Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q2 2021 Earnings Presentation
21 slides from Patria Investments's earnings presentation, Aug 19, 2021
Slide 1: Second Quarter 2021 Earnings
Second Quarter 2021 Earnings AUGUST 19, 2021
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 Second Quarter 2021 Results
3 Patria Reports Second Quarter 2021 Results “We’re very excited with our progress since the IPO, with nearly all of our key metrics running ahead of our expectations from the beginning of this year. We are deploying capital faster, which is accelerating earnings growth, as well as our fundraising t
Slide 4: Patria Reports Second Quarter 2021 Results
4 Patria Reports Second Quarter 2021 Results AUGUST 19, 2021
Slide 5: Patria's Second Quarter 2021 IFRS Results
5 Patria’s Second Quarter 2021 IFRS Results ▪ GAAP Net Income was US$73.4 million for 2Q21 and US$86.5 million year - to - date (“YTD”) 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 docum
Slide 6: Patria's Second Quarter 2021 Highlights
6 Patria’s Second Quarter 2021 Highlights PATRIA IS EXECUTING IN ALL AREAS OF THE BUSINESS, AND MARCHING FORWARD ON ALL OF ITS KEY DRIVERS FOR GROWTH $325 mn Net Accrued Performance Fees up 29% from $253 million in 1Q21, after accounting for $56 million realized in 2Q21 Outstanding Investment Perfor
Slide 7: Patria's Second Quarter 2021 Summary Financial Measures and Key Business Metrics
7 ▪ Total Assets Under Management (“AUM”) of $15.8 billion as of June 30, 2021, up 24% year - over - year ▪ Fee - Earning AUM (“FEAUM”) of $8.3 billion driving management fees in 2Q21, up 17% year - over - year - Additional $2.8 billion of Pending FEAUM as of June 30, 2021 - More than 75% of FEAUM i
Slide 8: Patria's Second Quarter 2021 Earnings
8 Patria’s Second Quarter 2021 Earnings DE per Share shown for 2Q20 and YTD 2020 for illustrative purposes only, using Patria’s post - IPO share count of 136,147,500 shares See notes and definitions at end of document ▪ Distributable Earnings (“DE”) of US$74.2 million for 2Q21, up from US$14.5 milli
Slide 9: Fee Related Earnings (FRE)
9 Fee Related Earnings (“FRE”) See notes and definitions at end of document $14.9 mi ll i on $17.6 million +19% 2 Q 20 60% 2 Q 21 55% FRE Margin $30.1 mil li o n $34.9 million +16% 60% YTD 2Q20 YTD 2Q21 56% FRE Margin ▪ 2Q21 FRE of $17.6 million was up $2.8 million or 19% compared to 2Q20 o Total Fe
Slide 10: Net Accrued Performance Fees
10 244 31 Net Accrued Performance Fees • Net Realized Performance Fees were $56 million for the quarter, driven by the crystallization of performance fees in Private Equity Fund III • Net Accrued Performance Fees were $325 million at June 30, 2021, after accounting for the 2Q21 realization, a 29% in
Slide 11: Total Assets Under Management
11 2 .4 7.7 US$ 11.0 bn ▪ Total AUM of $15.8 billion as of June 30, 2021, up approximately $3 billion or 24% compared to $12.8 billion one year ago ▪ $2.2 billion of year - over - year AUM increase was driven by the appreciation of underlying portfolio investments before accounting for the improveme
Slide 12: Fundraising & Portfolio Activity
12 Fundraising & Portfolio Activity Fundraising ($mn) Total Platform 2Q21 YTD 2Q21 LTM 2Q21 Total 2 149 395 Private Equity - - - Infrastructure - - 102 Country - specific 2 149 293 Pri v a t e Equity Fund VI (201 9 ) I n f r a Fund IV (201 9 ) Realizations ($mn) Closed - end Funds 2Q21 YTD 2Q21 LTM
Slide 13: Fee Earning Assets Under Management
13 2.9 3.8 3.5 3.3 0.7 1.2 7.1 8.3 Fee Earning Assets Under Management 2Q21 2Q20 Country - specific Strategies Infrastructure Private Equity (US$ in billions) Fee earning AUM ▪ FEAUM of $8.3 billion, up 17% year - over - year, drove management fees of $33 million in 2Q21 • $2.8 billion of Pending FE
Slide 14: Total AUM & FEAUM Roll Forward
14 Total AUM & FEAUM Roll Forward (Unaudited) Total Assets Under Management (“AUM”) (US$ in millions) Three Months Ended June 30, 2021 Twelve Months Ended June 30, 2021 Total Fee Earning AUM (“FEAUM”) (US$ in millions) Three Months Ended June 30, 2021 Twelve Months Ended June 30, 2021 (US$ in millio
Slide 15: Closed-End Funds Investment Record as of 2Q21
15 Closed - End Funds Investment Record as of 2Q21 PE I (1997) 234 , 00 0 Divested 163 , 81 2 - 278 , 48 0 278 , 48 0 1.7x 4% 7% PE II (2003) 50 , 00 0 Divested 51 , 64 8 - 1 , 053 , 62 5 1 , 053 , 62 5 20.4x 92% 75% PE III (2007) 571 , 59 6 124% 624 , 46 4 110 , 64 3 1 , 078 , 14 3 1 , 188 , 78 6 1
Slide 16: Reconciliations and Disclosures
16 Reconciliations and Disclosures
Slide 17: Reconciliation of IFRS to Non-GAAP Measures
(US$ in millions) 2Q20 2Q2 1 YTD 2Q20 YTD 2Q21 LTM 2Q20 LTM 2Q21 Management Fees 25.4 33.0 49.2 64.4 102.4 128.0 (+) Incentive Fees 0.1 - 0.1 - 5.1 3.3 (+) Advisory Fees and Other Revenues (0.1) - 2.4 - 2.9 0.1 ( – ) Taxes on Revenues (0.8) ( 0.8 ) (1.6) (1.6) (3.6) (3.7) Total Fee Revenues 24.6 32.
Slide 18: IFRS Balance Sheet Results
18 IFRS Balance Sheet Results See no (US$ in millions) 12/31/2020 6/30/2021 Assets Cash and cash equivalents 14.1 25.2 Short term investments (1) 9.9 286.3 Accounts receivable (2) 24.0 111.0 Project advances 1.3 1.9 Other assets 3.7 3.0 Recoverable taxes 0.7 0.9 Current Assets 53.7 428.3 Accounts re
Slide 19: Notes
19 Notes Notes to page 5 – Patria’s Second Quarter 2021 IFRS Results (1) The increase in revenue from performance fees is related to receivables from PBPE Fund III (Ontario), L.P. (2) Taxes on revenue represent taxes charged directly on services provided in some of the countries where Patria operate
Slide 20: Notes
20 Notes Notes to page 14 – Total AUM & FEAUM Roll Forward (Unaudited) (1) Inflows for FEAUM during the period reflect new fundraising for funds charging fees based on committed capital, plus deployed (or reserved) capital for funds charging fees based on deployed capital (2) Outflows for FEAUM duri
Slide 21: Definitions
21 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) .