Patria Investments Ltd (FRA:6E0)

Q2 2026 Patria Investments Ltd Earnings Call Transcript

Jul 31, 2026 / 01:00 PM GMT

Release Date Price: €9.21 (+0.72%)

Transcript

Key Points

Positve

Patria Investments Ltd (PAX) reported strong fundraising momentum, with $2.3 billion raised in Q2 2026 and $4.5 billion year-to-date, positioning the company to potentially exceed its full-year target of $7 billion and the 2025 record of $7.7 billion.
Fee-earning AUM grew 32% year-over-year to $48.9 billion, driven by organic growth, acquisitions, and positive investment performance, leading to a 24% year-over-year increase in fee-related earnings to $57.1 million.
The company secured a new $1 billion multi-asset mandate from an existing sovereign wealth fund client, demonstrating strong client relationships and demand for its solutions-oriented approach, which provides stable, long-duration capital.
Investment performance remains robust, with over 85% of fee-earning AUM in funds performing at or above benchmarks, including flagship credit and infrastructure strategies outperforming by 360 and 750 basis points, respectively.
The final close of SOF5, a flagship secondary fund, exceeded its target by 35% at $676 million, with strong demand from North America and Europe, highlighting the success of the GPMS platform and diversification efforts.

Negative

Patria Investments Ltd (PAX) marked down two older private equity vintages (Funds 4 and 5) due to poor performance, reflecting challenges from high interest rates in Brazil and sector-specific shocks, which negatively impacted the quarter's results.
The FRE margin fell to 54% in Q2 2026, below the 58%-60% target, due to the faster-than-expected integration of acquisitions with lower margins, FX impacts, and ongoing platform investments, with full-year 2026 margin expected to remain below target.
The average management fee rate declined to approximately 86 basis points, pressured by the mix shift toward lower-fee acquisitions and strategies, which could impact future revenue growth per dollar of AUM.
Transaction and restructuring costs remained elevated at $11 million in Q2 2026, with expectations of only a modest decline in the second half of the year, weighing on near-term profitability.
The accrued carry pool decreased, primarily due to a markdown in Private Equity Fund 6, reflecting negative market movements and raising concerns about future performance-related earnings, despite management's reassurances.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PAX.OQ - Patria Investments Ltd
Q2 2026 Patria Investments Ltd Earnings Call
Jul 31, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for standing by. Welcome to PETRIA's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you would need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press *11 again. Please be advised that today's conference is. Recorded.

I would now like to turn the conference over to Andrea Medina, Investor Relations Director. Please go ahead.

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Unidentified_2 [2]

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