UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2022
Commission File Number: 001-39911
Patria Investments Limited
(Exact name of registrant as specified in its charter)
18 Forum Lane, 3rd floor,
Camana Bay, PO Box 757, KY1-9006
Grand Cayman, Cayman Islands
+1 345 640 4900
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F |
☒ |
Form 40-F | ☐ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | ☐ | No |
☒ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | ☐ | No |
☒ | |
TABLE OF CONTENTS
| EXHIBIT | |
| 99.1 | Press release dated February 15, 2022 – Patria Reports Fourth Quarter and Full Year 2021 Earnings Results. |
| 99.2 | Patria Fourth Quarter and Full Year 2021 Earnings Presentation. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Patria Investments Limited | |||||
| By: | /s/ Marco Nicola D’Ippolito | ||||
| Name: | Marco Nicola D’Ippolito | ||||
| Title: | Chief Financial Officer | ||||
Date: February 15, 2022
Exhibit 99.1
Patria Reports Fourth Quarter & Full Year 2021 Earnings Results
Grand Cayman, Cayman Islands, February 15, 2022 – Patria (Nasdaq:PAX) reported today its unaudited results for the fourth quarter and full year ended December 31, 2021. The full detailed presentation of Patria's fourth quarter and full year 2021 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.
Alex Saigh, Patria’s CEO, said: “Patria’s 2021 results reflect excellent progress in this first year since our IPO, with attractive growth in revenue and earnings, strong investment performance, and meaningful platform expansion with the addition of Moneda. We enter 2022 with great momentum as we focus on a new fundraising cycle for our flagship funds and continue to create value for both our limited partners and shareholders.”
Financial Highlights (reported in $ USD)
Patria IFRS results included $13.3 million of net income in Q4 2021 and $121.3 million for the full year. Patria generated Fee Related Earnings of $29.3 million in Q4 2021, up 46% from $20.2 million in Q4 2020. For the full year 2021, Patria generated Fee Related Earnings of $86.0 million, up 21% from $71.3 million in 2020, with an FRE margin of 59%. Distributable Earnings were $27.7 million for Q4 2021, or $0.188 per share, and $141.3 for the full year, or $1.023 per share.
Dividends
Patria has declared a quarterly dividend of $0.160 per share to record holders of common stock at the close of business on March 2, 2022. This dividend will be paid on March 16, 2022.
Conference Call
Patria will host its fourth quarter and full year 2021 earnings conference call via public webcast on February 15, 2022 at 9:00 a.m. ET. To register and join, please use the following link:
https://edge.media-server.com/mmc/p/3p5zkkz4
For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.
About Patria
Patria is a leading alternative investment firm focused on Latin America, with over 30 years of history and combined assets under management of $23.8 billion, and a global presence with offices in 10 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities that allow for portfolio diversification through its Private Equity, Infrastructure, Credit, Public Equities and Real Estate products. Through its investments Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for society. Further information is available at www.patria.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in our 424(b) prospectus, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Contact
Josh Wood
t +1 917 769 1611
josh.wood@patria.com
Andre Medina
t +1 345 640 4904
andre.medina@patria.com
Exhibit 99.2
São Paulo Bogotá Montevideo Santiago Fourth Quarter & Full Year 2021 Earnings FEBRUARY 15, 2022
2 Disclaimer This presentation may contain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . You can identify these forward - looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others . Forward - looking statements appear in a number of places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations . Forward - looking statements are based on our management’s beliefs and assumptions and on information currently available to our management . Forward - looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events . Such forward - looking statements are subject to various risks and uncertainties . Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements . Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U . S . Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent Form F - 1 and 424 (b) prospectus, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www . sec . gov . These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings . This presentation does not constitute an offer of any Patria Fund . We prepared this presentation solely for informational purposes . The information in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any of our securities or securities of our subsidiaries or affiliates, nor should it or any part of it form the basis of, or be relied on in connection with any contract to purchase or subscribe for any of our securities or any of our subsidiaries or affiliates nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever . Results for the current reporting period are preliminary and unaudited . Due to the closing of our combination with Moneda Asset Management on December 1 , 2021 , certain elements of our 4 Q 21 IFRS financial results are dependent on Moneda’s completed 2021 financial audit, which could cause Patria’s audited IFRS results to differ from those reported within this presentation . We have included in this presentation our Fee Related Earnings (“FRE”) and Distributable Earnings (“DE”), which are non - GAAP financial measures, together with their reconciliations, for the periods indicated . We understand that, although FRE and DE are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS . Additionally, our calculations of FRE and DE may be different from the calculation used by other companies, including our competitors in the financial services industry, and therefore, our measures may not be comparable to those of other companies .
3 Patria Reports Fourth Quarter & Full Year 2021 Results “Patria’s 2021 results reflect excellent progress in this first year since our IPO, with attractive growth in revenue and earnings, strong investment performance, and meaningful platform expansion with the addition of Moneda. We enter 2022 with great momentum as we focus on a new fundraising cycle for our flagship funds and continue to create value for both our limited partners and shareholders.” ALEX SAIGH CHIEF EXECUTIVE OFFICER FEBRUARY 15, 2022 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the fourth quarter and full year ended December 31, 2021. Conference Call Patria will host its fourth quarter and full year 2021 investor conference call via public webcast on February 15, 2022, at 9:00 a.m. ET. To register, please use the following link: https://edge.media - server.com/mmc/p/3p5zkkz4 For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ . About Patria Patria is a leading alternative investment firm focused on Latin America, with over 30 years of history and combined assets under management of $23.8 billion, and a global presence with offices in 10 cities across 4 continents. Patria aims to provide consistent returns in attractive long - term investment opportunities that allow for portfolio diversification through its Private Equity, Infrastructure, Credit, Public Equities and Real Estate products. Through its investments Patria seeks to transform industries and untangle bottlenecks, generating attractive returns for its investors, while creating sustainable value for society. Further information is available at www.patria.com Shareholder Relations Contacts JOSH WOOD PatriaShareholdersRelations@patria.com T: +1 917 769 - 1611 E: josh.wood@patria.com ANDRE MEDINA T: +1 345 640 - 4904 E: andre.medina@patria.com Dividend Patria has declared a quarterly dividend of $0.160 per share to record holders of common stock at the close of business on March 2, 2022. This dividend will be paid on March 16, 2022.
4 Patria Reports Fourth Quarter & Full Year 2021 Results FEBRUARY 15, 2022
5 Patria’s Fourth Quarter 2021 IFRS Results (unaudited) ▪ GAAP Net Income was US$13.3 million for 4Q21 and US$121.3 million for the full year Throughout this presentation all current period amounts are preliminary and unaudited . Totals may not add due to rounding . See notes and definitions at end of document . (US$ in millions) 4Q20 4Q21 FY20 FY21 Revenue from management fees (1) 29.7 42.1 112.9 144.7 Revenue from incentive fees 3.3 4.9 3.5 4.9 Revenue from performance fees (2) - 0.0 - 89.3 Revenue from M&A, monitoring and placement and other fees - 0.7 2.5 0.7 Taxes on revenue (3) (1.3) (1.5) (3.8) (4.1) Revenue from services 31.8 46.2 115.0 235.5 Personnel expenses (4) (5.6) (12.4) (27.2) (47.6) Deferred Consideration (5) - (2.0) - (2.0) Amortization of intagible assets (1.5) (2.4) (6.0) (6.9) Carried interest allocation - 0.5 - (30.2) Cost of services rendered (7.2) (16.4) (33.2) (86.7) Gross profit 24.6 29.8 81.8 148.8 Administrative expenses (5.8) (5.2) (14.6) (14.4) Other income/(expenses) (6) (2.2) (10.0) (2.0) (12.5) Operating income and expenses 16.6 14.6 65.2 121.9 Operating income before net financial income/(expense) 16.6 14.6 65.2 121.9 Net financial income/(expense) (0.2) 0.6 (0.2) (0.3) Income before income tax 16.5 15.2 65.0 121.6 Income tax (7) (0.1) (1.9) (3.1) (0.4) Net income for the period 16.3 13.3 61.8 121.3
6 Highlights Completed combination with Moneda Asset Management and announced partnership with Kamaroopin to launch Growth Equity Strategy $1.02 per share of DE in 2021, equivalent to a 5% yield at IPO price FRE Growth 1 FY21 vs FY20 FEAUM up 59 % FRE Margin in 2021 $348 mn Net Accrued Performance Fees as of December 31 st , up 26% YoY We expect FRE to increase by more than 50% in 2022 132 % YoY Total AUM up 65 % YoY 52 % Mgmt. Fee Growth FY21 vs FY20 28 % (1) FY 20 adjusted for comparable compensation structure . FRE growth as reported was 21 % year - over - year .
7 ▪ Total Assets Under Management (“AUM”) of $23.8 billion as of December 31, 2021, up 65% year - over - year ▪ Fee - Earning AUM (“FEAUM”) of $17.9 billion as of December 31, 2021, up 132% year - over - year ▪ Performance Revenue Eligible AUM (“PREAUM”) of $16.0 billion as of December 31, 2021, representing 67% of Total AUM ▪ Total Fundraising of $175 million in 2021 ▪ Total Deployment of $733 million in 4Q21 and $2.5 billion for the full year 2021 ▪ Total Realizations of $263 million in 2021 Patria’s Fourth Quarter & Full Year 2021 Summary Financial Measures Key Business Metrics ▪ Fee Related Earnings (“FRE”) of $29.3 million in 4Q21, up 46% compared to 4Q20, and $86.0 million for the full year, up 21% compared to 2020 ▪ Distributable Earnings (“DE”) of $27.7 million in 4Q21, up 39% compared to 4Q20, and $141.3 million for the full year, up 101% compared to 2020 ▪ Net Accrued Performance Revenues of $348 million as of December 31, 2021, up 26% from one year ago ▪ Declared quarterly dividend of $0.160 per common share payable on March 16, 2022, totaling $0.869 year to date See notes and definitions at end of document
8 Patria’s Fourth Quarter 2021 Earnings DE per Share shown for 2020 for illustrative purposes only, using Patria’s post - IPO share count of 136 , 147 , 500 shares . Share count of 147 , 192 , 930 effective for 4 Q 21 due to the combination with Moneda . FRE & DE - Adjusted for comparable compensation structure adjusts pre - IPO FRE to reflect post - IPO compensation structure for comparison . See notes and definitions at end of document . Totals may not add due to rounding . ▪ Distributable Earnings (“DE”) of $27.7 million in 4Q21, and $141.3 million for the full year (US$ in millions) 4Q20 4Q21 % ∆ FY20 FY21 % ∆ Management Fees 29.7 42.1 42% 112.9 144.7 28% (+) Incentive Fees 3.3 4.9 3.5 4.9 (+) Advisory Fees and Other Revenues 0.2 0.7 2.5 0.7 (–) Taxes on Revenues (1) (1.4) (1.5) (3.8) (3.9) Total Fee Revenues 31.8 46.2 46% 115.0 146.4 27% (–) Personnel Expenses (5.1) (11.2) 117% (26.8) (43.7) 63% (–) Administrative Expenses (5.8) (4.9) -16% (14.6) (14.1) -3% (–) Placement Fees Amortization and Rebates (2) (0.6) (0.8) 30% (2.3) (2.5) 8% Fee Related Earnings (FRE) 20.2 29.3 46% 71.3 86.0 21% FRE Margin (%) 63% 63% 62% 59% Realized Performance Fees (After-Tax) - - - 89.1 (–) Carried interest allocation and bonuses (3) - 0.1 - (31.1) Performance Related Earnings (PRE) - 0.1 - 58.0 (+) Realized Net Investment Income (4) (0.1) (0.2) (0.1) (1.0) Pre-Tax Distributable Earnings 20.0 29.2 71.2 143.0 (–) Current Income Tax (5) (0.1) (1.6) (0.9) (1.7) Distributable Earnings (DE) 19.9 27.7 70.3 141.3 DE per Share 0.146 0.188 0.516 1.023 FRE - Adjusted for comparable compensation structure 16.5 29.3 77% 56.8 86.0 52% DE - Adjusted for comparable compensation structure 16.3 27.7 55.8 141.3
9 Fee Related Earnings (“FRE”) See notes and definitions at end of document . Totals may not add due to rounding . 63% $20.2 million $29.3 million +77% 4Q 20 4Q21 63% FRE Margin $71.3 million $86.0 million 62% FY20 FY21 59% FRE Margin ▪ 4Q21 FRE of $29.3 million was up 77% from 4Q20 adjusted for comparable compensation structure ▪ Moneda accounted for $6.5 million of FRE in 4Q21 post closing of transaction in December ▪ 4Q21 Total Fee Revenues of $46.2 million were up 46% compared to 4Q20 $16.5 $3.6 Adjustment for comparable compensation structure $56.8 $14.5 Adjustment for comparable compensation structure ▪ FY21 FRE of $86.0 million was up 52% from the prior year adjusted for comparable compensation structure ▪ FY21 Total Fee Revenues of $146.4 million were up 27% compared to the prior year +52%
10 Net Accrued Performance Fees • Net Accrued Performance Fees were $348 million on December 31, 2021, up 11% from $314 million on September 30, 2021, primarily driven by portfolio appreciation in our third Infrastructure Fund • On a full year basis, Net Accrued Performance Fees grew by 26%, or 47% when accounting for realizations of $58 million • $223 million or approximately 64% of the current accrual generated by Private Equity Fund V, which is entering its harvesting period and is expected to be the primary contributor to realizations in the near term See notes and definitions at end of document . Totals may not add due to rounding . 43 75 6 Net Accrued Performance Fees (US$ in millions) US$ 348 mn PE VI 1 PE V IS III Other 1 4Q21 Composition by Fund 3Q 21 4Q21 314 6 EoP FX US$/BRL 5.44 PE V (2015) PE VI (2019) IS III (2014) EoP FX US$/BRL 5.58 348 3 1 23 Other Period Change in Balance by Fund (Vintage) IS IV (2019) 1 223 IS IV
11 8.6 9.0 4.7 5.1 5.0 2.2 ▪ Total AUM of $23.8 billion as of December 31, 2021, including the addition of Moneda’s platform, up 65% compared to $14.4 billion one year ago ▪ $1.3 billion of year - over - year AUM increase was driven by the appreciation of underlying portfolio investments ▪ 67% of Total AUM is eligible to earn performance or incentive revenues ▪ Total AUM is comprised of Fair Value of Investments of $18.7 billion and Uncalled Capital of $5.1 billion as of December 31, 202 1 Total Assets Under Management Credit Private Equity Infrastructure See notes and definitions at end of document . Totals may not add due to rounding . 4Q21 14.4 4Q20 23.8 65% Public Equities Real Estate Advisory & Distribution 2.2 0.3 0.6 0.2 2.1 0.4 (US$ in billions) Fair Value of Investments Uncalled Capital + 1.0 7.2 2.6 4.9 2.2 US$ 18.7 bn 1.6 1.0 1.9 2.4 US$ 5.1 bn 0.6 0.3 0.2
12 Portfolio Activity - Drawdown Funds ▪ Total Deployment of $733 million in 4Q21 and $2.5bn for the FY21 o Private Equity deployed $391 million into its agribusiness, cybersecurity and grocery retail theses in 4Q21 o Infrastructure deployment of $305 million in 4Q21 was mainly driven by Winity Telecom’s successful bid in Brazil’s 5G spectrum auction ▪ Drawdown funds appreciated by $95 million in 4Q21 and $1.4bn for the FY21 excluding the impact of currency fluctuation ▪ Realizations of $106 million in 4Q21 and $263 for the FY21 o Realizations from PE Fund III generated $58 million of net realized performance fees for the year See notes and definitions at end of document . Totals may not add due to rounding . Notes : ( i ) Total Deployment represents the incremental capital invested or reserved in the period, as this reflects the most relevant activity driving fee revenue and the fundraising cycle . (ii) Others include Credit and Real Estate drawdown funds . Realizations ($mn) 4Q21 FY 21 Total 106 263 Private Equity 67 180 Infrastructure 25 45 Others 15 38 Valuation Impact ($mn) Increase (Decrease) 4Q21 FY21 Total 95 1,429 Private Equity (70) 1,058 Infrastructure 189 404 Others (24) (34) Total Deployment 1 ($mn) (Invested + Reserved) 4Q21 FY 21 Total 733 2,545 Private Equity 391 1,644 Infrastructure 305 755 Others 36 145
13 57% 32% 3.3 4.9 3.3 3.5 4.9 Fee Earning Assets Under Management & Management Fees (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $17.9 billion up 132% YoY including the combination with Moneda completed in December 2021, and up 20 % YoY on an organic basis ▪ Management Fees of $145 million were up 28% YoY, driven by strong deployment in Private Equity and Infrastructure o While FEAUM from the Moneda transaction is fully recognized as of 4Q21, it had minimal impact on revenues due to closing in Decembe r ▪ $1.3 billion of Pending FEAUM eligible to earn fees once invested/reserved o Private Equity deployment of $391 million in 4Q21 will flow into FEAUM and begin generating fees in 1Q22 1.3 Note : Patria’s Fee Earning AUM reflects the basis that is generating management fees in the current reporting period . Since the flagship Private Equity and Infrastructure funds generally call for management fees semi - annually (in January and July), capital that is invested or reserved in Q 1 and Q 2 will begin to generate management fees in Q 3 , and likewise, capital invested or reserved in Q 3 and Q 4 will begin to generate management fees in Q 1 of the following year . See notes and definitions at end of document . Pending FEAUM Credit Private Equity Infrastructure Public Equities Real Estate Advisory & Distribution 4Q21 7.7 4Q20 17.9 2.2 0.3 0.7 0.1 1.9 132% 0.4 US$ 145 mn 3% 2% 5% FY21 Management Fee Revenue Breakdown Per Strategy
14 Platform Overview by Asset Class FEAUM by Structure Effective Mgmt. Fee Rate Duration Currency Exposure Hard / Soft (%) Fee Basis Asset Class Infrastructure $3.5bn Drawdown Funds Infrastructure Core Long - dated & Illiquid Listed Permanent Capital 1.4% 86% / 14% 0% / 100% Hybrid: Committed/ Deployed Capital at Cost Net Asset Value 97% 3 % Credit $4.9bn Moneda Credit Funds Patria Private Credit Fund Listed closed - end funds with periodic limited liquidity Long - dated & Illiquid 0.8% 72% / 28% 0% / 100% Net Asset Value Net Asset Value 96% 4% Public Equities $2.2bn Moneda Equities Funds Patria CEF (PIPE) Listed closed - end funds with periodic limited liquidity Evergreen fund with periodic limited liquidity 0.8% 3% / 97% 0% / 100% Net Asset Value Net Asset Value 93% 7% Real Estate $0.4bn Drawdown Funds REITs Long - dated & Illiquid Permanent Capital 1.4% 0% / 100% 0% / 100% Deployed Capital at Cost Net Asset Value 74% 26% Private Equity $4.9bn Drawdown Funds Long - dated & Illiquid 1.9% 99% / 1% Deployed Capital at Cost 100% Advisory & Distribution $1.9bn Moneda Advisory Assets Moneda Distribution Partnership Liquid Long - dated & Illiquid 0.7% 34% / 66% 100% / 0% Net Asset Value Based on Underlying Fund 28% 72% Note : Currency Exposure Hard / Soft ( % ) reflects the percentage of FEAUM exposed to each classification of currency . Soft currency exposures include vehicles which are either denominated in a soft (i . e . local) currency or have management fee exposure through the underlying investments where fees are charged on net asset value . Total $17.9bn 71% / 29% 1.2%
15 Total AUM Roll Forward (unaudited) Three Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 3Q21 9,253 4,977 236 202 402 - 15,069 Acquisitions 1 - - 4,733 2,088 - 2,146 8,967 Inflows 2 15 - - 6 - - 21 Outflows 3 (67) (25) (14) - (1) - (106) Valuation Impact (70) 191 (2) (24) (18) - 77 FX (187) (75) (6) (4) (8) - (281) Funds Capital Variation 4 73 (9) 36 (23) (10) - 67 AUM 4Q21 9,017 5,060 4,982 2,245 366 2,146 23,815 Twelve Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total AUM 4Q20 8,627 4,710 242 260 569 - 14,408 Acquisitions 1 - - 4,733 2,088 - 2,146 8,967 Inflows 2 15 139 - 22 - - 175 Outflows 3 (180) (45) (32) - (6) - (263) Valuation Impact 1,058 417 (10) (84) (50) - 1,332 FX (533) (219) (18) (12) (22) - (804) Funds Capital Variation 4 30 59 67 (28) (126) - 1 AUM 4Q21 9,017 5,060 4,982 2,245 366 2,146 23,815
16 Total FEAUM Roll Forward (unaudited) Three Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 3Q21 4,941 3,505 172 202 416 - 9,236 Acquisitions 1 - - 4,733 2,081 - 1,888 8,702 Inflows 2 3 1 35 8 - - 46 Outflows 3 - - (14) (23) - - (37) Valuation Impact - 2 5 (23) 4 - (12) FX and Other (2) 13 (4) (5) (6) - (4) FEAUM 4Q21 4,942 3,521 4,927 2,239 414 1,888 17,930 Twelve Months Ended December 31, 2021 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate Advisory & Distribution Total FEAUM 4Q20 3,347 3,318 116 256 676 - 7,713 Acquisitions 1 - - 4,733 2,081 - 1,888 8,702 Inflows 2 1,671 394 123 23 11 - 2,222 Outflows 3 (74) (197) (4) (25) (238) - (538) Valuation Impact - 2 (30) (77) (24) - (129) FX and Other (2) 3 (11) (19) (12) - (40) FEAUM 4Q21 4,942 3,521 4,927 2,239 414 1,888 17,930 Note : Patria’s Fee Earning AUM reflects the basis that is generating management fees in the current reporting period . Since the flagship Private Equity and Infrastructure funds generally call for management fees semi - annually (in January and July), capital that is invested or reserved in Q 1 and Q 2 will begin to generate management fees in Q 3 , and likewise, capital invested or reserved in Q 3 and Q 4 will begin to generate management fees in Q 1 of the following year . See notes and definitions at end of document .
17 Investment Performance - Drawdown Funds (in Thousands, Except Where Noted) Deployed + Reserved Total Invested Unrealized Investments Realized Investments Net Returns Fund (Vintage) Total (USD) % Value (USD) Value (USD) Value (USD) Value (USD) Gross MOIC (USD) Net IRR (USD) Net IRR (BRL) Private Equity PE I (1997) 234,000 Divested 163,812 - 278,480 278,480 1.7x 4% 7% PE II (2003) 50,000 Divested 51,648 - 1,053,625 1,053,625 20.4x 92% 75% PE III (2007) 571,596 124% 624,464 37,583 1,159,256 1,196,839 1.9x 8% 19% PE IV (2011) 1,270,853 117% 1,169,291 1,555,944 198,919 1,754,863 1.5x 4% 16% PE V (2015) 1,807,389 101% 1,451,742 3,507,860 98,614 3,606,474 2.5x 27% 41% PE VI (2019) 2,689,666 110% 1,157,123 1,482,452 22,418 1,504,870 1.3x 21% 30% Co investments 745,010 100% 745,010 453,816 1,398 455,214 0.6x n/m n/m Total Private Equity 7,368,514 5,363,090 7,037,655 2,812,709 9,850,364 1.8x 14% 21% Infrastructure Infra II (2010) 1,154,385 102% 997,679 384,695 823,141 1,207,836 1.2x 0% 12% Infra III (2014) 1,676,237 113% 1,149,224 1,471,902 574,815 2,046,717 1.8x 10% 23% Infra IV (2019) 1,941,000 96% 275,795 396,569 - 396,569 1.4x 34% 51% Co investments 793,264 74% 588,124 394,788 439,629 834,417 1.4x n/m n/m Total Infrastructure 5,673,475 3,119,411 2,647,955 1,991,409 4,639,364 1.5x 5% 18% Real Estate/Agribusiness (BRL) % (BRL) (BRL) (BRL) (BRL) (BRL) (USD) (BRL) RE I (2004) 177,362 Divested 168,335 - 459,072 459,072 2.7x 24% RE II (2009) 996,340 87% 1,017,944 173,139 1,053,634 1,226,773 1.2x 2% RE III (2013) 1,310,465 86% 1,170,619 649,023 141,521 790,544 0.7x -12% Farmland (2018) 149,043 Divested 61,019 - 96,684 96,684 1.6x 14% Co investments 1,107,668 100% 1,093,900 40,738 - 40,738 0.x -41% Total Real Estate/Agri 3,740,879 3,511,817 862,900 1,750,911 2,613,811 0.7x -14% Committed Capital Total Value Note : Patria will report investment performance for funds/strategies with Total AUM equal or above $ 500 million . This table includes funds below that threshold given their disclosure in our reporting since the IPO . Going forward, new funds will be reported as they reach the $ 500 million threshold .
18 Investment Performance - Credit & Public Equities Note : Includes investment performance for primary funds of strategies with Total AUM of $ 500 million or more Compounded Annualized Net Returns 1yr 3yr 5yr Since Incep. Latam High Yield (2000) USD 3,325 2,294 10.5% 5.8% 6.6% 11.5% 388 bps Credit Benchmark: CEMBI Broad Div Latam HY 2.3% 6.5% 5.8% 7.7% Latam Local Currency Debt (2009) USD 798 798 (5.9%) 0.2% 0.8% 2.9% 114 bps Benchmark: GBI Broad Div Latam (13.1%) (0.5%) 1.7% 1.7% Latam Large Caps (2011) USD 758 218 (15.8%) 1.5% 5.1% (2.1%) 180 bps Public Equities Benchmark: MSCI TR Latam Gross (7.7%) (2.0%) 1.8% (3.9%) Chilean Small Caps (1994) CLP 615 595 (4.1%) (9.7%) 0.3% 12.5% 585 bps Benchmark: MSCI Chile SC Net (4.3%) (11.5%) (3.2%) 6.7% Excess Return Since Incep. Asset Class Strategy Functional Currency Strategy AUM (USD Mn) Primary Fund AUM (USD Mn)
19 Reconciliations and Disclosures
20 Patria’s Earnings – 5 Quarter View See notes and definitions at end of document (US$ in millions) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Management Fees 29.7 31.3 33.0 38.2 42.1 112.9 144.7 (+) Incentive Fees 3.3 - - 0.0 4.9 3.5 4.9 (+) Advisory Fees and Other Revenues 0.2 - - - 0.7 2.5 0.7 (–) Taxes on Revenues (1) (1.4) (0.7) (0.8) (0.8) (1.5) (3.8) (3.9) Total Fee Revenues 31.8 30.6 32.2 37.4 46.2 115.0 146.4 (–) Personnel Expenses (5.1) (10.3) (10.1) (12.1) (11.2) (26.8) (43.7) (–) Administrative Expenses (5.8) (2.4) (3.8) (3.0) (4.9) (14.6) (14.1) (–) Placement Fees Amortization and Rebates (2) (0.6) (0.6) (0.6) (0.5) (0.8) (2.3) (2.5) Fee Related Earnings (FRE) 20.2 17.3 17.6 21.8 29.3 71.3 86.0 FRE Margin (%) 0.6 0.6 0.5 0.6 63% 62% 59% Realized Performance Fees (After-Tax) - - 86.8 2.3 - - 89.1 (–) Carried interest allocation and bonuses (3) - - (30.4) (0.8) 0.1 - (31.1) Performance Related Earnings (PRE) - - 56.4 1.5 0.1 - 58.0 (+) Realized Net Investment Income (4) (0.1) (0.3) 0.1 (0.7) (0.2) (0.1) (1.0) Pre-Tax Distributable Earnings 20.0 17.0 74.2 22.6 29.2 71.2 143.0 (–) Current Income Tax (5) (0.1) - - (0.1) (1.6) (0.9) (1.7) Distributable Earnings (DE) 19.9 17.0 74.2 22.5 27.7 70.3 141.3 DE per Share 0.146 0.125 0.545 0.165 0.188 0.516 1.023 Additional Metrics Total Assets Under Management 14,408 14,116 15,840 15,069 23,815 14,408 23,815 Fee-Earning Assets Under Management 7,713 8,033 8,313 9,236 17,930 7,713 17,930
21 Reconciliation of IFRS to Non - GAAP Measures (unaudited) See notes and definitions at end of document (US$ in millions) 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Management Fees 29.7 31.3 33.0 38.2 42.1 112.9 144.7 (+) Incentive Fees 3.3 - - 0.0 4.9 3.5 4.9 (+) Advisory Fees and Other Revenues 0.2 - - - 0.7 2.5 0.7 (–) Taxes on Revenues (1.4) (0.7) (0.8) (0.8) (1.5) (3.8) (3.9) Total Fee Revenues 31.8 30.6 32.2 37.4 46.2 115.0 146.4 (–) Personnel Expenses (5.1) (10.3) (10.1) (12.1) (11.2) (26.8) (43.7) (–) Administrative Expenses (5.8) (2.4) (3.8) (3.0) (4.9) (14.6) (14.1) (–) Placement Fees Amortization and Rebates (0.6) (0.6) (0.6) (0.5) (0.8) (2.3) (2.5) Fee Related Earnings (FRE) 20.2 17.3 17.6 21.8 29.3 71.3 86.0 Realized Performance Fees (After-Tax) - - 86.8 2.3 - - 89.1 (–) Carried interest allocation and bonuses - - (30.4) (0.8) 0.1 - (31.1) Performance Related Earnings (PRE) - - 56.4 1.5 0.1 - 58.0 (+) Realized Net Investment Income (0.1) (0.3) 0.1 (0.7) (0.2) (0.1) (1.0) Pre-Tax Distributable Earnings 20.0 17.0 74.2 22.6 29.2 71.2 143.0 (–) Current Income Tax (0.1) - - (0.1) (1.6) (0.9) (1.7) Distributable Earnings (DE) 19.9 17.0 74.2 22.5 27.7 70.3 141.3 (-) Deferred Taxes (1) (0.1) (0.5) 1.2 0.9 (0.3) (2.2) 1.3 (-) Amortization of contractual rights (2) (0.9) (0.9) (0.9) (0.9) (1.6) (3.6) (4.3) (-) Tracking shares - Officers' fund (3) (0.5) (0.1) (0.5) (0.8) (0.8) (0.4) (2.2) (-) Deferred consideration (4) - - - - (2.0) - (2.0) (-) Performance Share Plan (5) - - (0.6) (0.1) (0.1) - (0.8) (-) Defined benefit plan (6) - - - - (0.0) - (0.0) (-) Brand amortization (7) - - - - (0.3) - (0.3) (-) IPO Expenses & other transaction costs (8) (2.2) (2.4) 0.0 (0.1) (9.3) (2.2) (11.8) Net income for the period 16.3 13.1 73.4 21.5 13.3 61.8 121.3
22 IFRS Balance Sheet Results (unaudited) See notes and definitions at end of document (US$ in millions) 12/31/2020 12/31/2021 (US$ in millions) 12/31/2020 12/31/2021 Assets Liabilities and Equity Cash and cash equivalents 14.1 15.3 Client funds payable (1) - 78.2 Client funds on deposit (1) - 78.2 Consideration payable on acquisition (8) - 19.1 Short term investments (2) 9.9 151.9 Personnel and related taxes (6) 12.8 37.8 Accounts receivable (3) 24.0 97.1 Taxes payable 1.1 11.0 Project advances 1.3 3.2 Dividends payable 23.2 - Other assets 3.7 3.6 Other liabilities 6.9 8.4 Recoverable taxes 0.7 10.3 Carried interest allocation (7) - 11.6 Current Assets 53.7 359.6 Current liabilities 44.0 166.1 Accounts receivable 22.0 11.0 Contingent consideration payable on acquisition (8) - 26.4 Deferred tax assets 2.3 3.4 Personnel liabilities 1.5 5.3 Project advances 0.5 0.7 Deferred consideration payable on acquisition (8) - 2.0 Other assets 0.5 3.2 Deferred tax liabilities 0.2 - Long term investments (4) 2.0 18.3 Other liabilities 2.4 7.7 Property and equipment 3.8 13.4 Intangible assets (5) 22.4 364.9 Non-current liabilities 4.1 41.4 Non-current assets 53.5 414.9 Capital 0.0 0.0 Additional paid-in capital 1.6 485.2 Performance Share Plan (9) - 0.8 Retained earnings 62.0 88.0 Cumulative translation adjustment (6.3) (7.0) Equity attributable to the owners of the parent 57.3 567.0 Non-controlling interests (10) 1.8 - Equity 59.1 567.0 Total Assets 107.2 774.5 Total Liabilities and Equity 107.2 774.5
23 Notes Notes to page 5 – Patria’s Fourth Quarter 2021 IFRS Results (unaudited) (1) Increase in management fee revenues from prior year due to an increase in capital deployed by Private Equity Fund VI and management fees for December 2021 from Moneda acquisition (2) Increase in revenues due to performance fees receivable determined in accordance with the funds offering documents, based on the expected value for which it is highly probable that a significant reversal will not subsequently occur (3) Taxes on revenue represent taxes charged directly on services provided in some of the countries where the Company operates (4) The increase is due mainly to the change in compensation structure post - IPO (5) Deferred consideration is accrued for services rendered during retention period on acquisition of Moneda (6) IPO expenses and IPO bonuses related to the Initial Public Offering concluded on January 21 , 2021 , and other non - recurring transaction costs (7) Income tax includes both current and deferred tax expenses for the period Notes to pages 8 – Patria’s Fourth Quarter 2021 Earnings and 20 – Patria’s Earnings – 5 quarter view (1) Taxes on revenue have been adjusted from the comparable line in our IFRS results to remove Taxes on Realized Performance Fees which are excluded from Patria’s Fee Related Earnings (2) Placement Fees Amortization are recorded on an accrual basis and amortized over the terms of the respective investment funds (3) Performance fee payable to carried interest vehicle have been excluded from performance related earnings (4) Realized Net Investment Income includes both Net Financial Income and Expenses and Other Income and Expenses net of IPO Expenses (5) Current Income Tax represent tax expenses based on each jurisdiction’s tax regulations ; it is the Income tax discounted by the Deferred Tax Expenses Notes to page 10 – Net Accrued Performance Fees ( 1 ) Other includes Private Equity funds III and IV, and Infrastructure fund II Notes to page 12 – Fundraising & Portfolio Activity (1) Total Deployment represents the incremental capital invested or reserved for investments in drawdown funds during the period
24 Notes Notes to page 15 – Total AUM Roll Forward (Unaudited) and 16 - Total FEAUM Roll Forward (unaudited) 1) Acquisitions reflects the Total AUM for acquired entities as of the end of the quarterly period in which the transaction clos ed. Impacts to Total AUM in subsequent periods are reflected on the relevant roll forward line items 2) Inflows generally reflects fundraising activity in the period 3) Outflows generally reflects divestment activity in our drawdown funds and redemption activity in funds that offer periodic li qui dity 4) Funds Capital Variation generally reflects the change in cash - on - hand balances at the fund level during the period. This include s but is not limited to: ( i ) amounts called from limited partners which has not yet been invested, (ii) amounts received from asset sales which has not yet been d ist ributed to limited partners and (iii) amounts used to pay down capital call financing facilities Notes to page 16 – Total FEAUM Roll Forward (unaudited) 1) Acquisitions reflects the Fee Earning AUM for acquired entities as of the end of the quarterly period in which the transactio n c losed. Impacts to Fee Earning AUM in subsequent periods are reflected on the relevant roll forward line items 2) Inflows reflects increases in the management fee basis of our funds related to fundraising, new subscriptions, or deployment dep endent on the individual fee terms of each fund 3) Outflows reflects decreases to the management fee basis of our funds related to divestment activity or a contractual basis st epd own in drawdown funds or redemption activity in funds that offer periodic liquidity
25 Notes Notes to Page 21 – Reconciliation of IFRS to Non - GAAP Measures (unaudited) (1) Income Taxes have been adjusted to remove Deferred Taxes which are excluded from Patria’s Distributable Earnings . Deferred Taxes arise from taxable temporary differences mostly derived from non - deductible employee profit sharing expenses (2) This adjustment removes Amortization of Contractual Rights which are excluded from Patria’s Distributable Earnings . This amount refers to the amortization of intangibles associated with Patria’s acquisition of P 2 Group and Moneda (3) Personnel expenses have been adjusted to remove the Officers’ Fund tracking shares which are excluded from Patria’s Fee Related Earnings . This amount reflects the valuation change of the tracking shares in the period (4) Expenses have been adjusted to remove the impact of accrual of deferred consideration for services rendered during retention period on acquisition of Moneda (5) Personnel expenses have been adjusted to remove the impact from granting rights to the share - based incentive plan introduced . The amount reflects the equity recognized based on expected vesting criteria being met (6) Personnel expenses have been adjusted to remove the impact from the defined benefit plan . The amount reflects the change in value of the defined benefit liability payable upon vesting (7) This adjustment removes amortization of brands which are excluded from Patria’s Distributable Earnings . This amount refers to the amortization of intangibles associated with Patria’s acquisition of Moneda (8) Other expenses have been adjusted to remove non - recurring expenses associated with Patria’s IPO and other acquisition related transaction costs which are excluded from Patria’s Fee Related Earnings Notes to Page 22 – IFRS Balance Sheet Results (unaudited) (1) Receivables and payables from and to clients, related to Moneda brokerage activities (2) The December 31 , 2021 , balance includes IPO proceeds (3) The increase in current account receivable includes US $ 33 . 5 million of performance fees receivable (4) The movement in Long - term investments reflects acquisitions of investments during 2021 in Patria Infra Core and Patria Crédito Estruturado Fundo (FIDC) (5) The movement reflects the acquisition of Moneda through business combination and Includes goodwill, brand and contractual rights (6) The movement reflects the accrual of employee profit - sharing (7) The outstanding amount reflects 35 % of performance fees receivable to be paid to carried interest vehicle (8) The payable amounts relate to the acquisition of Moneda for future payments subject to meeting the requirements of the purchase agreement (9) Other reserves reflect the share - based incentive plan on granting of rights to buy shares (10) As part of the corporate reorganization, prior period non - controlling interests in Patria Investimentos Ltda . are now fully consolidated at 100 % ownership
26 Definitions • Distributable Earnings (DE) is used to assess our performance and capabilities to distribute dividends to shareholders . DE is calculated as FRE deducted by current income tax expense, plus net realized performance fees, net financial income/(expenses), and other income/(expenses) . DE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of net income . • Drawdown Funds are illiquid, closed - end funds in which upfront capital commitments are allocated to investments, and funded through capital calls from limited partners over the contractual life of the fund, which typically ranges from 10 - 14 years . • Fee Earning Assets Under Management (FEAUM) is measured as the total capital managed by us on which we derive management fees as of the reporting date . Management fees are based on “net asset value,” “adjusted cost of all unrealized portfolio investments,” “capital commitments,” or “invested capital” plus “reserved capital” (if applicable), each as defined in the applicable management agreement . • Fee Related Earnings (FRE) is a performance measure used to assess our ability to generate profits from revenues that are measured and received on a recurring basis . FRE is calculated as management, incentive and M&A and monitoring fees, net of taxes, less personnel and administrative expenses, amortization of placement agents and rebate fees, adjusted to exclude the impacts of equity base compensation and non - recurring expenses . • Gross MOIC represents the Gross Multiple on Invested Capital and is calculated as the total fair value of investments (realized and unrealized), divided by total invested capital . • Incentive Fees are realized performance - based fees which are measured and received on a recurring basis, and not dependent on realization events from the underlying investments . • Net Accrued Performance Fees represent an accrued balance of performance fees, which if each eligible investment vehicle were liquidated on the reporting date at current valuations, would be recognized as Performance Related Earnings . • Net IRR represents the cash - weighted internal rate of return on limited partner invested capital, based on contributions, distributions and unrealized fair value as of the reporting date, after the impact of all management fees, expenses and performance fees, including current accruals . Net IRR is calculated based on the chronological dates of limited partner cash flows, which may differ from the timing of actual investment cash flows for the fund . • Pending FEAUM refers to committed capital that is eligible to earn management fees but is not yet activated per the basis defined in the applicable management agreement . • Performance Related Earnings (PRE) refer to realized performance fees (net of related taxes) less realized performance fee compensation allocated to our investment professionals . We earn performance fees from certain of our drawdown funds, representing a specified allocation of profits generated on eligible third - party capital, and on which the general partner receives a special residual allocation of income from limited partners in the event that specified return hurdles are achieved by the fund . • Total Assets Under Management (Total AUM) refers to the total capital funds managed by us plus the investments directly made by others in the invested companies when offered by us as co - investments . In general, Total AUM equals the sum of ( i ) the fair value of the investments of each one of the funds and co - investments ; and (ii) uncalled capital, which is the difference between committed and called capital .