Patria Investments Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw robust fundraising, Fee-Earning AUM growth, and strong investment performance, with $2.1B raised and FRE up 19% year-over-year. Guidance for 2026 and 2027 was reaffirmed, and the business remains well-capitalized after a $350M debt issuance.
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Latin American private credit is in an early growth phase, with less than 1% market share but significant expansion potential. The platform leverages proprietary origination, strong collateral structures, and local expertise to deliver persistent alpha and low default rates, attracting both local and global investors.
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Latin America is experiencing accelerating economic growth, robust FDI, and a shift toward market-friendly policies, driving asset appreciation and increased demand for alternative investments. Infrastructure, especially data centers, presents significant opportunities, while regulatory and pension reforms are deepening capital markets and attracting both local and international investors.
Fiscal Year 2025
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Record fundraising and strong fee-related earnings growth in 2025 drove a 24% year-over-year increase in fee-earning AUM, with major acquisitions expanding scale and capabilities. Guidance for 2026 and 2027 remains robust, supported by a diversified asset base and strong cash generation.
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AUM exceeded $50 billion, with strong organic fundraising and fee-earning AUM growth. Q3 saw robust earnings, margin expansion, and a positive outlook, with expectations to surpass fundraising and earnings targets for 2025-2027.
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GPMS manages $13.9B in AUM, focusing on European mid-market private equity with strong client retention and sector expertise. The business aims to double fee-earning AUM in three years by expanding SMAs, pooled products, and LATAM presence, leveraging Patria’s entrepreneurial culture and operational improvements.
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Strong Q2 fundraising and fee-related earnings drove an upward revision of the 2025 fundraising target to $6.3–$6.6 billion, with robust organic growth and resilient AUM. Strategic acquisitions and product diversification, especially in credit, infrastructure, and real estate, position the business for continued expansion and margin improvement.
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Infrastructure AUM exceeds $6.7 billion, with strong growth driven by development funds and new verticals like data centers. Operational efficiency, a large specialized team, and deep LP relationships underpin value creation and fundraising success.
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Record Q1 fundraising of $3.2 billion and strong fee-related earnings position the firm to meet its $6 billion annual fundraising and $200-$225 million FRE targets, supported by robust organic growth, diversified investor demand, and successful M&A integration.
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Latin America is poised for faster growth amid global slowdown, driven by favorable demographics, institutional reforms, and increased FDI. Key sectors like agribusiness and renewables offer strong returns, while local fundraising and pension reforms are boosting private market capital flows.
Fiscal Year 2024
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Surpassed 2024 fundraising and earnings targets, raising $5.5B and achieving $170M in fee-related earnings. Strong local investor participation, robust performance in credit and infrastructure, and a resilient business model position the firm for 2025 growth.
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The firm is set to double its fee-earning AUM to $70B by 2027, driven by organic fundraising, strategic M&A, and diversified product expansion across asset classes and geographies. Financial guidance targets robust FRE growth, high margins, and resilient cash flows, with a strong focus on operational excellence and ESG.
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Organic fundraising exceeded $4.2B YTD, with fee-earning AUM up 58% year-over-year and strong growth in real estate, credit, and GPMS. FRE margin guidance is 56%-58% for 2024, with $170M FRE and $5B fundraising targets reaffirmed.
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Management and fee-related earnings grew double digits year-over-year, with AUM up 43% to over $40B. Guidance for FRE per share was raised, a share repurchase program was announced, and integration of recent acquisitions is expected to drive further margin expansion and earnings growth.