Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q3 2023 Earnings Presentation
26 slides from Patria Investments's earnings presentation, Nov 7, 2023
Slide 1: Patria's Third Quarter 2023 Earnings Presentation
Patria’s Third Quarter 2023 Earnings Presentation NOVEMBER 7, 2023 1
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 Third Quarter 2023 Results
Patria Reports Third Quarter 2023 Results NOVEMBER 7, 2023 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the third quarter ended September 30, 2023. Dividend Patria has declared a quarterly dividend of $ 0.199 per share to record holders of common stock at the c
Slide 4: Patria's Third Quarter 2023 IFRS Results
Patria’s Third Quarter 2023 IFRS Results ▪ IFRS Net Income attributable to Patria was $18.5 million for 3Q23 and $71.4 million YTD (US$ in millions) 3Q22 3Q23 YTD 3Q22 YTD 3Q23 Revenue from management fees 57.4 63.5 167.6 185.4 Revenue from incentive fees 0.1 0.0 0.2 0.1 Revenue from performance fee
Slide 5: Quarterly Message from Patria's CEO – Alex Saigh
Update Quarterly Message from Patria’s CEO – Alex Saigh “As we look to Patria’s progress in the 3rd quarter, our message is simple: We delivered another strong set of results, and we continue to drive growth in a market environment where growth does not come easy. We are executing on our M&A goals a
Slide 6: Patria's Third Quarter 2023 Summary
Patria’s Third Quarter 2023 Summary ▪ Fee Related Earnings (“FRE”) of $36.0 million in 3Q23, up 14% compared to 3Q22 ▪ Performance Related Earnings (“PRE”) of $156 thousand in 3Q23, compared to zero in 3Q22 Financial ▪ Distributable Earnings (“DE”) of $34.6 million in 3Q23, up 17% compared to 3Q22 M
Slide 7: Patria's Third Quarter 2023 Earnings
Patria’s Third Quarter 2023 Earnings ▪ Distributable Earnings (“DE”) of $34.6 million in 3Q23 and $117.3 million YTD (US$ in millions) 3Q22 3Q23 %Δ YTD 3Q22 YTD 3Q23 %Δ Management Fees 55.8 61.7 11% 166.0 180.9 9% (+) Incentive Fees 0.1 0.0 0.2 0.1 (+) Other Fee Revenues 0.5 1.1 2.5 2.1 (–) Taxes on
Slide 8: Fee Related Earnings (FRE)
Fee Related Earnings (“FRE”) QUARTER $55.4 +11% $61.6 Total Fee Revenues million million ▪ Fee Related Earnings of $36.0 million in 3Q23 were up Operating Expenses +1% 22.9 14% compared to 3Q22, driven by Total Fee Revenue 22.6 Placement Fees/Rebates 1.1 2.8 growth of 11% for the same period Fee Rel
Slide 9: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $469 million on September 30, 2023, similar to $472 million on June 30, 2023 ▪ Positive portfolio valuation impact of $321 million in 3Q23 was fully offset by local currency depreciation against the US dollar ▪ The current Net Accrued
Slide 10: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $28.4 billion as of September 30, 2023, up 7% from $26.5 billion one year ago ▪ LTM growth was driven by capital inflows of $3.6 billion together with positive valuation and currency impact of $2.2 billion, partially offset by outflows of $(4.3) billion w
Slide 11: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) (Invested + Reserved) 4Q22 1Q23 2Q23 3Q23 LTM 3Q23 ▪ $479 million deployed in 3Q23 primarily Total 635 131 214 479 1,459 related to the recently announced toll road Private Equity 515 - 194 36 745 investment (Infrastructure Fund V) and $1.5
Slide 12: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $21.5 billion in 3Q23 was up 15% from one year ago driven by $3.3 billion of inflows and $1.4 billion of valuation and currency impact, partially offset by $2.0 billion of outflows ▪ Management Fees of $61.7 million in 3Q23 were up 11%
Slide 13: 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 $6.7bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 97% / 3% 1.7% Hybrid: Committed/ 93% Drawdown Funds Long-dated & Illi
Slide 14: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total September 30, 2023 ($mn) Distribution AUM 3Q22 10,564 5,674 4,517 2,174 1,352 2,220 26,501 Acquisitions1 468 - - - - - 468 Inflows2 250 948 518 679 481 747 3,624 Outflows3 (27
Slide 15: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total September 30, 2023 ($mn) Distribution FEAUM 3Q22 5,733 3,243 4,339 2,176 1,351 1,741 18,584 Acquisitions1 222 - - - - - 222 Inflows2 765 305 515 680 473 536 3,273 Outflows3
Slide 16: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (USD) (USD) (USD) (B
Slide 17: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Excess Return Asset Class Strategy YTD Since Currency (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam Equities (2008) USD 1,326 12.4% 20.4% 10.1% 4.1% 3.1% Benchmark: Latam Equities Index 13.2
Slide 18: Reconciliations and Disclosures
Reconciliations and Disclosures 18
Slide 19: Share Summary
Share Summary 3Q22 4Q22 1Q23 2Q231 3Q23 Class A Common Shares 54,247,500 54,247,500 54,247,500 54,930,241 54,930,241 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,192,930 147,192,930 147,875,671 147,875,671 (1) 682,741 shares is
Slide 20: Patria's Earnings – 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Management Fees 55.8 54.6 57.5 61.6 61.7 (+) Incentive Fees 0.1 5.9 0.1 0.0 0.0 (+) Other Fee Revenues 0.5 1.7 0.5 0.5 1.1 (–) Taxes on Revenues (1) (0.9) (1.1) (1.0) (1.3) (1.2) Total Fee Revenues 55.4 61.0 57.1 60.8 61.6
Slide 21: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Management Fees 55.8 54.6 57.5 61.6 61.7 (+) Incentive Fees 0.1 5.9 0.1 0.0 0.0 (+) Other Fee Revenues 0.5 1.7 0.5 0.5 1.1 (–) Taxes on Revenues (0.9) (1.1) (1.0) (1.3) (1.2) Total Fee Revenues 55.4 61.0 57.1 60.8
Slide 22: IFRS Balance Sheet
IFRS Balance Sheet (US$ in millions) 12/31/2022 9/30/2023 (US$ in millions) 12/31/2022 9/30/2023 Assets Liabilities and Equity Cash and cash equivalents 26.5 17.5 Client funds payable 23.6 11.1 Client funds on deposit 23.6 11.1 Consideration payable on acquisition (8) 33.2 52.7 Short term investment
Slide 23: Notes
Notes Notes to page 4 – Patria’s Third Quarter 2023 IFRS Results (1) Performance fees determined in accordance with the funds offering documents and/or agreements with Limited Partners, based on the expected value for which it is highly probable that a significant reversal will not occur (2) Taxes o
Slide 24: Notes
Notes Notes to page 9 – Net Accrued Performance Fees (1) Beginning with 1Q23, we are reporting Net Accrued Performance Fees balances net of related compensation and revenue taxes only. Disclosures in prior periods were also reflected net of related corporate income taxes and for comparative purposes
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, performance fees and quarterly revaluation of derivatives (IFRS note "Income Tax Expenses") (2) Amortization of busin
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