Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q4 2021 Earnings Presentation
26 slides from Patria Investments's earnings presentation, Feb 15, 2022
Slide 1: Fourth Quarter & Full Year 2021 Earnings
São Paulo Bogotá Montevideo Santiago Fourth Quarter & Full Year 2021 Earnings FEBRUARY 15, 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 Fourth Quarter & Full Year 2021 Results
3 Patria Reports Fourth Quarter & Full Year 2021 Results “Patria’s 2021 results reflect excellent progress in this first year since our IPO, with attractive growth in revenue and earnings, strong investment performance, and meaningful platform expansion with the addition of Moneda. We enter 2022 wit
Slide 4: Patria Reports Fourth Quarter & Full Year 2021 Results
4 Patria Reports Fourth Quarter & Full Year 2021 Results FEBRUARY 15, 2022
Slide 5: Patria's Fourth Quarter 2021 IFRS Results
5 Patria’s Fourth Quarter 2021 IFRS Results (unaudited) ▪ GAAP Net Income was US$13.3 million for 4Q21 and US$121.3 million for the full year Throughout this presentation all current period amounts are preliminary and unaudited . Totals may not add due to rounding . See notes and definitions at end
Slide 6: Highlights
6 Highlights Completed combination with Moneda Asset Management and announced partnership with Kamaroopin to launch Growth Equity Strategy $1.02 per share of DE in 2021, equivalent to a 5% yield at IPO price FRE Growth 1 FY21 vs FY20 FEAUM up 59 % FRE Margin in 2021 $348 mn Net Accrued Performance F
Slide 7: Fourth Quarter & Full Year 2021 Summary
7 ▪ Total Assets Under Management (“AUM”) of $23.8 billion as of December 31, 2021, up 65% year - over - year ▪ Fee - Earning AUM (“FEAUM”) of $17.9 billion as of December 31, 2021, up 132% year - over - year ▪ Performance Revenue Eligible AUM (“PREAUM”) of $16.0 billion as of December 31, 2021, rep
Slide 8: Patria's Fourth Quarter 2021 Earnings
8 Patria’s Fourth Quarter 2021 Earnings DE per Share shown for 2020 for illustrative purposes only, using Patria’s post - IPO share count of 136 , 147 , 500 shares . Share count of 147 , 192 , 930 effective for 4 Q 21 due to the combination with Moneda . FRE & DE - Adjusted for comparable compensati
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% $20.2 million $29.3 million +77% 4Q 20 4Q21 63% FRE Margin $71.3 million $86.0 million 62% FY20 FY21 59% FRE Margin ▪ 4Q21 FRE of $29.3 million was up 77% from 4Q20 adjusted for com
Slide 10: Net Accrued Performance Fees
10 Net Accrued Performance Fees • Net Accrued Performance Fees were $348 million on December 31, 2021, up 11% from $314 million on September 30, 2021, primarily driven by portfolio appreciation in our third Infrastructure Fund • On a full year basis, Net Accrued Performance Fees grew by 26%, or 47%
Slide 11: Total Assets Under Management
11 8.6 9.0 4.7 5.1 5.0 2.2 ▪ Total AUM of $23.8 billion as of December 31, 2021, including the addition of Moneda’s platform, up 65% compared to $14.4 billion one year ago ▪ $1.3 billion of year - over - year AUM increase was driven by the appreciation of underlying portfolio investments ▪ 67% of To
Slide 12: Portfolio Activity - Drawdown Funds
12 Portfolio Activity - Drawdown Funds ▪ Total Deployment of $733 million in 4Q21 and $2.5bn for the FY21 o Private Equity deployed $391 million into its agribusiness, cybersecurity and grocery retail theses in 4Q21 o Infrastructure deployment of $305 million in 4Q21 was mainly driven by Winity Tele
Slide 13: Fee Earning AUM & Management Fees
13 57% 32% 3.3 4.9 3.3 3.5 4.9 Fee Earning Assets Under Management & Management Fees (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $17.9 billion up 132% YoY including the combination with Moneda completed in December 2021, and up 20 % YoY on an organic basis ▪ Management Fees of $145 million were u
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 $3.5bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.4% 86% / 14% 0% / 100% Hybrid: Committed/ Deplo
Slide 15: Total AUM Roll Forward
15 Total AUM Roll Forward (unaudited) Three Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 3Q21 9,253 4,977 236 202 402 - 15,069 Acquisitions 1 - - 4,733 2,088 - 2,146 8,967 Inflows 2 15 - - 6 - - 21 Outflows 3
Slide 16: Total FEAUM Roll Forward
16 Total FEAUM Roll Forward (unaudited) Three Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 3Q21 4,941 3,505 172 202 416 - 9,236 Acquisitions 1 - - 4,733 2,081 - 1,888 8,702 Inflows 2 3 1 35 8 - - 46 Outflows
Slide 17: Investment Performance - Drawdown Funds
17 Investment Performance - Drawdown Funds (in Thousands, Except Where Noted) 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 E
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 Compounded Annualized Net Returns 1yr 3yr 5yr Since Incep. Latam High Yield (2000) USD 3,325 2,294 10.5% 5.8% 6.6% 11.5% 388 bps Credit
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) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Management Fees 29.7 31.3 33.0 38.2 42.1 112.9 144.7 (+) Incentive Fees 3.3 - - 0.0 4.9 3.5 4.9 (+) Advisory Fees and Other Revenues 0.2 - - - 0.7 2.5 0.7 (–) Taxes
Slide 21: Reconciliation of IFRS to Non-GAAP Measures
21 Reconciliation of IFRS to Non - GAAP Measures (unaudited) See notes and definitions at end of document (US$ in millions) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Management Fees 29.7 31.3 33.0 38.2 42.1 112.9 144.7 (+) Incentive Fees 3.3 - - 0.0 4.9 3.5 4.9 (+) Advisory Fees and Other Revenues 0.2 - -
Slide 22: IFRS Balance Sheet Results
22 IFRS Balance Sheet Results (unaudited) See notes and definitions at end of document (US$ in millions) 12/31/2020 12/31/2021 (US$ in millions) 12/31/2020 12/31/2021 Assets Liabilities and Equity Cash and cash equivalents 14.1 15.3 Client funds payable (1) - 78.2 Client funds on deposit (1) - 78.2
Slide 23: Notes to IFRS Results
23 Notes Notes to page 5 – Patria’s Fourth Quarter 2021 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 management fees for December 2021 from Moneda acquisition (2) Increase in revenues due to perf
Slide 24: Notes to AUM and FEAUM Roll Forward
24 Notes Notes to page 15 – Total AUM Roll Forward (Unaudited) and 16 - Total FEAUM Roll Forward (unaudited) 1) Acquisitions reflects the Total AUM for acquired entities as of the end of the quarterly period in which the transaction clos ed. Impacts to Total AUM in subsequent periods are reflected o
Slide 25: Notes to Reconciliation of IFRS to Non-GAAP Measures
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 Patria’s Distributable Earnings . Deferred Taxes arise from taxable temporary differences mostly derived from non - deductible em
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), and other income/(expenses) .