Patria Investments Completes Acquisition of Nexus Capital, Further Expanding its Real Estate Platform in Colombia

Rhea-AI Summary

Patria Investments (NASDAQ: PAX) has completed the acquisition of Nexus Capital, a leading independent alternative real estate asset manager in Colombia. This strategic move expands Patria's real estate platform in Colombia, adding over COP 3,000 billion (approximately US$ 725 million) in assets under management across multiple strategies. The acquisition boosts Patria's Real Estate AUM in Colombia to over US$ 2 billion.

While financial terms were not disclosed, the transaction is expected to be accretive to both Fee-related earnings and Distributable Earnings. Marcelo Fedak, Partner and Head of Real Estate at Patria, expressed enthusiasm about the acquisition, highlighting the Nexus team's talent, attractive returns, and innovative approach to investing. The integration is anticipated to contribute to Patria's goals and strengthen investor relationships in Colombia and the region.

Positive

• Acquisition adds COP 3,000 billion (US$ 725 million) in AUM to Patria's portfolio
• Patria's Real Estate AUM in Colombia now exceeds US$ 2 billion
• Transaction expected to be accretive to Fee-related earnings and Distributable Earnings
• Acquisition strengthens Patria's position in Colombian real estate market
• Integration of Nexus team expected to enhance investor relationships and contribute to goals

Negative

• None.

Financial Analyst

Patria Investments' acquisition of Nexus Capital is a strategic move aimed at consolidating the fragmented Real Estate market in Latin America. By adding Nexus' US$ 725 million in assets under management (AUM) to its portfolio, Patria now oversees more than US$ 2 billion in real estate assets in Colombia. This scale-up could potentially drive higher fee-related and distributable earnings, as larger asset bases typically generate more stable and predictable cash flows.

Retail investors should note the absence of disclosed financial terms; however, the transaction is expected to be accretive, meaning it will likely enhance Patria's earnings per share. This aligns with Patria's growth strategy and could be positive for long-term shareholders, reflecting a more robust and diversified revenue stream.

However, investors should also be cautious. While the acquisition adds value, it is essential to monitor integration risks and any potential cultural clashes between the teams. These factors could impact the short-term performance and operational efficiency.

Market Research Analyst

The Colombian real estate market, characterized by significant fragmentation, presents both challenges and opportunities. Patria Investments' acquisition of Nexus Capital consolidates a substantial portion of this market. For retail investors, understanding the local dynamics is crucial. Colombia’s real estate sector is growing, driven by urbanization and economic development. By acquiring Nexus, Patria is not only gaining assets but also local expertise and established relationships, which can be harder to quantify but are invaluable in navigating market intricacies.

This strategic consolidation enhances Patria's market presence and leverage, allowing for more competitive positioning. However, investors should assess the potential regional risks, such as economic volatility and regulatory changes, which could affect asset performance. Additionally, the diversified strategies within Nexus' portfolio could provide a buffer against localized downturns, but also add complexity to the management.

Transaction advances Patria’s efforts to consolidate the region’s fragmented Real Estate market by adding a diversified and well-established platform in Colombia with over COP 3,000 billion (or approximately US$ 725 million) in assets under management across multiple strategies  

GRAND CAYMAN, Cayman Islands, July 16, 2024 (GLOBE NEWSWIRE) -- Patria Investments Limited (“Patria”) (NASDAQ: PAX), a global alternative asset manager and market leader in Latin America, confirmed today that it has completed the previously announced agreement to acquire Nexus Capital (“Nexus”), one of the top independent alternative real estate asset managers in Colombia, with over COP 3,000 billion (or approximately US$ 725 million) in assets under management (“AUM”) across multiple strategies. With the completion of the acquisition, Patria's Real Estate AUM in Colombia now surpasses US$ 2 billion. Financial terms of the transactions were not disclosed, but it is expected to be accretive to both Fee-related earnings and Distributable Earnings.

Marcelo Fedak, Partner and Head of Real Estate at Patria, says: “We are very happy with the execution of this transaction which closed ahead of schedule, and excited to welcome the talented team at Nexus to Patria. The team at Nexus has generated attractive returns and developed an innovative approach to investing that is complementary to our existing real estate platform. We expect the team to contribute to our goals and strengthen our relationships with investors in Colombia and the region.”

About Patria Investments
Crafting attractive returns for our clients and building a legacy in the regions where we operate.

Patria is a leading alternative investment firm with 36 years of history specialized in key resilient sectors. Its unique approach combines the knowledge from macro analysts, investment leaders, operating partners and on the ground team. With over U$43 billion pro forma assets under management and a global presence, it aims to provide consistent returns in attractive long term investment opportunities while creating sustainable value for society.

Asset Classes: Private Equity, Infrastructure, Credit, Public Equities, Real Estate and Global Private Markets Solutions

Investment Regions: Latina America, Europe and United States

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "can," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Media Contact:
Hill & Knowlton: +44 20 7113 3468

Ideal Axicom / patria@ideal.pr
Joao Sugahara: +55 11 99984-4100 / joao.sugahara@ideal.pr
Fabio Martins: +55 11 97336-1526 / fabio.martins@ideal.pr
Rodrigo Fonseca: +55 11 94846-5003 / rodrigo.fonseca@ideal.pr

Patria Shareholder Relations - PatriaShareholderRelations@patria.com
Rob Lee: +1 917 769 1611 / rob.lee.consult@patria.com
Andre Medina: +1 917 769 1611 / andre.medina@patria.com

FAQ

What is the value of assets under management acquired by Patria Investments (PAX) through the Nexus Capital acquisition?

Patria Investments acquired over COP 3,000 billion (approximately US$ 725 million) in assets under management through the Nexus Capital acquisition.

How much does Patria Investments' (PAX) Real Estate AUM in Colombia total after the Nexus Capital acquisition?

After the Nexus Capital acquisition, Patria Investments' Real Estate AUM in Colombia now surpasses US$ 2 billion.

Will the Nexus Capital acquisition be accretive to Patria Investments' (PAX) earnings?

Yes, the acquisition is expected to be accretive to both Fee-related earnings and Distributable Earnings of Patria Investments.

When did Patria Investments (PAX) complete the acquisition of Nexus Capital?

Patria Investments completed the acquisition of Nexus Capital on July 16, 2024, as announced in the press release.