Patria Investments (PAX) Q4 2024 earnings summary

Executive summary

• Raised $5.5 billion in 2024, surpassing the $5 billion target, with $5.2 billion added to the asset base and $300 million from Advisory business.

• Fee Earning AUM reached $33 billion, up 38% year-over-year; total AUM at $41.9 billion, up 32% year-over-year.

• Achieved full-year Fee Related Earnings (FRE) of $170.1 million, up 15% year-over-year, and Distributable Earnings (DE) of $189.2 million, or $1.24 per share.

• Generated $41 million in Performance Related Earnings (PRE), mainly from the sale of Aguas Pacífico in Infrastructure Fund III.

• Declared a quarterly dividend of $0.15 per share, payable March 17, 2025.

Financial highlights

• 4Q24 IFRS Net Income attributable to Patria was $56.8 million; full year 2024 was $73.4 million.

• 4Q24 FRE was $54.8 million, up 18% year-over-year; full year FRE was $170.1 million, up 15%.

• 4Q24 DE was $89.1 million, or $0.58 per share; full year DE was $189.2 million, or $1.24 per share.

• 4Q24 total fee revenues were $93.2 million, up 41% year-over-year; full year total fee revenues were $300.8 million, up 25%.

• FRE margin was 59% in Q4 2024 and 57% for the full year.

Outlook and guidance

• Targeting $6 billion in fundraising and $200–$225 million in FRE for full year 2025, with a margin between 58%-60%.

• Updated cumulative PRE guidance through 2027 of $120 million-$140 million.

• Management expects continued growth from platform diversification and investments in distribution and new product development.

• Only about 10% of 2027 FRE target expected to come from acquisitions.