Q1 2025 Patria Investments Ltd Earnings Call Transcript
Key Points
- Patria Investments Ltd (PAX) achieved a record fundraising total of $3.2 billion in the first quarter of 2025, putting them on track to meet their $6 billion target for the year.
- Fee-related earnings (FRE) grew by 16% year over year, reaching $42.6 million or $0.27 per share, despite global uncertainties.
- Assets under management (AUM) increased by 43% year over year, reaching $46 billion, with a strong sequential growth of over 9%.
- The company reported $700 million in organic net inflows into fee-earning AUM, reflecting an annualized organic growth rate of over 8.6%.
- Patria's diversified product offering and distribution capabilities have led to strong demand from Asian sovereign wealth funds, contributing significantly to their fundraising success.
- The sequential decrease in FRE by 22% was mainly due to the expected seasonal decline in incentives.
- Performance-related earnings were diminished in the quarter, despite strong FRE growth.
- The net accrued performance fee balance was negatively impacted by declines in publicly listed portfolio companies within private equity.
- High interest rates in Brazil have impacted demand for many of Patria's listed REITs, posing challenges in the real estate sector.
- The timing of closing large and complex customized investment contracts is unpredictable, which could affect future fundraising consistency.
Good day and thank you for standing by. Welcome to Patria's First Quarter 2025 Earnings Conference Call.
(Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rob Lee, Head of Investor Relations. Please go ahead, sir.
Thank you. Good morning, everyone, and welcome to Patria's First Quarter 2025 Earnings Call. Speaking today on the call are our Chief Executive Officer, Alex Saigh and our Chief Financial Officer Ana Russo, and our Chief Economist Luis Fernando Lopes for the Q&A session. This morning, we issued a press release and earnings presentation detailing our results for the quarter, which you can find posted on the investor relations section of our website or on Form 6K filed with the Securities and Exchange Commission. This call is being webcast, and a replay will be available.
Before we begin, I'd like to remind everyone that today's call may include forward
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