Patria Signs Agreement to Acquire Nexus Capital, Further Expanding its Real Estate Platform in Colombia
On June 6, 2024, Patria Investments (NASDAQ: PAX) announced an agreement to acquire Nexus Capital, an independent alternative real estate asset manager in Colombia with $800 million in assets under management (AUM). This acquisition will boost Patria's real estate AUM in Colombia to over $2.2 billion. Patria aims to consolidate the region's fragmented real estate market. Nexus Capital, established in 2008, focuses on office, retail, industrial, and housing markets. Nearly 90% of Nexus' AUM are in permanent capital or long-duration structures. The transaction is set to complete by Q3 2024 and will contribute to Patria's growth goals, enhancing its investment offerings and relationships in Colombia.
- Patria's real estate AUM in Colombia will exceed $2.2 billion post-acquisition.
- Nexus Capital brings $800 million in AUM with a focus on diversified real estate markets.
- 90% of Nexus' AUM are in permanent capital or long-duration structures.
- The transaction is expected to be accretive to Patria's Fee Related and Distributable Earnings.
- The deal supports Patria's goal of consolidating the alternative asset management industry in Colombia.
- The transaction does not disclose specific financial details, which may raise transparency concerns.
- Integration risks with Nexus Capital could potentially impact operational efficiency.
- Previous acquisition in 2022 of VBI still pending full acquisition, indicating potential overextension.
Insights
The acquisition of Nexus Capital by Patria Investments marks a significant consolidation move in the Colombian real estate market. Patria's strategy to acquire Nexus will add approximately
For a retail investor, this acquisition signals Patria's aggressive expansion strategy and could imply growth in future dividends and stock value, driven by increased earnings from the larger asset base.
This acquisition is part of Patria’s broader strategic plan to become a dominant player in the Latin American real estate market. By absorbing Nexus, Patria not only increases its AUM but also diversifies its portfolio across office, retail, industrial and housing sectors in Colombia. Diversification in these sectors can reduce overall portfolio risk and attract a broader investor base.
The Colombian real estate market, though fragmented, offers growth opportunities due to urbanization and economic development. By consolidating Nexus' assets and expertise, Patria positions itself to capitalize on these trends. For investors, the strategic value lies in Patria’s expanded footprint and enhanced market position, potentially driving long-term value through increased market share and operational efficiencies.
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 approximately US
GRAND CAYMAN, Cayman Islands, June 06, 2024 (GLOBE NEWSWIRE) -- Patria Investments Limited (“Patria”) (NASDAQ: PAX), a global alternative asset manager and market leader in Latin America, announced today an agreement to acquire Nexus Capital (“Nexus”), one of the top independent alternative real estate asset managers in Colombia, with approximately US
Alfonso Duval, Partner, and Head of Andean Region at Patria: “Nexus has a robust portfolio within the Colombian Real Estate market. With a solid track record and innovative investment approach, it will be a great addition to our real estate platform, contributing to our growth goals and strengthening our relationships with investors in Colombia and the region. This transaction highlights our commitment to offering a diversified array of high-quality alternative products to our clients.”
Nexus Capital was established in 2008, and currently has approximately US
In recent years, Patria has made significant progress towards scaling and strengthening its Real Estate platform in Latin America. In June 2022, Patria acquired
Marcelo Fedak Partner and Head of Real Estate at Patria says: “We are very happy to welcome this talented team to Patria, as we continue to scale and improve our Real Estate capabilities throughout Latin America. Nexus’ successful and diversified real estate platform has shown impressive growth in recent years and represents a very attractive addition to our platform. Its highly complementary portfolio will further expand our product offering to better serve our clients in Colombia, where Nexus has built trusting relationships with key investors that we intend to continue to cater in a very bespoke manner.”
Transaction Overview
While specific financial details of the transaction are not being disclosed, Patria will acquire
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
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
Andre Medina +1 917 769 1611 / andre.medina@patria.com
FAQ
What is Patria Investments acquiring?
When is the Patria-Nexus acquisition expected to close?
How much in assets under management will Patria have in Colombia after acquiring Nexus Capital?
What is the significance of the Nexus Capital acquisition for Patria Investments?
How much of Nexus Capital's AUM are in permanent capital or long-duration structures?
What sectors does Nexus Capital focus on?
