Patria Portfolio Company SmartFit Completes Initial Public Offering

Rhea-AI Summary

Patria Investments Limited (PAX: NASDAQ) successfully completed the initial public offering of its portfolio company SmartFit, pricing shares at R$23 and raising at least R$2.3 billion. The fitness club operator began trading on the Brazilian B3 Stock Exchange on July 14, 2021, marking the largest IPO in Latin America for a fitness company. Patria holds its stake in SmartFit through its fifth private equity fund, which has achieved a Gross MOIC of 2.3x and Net IRR of 32% as of March 31, 2021, outperforming similar funds globally.

Positive

• Raised at least R$2.3 billion through SmartFit's IPO.
• SmartFit is the largest fitness club operator in Latin America, with 981 clubs and 2.4 million members.
• Patria's Private Equity Fund V has a strong financial performance with Gross MOIC of 2.3x and Net IRR of 32%, indicating potential for continued growth.

Negative

• None.

GRAND CAYMAN, Cayman Islands, July 15, 2021 (GLOBE NEWSWIRE) -- Patria Investments Limited, or “Patria” (PAX: NASDAQ), through its affiliated investment funds, announces the completion of the initial public offering of portfolio company SmartFit. The company priced shares at R$23 and began trading on the Brazilian B3 Stock Exchange on July 14^th, 2021 under the ticker SMFT3. The listing raised at least R$2.3 billion in a 100% primary offering, with the potential for upsizing through an over-allotment option. SmartFit is the first publicly listed fitness club operator in Latin America and the 5^th largest Brazilian IPO in 2021.

Patria’s current stake in SmartFit is held in its fifth private equity fund, as well as related co-investment vehicles. Private Equity Fund V is a 2015 vintage fund with $1.8 billion in commitments and 9 portfolio company investments. With a Gross MOIC of 2.3x and Net IRR of 32% in U.S. dollars as of March 31, 2021, the fund is performing in the top quartile of similar vintage funds on a global basis.

SmartFit is the largest fitness club operator in Latin America and fifth largest globally in members, with 981 clubs and 2.4 million members in Brazil and 12 other countries as of June 2021. In addition to physical stores, SmartFit is also the leader in digital products for wellness in Latin America, with more than 500,000 paying members via its mobile applications.

About Patria Investments

With more than 30 years’ experience of successful investments in Latin America and offering products in Private Equity, Infrastructure, Real Estate and Credit, Patria is one of the leading private markets investment firms in Latin America in terms of capital raised and one of the largest managers focused on investments in Latin America. With a strong market presence, it seeks to provide investors with attractive investment products that allow for a diversified portfolio and consistent returns. With $14.1 billion of assets under management (as of March 31, 2021) and an investment portfolio composed of over 55 companies and assets, Patria has ten offices in the world's major financial centers. For more information, please go to www.patria.com

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,” “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 424(b) prospectus, 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.

Contact:
Shareholder Relations
Grand Cayman, Cayman Islands
t +1 345 640 4904
PatriaShareholderRelations@patria.com

Press service:
Ideal H+K Strategies
patria@idealhks.com

FAQ

What are the key details of the SmartFit IPO by Patria Investments?

Patria Investments' portfolio company SmartFit priced its shares at R$23, raising at least R$2.3 billion and began trading on July 14, 2021, on the Brazilian B3 Stock Exchange under the ticker SMFT3.

How does the SmartFit IPO impact Patria Investments' financial standing?

The successful IPO of SmartFit raises significant capital for Patria, reflecting positively on its investment strategy and reinforcing its position in the private equity market.

What is the significance of SmartFit being listed on the Brazilian stock exchange?

SmartFit's listing as the first publicly traded fitness club operator in Latin America highlights the growth potential in the fitness sector and is a key milestone in the region's B3 Stock Exchange.

What is Patria Investments' current stake in SmartFit?

Patria Investments holds its stake in SmartFit through its fifth private equity fund, which has shown strong performance metrics.

How many members does SmartFit currently have?

As of June 2021, SmartFit has 2.4 million members across 981 clubs in Brazil and 12 other countries.