Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q4 2022 Earnings Presentation
27 slides from Patria Investments's earnings presentation, Feb 14, 2023
Slide 1: Fourth Quarter & Full Year 2022 Earnings
São Paulo Bogotá Montevideo Santiago Fourth Quarter & Full Year 2022 Earnings FEBRUARY 14, 2023
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 Fourth Quarter & Full Year 2022 Results
3 Patria Reports Fourth Quarter & Full Year 2022 Results “Patria generated strong results for the 4th quarter and full year 2022, delivering our FRE guidance for 50% annual growth, as well as performance fees during a challenging year for global markets. We believe we are uniquely positioned as a ga
Slide 4: Patria Reports Fourth Quarter & Full Year 2022 Results
4 Patria Reports Fourth Quarter & Full Year 2022 Results FEBRUARY 14, 2023
Slide 5: IFRS income statement summary
5 (US$ in millions) 4Q21 4Q22 FY21 FY22 Revenue from management fees (1) 42.1 55.9 144.7 223.5 Revenue from incentive fees 4.9 5.9 4.9 6.1 Revenue from performance fees (2) 0.0 29.1 89.3 29.2 Revenue from advisory and other ancillary fees 0.7 1.7 0.7 4.2 Taxes on revenue (3) (1.5) (1.2) (4.1) (4.0)
Slide 6: Highlights
6 Highlights FRE of $130 mn FY22 up 51% compared to FY21… delivering our FRE guidance for year - over - year growth $3.1 bn of organic capital inflows in 2022 $3.14 of net accrued performance fees, reflecting significant embedded value for shareholders $1.00 … representing a 5+% annual dividend yiel
Slide 7: Fourth Quarter & Full Year 2022 Summary
7 ▪ Total Assets Under Management (“AUM”) of $27.2 billion as of December 31, 2022, up 14% compared to one year ago ▪ Fee - Earning AUM (“FEAUM”) of $19.2 billion as of December 31, 2022, up 7% compared to one year ago ▪ Fundraising of $418 million in 4Q22 and $3.1 billion for FY22 ▪ Total Deploymen
Slide 8: Fee related and distributable earnings
8 (US$ in millions) 4Q21 4Q22 % Δ FY21 FY22 % Δ Management Fees 42.1 54.6 30% 144.7 220.6 52% (+) Incentive Fees 4.9 5.9 4.9 6.1 (+) Other Fee Revenues 0.7 1.7 0.7 4.2 (–) Taxes on Revenues (1) (1.5) (1.1) (3.9) (3.7) Total Fee Revenues 46.2 61.0 32% 146.4 227.1 55% (–) Personnel Expenses (11.2) (18
Slide 9: Fee Related Earnings
9 Fee Related Earnings (“FRE”) See notes and definitions at end of document . Totals may not add due to rounding . 63% $29.3 million $35.3 million +20% 4Q 21 4Q22 58% FRE Margin ▪ 4Q22 FRE of $35.3 million was up 20% from 4Q21 ▪ 4Q22 Total Fee Revenues of $61.0 million were up 32% compared to 4Q21 ▪
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $462 million on December 31, 2022, up from $428 million on September 30, 2022 ▪ $19 million of Performance Related Earnings (PRE) in 4Q22 driven by divestments in Infrastructure Fund III ▪ Compared to one year ago, Net Accrued Perfo
Slide 11: Total Assets Under Management
11 9.0 10.9 5.1 5.8 5.0 4.7 2.1 2.1 2.2 ▪ Total AUM of $27.2 billion as of December 31, 2022, up 14% compared to $23.8 billion one year ago ▪ FY22 AUM increase driven primarily by $3.1bn of inflows in addition to the acquisition of VBI, partially offset by $2.3bn of outflows ▪ Total AUM is comprised
Slide 12: Portfolio Activity - Drawdown Funds
12 Portfolio Activity - Drawdown Funds ▪ More than $1.3 billion deployed for the year, with $635 million deployed in 4Q22 including: o $515 million in two new theses for Private Equity Fund VII o $120 million in our Infrastructure Fund IV ▪ Valuations for our drawdown funds were up $420 million over
Slide 13: Fee Earning Assets Under Management
13 46% 24% 4.9 6.0 3.5 3.3 4.9 4.5 2.1 2.1 1.4 2.0 1.8 Fee Earning Assets Under Management (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $19.2 billion was up 7% from one year ago mainly driven by deployment in our flagship funds, inflo ws across the platform and M&A, partially offset by Infrastruct
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 $3.3bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.6% 82% / 18% 0% / 100% Hybrid: Committed/ Deplo
Slide 15: Total AUM Roll Forward
15 Total AUM Roll Forward Three Months Ended December 31, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 3Q22 10,564 5,674 4,517 2,174 1,352 2,220 26,501 Acquisitions 1 285 - - - - - 285 Inflows 2 - 64 141 27 21 165 418 Outflows 3 (2) (1
Slide 16: Total FEAUM Roll Forward
16 Total FEAUM Roll Forward Three Months Ended December 31, 2022 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 3Q22 5,733 3,243 4,339 2,176 1,351 1,741 18,584 Acquisitions 1 111 - - - - - 111 Inflows 2 195 5 145 27 21 52 445 Outflows 3 - (
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 composite investment performance for funds of strategies with Total AUM of $ 500 million or more, and where relevant, a weighted composite of underlying benchmarks 1yr 3yr 5yr Since Incep. Latam Equities (2008) USD 809 6.1% -5.0% -
Slide 19: Reconciliations and Disclosures
19 Reconciliations and Disclosures
Slide 20: Share Summary
20 Share Summary 4Q21 1Q22 2Q22 3Q22 4Q22 Class A Common Shares 54,247,500 54,247,500 54,247,500 54,247,500 54,247,500 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,192,930 147,192,930 147,192,930 147,192,930
Slide 21: Quarterly fee related and distributable earnings
21 (US$ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 FY21 FY22 Management Fees 42.1 54.6 55.6 55.8 54.6 144.7 220.6 (+) Incentive Fees 4.9 0.0 0.1 0.1 5.9 4.9 6.1 (+) Other Fee Revenues 0.7 1.1 0.9 0.5 1.7 0.7 4.2 (–) Taxes on Revenues (1) (1.5) (0.8) (0.9) (0.9) (1.1) (3.9) (3.7) Total Fee Revenues 46.2 5
Slide 22: Reconciliation of IFRS to non-GAAP measures
22 (US$ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 FY21 FY22 Management Fees 42.1 54.6 55.6 55.8 54.6 144.7 220.6 (+) Incentive Fees 4.9 0.0 0.1 0.1 5.9 4.9 6.1 (+) Other Fee Revenues 0.7 1.1 0.9 0.5 1.7 0.7 4.2 (–) Taxes on Revenues (1.5) (0.8) (0.9) (0.9) (1.1) (3.9) (3.7) Total Fee Revenues 46.2 55.0
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 12/31/2022 (US$ in millions) 12/31/2021 12/31/2022 Assets Liabilities
Slide 24: Notes to IFRS Results
24 Notes Notes to page 5 – Patria’s Fourth Quarter & Full Year 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 VII (2) Performance fees determined in accordanc
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