Patria Investments Announces Expansion into Venture Capital

Rhea-AI Summary

Patria Investments (NASDAQ: PAX) has acquired Igah Ventures, enhancing its Venture Capital strategy in Latin America. This acquisition allows Patria to address all growth stages, complementing its existing Private Equity strategies focused on mature companies.

Igah Ventures, operating since 2013, manages $320 million in total assets and has a robust track record investing in startups. The deal includes an upfront cash payment, equity in PAX Class A shares, and an earnout based on fundraising targets. This partnership aims to leverage Patria's extensive platform to accelerate growth for both companies.

Positive

• Acquisition of Igah Ventures enhances Patria's growth strategy.
• Igah Ventures has a strong track record with $320 million AUM.
• Expansion into venture capital allows Patria to cover all growth stages.

Negative

• Specific financial terms of the acquisition are undisclosed.
• Dependence on fundraising targets for earnout payments.

Patria expands its Private Equity vertical by acquiring Igah Ventures, a pioneering venture capital firm in Latin America, to complement its existing flagship and growth equity strategies

GRAND CAYMAN, Cayman Islands, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Patria Investments (“Patria”) (NASDAQ: PAX), a global alternative asset manager and industry leader in Latin America, announced today the launch of a new Venture Capital strategy, anchored by the acquisition of Igah Ventures, one of the pioneers of the sector in Latin America. By expanding its platform to include venture capital, Patria now offers products and solutions throughout the equity investment cycle to address all stages of growth. Igah’s business complements Patria’s existing Private Equity and Growth Equity strategies, which are focused on relatively mature companies, by adding investment expertise in startups and early-stage companies. For Igah, this move allows it to further accelerate growth, leveraging the scale of Patria's platform and client base, as well as deep industry knowledge in various areas of the economy.

In addition to combining market experience and expanding the platform, this transaction reflects an alignment of like-minded culture centered on entrepreneurial spirit. Igah demonstrates a track record of attractive investment performance in its first three fund vintages, resulting in consistent strong scaling of AUM over the last 10 years.

Ricardo Scavazza, partner and CIO (Chief Investment Officer) of Patria's Private Equity platform said: “Patria’s goal is to be a complete platform for alternative investments in the region, delivering consistent strong returns to investors at scale. We see Igah as an ideal partner to explore the venture capital space, focused on seed and A/B series investments. This is the fastest growing segment of private investments in recent years in Latin America, and they are a leading player with one of the best track records. Success in our business is about attracting the best people, and with Igah we bring to Patria a very talented and seasoned VC team. I’m very excited to join forces with Pedro and his team as we look forward to our next phase of growth.”

Igah Ventures has been operating since 2013 with three funds raised from local and international investors, having contributed to startups such as Infracommerce, Contabilizei, Unico, Avenue and Conexa Saúde. Overall, the investment management company currently has US$ 320 million in total assets under management and about US$ 140 million in fee earning assets under management, as it prepares to launch its fourth fund. Pedro Sirotsky Melzer, founding partner of Igah Ventures said: “Now Igah is part of the largest alternative investment platform in Latin America. This means that our entrepreneurs join a group with extensive access to capital, expert professionals in different sectors and a broad portfolio of leading companies in different industries. With its expertise, Igah becomes Patria's Venture Capital nucleus, as Patria looks to participate across the full equity investment ecosystem.”

Márcio Tabatchnik Trigueiro, Igah Ventures' partner, reinforces the new opportunities that open up: “We believe that we will become better investors by bringing to the table Patria's deep industry, regulatory and functional experience combined with Igah's extensive experience supporting entrepreneurs who seek, based on the use of technology, to increase the efficiency of the Brazilian economy,” he says.

Patria has acquired 100% of Igah Ventures, with the closing of the transaction also now completed. Consideration structure consists of an upfront cash payment, equity to be paid in the form of PAX Class A shares over the course of the next twelve months, as well as an earnout component contingent on meeting certain fundraising targets. Specific financial terms of the transaction are not being disclosed. Igah is expected to be profitable on an FRE basis looking forward, with the ability to scale with the raising of the upcoming fourth vintage fund.

About Patria Investments
Patria is a leading alternative investment firm focused on Latin America, with over 30 years of history and combined assets under management of $26.5 billion, and a global presence with offices in 10 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities that allow for portfolio diversification through its Private Equity, Infrastructure, Credit, Public Equities and Real Estate products. Through its investments Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for society. Further information is available at www.patria.com.

About Igah Ventures 
Created in 2013 by Pedro Sirotsky Melzer, Igah Ventures is one of the pioneering venture capital management investment companies in Latin America. With three funds raised from local and international investors, Igah has already invested in companies such as Infracommerce, Contabilizei, Unico, Avenue and Conexa Saúde.

Press Office:
Brasil – Ideal (patria@idealhks.com)
Fábio Martins: +55 11 9.7336-1526 / fabio.martins@idealhks.com
Rodrigo Fonseca: +55 11 9.4846-5003 / rodrigo.fonseca@idealhks.com

Patria Shareholder Relations:
Josh Wood: +1 917 769 1611 / josh.wood@patria.com

FAQ

What is the significance of Patria's acquisition of Igah Ventures?

Patria's acquisition of Igah Ventures expands its capabilities in venture capital, allowing the firm to invest across all stages of business growth.

How much total assets does Igah Ventures manage?

Igah Ventures currently manages $320 million in total assets, focusing on early-stage investments.

What are the financial terms of Patria's acquisition of Igah Ventures?

The acquisition includes an upfront cash payment, PAX Class A shares, and an earnout contingent on fundraising performance, though specific terms are not disclosed.

What is Patria's stock symbol?

Patria's stock symbol is PAX, trading on NASDAQ.

What is the investment focus of Igah Ventures?

Igah Ventures primarily focuses on seed and A/B series investments in startups across Latin America.