Infrastructure
Slide 13: Fee Earning Assets Under Management
13 45% 23% 4.9 5.7 3.5 3.2 4.3 2.2 1.4 1.7 Fee Earning Assets Under Management (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $18.6 billion up 101% from one year ago driven by deployment in our flagship funds and the additio n o f Moneda’s platform ▪ Compared to the prior quarter, the slight decreas
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 $3.2bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.6% 83% / 17% 0% / 100% Hybrid: Committed/ Deplo
Slide 15: Total AUM Roll Forward
15 Total AUM Roll Forward Three Months Ended September 30, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 2Q22 10,219 5,511 4,797 2,060 1,373 2,355 26,315 Acquisitions 1 - - - - - - - Inflows 2 240 37 18 51 21 140 507 Outflows 3 (19) (13
Slide 16: Total FEAUM Roll Forward
16 Total FEAUM Roll Forward Three Months Ended September 30, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 2Q22 5,281 3,672 4,618 2,061 1,303 1,837 18,773 Acquisitions 1 - - - - - - - Inflows 2 527 69 18 51 28 89 781 Outflows 3 (74) (
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 854 382 -10.6% -3.0% -2.5% 2.0% Benchmark: Latam Equities Index -2.6% -3.5% -2.7% -0.
Slide 19: Reconciliations and Disclosures
19 Reconciliations and Disclosures
Slide 20: Share Summary
20 Share Summary 3Q21 4Q21 1Q22 2Q22 3Q22 Class A Common Shares 54,247,500 54,247,500 54,247,500 54,247,500 54,247,500 Class B Common Shares 81,900,000 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 136,147,500 147,192,930 147,192,930 147,192,930 147,192,930
Slide 21: Quarterly FRE and Distributable Earnings
21 (US$ in millions) 3Q21 4Q21 1Q22 2Q22 3Q22 YTD 3Q21 YTD 3Q22 Management Fees 38.2 42.1 54.6 55.6 55.8 102.5 166.0 (+) Incentive Fees 0.0 4.9 0.0 0.1 0.1 0.0 0.2 (+) Other Fee Revenues - 0.7 1.1 0.9 0.5 - 2.5 (–) Taxes on Revenues (1) (0.8) (1.5) (0.8) (0.9) (0.9) (2.4) (2.6) Total Fee Revenues 37
Slide 22: Quarterly FRE and Distributable Earnings reconciliation
22 (US$ in millions) 3Q21 4Q21 1Q22 2Q22 3Q22 YTD 3Q21 YTD 3Q22 Management Fees 38.2 42.1 54.6 55.6 55.8 102.5 166.0 (+) Incentive Fees 0.0 4.9 0.0 0.1 0.1 0.0 0.2 (+) Other Fee Revenues - 0.7 1.1 0.9 0.5 - 2.5 (–) Taxes on Revenues (0.8) (1.5) (0.8) (0.9) (0.9) (2.4) (2.6) Total Fee Revenues 37.4 4
Slide 23: IFRS Balance Sheet Results
23 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 9/30/2022 (US$ in millions) 12/31/2021 9/30/2022 Assets Liabilities a
Slide 24: Notes to IFRS Results
24 Notes Notes to page 5 – Patria’s Third Quarter 2022 IFRS Results (1) Increase in management fee revenues from prior year due to (a) management fees earned by acquired business and (b) increase in capital deployed by Private Equity Fund VI and Infra Fund IV (2) Performance fees determined in accor
Slide 25: Notes
25 Notes Notes to page 10 – Net Accrued Performance Fees ( 1 ) Other includes Private Equity fund 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 in
Slide 26: Notes to Reconciliation of IFRS to Non-GAAP Measures
26 Notes Notes to Page 22 – 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, c
Slide 27: Definitions
27 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