Q4 2025 Patria Investments Ltd Earnings Call Transcript
Key Points
- Patria Investments Ltd (PAX) achieved a record $7.7 billion in organic fundraising for 2025, surpassing their revised target of $6.6 billion by more than $1 billion.
- The company reported a 19% year-over-year increase in fee-related earnings, reaching $203 million in 2025, meeting their objective of $200 million plus for the year.
- Patria's acquisition of Solis and several REITs significantly expanded their capabilities and scale in the private credit and real estate markets in Brazil.
- The company's total fee-earning AUM rose 24% year-over-year to $41 billion, with pro forma acquisitions increasing this to approximately $47.4 billion.
- Patria's energy trading platform, Tria, signed an agreement to acquire Raizen Power, positioning it as one of the largest independent energy trading companies in Brazil.
- Private Equity Fund V fell out of carry, impacting net accrued performance fees, which decreased from $402 million to $249 million in the fourth quarter of 2025.
- The company maintained its 2026 fundraising guidance at $7 billion, implying a potential slowdown in fundraising compared to 2025.
- Patria's net debt totaled approximately $105 million at the end of the quarter, with deferred M&A-related cash payments through 2028 totaling approximately $110 million.
- The effective tax rate is expected to increase to around 10% over the next few years, up from the current rate of approximately 4.2%.
- Transaction costs related to M&A activities increased, impacting accounting net profit, with expectations of continued high transaction costs due to ongoing M&A activities.
Good day, and thank you for standing by. Welcome to the Patria's Fourth Quarter and Full Year 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 first speaker today, Andre Medina from Patria Shareholder Relations. Please go ahead.
Thank you. Good morning, everyone, and welcome to Patria's Fourth Quarter and Full Year 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 in the Investor Relations section of our website or on Form 6-K 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
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