Patria Investments Completes Acquisition of Private Equity Solutions Business from abrdn and Expands Its Global Private Markets Capabilities

Rhea-AI Summary

Patria Investments completed the acquisition of the private equity solutions business from abrdn, expanding its global private markets capabilities. This transaction adds over $8 billion in Fee Earning Assets Under Management across mid-market Primaries, Secondaries, and Co-investment strategies. The new vertical, Global Private Markets Solutions, combines Patria's existing global private markets vehicles with the acquired platform to form a new growth engine for the investment platform. With tailored client solutions and drawdown funds, including primaries, secondaries, and co-investment strategies, this acquisition enhances Patria's ability to serve clients globally.

Positive

• The acquisition of the private equity solutions business expands Patria's capabilities in global private markets, adding over $8 billion in Fee Earning Assets Under Management.

• The new vertical, Global Private Markets Solutions, combines Patria's existing global private markets vehicles with the acquired platform, creating growth opportunities for the investment platform.

• The tailored client solutions and drawdown funds offered by the acquired platform, including primaries, secondaries, and co-investment strategies, enhance Patria's ability to serve clients as a gateway to private markets on a global scale.

Negative

• None.

Transaction launches Global Private Markets Solutions as a new investment strategy vertical for Patria adding over $8 billion in Fee Earning Assets Under Management across mid-market Primaries, Secondaries and Co-investment strategies

GRAND CAYMAN, Cayman Islands, April 29, 2024 (GLOBE NEWSWIRE) -- Patria Investments (“Patria”) (NASDAQ: PAX), a global alternative asset manager and industry leader in Latin America, confirmed today that it has completed the previously announced carve-out acquisition of a private equity solutions business (“abrdn Private Equity”) from abrdn Inc. (“abrdn”). The acquired platform, together with Patria’s existing global private markets vehicles, will form a new vertical – Global Private Markets Solutions (“GPMS”), with an aggregate Fee Earning AUM (“FEAUM”) of over $10 billion. This vertical will further develop Patria’s capabilities to serve clients as a gateway to private markets on a global scale.

Marco D’Ippolito, Head of GPMS said: “We are thrilled to bring this transaction to a close and launch this new growth engine for Patria’s investment platform. Merrick and his team have built a great business with complementary strategies and a respected track record, and we believe they can thrive in leveraging Patria’s platform as we grow together.”

Tailored client solutions and drawdown funds consisting of primaries, secondaries and co-investment strategies have grown into a major component of the private markets ecosystem. Primaries offer diversified exposure for investors and provide underlying general partners with an important source of anchor capital, while secondaries and co-investment strategies can provide investors with enhanced return profiles and improved portfolio management. Secondaries and co-investment strategies in particular have shown impressive growth in recent years, with global AUM growing at a CAGR of 16% and 21% respectively from 2019 to 2022.

The acquired solutions business, with a team of more than 50 employees, manages over $8 billion of Fee Earning AUM across the aforementioned strategies through drawdown funds, a listed private equity trust and separately managed accounts, with investment exposure primarily to the European and US middle market. With an impressive performance track record over 15 years, the business has built a loyal global client base, and has current investment relationships with more than 150 general partners.

Merrick McKay, Head of GPMS Private Equity, said: “We are delighted to be the cornerstone platform in Patria’s new Global Private Markets Solutions strategy vertical, recognizing that this is Patria’s first acquisition outside Latin America. Since the announcement of the acquisition in mid-October, we have undertaken significant collaboration to ensure we ‘hit the ground running’ from completion. Our interaction with Patria over this period and the very positive response from existing and potential clients has confirmed our strong belief that Patria is an excellent partner for our business and clients, and that the combination will support and enhance our continued development as a leading European and US private equity business for institutional investors. This includes the ability to offer our private equity solutions to the fast-growing Latin American market where Patria has such a leading presence and strong reputation. We are already working with Patria’s global distribution team, which manages Patria’s long-lasting relationships with many of the world’s most sophisticated private markets investors.”

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 over 35 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$40 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 / patria@hillandknowlton.com

Ideal H+K Strategies / patria@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:
Andre Medina: +1 917 769 1611 / andre.medina@patria.com

FAQ

What did Patria Investments acquire from abrdn?

Patria Investments acquired the private equity solutions business from abrdn, expanding its global private markets capabilities.

What is the new investment strategy vertical launched by Patria?

Patria launched Global Private Markets Solutions as a new investment strategy vertical, combining existing global private markets vehicles with the acquired platform.

How much Fee Earning Assets Under Management (FEAUM) did the acquisition add to Patria?

The acquisition added over $8 billion in Fee Earning Assets Under Management across mid-market Primaries, Secondaries, and Co-investment strategies to Patria.

What are some of the strategies included in the tailored client solutions and drawdown funds managed by the acquired platform?

The tailored client solutions and drawdown funds managed by the acquired platform consist of primaries, secondaries, and co-investment strategies.

How has the acquired solutions business performed over the years?

The acquired solutions business has an impressive performance track record over 15 years, managing over $8 billion of Fee Earning AUM with a team of more than 50 employees.