Patria Reports First Quarter 2024 Earnings Results
Patria (Nasdaq:PAX) reported strong unaudited results for the first quarter of 2024, including $35 million in Fee Related Earnings, a 13% increase from the previous year. Distributable Earnings were over $31 million, or 21 cents per share. The company raised $1.1 billion organically and closed acquisitions, showing confidence in reaching financial targets. Net income was $15.4 million, with a quarterly dividend of $0.175 per share declared.
Strong Fee Related Earnings of $35 million, up 13% from the previous year.
Distributable Earnings over $31 million, or 21 cents per share, indicating financial strength.
Successful fundraising with $1.1 billion raised organically, showing investor confidence.
Acquisitions closed, including abrdn's private equity solutions business, expanding the company's portfolio.
Net income of $15.4 million, reflecting profitability and growth.
None identified in the press release.
Insights
Patria's recent earnings release showcasing a 13% increase in Fee Related Earnings (FRE) is a testament to the firm's robust performance and efficient capital allocation strategies. The FRE growth, defined as the earnings generated from management fees net of related expenses, directly affects the firm's profitability and, by extension, investor returns. This metric provides a clear barometer on the company's operational health, especially in the alternative asset management sphere where management fees constitute a significant revenue stream.
The announced dividend of $0.175 per share aligns with the company's distributable earnings and reflects a shareholder-friendly policy. This is important for investors seeking regular income, as well as a signal of confidence in the company's liquidity and earnings stability. Dividend policies are often regarded as indicators of a company's financial health and a stable or increasing dividend can be a positive sign.
The acquisitions of abrdn's private equity solutions and Credit Suisse’s real estate business in Brazil, represent strategic moves to diversify and strengthen Patria's portfolio. Inorganic growth through acquisitions can often lead to synergies and expanded market reach, which might result in enhanced long-term value for stakeholders. However, investors should be aware of the risks associated with integrating new businesses, such as cultural clashes and unforeseen costs, which could impact short-term performance.
With over $32.0 billion in combined assets under management, Patria's foothold as an industry leader in Latin America is further solidified by the reported growth figures. The asset management industry, particularly within emerging markets like Latin America, offers significant growth potential but also comes with heightened risk exposure due to economic and political volatility. Patria’s continued expansion, both organically and inorganically, indicates an aggressive growth strategy that seeks to capitalize on these opportunities.
Investors need to consider the scalability of Patria's business model in the context of both its recent acquisitions and its ability to raise significant capital year-over-year. The company's growth trajectory, if sustained, may position it well to benefit from increasing investor interest in alternative asset classes, a trend that has been evident in the search for yield diversification amid global market uncertainties.
GRAND CAYMAN, Cayman Islands, May 02, 2024 (GLOBE NEWSWIRE) -- Patria (Nasdaq:PAX) reported today its unaudited results for the first quarter ended March 31, 2024. The full detailed presentation of Patria's first quarter 2024 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.
Alex Saigh, Patria’s CEO, said: “The 1st quarter of 2024 marked a great start for the year, and I’m very pleased with the performance we delivered. We generated over
Financial Highlights (reported in $ USD)
IFRS results included
Dividends
Patria has declared a quarterly dividend of
Conference Call
Patria will host its first quarter 2024 earnings conference call via public webcast on May 2, 2024, at 9:00 a.m. ET. To register and join, please use the following link:
https://edge.media-server.com/mmc/p/gbaedm2i/
For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.
About Patria
Patria is a global alternative asset manager and industry leader in Latin America, with over 35 years of history, combined assets under management of
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,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. 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. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent 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.
Contact
Andre Medina
t +1 917 769 1611
andre.medina@patria.com
FAQ
What were Patria's Fee Related Earnings for the first quarter of 2024?
How much were Patria's Distributable Earnings in Q1 2024?
What was the net income attributable to Patria in Q1 2024?
