Patria Investments (PAX) Q1 2025 earnings summary

Executive summary

• Achieved record fundraising of $3.2 billion in Q1 2025, supporting a strong start toward the $6 billion annual target, with strong demand from Asian sovereign wealth funds and other global investors.

• Fee-related earnings (FRE) reached $42.6 million ($0.27/share), up 21% year-over-year, with FRE margin at 55.1%.

• Assets under management (AUM) grew 43% year-over-year to $46 billion, with fee-earning AUM up 46% to $35 billion.

• Net income attributable to Patria was $13.6 million for Q1 2025.

• Quarterly dividend of $0.15/share declared, payable June 12, 2025.

Financial highlights

• Total fee revenue for Q1 2025 was $77.3 million, up 28% year-over-year, primarily due to acquisitions and incremental inflows.

• Distributable earnings were $37 million ($0.23/share), up 12% year-over-year, supported by strong FRE growth.

• FRE margin was 55% for the quarter, with full-year margin guidance of 58%-60%.

• Net accrued performance fee balance rose 15% to $368 million, mainly due to FX effects and despite declines in public portfolio holdings.

• Net debt decreased to $143 million, with net debt to FRE ratio well below 1x.

Outlook and guidance

• FRE per share guidance for 2025 remains at $1.25-$1.50, implying ~20% year-over-year growth at the midpoint.

• Full-year FRE target of $200 million-$225 million is reiterated, with expectations to meet or exceed the midpoint based on current trends.

• Fundraising target for 2025 is maintained at $6 billion, with $3.2 billion already raised in Q1.

• Management fee rate expected to trend toward 90 basis points over time, from the current 96 basis points.

• Management remains confident in three-year targets set at December 2024 Investor Day.