Patria Reports Second Quarter 2024 Earnings Results

Rhea-AI Summary

Patria (Nasdaq:PAX) reported its Q2 2024 earnings, showcasing solid progress towards its goals. Fee Related Earnings reached $40 million, up 17% from Q2 2023. Distributable Earnings were $33.8 million, or $0.22 per share. The company raised $2.2 billion organically in H1 2024 and $5 billion over the last 12 months. Patria completed several acquisitions, including abrdn's private equity solutions business and Nexus Capital. The company announced plans to repurchase up to 1.8 million shares over the next year. Patria remains confident in reaching its 2024 Fee Related Earnings target of at least $170 million and aims for $200-$225 million in 2025. A quarterly dividend of $0.15 per share was declared, payable on September 9th, 2024.

Positive

• Fee Related Earnings increased 17% year-over-year to $40 million in Q2 2024
• Distributable Earnings of $33.8 million, or $0.22 per share in Q2 2024
• Organic fundraising of $2.2 billion in H1 2024 and $5 billion over the last 12 months
• Completed strategic acquisitions to strengthen and diversify the platform
• Announced share repurchase program of up to 1.8 million shares over 12 months
• Confident in reaching 2024 Fee Related Earnings target of at least $170 million
• Projecting Fee Related Earnings of $200-$225 million for 2025

Negative

• IFRS net income attributable to Patria decreased to $0.8 million in Q2 2024

Insights

Financial Analyst

Patria's Q2 2024 results demonstrate solid financial performance and strategic growth. The company reported Fee Related Earnings (FRE) of $39.5 million, a 17% year-over-year increase, with an impressive FRE margin of 56%. This growth trajectory puts Patria on track to meet its 2024 FRE target of at least $170 million, with an ambitious goal of $200-225 million for 2025.

Distributable Earnings reached $33.8 million, translating to $0.22 per share. The declared quarterly dividend of $0.15 per share reflects a prudent balance between shareholder returns and reinvestment for growth. Notably, Patria's announcement of a share repurchase program for up to 1.8 million shares over the next 12 months signals confidence in the company's valuation and commitment to enhancing shareholder value.

The firm's robust fundraising efforts, securing $2.2 billion in the first half of 2024 and approximately $5 billion over the last twelve months, underscore its strong market position and investor confidence. This organic growth, combined with strategic acquisitions like abrdn's private equity solutions business and the Credit Suisse real estate business in Brazil, positions Patria for continued expansion and diversification of its $40.3 billion AUM platform.

While the IFRS net income of $0.8 million seems modest, it's important to focus on the more relevant FRE and Distributable Earnings metrics for alternative asset managers. The company's global presence across 13 cities and 4 continents, coupled with its diverse range of alternative investment strategies, provides a solid foundation for sustained growth in the dynamic Latin American market.

Market Research Analyst

Patria's Q2 2024 results reflect a compelling growth story in the alternative asset management sector, particularly in Latin America. The firm's ability to raise $2.2 billion in the first half of 2024 amidst challenging market conditions demonstrates strong investor appetite for alternative investments in the region. This fundraising success, coupled with strategic acquisitions, positions Patria as a key player in the growing Latin American alternative investment landscape.

The company's diversified platform, spanning Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions, offers a comprehensive suite of products that cater to various investor needs. This diversification strategy not only mitigates risk but also allows Patria to capitalize on different market opportunities across asset classes.

Patria's expansion through acquisitions, including the recent purchases of abrdn's private equity solutions business, Nexus Capital in Colombia and the remaining 50% stake in VBI, showcases its commitment to inorganic growth. These strategic moves are likely to enhance Patria's market presence, expand its product offerings and potentially lead to synergies and economies of scale.

The alternative asset management industry in Latin America is poised for growth, driven by increasing institutional investor allocation to alternatives and the region's economic development. Patria's established presence and track record position it well to capture this growth. However, investors should monitor potential challenges such as regional economic volatility, regulatory changes and increased competition in the alternative investment space.

GRAND CAYMAN, Cayman Islands, Aug. 01, 2024 (GLOBE NEWSWIRE) --  Patria (Nasdaq:PAX) reported today its unaudited results for the second quarter ended June 30, 2024. The full detailed presentation of Patria's second 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 2nd quarter of 2024 was a very busy quarter as we continued to make solid progress towards our near and long-term goals. Fee Related Earnings reached $40 million dollars, representing a 17% increase from 2Q23. We delivered close to $34 million dollars of Distributable Earnings, or 22 cents per share. We continued to grow and diversify our platform as we organically raised $2.2 billion dollars over the first half of 2024 and approximately $5 billion over the last twelve months, in addition to multiple inorganic initiatives. As previously announced, during the quarter we closed on the acquisition of abrdn’s private equity solutions business, and since the end of the quarter we completed the transition of the Credit Suisse real estate business in Brazil, closed on the acquisition of Nexus Capital which further strengthened our real estate platform in Colombia, and just today concluded our acquisition of the 50% of VBI we did not already own. Of note, we are excited to announce an important update to our capital management strategy and our intention to repurchase up to 1.8 million shares over the next twelve months as we look to maximize returns to shareholders. Overall, I am even more confident that we will reach our 2024 target for Fee Related Earnings of at least $170 million dollars, on the way to generating $200 to $225 million of FRE in 2025.”

Financial Highlights (reported in $ USD)

IFRS results included $0.8 million of net income attributable to Patria in Q2 2024. Patria generated Fee Related Earnings of $39.5 million in Q2 2024, up 17% from $33.8 million in Q2 2023, with an FRE margin of 56%. Distributable Earnings were $33.8 million for Q2 2024, or $0.22 per share.

Dividends

Patria has declared a quarterly dividend of $0.15 per share to record holders of common stock at the close of business on August 19th, 2024 in accordance with our new capital management strategy. This dividend will be paid on September 9th, 2024.

Conference Call

Patria will host its second quarter 2024 earnings conference call via public webcast on August 1st, 2024, at 9:00 a.m. ET. To register and join, please use the following link:
https://edge.media-server.com/mmc/p/7j8v48dx/

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 $40.3 billion, and a global presence with offices in 13 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities as the gateway for alternative investments in Latin America. Through a diversified platform spanning Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions strategies, Patria provides a comprehensive range of products to serve its global client base. Further information is available at 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,” “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

Rob Lee
t +1 917 769 1611
rob.lee.consult@patria.com

Andre Medina
t +1 917 769 1611
andre.medina@patria.com

FAQ

What were Patria's (PAX) Fee Related Earnings for Q2 2024?

Patria's Fee Related Earnings for Q2 2024 were $39.5 million, representing a 17% increase from $33.8 million in Q2 2023.

How much did Patria (PAX) raise in funds during the first half of 2024?

Patria raised $2.2 billion organically during the first half of 2024.

What is Patria's (PAX) dividend for Q2 2024?

Patria declared a quarterly dividend of $0.15 per share, payable on September 9th, 2024, to shareholders of record as of August 19th, 2024.

What acquisitions did Patria (PAX) complete in Q2 2024?

In Q2 2024, Patria completed the acquisition of abrdn's private equity solutions business. After the quarter, they acquired Nexus Capital and the remaining 50% of VBI.

What is Patria's (PAX) Fee Related Earnings target for 2024?

Patria is confident in reaching its 2024 Fee Related Earnings target of at least $170 million.