Patria Investments Reports Strong Q1 Fundraising and AUM Growth

Patria Investments Ltd. ((PAX)) has held its Q1 earnings call. Read on for the main highlights of the call.

The latest earnings call from Patria Investments Ltd. conveyed a generally positive sentiment, underscored by strong fundraising achievements and notable growth in fee-earning assets under management (AUM). Despite facing some challenges in performance-related earnings and the real estate market, the overall outlook remains optimistic.

Record Fundraising Achievements

Patria Investments Ltd. reported a landmark achievement in fundraising, securing $3.2 billion in the first quarter of 2025. This impressive figure contributes to a total of $7.4 billion raised over the past 12 months, positioning the company well over halfway to its ambitious $6 billion fundraising target for the year.

Strong Growth in Fee-Earning AUM

The company experienced a robust 46% year-over-year growth in fee-earning AUM, with a sequential increase of 6%. This growth was primarily driven by organic net inflows exceeding $700 million in Q1 2025, reflecting an annualized growth rate of 8.6%.

Increase in Distributable Earnings

Patria’s distributable earnings saw a 12% year-over-year rise, reaching $37 million or $0.23 per share. This increase was largely attributed to strong growth in fee-related earnings.

Resilience in Credit Investment Performance

The credit platform demonstrated resilience with strong investment performance, particularly in high-yield credit funds. This indicates robust demand and sustained investor interest in Patria’s credit offerings.

Performance-Related Earnings Decline

The company faced a decline in performance-related earnings during the quarter, notably within publicly-listed portfolio companies in the private equity sector.

Challenges in Real Estate Market

High interest rates in Brazil have adversely affected demand for many listed Real Estate Investment Trusts (REITs), presenting challenges for capital raising in the real estate sector.

Forward-Looking Guidance

Looking ahead, Patria Investments Ltd. remains focused on reaching its $6 billion fundraising target for 2025. The company reported fee-related earnings of $42.6 million, or $0.27 per share, marking a 16% year-over-year increase despite a seasonal decline. Patria’s total AUM has grown to $46 billion, bolstered by strong fundraising, investment returns, and favorable foreign exchange impacts. The company maintains its FRE per share guidance of $1.25 to $1.50, aiming for approximately 20% year-over-year growth. Patria also highlighted its strategic advantage in managing currency fluctuations, ensuring minimal impact on FRE.

In summary, Patria Investments Ltd.’s earnings call reflects a positive outlook with significant achievements in fundraising and AUM growth. While challenges persist in performance-related earnings and the real estate market, the company’s strategic initiatives and diversified investment strategies position it well for continued success in 2025.