Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q2 2022 Earnings Presentation
26 slides from Patria Investments's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Earnings
São Paulo Bogotá Montevideo Santiago Second Quarter 2022 Earnings AUGUST 9, 2022
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 Second Quarter 2022 Results
Patria Reports Second Quarter 2022 Results AUGUST 9, 2022 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the second quarter ended June 30, 2022. “Patria continued to execute on both Dividend financial results and long-term strategic Patria has declared a quarterl
Slide 4: Patria Reports Second Quarter 2022 Results
Patria Reports Second Quarter 2022 Results AUGUST 9, 2022 4
Slide 5: Patria's Second Quarter 2022 IFRS Results
Patria’s Second Quarter 2022 IFRS Results ▪ IFRS Net Income was US$15.9 million for 2Q22 and US$34.2 million YTD (US$ in millions) 2Q21 2Q22 YTD 2Q21 YTD 2Q22 Revenue from management fees (1) 33.0 55.6 64.4 110.2 Revenue from incentive fees - 0.1 0.0 0.1 Revenue from performance fees (2) 86.8 0.0 86
Slide 6: Highlights
Highlights FRE of $62.9 mn $0.44 DE per share Dividend per share $764 mn of capital inflows $0.37 in 2Q22 and over YTD 2Q22 up 80% compared to YTD 2Q21… YTD 2Q22 YTD 2Q22 $2.2 bn for the 1H22 and on track to deliver our 2022 FRE …representing a 5+% … more than halfway to our guidance of 50% year-ove
Slide 7: Patria's Second Quarter 2022 Summary
Patria’s Second Quarter 2022 Summary ▪ Fee Related Earnings (“FRE”) of $31.1 million in 2Q22, up 76% compared to 2Q21 ▪ Distributable Earnings (“DE”) of $29.2 million in 2Q22, compared to $74.2 million in 2Q21 which included the positive impact of Performance Related Earnings (“PRE”) of $56.4 millio
Slide 8: Patria's Second Quarter 2022 Earnings
Patria’s Second Quarter 2022 Earnings ▪ Distributable Earnings (“DE”) of $29.2 million in 2Q22, and $64.2 million YTD (US$ in millions) 2Q21 2Q22 %Δ YTD 2Q21 YTD 2Q22 %Δ Management Fees 33.0 55.6 68% 64.4 110.2 71% (+) Incentive Fees - 0.1 - 0.1 (+) Other Fee Revenues - 0.9 - 2.0 (–) Taxes on Revenu
Slide 9: Fee Related Earnings (FRE)
Fee Related Earnings (“FRE”) +76% $31.1 million ▪ 2Q22 FRE of $31.1 million was up 76% from 2Q21 $17.6 million ▪ 2Q22 Total Fee Revenues of $55.6 million were up 73% compared to 2Q21 2Q21 2Q22 ▪ FRE margin of 56% in 2Q22, similar to 55% in 2Q21, FRE Margin and slightly above our guidance for 2022 55
Slide 10: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $419 million on June 30, 2022, compared to $503 million on March 31, 2022, with the decrease driven primarily by the appreciation of the U.S. dollar against local currencies ▪ Compared to one year ago, Net Accrued Performance Fees are
Slide 11: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $26.3 billion as of June 30, 2022, up 66% compared to $15.8 billion one year ago ▪ LTM AUM increase driven primarily by the acquisitions of Moneda and VBI in addition to $2.3bn of inflows, partially offset by $1.2bn of outflows and $890 million of currenc
Slide 12: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) (Invested + Reserved) 2Q22 LTM 2Q22 ▪ $655 million of Total Deployment in 2Q22 Total 655 1,460 o $450 million deployed for the first thesis in our Private Equity 450 841 Infrastructure 199 504 new vintage Private Equity fund Others 6 116 o
Slide 13: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $18.8 billion up 126% from one year ago driven by deployment in our flagship funds and the addition of Moneda’s platform ▪ Management Fees of $55.6 million in 2Q22 were up 68% compared to 2Q21 with more than 70% of current management f
Slide 14: 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 $5.3bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 99% / 1% 1.9% Hybrid: Committed/ 96% Drawdown Funds Long-dated & Illi
Slide 15: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total June 30, 2022 ($mn) Distribution AUM 2Q21 9,741 5,108 254 275 461 - 15,840 Acquisitions1 - - 4,733 1,985 1,032 2,248 9,998 Inflows2 1,085 - 392 203 - 583 2,263 Outflows3 (125)
Slide 16: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total June 30, 2022 ($mn) Distribution FEAUM 2Q21 3,831 3,421 185 275 601 - 8,313 Acquisitions1 - - 4,733 1,978 888 1,991 9,589 Inflows2 1,651 369 335 203 6 125 2,689 Outflows3 (2
Slide 17: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Committed Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) Capital + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (U
Slide 18: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Primary Fund Excess Return Asset Class Strategy Since Currency (USD Mn) AUM (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam Equities (2008) USD 804 363 -29.0% -5.6% -0.6% 1.7% Benchmark: Latam
Slide 19: Reconciliations and Disclosures
Reconciliations and Disclosures 19
Slide 20: Patria's Earnings - 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 2Q21 3Q21 4Q21 1Q22 2Q22 YTD 2Q21 YTD 2Q22 Management Fees 33.0 38.2 42.1 54.6 55.6 64.4 110.2 (+) Incentive Fees - 0.0 4.9 0.0 0.1 - 0.1 (+) Other Fee Revenues - - 0.7 1.1 0.9 - 2.0 (–) Taxes on Revenues (1) (0.8) (0.8) (1.5) (0.8) (0.9) (1.6) (1
Slide 21: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 2Q21 3Q21 4Q21 1Q22 2Q22 YTD 2Q21 YTD 2Q22 Management Fees 33.0 38.2 42.1 54.6 55.6 64.4 110.2 (+) Incentive Fees - 0.0 4.9 0.0 0.1 - 0.1 (+) Other Fee Revenues - - 0.7 1.1 0.9 - 2.0 (–) Taxes on Revenues (0.8) (0.8) (1.5) (0.8) (0.9) (1.
Slide 22: IFRS Balance Sheet Results
IFRS Balance Sheet Results (US$ in millions) 12/31/2021 6/30/2022 (US$ in millions) 12/31/2021 6/30/2022 Assets Liabilities and Equity Cash and cash equivalents 15.3 16.4 Client funds payable (1) 78.2 53.7 Client funds on deposit (1) 78.2 53.7 Consideration payable on acquisition (10) 16.4 0.8 Short
Slide 23: Notes
Notes Notes to page 5 – Patria’s Second Quarter 2022 IFRS Results (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 accordance with
Slide 24: Notes
Notes Notes to page 10 – Net Accrued Performance Fees (1) Other includes Private Equity funds 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 dra
Slide 25: Notes
Notes Notes to Page 21 – 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, custome
Slide 26: 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