Patria Investments Limited · NASDAQ:PAX
Patria Investments — FY2020 Earnings Presentation
20 slides from Patria Investments's earnings presentation, Mar 19, 2021
Slide 1: Fourth Quarter & Full Year 2020 Results
Fourth Quarter & Full Year 2020 Results MARCH 18, 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 Fourth Quarter and Full Year 2020 Results
3 Patria Reports Fourth Quarter and Full Year 2020 Results “For 30+ years we have served our clients and LPs by delivering strong investment performance. Now with our initial public offering, we can extend that same commitment to value creation to our shareholders. We are very pleased with our finan
Slide 4: Patria Reports Fourth Quarter and Full Year 2020 Results
4 Patria Reports Fourth Quarter and Full Year 2020 Results MARCH 18, 2021
Slide 5: IFRS income statement: 4Q19 vs 4Q20 and 2019 vs 2020
5 (US$ in millions) 4Q19 4Q20 (4Q20 vs. 4Q19) 2019 2020 (2020 vs. 2019) Revenue from management fees 26.8 29.7 2.9 104.9 112.9 8.0 Revenue from incentive fees 5.1 3.3 (1.8) 18.1 3.5 (14.6) Revenue from performance fees 4.8 - (4.8) 4.9 - (4.9) Revenue from M&A and monitoring fees 0.2 0.2 (0.1) 1.0 2.
Slide 6: Patria's Fourth Quarter and Full Year 2020 Highlights
6 ▪ Total Assets Under Management (“AUM”) of $14.4 billion as of December 31, 2020, compared to $14.7 billion one year ago ▪ Fee - Earning AUM (“FEAUM”) of $7.7 billion as of December 31, 2020, up 12% year - over - year - Additional $3.6 billion of Pending FEAUM - More than 70% of FEAUM is contracte
Slide 7: Fee Related Earnings and Distributable Earnings
7 (US$ in millions) 4Q19 4Q20 (4Q20 vs. 4Q19) 2019 2020 (2020 vs. 2019) Management Fees 26.8 29.7 2.9 104.9 112.9 8.0 (+) Incentive Fees 5.1 3.3 (1.8) 18.1 3.5 (14.6) (+) Advisory Fees and Other Revenues 0.2 0.2 (0.1) 1.0 2.5 1.5 (–) Taxes on Revenues (1) (1.3) (1.4) (0.1) (5.0) (3.8) 1.2 Total Fee
Slide 8: Fee Related Earnings (FRE)
8 Fee Related Earnings (“FRE”) See notes and definitions at end of document 54% $16.8 million $20.2 million +20% 4Q 19 4Q20 63% FRE Margin $63.0 million $71.3 million +13% 53% FY 20 19 FY 2020 62% FRE Margin ▪ 4Q20 FRE of $20.2 million was up by $3.4 million or 20% compared to 4Q19 ▪ FY 2020 FRE of
Slide 9: Net Accrued Performance Fees
9 55 183 14 23 Net Accrued Performance Fees • Net Accrued Performance Fees were $276 million at December 31, 2020, compared to $292 million one year ago • Slight year - over - year decrease driven by the impact of foreign currency translation, mostly offset by resilient operating performance in our
Slide 10: Total Assets Under Management
10 ▪ Total AUM of $14.4 billion as of December 31, 2020 compared to $14.7 billion one year ago ▪ Fundraising of $1.4 billion and strong valuations in local currency were positive drivers during the year, with the slight de cre ase driven by the impact of foreign currency translation as well as dives
Slide 11: Fundraising & Portfolio Activity
11 3% 22% 53% 29% 0% 25% 50% 75% 100% 288 1,005 69 295 247 Fundraising & Portfolio Activity Fundraising Total Platform FY 2020 4Q20 110 1,215 24 206 Country - specific Strategies Infrastructure Deployment C losed - end F unds Realizations & Value Creation Closed - end Funds Private Equity Fund VI (2
Slide 12: Fee Earning Assets Under Management
12 Fee Earning Assets Under Management Fee earning AUM 2019 2020 2018 2.7 3.0 3.3 2.4 3.2 3.3 0.8 0.7 1.0 5.8 6.9 7.7 Private Equity Country - specific Strategies Infrastructure ( US$ in billions) ▪ FEAUM of $7.7 billion up 12% compared to $6.9 billion one year ago ▪ $3.6 billion of Pending FEAUM th
Slide 13: Total AUM & FEAUM Roll Forward (Unaudited)
13 Total AUM & FEAUM Roll Forward (Unaudited) See notes and definitions at end of document Total Assets Under Management (“AUM”) (US$ in millions) PE Infra Country-Specific Products Total AUM 4Q19 7,197 4,552 985 12,733 Funds Raised - 110 25 135 Divestments (11) (2) - (12) Valuation Impact 1,470 150
Slide 14: Closed-End Funds Investment Record as of 4Q20
14 Closed - End Funds Investment Record as of 4Q20 Deployed + Reserved Total Invested Unrealized Investments Realized Investments Fund (Vintage) Total (USD) % Value (USD) Value (USD) Value (USD) Value (USD) Gross MOIC (USD) Net IRR (USD) Net IRR (BRL) Private Equity PE I (1997) 234,000 163,812 - 278
Slide 15: Reconciliations and Disclosures
15 Reconciliations and Disclosures
Slide 16: Reconciliation of IFRS to Non-GAAP Measures
16 (US$ in millions) 4Q19 4Q20 (4Q20 vs. 4Q19) 2019 2020 (2020 vs. 2019) Management Fees 26.8 29.7 2.9 104.9 112.9 8.0 (+) Incentive Fees 5.1 3.3 (1.8) 18.1 3.5 (14.6) (+) Advisory Fees and Other Revenues 0.2 0.2 (0.1) 1.0 2.5 1.5 (–) Taxes on Revenues (1.3) (1.4) (0.1) (5.0) (3.8) 1.2 Total Fee Rev
Slide 17: IFRS Balance Sheet Results
17 IFRS Balance Sheet Results The decrease in Short term investments is related to the payment of Dividends of USD 25 . 0 settled in December 28 , 2020 . Accounts receivable presented an increase mainly related to management fees receivable from fund Private Equity IV to be received in annual equal
Slide 18: Notes
18 Notes Notes to page 5 – Patria’s Fourth Quarter And Full Year 2020 IFRS Results (1) Taxes on revenue represent taxes charged directly on services provided in some of the countries where the Company operates such as Brazil where we have PIS/ Cofins and ISS (2) Other income/ (expenses) include non
Slide 19: Notes
19 Notes Notes to page 13 – 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 20: Definitions
20 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) .