Patria Investments (PAX) Investor Day 2024 summary

Strategic progress, business evolution, and vision

• Aims to double FEAUM to $70B by 2027, driven by organic growth and accretive M&A, with FEAUM reaching $34B by Q3 2024 and a 25% CAGR targeted over the next three years.

• Diversified product offerings and geographic reach, with permanent capital over 20% of AUM, hard currency exposure above 70%, and reduced reliance on Brazil from over 90% to 28% of assets.

• Maintains a consistent strategy focused on global investors in LatAm, local products for local investors, and enabling local capital to access global alternatives, with ESG priorities in climate, social mobility, and governance.

• Built a scalable, resilient platform with strong cash flow, supported by strategic M&A and organic growth, consistently meeting or exceeding financial targets since IPO.

• Integration of acquired teams and a focus on a high-performance, diverse, and inclusive culture have been key to successful expansion and retention, with 100% retention of new partners post-acquisition.

Financial guidance and targets

• Delivered 2022 targets ahead of schedule, including $27B capital formation, $44B AUM, and $34B FEAUM.

• New guidance (2025–2027): $35B capital formation ($21B organic, $14B M&A), doubling FEAUM to $70B, and growing FRE to $260–$290M with 58–60% margins.

• FRE per share expected to rise from $1.11 in 2024 to $1.60–$1.80 by 2027, a 15–17% CAGR, with performance fees projected at $120–$140M.

• Capital management plan includes maintaining a $0.60/share dividend, share repurchases to offset stock-based compensation, and back-end loaded M&A, with flexibility to increase buybacks if M&A opportunities do not materialize.

• Over 90% of FEAUM is in locked-up or long-duration vehicles, supporting resilient growth.

Business verticals and growth opportunities

• Credit platform: $6.5B FEAUM, 24% organic CAGR since 2022, leading position in a $1.8T LatAm market, with strong outperformance and plans to expand customized local vehicles and private credit.

• Real estate: Grown from $700M pre-IPO to $6.1B by Q3 2024, now the largest independent manager in Brazil and #2 in Colombia, with dominant positions in logistics, office, and retail, and a proven M&A-driven consolidation strategy.

• Infrastructure: Addressable market of $2T by 2030, diversified across equity, credit, core, and trading, with $20B in projects completed and $400B actionable pipeline; focus on privatizations, digitalization, and decarbonization.

• Private equity: Over 50% LatAm market share, 17% net USD buyout returns over 30 years, strong local and global investor demand, and potential to double or triple platform size as North American allocations rebound.

• GPMS: $10.3B AUM, integrated primaries, secondaries, and co-investments, with scalable platform and ability to double deployment without expanding the ecosystem.