Patria Investments (PAX) Q4 2025 earnings summary

Executive summary

• Achieved record organic fundraising of $7.7 billion in 2025, with $1.7 billion in Q4, surpassing targets and driving FEAUM up 24% year-over-year to $40.8 billion.

• Major acquisitions included a 51% stake in Solis (private credit, $3.5bn FEAUM), RBR (REIT manager, $1.3bn FEAUM), and WP Global Partners (PE solutions, $1.8bn FEAUM), significantly expanding capabilities and scale.

• Management expressed confidence in exceeding three-year fundraising and FRE objectives set in December 2024, supported by strong momentum across strategies.

• Board approved an additional 3 million share buyback, with up to 7 million shares now authorized for repurchase, and Patria Partners intend to purchase up to 2.5 million shares.

Financial highlights

• Fee-related earnings (FRE) for 2025 were $202.5 million, up 19% year-over-year, with Q4 FRE at $64.3 million, up 17% year-over-year and 30% sequentially, and a Q4 margin of 63.6%.

• Distributable earnings for 2025 reached $200.9 million ($1.27 per share), a 6% increase from 2024, with Q4 distributable earnings at $78.5 million ($0.50 per share).

• Net income for 2025 was $85.6 million, up 19% from 2024, with Q4 net income at $34.5 million.

• Total AUM at year-end was $52.6 billion, up 26% from 4Q24.

• Operating expenses for 2025 were $141.6 million, up 8% year-over-year, mainly due to acquisitions and salary adjustments.

Outlook and guidance

• 2026 FRE guidance is $225 million-$245 million ($1.42-$1.54 per share), and 2027 target is $260 million-$290 million ($1.60-$1.80 per share), with margin objectives of 58%-60%.

• Fundraising targets for 2026 and 2027 remain at $7 billion and $8 billion, respectively, with management confident in exceeding these based on current momentum.

• Performance-related earnings target of $120 million-$140 million from Q4 2024 to end of 2027, with $62 million already realized.

• Annual tax rate expected to average around 10% over the next three years.