Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q4 2023 Earnings Presentation
26 slides from Patria Investments's earnings presentation, Feb 15, 2024
Slide 1: Patria's Fourth Quarter & Full Year 2023 Earnings Presentation
Patria’s Fourth Quarter & Full Year 2023 Earnings Presentation FEBRUARY 15, 2024 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 Fourth Quarter & Full Year 2023 Results
Patria Reports Fourth Quarter & Full Year 2023 Results FEBRUARY 15, 2024 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the fourth quarter and full year ended December 31, 2023. Dividend Patria has declared a quarterly dividend of $0.399 per share to record holde
Slide 4: Patria's Fourth Quarter & Full Year 2023 IFRS Results
Patria’s Fourth Quarter & Full Year 2023 IFRS Results ▪ IFRS Net Income attributable to Patria was $47.0 million for 4Q23 and $118.4 million for FY23 (US$ in millions) 4Q22 4Q23 FY 2022 FY 2023 Revenue from management fees 55.9 67.5 223.5 252.9 Revenue from incentive fees 5.9 3.9 6.1 4.1 Revenue fro
Slide 5: 2023 Message from Patria's CEO – Alex Saigh
2023 Message from Patria’s CEO – Alex Saigh “2023 marked Patria’s third year as a public company, and I’m very pleased with the performance we delivered in the 4th quarter and the full year. We generated $47 million of Fee Related Earnings in 4Q23, bringing our full year 2023 FRE to $148 million wit
Slide 6: Patria's Fourth Quarter & Full Year 2023 Summary
Patria’s Fourth Quarter & Full Year 2023 Summary ▪ Fee Related Earnings (“FRE”) of $46.7 million in 4Q23, up 32% compared to 4Q22, and $147.7 million for FY23, up 14% from FY22 ▪ Performance Related Earnings (“PRE”) of $26.6 million in 4Q23, compared to $18.9 million in 4Q22, and $47.5 million for F
Slide 7: Patria's Fourth Quarter & Full Year 2023 Earnings
Patria’s Fourth Quarter & Full Year 2023 Earnings ▪ Distributable Earnings (“DE”) of $70.5 million in 4Q23 and $187.8 million for FY23 (US$ in millions) 4Q22 4Q23 %Δ FY 2022 FY 2023 %Δ Management Fees 54.6 64.7 18% 220.6 245.6 11% (+) Incentive Fees 5.9 3.9 6.1 4.1 (+) Other Fee Revenues 1.7 0.7 4.2
Slide 8: Fee Related Earnings ("FRE")
Fee Related Earnings (“FRE”) Quarter +11% $67.8 ▪ Fee Related Earnings of $46.7 million in 4Q23 were up 32% Total Fee Revenues $61.0 million compared to 4Q22 million Operating Expenses 18.9 ▪ 4Q23 Fee Revenues were $67.8 million, up 11% compared to 24.4 2.3 Placement Fees/Rebates 1.3 4Q22 driven by
Slide 9: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $541 million on December 31, 2023, up 15% from $469 million in the prior quarter ▪ Performance Related Earnings (PRE) of $27 million in 4Q23 driven mainly by Infrastructure Fund III ▪ Positive portfolio valuation impact was particularl
Slide 10: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $31.8 billion as of December 31, 2023, up 17% from $27.2 billion one year ago ▪ LTM growth was driven by capital inflows of $4.6 billion together with positive valuation and currency impact of $3.1 billion in addition to $1.5 billion of acquisitions, part
Slide 11: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) ▪ $937 million deployed in 2023 primarily related (Invested + Reserved) 1Q23 2Q23 3Q23 4Q23 FY 2023 to new investments on our latest flagship Private Total 131 214 479 113 937 Equity and Infrastructure funds Private Equity - 194 36 9 238 In
Slide 12: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $23.9 billion in 4Q23 was up 25% from one year ago driven by $5.1 billion of inflows including $1.5 billion from acquisitions, in addition to $1.4 billion of positive valuation impact, partially offset by $1.9 billion of outflows ▪ Man
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 $6.7bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 91% / 9% 1.7% Hybrid: Committed/ 93% Drawdown Funds Long-dated & Illi
Slide 14: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total December 31, 2023 ($mn) Distribution AUM 4Q22 10,909 5,836 4,693 2,140 1,325 2,345 27,250 Acquisitions1 184 - - - 1,364 - 1,547 Inflows2 250 1,301 731 759 758 778 4,576 Outflo
Slide 15: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total December 31, 2023 ($mn) Distribution FEAUM 4Q22 6,048 3,287 4,520 2,142 1,404 1,767 19,167 Acquisitions1 111 - - - 1,364 - 1,475 Inflows2 570 487 531 759 635 603 3,585 Outfl
Slide 16: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Committed Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) Capital + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (U
Slide 17: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Excess Return Asset Class Strategy YTD Since Currency (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam Equities (2008) USD 1,579 28.8% 28.8% 4.5% 6.3% 4.0% Benchmark: Latam Equities Index 32.5%
Slide 18: Reconciliations and Disclosures
Reconciliations and Disclosures 18
Slide 19: Share Summary
Share Summary 4Q22 1Q23 2Q231 3Q23 4Q232 Class A Common Shares 54,247,500 54,247,500 54,930,241 54,930,241 55,308,508 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,192,930 147,875,671 147,875,671 148,253,938 + Shares Issued in 1
Slide 20: Patria's Earnings – 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 Management Fees 54.6 57.5 61.6 61.7 64.7 (+) Incentive Fees 5.9 0.1 0.0 0.0 3.9 (+) Other Fee Revenues 1.7 0.5 0.5 1.1 0.7 (–) Taxes on Revenues (1) (1.1) (1.0) (1.3) (1.2) (1.4) Total Fee Revenues 61.0 57.1 60.8 61.6 67.8
Slide 21: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 Management Fees 54.6 57.5 61.6 61.7 64.7 (+) Incentive Fees 5.9 0.1 0.0 0.0 3.9 (+) Other Fee Revenues 1.7 0.5 0.5 1.1 0.7 (–) Taxes on Revenues (1.1) (1.0) (1.3) (1.2) (1.4) Total Fee Revenues 61.0 57.1 60.8 61.6
Slide 22: IFRS Balance Sheet
IFRS Balance Sheet (US$ in millions) 31-Dec-22 31-Dec-23 (US$ in millions) 12/31/2022 12/31/2023 Assets Liabilities and Equity Cash and cash equivalents 26.5 16.1 Client funds payable 23.6 17.1 Client funds on deposit 23.6 17.1 Consideration payable on acquisition (8) 33.2 59.1 Short term investment
Slide 23: Notes
Notes Notes to page 4 – Patria’s Fourth Quarter & Full Year 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 occu
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