Patria Investments’ Earnings Call: Strong Growth and Optimism

Patria Investments Ltd. recently held its earnings call, revealing a positive sentiment driven by substantial achievements in fundraising and asset growth. Despite the lack of performance-related earnings in the third quarter, the company remains optimistic about its future prospects, with expectations of continued success in monetizations and fundraising efforts. Assets Under Management Milestone Patria Investments Ltd. reached a significant milestone with its assets under management (AUM) surpassing $50 billion at the end of the third quarter of 2025. This marks an impressive growth of over 3.5 times since the company’s initial public offering in 2021, showcasing its robust expansion and strategic execution. Strong Fundraising Performance The company demonstrated strong fundraising capabilities, with organic fundraising exceeding $1.5 billion in the third quarter of 2025. Year-to-date fundraising reached $6 billion, putting Patria on track to surpass its full-year target of $6.6 billion, highlighting its effective capital-raising strategies. Fee-Earning Asset Growth Fee-earning assets under management grew to $38.8 billion in the third quarter, reflecting a 4% sequential increase and a 14% year-over-year rise. This growth is attributed to strong fundraising efforts and lower redemption rates, indicating healthy investor confidence. Fee-Related Earnings Increase Patria reported fee-related earnings of $49.5 million for the third quarter of 2025, representing a 7% sequential growth and a 22% increase year-over-year. This growth underscores the company’s ability to enhance its revenue streams effectively. Distributable Earnings Growth The company’s distributable earnings reached $46.9 million in the third quarter, marking a 22% sequential and 31% year-over-year increase. This growth reflects Patria’s strong operational performance and its capacity to generate shareholder value. Successful Infrastructure Fundraising Patria’s Infrastructure Fund V and related vehicles closed at $2.9 billion, nearly 40% higher than the previous vintage. This success underscores the company’s strong position in the infrastructure sector and its ability to attract significant investor interest. Credit Business Outperformance The credit business segment outperformed expectations, with fundraising surpassing the total 2024 fundraising by almost 15% as of the third quarter of 2025, reaching $1.6 billion. This achievement highlights Patria’s strength in the credit market. No Performance-Related Earnings in Q3 While the company did not generate performance-related earnings in the third quarter of 2025, it anticipates monetization events post-quarter to contribute $15 million in the fourth quarter, indicating potential future earnings growth. Forward-Looking Guidance Looking ahead, Patria Investments Ltd. remains optimistic about its growth trajectory. The company projects a combined fundraising target of $14 billion for 2025 and 2026 and has set a fee-related earnings target range of $225 million to $245 million for 2026, indicating a 15% year-over-year growth. Additionally, a $0.65 per share dividend for 2026 was announced, reinforcing the company’s commitment to delivering shareholder returns. In summary, Patria Investments Ltd.’s earnings call conveyed a positive outlook, driven by substantial fundraising achievements and asset growth. The company’s strategic execution and forward-looking guidance suggest continued success, making it a compelling entity for investors to watch.