Patria Investments (PAX) Status Update summary

Macro and geopolitical outlook

• Global growth has slowed since the 2000s due to aging demographics and fractured globalization, but Latin America is expected to grow faster, benefiting from favorable demographics and increased trade diversification.

• Latin America is pursuing more trade agreements and diversifying investment relationships, especially as the region becomes less synchronized with global economic cycles.

Investment strategy and sector focus

• The investment approach targets six key sectors: agribusiness, food and beverage, renewable power, transportation/logistics, health, and data/tech services, which have shown strong excess returns and lower volatility.

• Fee-paying AUM has grown from under $8 billion in 2021 to $34 billion, with fee-related earnings more than tripling.

• The same sector-focused strategy is being applied successfully in Europe following the acquisition of Aberdeen's private equity arm.

Country selection and macroeconomic considerations

• Country allocation is based on fiscal and external account health, rule of law, and sector growth stories, with Brazil, Colombia, Chile, and Peru offering strong domestic and export-driven opportunities.

• Mexico is unique due to its heavy reliance on U.S. manufacturing exports, requiring a different investment approach.