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 May 2024
Commission File Number: 001-39911
Patria Investments Limited
(Exact name of registrant as specified in its charter)
60 Nexus Way, 4th 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 | X | Form 40-F | ||||||||||||
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/ Ana Cristina Russo | |||||||||||||||||||
| Name: | Ana Cristina Russo | |||||||||||||||||||
| Title: | Chief Financial Officer | |||||||||||||||||||
Date: May 2, 2024
TABLE OF CONTENTS
| EXHIBIT | |||||
Patria Reports First Quarter 2024 Earnings Results Grand Cayman, Cayman Islands, May 2, 2024 – Patria (Nasdaq:PAX) reported today its unaudited results for the first quarter ended March 31, 2024. The full detailed presentation of Patria's first quarter 2024 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/. Alex Saigh, Patria’s CEO, said: “The 1st quarter of 2024 marked a great start for the year, and I’m very pleased with the performance we delivered. We generated over $35 million dollars of Fee Related Earnings in the quarter, representing a 13% increase from 1Q23. We delivered more than $31 million dollars of Distributable Earnings, or 21 cents per share. We continue to grow and diversify our platform, both organically - as we raised $1.1 billion dollars year to date through April, and over $5.1 billion in the last twelve months, and inorganically – as we were thrilled to announce the closing of our acquisition of abrdn’s private equity solutions business this past Monday, and we saw good progress towards the closing of our pending acquisition of Credit Suisse’s real estate business in Brazil. With that, I am even more confident we will reach both our financial and AUM targets. We are comfortable in getting our Fee Related Earnings to at least $170 million dollars this year, on the way to more than $200 million in 2025.” Financial Highlights (reported in $ USD) IFRS results included $15.4 million of net income attributable to Patria in Q1 2024. Patria generated Fee Related Earnings of $35.1 million in Q1 2024, up 13% from $31.2 million in Q1 2023, with an FRE margin of 58%. Distributable Earnings were $31.3 million for Q1 2024, or $0.21 per share. Dividends Patria has declared a quarterly dividend of $0.175 per share to record holders of common stock at the close of business on May 20, 2024. This dividend will be paid on June 10, 2024. Conference Call Patria will host its first quarter 2024 earnings conference call via public webcast on May 2, 2024, at 9:00 a.m. ET. To register and join, please use the following link: https://edge.media-server.com/mmc/p/gbaedm2i/ 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 global alternative asset manager and industry leader in Latin America, with over 35 years of history, combined assets under management of $32.0 billion, and a global presence with offices in 13 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities as the gateway for alternative investments in Latin America. Through a diversified platform spanning Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private
Markets Solutions strategies, Patria provides a comprehensive range of products to serve its global client base. 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,” “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 press release 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 annual report on Form 20-F, 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. Contact Andre Medina t +1 917 769 1611 andre.medina@patria.com
1 Patria’s First Quarter 2024 Earnings Presentation MAY 2, 2024
2 Disclaimer This presentation 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,” “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 annual report on Form 20-F, 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 portfolio companies, 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 portfolio companies nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. IFRS Balance sheet and results for the current reporting period are preliminary and unaudited. Due to the closing of certain M&A activity, certain elements of our 1Q24 IFRS balance sheet and IFRS financial results are dependent on the conclusion of financial instruments adjustments (assets and liabilities) and/or completed purchase price allocation for these transactions, which could cause Patria’s audited IFRS balance sheet and net income to differ from the unaudited information 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 First Quarter 2024 Results MAY 2, 2024 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited results for the first quarter ended March 31, 2024. Conference Call Patria will host its first quarter 2024 investor conference call via public webcast on May 2, 2024, at 9:00 a.m. ET. To register, please use the following link: https://edge.media-server.com/mmc/p/gbaedm2i/ 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 global alternative asset manager and industry leader in Latin America, with over 35 years of history, combined assets under management of $32.0 billion, and a global presence with offices in 13 cities across 4 continents. Patria aims to provide consistent returns in attractive long-term investment opportunities as the gateway for alternative investments in Latin America. Through a diversified platform spanning Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions strategies, Patria provides a comprehensive range of products to serve its global client base. Further information is available at www.patria.com Dividend Patria has declared a quarterly dividend of $0.175 per share to record holders of common stock at the close of business on May 20, 2024. This dividend will be paid on June 10, 2024. Shareholder Relations Contacts | PatriaShareholderRelations@patria.com Andre Medina - T: +1 917 769 1611 E: andre.medina@patria.com
4 Patria’s First Quarter 2024 IFRS Results ▪ IFRS Net Income attributable to Patria was $15.4 million for 1Q24 Throughout this presentation all current period amounts are preliminary and unaudited. Totals may not add due to rounding. See notes and definitions at end of document. 1. Based on audited financial statements which may vary from previous presentations. 2. Adjusted by the reclassification of “Rebates” from “General and Administrative expenses” to “Revenue from management fees” (US$ in millions) 1Q23 1,2 1Q24 Revenue from management fees 57.7 63.9 Revenue from incentive fees 0.1 0.0 Revenue from performance fees (1) 15.5 - Revenue from advisory and other ancillary fees 0.5 1.3 Taxes on revenue (2) (1.1) (1.3) Revenue from services 72.6 63.9 Personnel expenses (3) (18.4) (18.4) Deferred Consideration (4) (6.1) (2.4) Amortization of intangible assets (4.9) (6.1) Carried interest allocation (5.4) - General and Administrative expenses (7.8) (9.2) Other income/(expenses) (5) (8.4) (7.0) Share of equity-accounted earnings (6) (0.6) (0.2) Net financial income/(expense) (7) (0.3) (0.6) Income before income tax 20.7 20.1 Income tax (8) (3.1) (4.2) Net income for the period 17.6 15.8 Attributable to: Owners of the Parent 17.2 15.4 Non-controlling interests (9) 0.3 0.4
5 1Q24 Message from Patria’s CEO – Alex Saigh “The first quarter of 2024 marked a great start for the year, and I’m very pleased with the performance we delivered. We generated over $35 million of Fee Related Earnings, representing a 13% increase from 1Q23, with only 20% of this growth coming from acquisitions. We delivered more than $31 million of Distributable Earnings, or 21 cents per share, and announced a quarterly dividend of 17.5 cents per share. We raised $1.1 billion year to date through April, or over $5.1 billion in the last twelve months, and we are confident we are on track towards meeting our $5 billion fundraising target for the year. At the portfolio level, we generated solid investment performance which helped offset the impact from realizations and FX movements. Generating strong investment returns for our fund investors remains our primary objective and this strong performance continues to support our healthy Net Accrued Performance Fees balance of $514 million, or $3.41 per share, as of March 31st.. Total AUM and Fee Earning AUM have grown more than 17% and 20% from one year ago respectively, with only one third of this growth coming from acquisitions. This past Monday, April 29th, we were thrilled to announce the closing of our acquisition of abrdn's private equity solutions business. As previously announced, the acquired platform, when combined with Patria’s existing global private markets vehicles, will form a new vertical – Global Private Markets Solutions, or GPMS, with aggregate Fee Earning AUM of over $10 billion. We believe the breadth and scale of this new vertical positions Patria as the premier gateway to global private markets for underserved investors in Latin America. Also on the M&A front, we are making good progress towards closing the pending acquisition of Credit Suisse’s real estate business in Brazil with up to $2.4 billion in Fee Earning AUM as of 1Q24. We now have all the required regulatory approvals in place and expect to hold the necessary fund shareholder votes to approve the transfer of the management contracts. Pro-forma for these two acquisitions, our 1Q24 Fee Earning AUM reached over $34 billion, representing over 4x growth in the three years since our IPO, with permanent capital growing from insignificant levels to close to 20%. We have grown from a two-product asset manager into a diversified platform across a series of strategies and investment verticals including Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions. We now offer an expanding range of product structures in order to meet investor objectives and with permanent capital, drawdown funds and SMAs representing over 70% of our Fee Earning AUM, underscoring the inherent stickiness of our management fee revenues and Fee Related Earnings. Finally, we are also diversified across currencies, and importantly, around 70% of our pro-forma Fee Earnings AUM is denominated in hard currencies – U.S. dollars, British Pounds and Euros. To conclude, in light of our great 1Q24 results, multiple organic growth initiatives, and our accretive acquisition strategy, we are even more confident we will reach both our financial and AUM targets. We are comfortable in getting our Fee Related Earnings to at least $170 million this year, on the way to more than $200 million in 2025, reflecting year-over-year growth of 15% and over 17%, respectively. As we embark on our next chapter of growth, we look forward to sharing more details with you at our next PAX Investor Day expected for later this year.”
6 ▪ Total Assets Under Management (“AUM”) of $32.0 billion as of March 31, 2024, up 17% from $27.3 billion one year ago ▪ Fee-Earning AUM (“FEAUM”) of $23.9 billion as of March 31, 2024, up 20% from $19.9 billion one year ago ▪ Organic inflows to Total AUM of $942 million in 1Q24 and $5.1 billion in the LTM ▪ Total Deployment in drawdown funds of $42 million in 1Q24 and $849 million in the LTM ▪ Realizations in drawdown funds of $130 million in 1Q24 and $2.4 billion in the LTM Patria’s First Quarter 2024 Summary Financial Measures Key Business Metrics ▪ Fee Related Earnings (“FRE”) of $35.1 million in 1Q24, up 13% compared to $31.2 million in 1Q23 ▪ Distributable Earnings (“DE”) of $31.3 million in 1Q24, compared to $40.1 million in 1Q23 driven by Performance Related Earnings (“PRE”) of $10 million in 1Q23 ▪ Net Accrued Performance Fees were $514 million as of March 31, 2024, or $3.41 per share, up 18% from $437 million one year ago ▪ Declared quarterly dividend of $0.175 per common share payable on June 10, 2024 See notes and definitions at end of document
7 (US$ in millions) 1Q231 1Q24 % Δ Management Fees 57.5 62.9 9% (+) Incentive Fees 0.1 (0.1) (+) Other Fee Revenues 0.5 1.3 (–) Taxes on Revenues (1) (1.0) (1.2) (–) Rebates (1.1) (2.5) Total Fee Revenues 56.0 60.6 8% (–) Personnel Expenses (16.8) (16.0) (5%) (–) General and Administrative Expenses (7.6) (8.8) 16% (–) Placement Fees Amortization (2) (0.5) (0.6) 41% Fee Related Earnings (FRE) 31.2 35.1 13% FRE Margin (%) 56% 58% Realized Performance Fees (After-Tax) 15.5 - (–) Carried interest allocation and bonuses (3) (5.4) - Performance Related Earnings (PRE) 10.0 - (+) Net financial income/(expense) (4) (0.1) (1.0) Pre-Tax Distributable Earnings 41.2 34.1 (–) Current Income Tax (5) (1.1) (2.8) Distributable Earnings (DE) 40.1 31.3 DE per Share 0.27 0.21 Patria’s First Quarter 2024 Earnings See notes and definitions at end of document. Totals may not add due to rounding. For Patria’s non-GAAP Income Statement, results for VBI Real Estate and the partnership with Bancolombia are reflected on a proportional consolidation basis to include Patria’s 50% and 51% ownership stake on each line item, respectively. In the IFRS Income Statement, results are fully consolidated on each line item and adjusted by non-controlling interest. 1. Adjusted by the reclassification of “Rebates” from the expense line “Placement Fees Amortization” to the new line “Rebates” deducting from total fee revenues. Unrealized financial income / expenses were moved to below DE. Please refer to Reconciliations and Disclosures section at the back of the presentation for more details. ▪ Distributable Earnings (“DE”) of $31.3 million in 1Q24
8 Fee Related Earnings (“FRE”) See notes and definitions at end of document. Totals may not add due to rounding. 31.2 35.1 0.5 0.6 24.4 24.8 $56.0 million $60.6 millionTotal Fee Revenues Operating Expenses Fee Related Earnings 1Q23 1Q24 FRE Margin 56% 56%56% 58 ▪ Fee Related Earnings of $35.1 million in 1Q24 were up 13% compared to 1Q23 ▪ 1Q24 Fee Revenues were $60.6 million, up 8% compared to 1Q23 driven by FEAUM and management fee growth across the platform particularly in Credit, due to net inflows and funds’ appreciation, Private Equity, due to new commitments and deployments in Private Equity Fund VII, and the impact of the partnership with Bancolombia closed in November 2023 ▪ 1Q24 Operating Expenses of $24.8 million were in line with 1Q23 Placement Fees +8% +13% (US$ in millions)
9 Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $514 million on March 31, 2024, up 18% YoY from $437 million in 1Q23 ▪ Net Accrued Performance Fees decreased by 4% QoQ from $535 million to $514 million, mainly driven by the share price of our publicly listed companies and the depreciation of local currencies against the U.S. dollar, partially offset by positive valuation impact in underlying portfolio ▪ The current Net Accrued Performance Fees equate to $3.41 per share See notes and definitions at end of document. Totals may not add due to rounding. 203 176 105 19 10 Net Accrued Performance Fees (US$ in millions) US$ 514 mn PE VI PE V IS III Others2 1Q24 Composition by Fund IS IV 4Q23 EoP FX US$/BRL 4.84 PE V (2015) 1Q24 EoP FX US$/BRL 5.00 Others21Q23 EoP FX US$/BRL 5.08 PE VI (2019) IS III (2013) IS IV (2018) 437 (30)535 8 1 3 (2) 514
10 10.6 11.7 5.9 5.6 4.7 6.0 2.3 2.8 1.6 3.8 2.1 2.2 ▪ Total AUM of $32.0 billion as of March 31, 2024, up 17% from $27.3 billion one year ago ▪ LTM growth was driven by capital inflows of $5.1 billion, together with a positive valuation impact of $3.0 billion and $1.5 billion of acquisitions, partially offset by outflows of $4.6 billion, which included over $2.6 billion of divestments proceeds and dividends across the platform ▪ Total AUM is comprised of Fair Value of Investments of $26.9 billion and Uncalled Capital of $5.1 billion as of March 31, 2024 Total Assets Under Management Credit Private Equity Infrastructure (1) Prior category “Advisory & Distribution” was reclassified between GPMS, Real Estate, Public Equities and Credit – more details on slide 14 (2) Partnership with Bancolombia announced on July 5, 2023, and closed on November 1, 2023. See notes and definitions at end of document. Totals may not add due to rounding 1Q24 27.3 1Q23 32.0 Public Equities Real Estate GPMS1 (US$ in billions) + 1.0 9.5 2.9 5.8 2.8 3.7 2.2 US$ 26.9 bn 1.0 2.2 2.6 0.2 0.1 US$ 5.1 bn Fair Value of Investments Uncalled Capital Capital Formation ▪ $942 million of organic inflows to Total AUM in 1Q24 across a diversified product offering with Credit, GPMS and Real Estate verticals each contributing with over $200 million of inflows ▪ $5.1 billion of organic inflows in the LTM, including over $1 billion raised in Real Estate, over $900 million in Credit, and over $800 million in Public Equities ▪ $6.7 billion of total capital formation secured in the LTM including inorganic inflows2 +17%
11 Portfolio Activity - Drawdown Funds ▪ $849 million deployed in LTM, primarily related to new investments of our latest flagship Infrastructure and Private Equity funds ▪ Positive valuation impact of $1.2 billion in LTM (excluding currency impact) mainly driven by Private Equity, and $163 million in 1Q24 distributed across the platform ▪ Realizations were $130 million in 1Q24 driven mainly by the proceeds received from the divestment of Delly’s from Private Equity Fund V ▪ For the LTM, realizations of $2.4 billion were mainly driven by the closings of divestment transactions for ODATA and Entrevias (Infrastructure Fund III), block sales of HBSA (Infrastructure Fund II), divestment of Delly’s and block sales of SmartFit (Private Equity Fund V) See notes and definitions at end of document. Totals may not add due to rounding. (1) Total Deployment represents the incremental capital invested or reserved in the period, as this reflects the most relevant activity driving fee revenue and the fundraising cycle. (2) Others include Credit and Real Estate drawdown funds. Realizations ($mn) 2Q23 3Q23 4Q23 1Q24 1Q24 LTM Total 1,699 218 336 130 2,384 Private Equity 118 48 198 93 457 Infrastructure 1,561 140 90 - 1,791 Others2 20 29 49 37 135 Valuation Impact ($mn) Increase (Decrease) 2Q23 3Q23 4Q23 1Q24 1Q24 LTM Total 257 321 474 163 1,215 Private Equity 141 189 648 27 1,004 Infrastructure 101 101 (175) 78 104 Others2 16 32 1 59 107 Total Deployment1 ($mn) (Invested + Reserved) 2Q23 3Q23 4Q23 1Q24 1Q24 LTM Total 214 479 113 42 849 Private Equity 194 36 9 - 238 Infrastructure - 424 98 - 522 Others2 20 19 6 42 88
12 6.4 6.5 3.3 3.3 4.7 5.6 2.3 2.7 1.5 3.8 1.6 1.9 43% 20% 18% 7% 9% 3% Fee Earning Assets Under Management (US$ in billions) ▪ Fee Earning AUM (FEAUM) of $23.9 billion in 1Q24 was up 20% from one year ago driven by $5.1 billion of inflows including $1.5 billion from acquisitions, in addition to $1.5 billion of positive valuation impact, partially offset by $2.2 billion of outflows ▪ Management Fees of $62.9 million in 1Q24 were up 9% compared to 1Q23 driven by Fee Earning AUM growth across the platform particularly in Credit, due to net inflows and funds’ appreciation, Private Equity, due to new commitments and deployments in Private Equity Fund VII, and the impact of the partnership with Bancolombia closed in November 2023 1Q24 19.9 1Q23 23.920% US$ 62.9 mn 1Q24 Mgmt. Fee Revenue Breakdown Per StrategyCredit Private Equity Infrastructure Public Equities Real Estate GPMS1 (1) Prior category “Advisory & Distribution” was reclassified between GPMS, Real Estate, Public Equities and Credit – more details on slide 15 See notes and definitions at end of document. Totals may not add due to rounding
13 Platform Overview by Asset Class FEAUM by Structure Effective Mgmt. Fee Rate Duration Currency Exposure Hard / Soft (%) Fee BasisAsset Class 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. Effective Management Fee Rate reflects the LTM management fee revenue divided by the average FEAUM for the past 12 months. Real Estate Effective Mgmt. Fee Rate includes the proforma impact of 100% of VBI and Bancolombia initiative which is effective at Patria’s 50% and 51% ownership level, respectively. Total $23.9bn 58% / 42% 1.1% Infrastructure $3.3bn 1.5% Drawdown Funds Long-dated & Illiquid 79% / 21% Hybrid: Committed/ Deployed Capital at Cost 91% Infrastructure Core Permanent Capital 0% / 100%Net Asset Value9% Credit $5.6bn 0.8% Open/Evergreen Funds Periodic/Limited Liquidity 68% / 32%Net Asset Value95% Drawdown Funds Long-dated & Illiquid 0% / 100%Net Asset Value5% Public Equities $2.7bn Open/Evergreen Funds 0.8%3% / 97%Net Asset Value Real Estate $3.8bn 0.7% Drawdown Funds Long-dated & Illiquid 51% / 49%Deployed Capital at Cost 82% REITs Permanent Capital 0% / 100%Net Asset Value 18% Private Equity $6.5bn Drawdown Funds Long-dated & Illiquid 1.7%92% / 8%Deployed Capital at Cost100% GPMS $1.9bn Periodic/Limited Liquidity100% 0.5% Advisory Periodic/Limited Liquidity 0% / 100%Net Asset Value20% Distribution Partnerships Long-dated & Iliquid 100% / 0%Based on Underlying Fund80%
14 Total AUM Roll Forward (1) Prior category “Advisory & Distribution” was reclassified between GPMS, Real Estate, Public Equities and Credit See notes and definitions at end of document. Totals may not add due to rounding. Twelve Months Ended March 31, 2024 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate GPMS Advisory & Distribution1 Total AUM 1Q23 10,593 5,950 4,705 2,205 1,337 - 2,509 27,299 Reclassifications - - 24 104 232 2,149 (2,509) - AUM 1Q23 10,593 5,950 4,729 2,309 1,569 2,149 - 27,299 Acquisitions2 184 - - - 1,364 - - 1,547 Inflows3 227 1,370 934 836 1,017 745 - 5,129 Outflows4 (528) (2,029) (415) (585) (338) (739) - (4,633) Valuation Impact 962 398 812 483 193 166 - 3,013 FX 115 57 (89) (238) (3) (161) - (320) Funds Capital Variation5 102 (192) 6 - 15 - - (70) AUM 1Q24 11,654 5,554 5,978 2,804 3,817 2,160 - 31,966 Three Months Ended March 31, 2024 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate GPMS Advisory & Distribution1 Total AUM 4Q23 12,064 5,387 5,610 2,908 3,432 - 2,442 31,843 Reclassifications - - 29 85 294 2,034 (2,442) - AUM 4Q23 12,064 5,387 5,639 2,993 3,726 2,034 - 31,843 Acquisitions2 - - - - - - - - Inflows3 4 132 287 82 235 202 - 942 Outflows4 (93) (5) (104) (137) (125) (85) - (549) Valuation Impact 30 87 232 (25) 74 95 - 491 FX (280) (106) (80) (108) (99) (86) - (759) Funds Capital Variation5 (70) 59 4 (0) 6 - - (2) AUM 1Q24 11,654 5,554 5,978 2,804 3,817 2,160 - 31,966
15 Total FEAUM Roll Forward (1) Prior category “Advisory & Distribution” was reclassified between GPMS, Real Estate, Public Equities and Credit See notes and definitions at end of document. Totals may not add due to rounding. Twelve Months Ended March 31, 2024 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate GPMS Advisory & Distribution1 Total FEAUM 1Q23 6,414 3,323 4,698 2,207 1,413 - 1,837 19,894 Reclassifications - - 24 84 134 1,594 (1,837) - FEAUM 1Q23 6,414 3,323 4,723 2,291 1,548 1,594 - 19,894 Acquisitions2 111 - - - 1,364 - - 1,475 Inflows3 217 555 604 780 1,011 461 - 3,628 Outflows4 (223) (616) (346) (551) (347) (135) - (2,219) Valuation Impact (0) 40 775 467 223 34 - 1,539 FX and Other (3) 31 (116) (238) (7) (88) - (421) FEAUM 1Q24 6,516 3,334 5,639 2,749 3,791 1,866 - 23,895 Three Months Ended March 31, 2024 ($mn) Private Equity Infrastructure Credit Public Equities Real Estate GPMS Advisory & Distribution1 Total FEAUM 4Q23 6,658 3,272 5,381 2,910 3,476 - 2,204 23,900 Reclassifications - - 29 85 294 1,796 (2,204) - FEAUM 4Q23 6,658 3,272 5,409 2,995 3,771 1,796 - 23,900 Acquisitions2 - - - - - - - - Inflows3 4 77 173 27 262 104 - 646 Outflows4 (126) (5) (75) (137) (195) (33) - (571) Valuation Impact - 18 204 (28) 125 56 - 376 FX and Other (18) (28) (73) (108) (172) (57) - (456) FEAUM 1Q24 6,516 3,334 5,639 2,749 3,791 1,866 - 23,895
16 Investment Performance - Drawdown Funds 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. (in Thousands , Except Where Noted) Committed Capital Deployed + Reserved Total Invested Unrealized Investments Realized Investments Total Value 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 Divested 616,657 685 1,193,694 1,194,379 1.9x 8% 19% PE IV (2011) 1,270,853 115% 1,226,983 1,336,248 211,193 1,547,441 1.3x 0% 7% PE V (2015) 1,807,389 115% 1,551,257 3,034,792 487,899 3,522,690 2.3x 13% 18% PE VI (2019) 2,689,666 106% 1,755,348 3,287,795 41,958 3,329,754 1.9x 19% 17% PE VII (2022) 1,179,148 Fundraising 385,601 422,413 - 422,413 1.1x n/m n/m Total Private Equity ex. Co-Inv 7,802,652 5,751,306 8,081,933 3,266,848 11,348,782 2.0x 12% 17% Co investments 745,010 100% 745,010 654,005 121,368 775,373 1.0x n/m n/m Total Private Equity 8,547,662 6,496,316 8,735,938 3,388,216 12,124,155 1.9x 12% 16% Infrastructure Infra II (2010) 1,154,385 102% 997,679 316,585 880,544 1,197,129 1.2x 0% 10% Infra III (2013) 1,676,237 116% 1,306,477 960,079 2,119,781 3,079,860 2.4x 12% 21% Infra IV (2018) 1,941,000 110% 981,392 1,340,148 21,904 1,362,052 1.4x 12% 10% Infra V (2023) 1,044,973 Fundraising n/m n/m n/m n/m n/m n/m n/m Total Infrastructure ex. Co-Inv 5,816,595 3,285,548 2,616,813 3,022,229 5,639,041 1.7x 6% 15% Co investments 1,181,195 86% 1,017,128 438,633 917,826 1,356,459 1.3x n/m n/m Total Infrastructure 6,997,790 4,302,675 3,055,445 3,940,055 6,995,500 1.6x 7% 17% 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% 1,030,449 5,599 1,155,480 1,161,079 1.1x (0%) RE III (2013) 1,310,465 86% 1,172,964 394,660 163,569 558,229 0.5x (17%) Farmland (2018) 149,043 Divested 61,019 - 96,684 96,684 1.6x 14% Co investments 1,107,668 100% 1,105,167 1,877 - 1,877 0.0x 0% Total Real Estate/Agri 3,740,879 3,537,934 402,136 1,874,806 2,276,942 0.6x (16%)
17 Investment Performance - Credit & Public Equities Note: Includes composite investment performance for funds of strategies with or which have reached in the past Total AUM of $500 million or more, and where relevant, a weighted composite of underlying benchmarks 1yr 3yr 5yr Since Incep. Latam Equities (2008) USD 1,414 (4.3%) 20.4% 4.5% 3.8% 3.6% Benchmark: Latam Equities Index (3.0%) 23.2% 9.8% 4.2% 1.5% 212 bps Chilean Equities (1994) CLP 923 5.6% 21.2% 10.9% 4.6% 13.4% Benchmark: Chilean Equities Index 5.0% 26.1% 11.6% 3.8% 8.3% 510 bps Latam High Yield (2000) USD 3,585 4.2% 16.4% 7.7% 5.6% 11.0% Benchmark: CEMBI Broad Div Latam HY 4.1% 15.1% 4.0% 4.6% 7.3% 371 bps Latam Local Currency Debt (2009) USD 929 2.8% 23.9% 11.6% 5.8% 4.8% Benchmark: GBI Broad Div Latam (0.1%) 17.0% 8.8% 4.6% 3.5% 129 bps Chilean Fixed Income (2012) CLP 581 3.1% 11.0% 10.5% 7.3% 8.9% Benchmark: Chilean Fixed Income Index 1.4% 4.2% 5.5% 5.8% 7.0% 190 bps Compounded Annualized Net Returns Excess Return Since Incept. Public Equities Credit Asset Class Strategy Functional Currency Strategy AUM (USD Mn) YTD
18 Reconciliations and Disclosures
19 Share Summary 1Q23 2Q231 3Q23 4Q232 1Q243 Class A Common Shares 54,247,500 54,930,241 54,930,241 55,308,508 57,784,383 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,875,671 147,875,671 148,253,938 150,729,813 (1) 682,741 shares issued in 2Q23 related to consideration for M&A activity; (2) 378,267 shares issued in 4Q23 related to consideration for M&A activity; (3) in 1Q24, 1,879,977 shares issued related to consideration for M&A activity and 595,898 shares issued related to personnel compensation; (4) in 2Q24, 337,992 shares issued related to consideration for M&A activity and 751,478 shares issued related to personnel compensation and eligible for 1Q24 dividends + Shares Issued in 2Q24 Eligible for 1Q24 Dividend4 1,089,470 = Total Shares Outstanding Eligible for 1Q24 Dividend 151,819,283
20 Patria’s Earnings – 5 Quarter View See notes and definitions at end of document (US$ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Management Fees 57.5 61.6 61.7 64.7 62.9 (+) Incentive Fees 0.1 0.0 0.0 3.9 (0.1) (+) Other Fee Revenues 0.5 0.5 1.1 0.7 1.3 (–) Taxes on Revenues (1) (1.0) (1.3) (1.2) (1.4) (1.2) (–) Rebates (1.1) (1.3) (2.3) (1.8) (2.5) Total Fee Revenues 56.0 59.5 59.3 66.1 60.6 (–) Personnel Expenses (16.8) (16.8) (14.0) (12.4) (16.0) (–) General and Administrative Expenses (7.6) (8.3) (8.9) (6.5) (8.8) (–) Placement Fees Amortization (2) (0.5) (0.5) (0.5) (0.5) (0.6) Fee Related Earnings (FRE) 31.2 33.8 36.0 46.7 35.1 FRE Margin (%) 56% 57% 61% 71% 58% Realized Performance Fees (After-Tax) 15.5 16.4 0.3 40.6 - (–) Carried interest allocation and bonuses (3) (5.4) (5.7) (0.1) (14.0) - Performance Related Earnings (PRE) 10.0 10.7 0.2 26.6 - (+) Net financial income/(expense) (4) (0.1) 0.6 0.4 (0.1) (1.0) Pre-Tax Distributable Earnings 41.2 45.1 36.5 73.1 34.1 (–) Current Income Tax (5) (1.1) (2.8) (3.2) (2.6) (2.8) Distributable Earnings (DE) 40.1 42.3 33.3 70.6 31.3 DE per Share 0.27 0.29 0.23 0.48 0.21 Additional Metrics Total Assets Under Management 27,299 28,209 28,411 31,843 31,966 Fee-Earning Assets Under Management 19,894 21,573 21,457 23,900 23,895
21 (US$ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 Management Fees 57.5 61.6 61.7 64.7 62.9 (+) Incentive Fees 0.1 0.0 0.0 3.9 (0.1) (+) Other Fee Revenues 0.5 0.5 1.1 0.7 1.3 (–) Taxes on Revenues (1.0) (1.3) (1.2) (1.4) (1.2) (–) Rebates (1.1) (1.3) (2.3) (1.8) (2.5) Total Fee Revenues 56.0 59.5 59.3 66.1 60.6 (–) Personnel Expenses (16.8) (16.8) (14.0) (12.4) (16.0) (–) General and Administrative Expenses (7.6) (8.3) (8.9) (6.5) (8.83) (–) Placement Fees Amortization (0.5) (0.5) (0.5) (0.5) (0.6) Fee Related Earnings (FRE) 31.2 33.8 36.0 46.7 35.1 FRE Margin (%) 56% 57% 61% 71% 58% Realized Performance Fees (After-Tax) 15.5 16.4 0.3 40.6 - (–) Carried interest allocation and bonuses (5.4) (5.7) (0.1) (14.0) - Performance Related Earnings (PRE) 10.0 10.7 0.2 26.6 - (+) Net financial income/(expense) (0.1) 0.6 0.4 (0.1) (1.0) Pre-Tax Distributable Earnings 41.2 45.1 36.5 73.1 34.1 (–) Current Income Tax (1.1) (2.8) (3.2) (2.6) (2.8) Distributable Earnings (DE) 40.1 42.3 33.3 70.6 31.3 (-) Deferred Taxes (1) (1.9) 10.6 4.0 0.7 (0.9) (-) Amortization of intangible assets from acquisition (2) (4.7) (4.7) (4.8) (5.0) (5.1) (-) Equity-based and long-term compensation (3) (0.7) (0.5) (1.1) (12.4) (0.8) (-) Deferred and contingent consideration (4) (7.2) (8.7) (7.7) 9.3 (5.8) (-) Other transaction costs (5) (2.5) 2.1 (3.4) (8.5) (3.6) (-) Derivative financial instrument gains/(losses) (6) (1.3) (3.4) (2.9) (7.3) (0.8) (-) SPAC expenses and transaction costs (7) (3.5) (3.3) (0.2) (0.2) (0.2) (-) Unrealized financial income/expense (8) (1.0) 1.3 1.2 (0.1) 1.3 Net income for the period (9) 17.2 35.7 18.5 47.0 15.4 Reconciliation of IFRS to Non-GAAP Measures 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.
22 IFRS Balance Sheet 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. (1) $4.1 million reclassification for 2023 figures between “Current Assets - Accounts receivables” and “Non-current liabilities – Carried interest allocation” for comparison purposes (US$ in millions) 31-Mar-24 31-Dec-23 (US$ in millions) 31-Mar-24 31-Dec-23 Assets Liabilities and Equity Cash and cash equivalents 17.3 16.1 Client funds payable 13.7 17.1 Client funds on deposit 13.7 17.1 Consideration payable on acquisition (8) 29.2 59.1 Short term investments (1) 197.6 204.5 Personnel and related taxes (9) 11.8 28.8 Accounts receivable (2)1 124.2 123.3 Taxes payable 4.0 3.9 Project advances 15.3 17.6 Carried interest allocation (10) 9.3 9.4 Other assets (3) 75.9 11.8 Derivative financial instuments 1.1 0.3 Recoverable taxes 2.9 4.0 Commitment subject to possible redemption (11) 190.7 187.4 Derivative financial instruments (6) - 3.2 Gross obligation under put option (12) 81.6 81.6 Loans 10.0 - Other liabilities 43.0 10.1 Current Assets 446.8 397.5 Current liabilities 394.4 397.5 Accounts receivable (2) 19.7 14.9 Gross obligation under put option (12) 11.5 11.3 Deferred tax assets (4) 15.9 15.5 Consideration payable on acquisition (8) 11.0 42.9 Project advances 1.9 2.0 Carried interest allocation (10)1 18.5 18.5 Other assets 5.2 3.8 Personnel liabilities 0.2 2.9 Long term investments (5) 51.7 57.7 Loans 73.4 - Investments in associates 0.9 0.9 Other liabilities 46.9 13.0 Property and equipment 28.8 28.2 Non-current liabilities 161.5 88.6 Intangible assets (7) 473.5 487.0 Total liabilities 555.8 486.2 Non-current assets 597.6 610.0 Capital - - Additional paid-in capital 538.1 500.7 Performance Share Plan (13) 3.4 3.0 Retained earnings 8.4 50.8 Cumulative translation adjustment (44.8) (12.0) Equity attributable to the owners of the parent 505.2 542.5 Non-controlling interests (16.6) (21.1) Equity 488.5 521.4 Total Assets 1,044.4 1,007.5 Total Liabilities and Equity 1,044.4 1,007.5
23 Patria’s First Quarter 2023 IFRS Results Reclassification 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. (1) Based on published financial statements which may vary from previous presentations. (US$ in millions) 1Q231 1Q23 Adjusted Δ Revenue from management fees 58.8 57.7 (1.1) Revenue from incentive fees 0.1 0.1 - Revenue from performance fees (1) 15.5 15.5 - Revenue from advisory and other ancillary fees 0.5 0.5 - Taxes on revenue (2) (1.1) (1.1) - Revenue from services 73.8 72.6 (1.1) Personnel expenses (3) (18.4) (18.4) - Deferred Consideration (4) (6.1) (6.1) - Amortization of intangible assets (4.9) (4.9) - Carried interest allocation (5.4) (5.4) - General and Administrative expenses (8.9) (7.8) 1.1 Other income/(expenses) (5) (8.4) (8.4) - Share of equity-accounted earnings (6) (0.6) (0.6) - Net financial income/(expense) (7) (0.3) (0.3) - Income before income tax 20.7 20.7 - Income tax (8) (3.1) (3.1) - Net income for the period 17.6 17.6 - Attributable to: Owners of the Parent 17.2 17.2 - Non-controlling interests (9) 0.3 0.3 -
24 Reconciliation of IFRS to Non-GAAP Measures – 1Q23 Reclassification 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. (1) Based on published financial statements which may vary from previous presentations. (US$ in millions) 1Q231 1Q23 Adjusted Δ Management Fees 57.5 57.5 - (+) Incentive Fees 0.1 0.1 - (+) Other Fee Revenues 0.5 0.5 - (–) Taxes on Revenues (1.0) (1.0) - (–) [Rebates] - (1.1) (1.1) Total Fee Revenues 57.1 56.0 (1.1) (–) Personnel Expenses (16.8) (16.8) - (–) General and Administrative Expenses (7.6) (7.6) - (–) Placement Fees Amortization [and Rebates] (1.6) (0.5) 1.1 Fee Related Earnings (FRE) 31.2 31.2 - FRE Margin (%) 55% 56% 1% Realized Performance Fees (After-Tax) 15.5 15.5 - (–) Carried interest allocation and bonuses (5.4) (5.4) - Performance Related Earnings (PRE) 10.0 10.0 - (+) Net financial income/(expense) (1.0) (0.1) 1.0 Pre-Tax Distributable Earnings 40.2 41.2 1.0 (–) Current Income Tax (1.1) (1.1) - Distributable Earnings (DE) 39.1 40.1 1.0 (-) Deferred Taxes (1) (1.9) (1.9) - (-) Amortization of intangible assets from acquisition (2) (4.7) (4.7) - (-) Equity-based and long-term compensation (3) (0.7) (0.7) - (-) Deferred and contingent consideration (4) (7.2) (7.2) - (-) Other transaction costs (5) (2.5) (2.5) - (-) Derivative financial instrument gains/(losses) (6) (1.3) (1.3) - (-) SPAC expenses and transaction costs (7) (3.5) (3.5) - (-) Unrealized financial income/expense (8) - (1.0) (1.0) Net income for the period (9) 17.2 17.2 -
25 Notes Notes to page 4 – Patria’s First Quarter 2024 IFRS Results and Page 23 – Patria’s First Quarter 2023 IFRS Results Reclassification (1) Performance fees determined in accordance with the funds offering documents and/or agreements with Limited Partners, based on the expected value for which it is highly probable that a significant reversal will not occur (2) Taxes on revenue represent taxes on services in some of the countries where Patria operates (3) Personnel expenses consist of fixed compensation costs composed of salaries and wages, rewards and bonuses, social security contributions, payroll taxes and short- and long-term benefits (4) Deferred consideration is accrued for services rendered during retention period of employees from acquired businesses (5) Includes share issuance expenses related to the Initial Public Offering concluded on March 14, 2022, of Patria Latin American Opportunity Acquisition Corp. (ticker PLAO), a Special Purposes Acquisition Company ("SPAC"), and other acquisition related transaction costs including M&A expenses, unwinding of considerations payable and gross obligations under put options on acquired business (6) Includes earnings and amortization on intangible assets from investments in associates (7) Mainly composed by the fair value adjustments from: long-term investments, derivative financial instruments and foreign exchange variance (8) Income tax includes both current and deferred tax expenses for the period (9) Represents the non-controlling interest Notes to pages 7 – Patria’s First Quarter 2024 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 deducted from performance related earnings (4) Net financial income/(expense) includes share of equity-accounted earnings and realized gains/(losses) on financial instruments (5) Current Income Tax represents tax expenses based on each jurisdiction’s tax regulations
26 Notes Notes to page 9 – Net Accrued Performance Fees (1) Beginning with 1Q23, we are reporting Net Accrued Performance Fees balances net of related compensation and revenue taxes only. Disclosures in prior periods were also reflected net of related corporate income taxes and for comparative purposes we have now adjusted prior periods to be consistent with current reporting methodology. (2) Others include Private Equity funds III, Infrastructure fund II, Moneda Alturas II and Kamaroopin´s legacy Growth Equity fund Notes to page 14 – Total AUM Roll Forward 1) Acquisitions reflects the Total AUM for acquired entities as of the end of the quarterly period in which the transaction closed. 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, dividends, and redemption activity in funds that offer periodic liquidity 4) Funds Capital Variation generally reflects the change in cash-on-hand balances at the fund level during the period. This includes 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 distributed to limited partners and (iii) amounts used to pay down capital call financing facilities and (iv) funds received from financing activities at fund level that has been distributed to limited partners Notes to page 15 – Total FEAUM Roll Forward 1) Acquisitions reflects the Fee Earning AUM for acquired entities as of the end of the quarterly period in which the transaction closed. 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 dependent 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 stepdown in drawdown funds, redemption activity in funds that offer periodic liquidity, and dividends in certain funds with fees based on NAV.
27 Notes Notes to Page 21 – Reconciliation of IFRS to Non-GAAP Measures and Page 24 – Reconciliation of IFRS to Non-GAAP Measures – 1Q23 Reclassification (1) Deferred Taxes are temporary taxable differences mostly from non-deductible employee profit sharing expenses, performance fees and quarterly revaluation of derivatives (IFRS note "Income Tax Expenses") (2) Amortization of businesses acquisition costs allocated to intangibles assets, such as contractual rights, customers relationship, and brands (3) Expenses with equity-based compensation and long-term employee benefits from acquired businesses. Includes Officers’ Fund tracking shares, IPO's Share based incentive plan, and legacy Strategic Bonus from acquired business (4) Expenses for acquisition costs accruals. (i) Deferred consideration is accrued over retention period of key management from acquired businesses. (ii) Contingent consideration is the fair value adjustment of earn-out payables. (5) Non-recurring expenses associated with business acquisitions and restructuring (6) Unrealized gains and losses on warrants issued by the SPAC and option arrangements from acquisition-related transactions (7) SPAC's expenses are excluded from Distributable Earnings (8) Unrealized gains and losses on financial instruments and unrealized exchange variation. (9) Reflects net income attributable to owners of the Parent Notes to Page 22 – IFRS Balance Sheet Results (1) The balance includes trust account of Patria Latin American Opportunity Acquisition Corp. (ticker PLAO), a Special Purposes Acquisition Company ("SPAC") (2) Current and non-current accounts receivable mainly related to management and performance fees (3) Other assets mainly composed by anticipation paid for business Acquisition, working capital movements related to prepaid expenses and advances. (4) Deferred Taxes are temporary taxable differences mostly from non-deductible employee profit sharing expenses, performance fees and quarterly revaluation of derivatives (5) The long-term investments includes GP commitments into the funds (6) Includes derivative financial instruments from acquisition related activity (7) Primarily composed of goodwill, non-contractual customer relationships and brands from business acquisitions and their amortization (8) The payable amounts relate to purchase consideration payable for business acquisitions, which include amounts contingent to the business performance over a specific period of time (9) Primarily composed of employee profit sharing and short-term employee benefits (10)Reflects 35% of performance fees receivable to be paid to a carried interest vehicle when the carried interests are collected from the funds (11)Liabilities related to SPAC for warrants (ticker PLAOW) and redeemable SPAC Class A ordinary shares (PLAO) (12)Gross obligation related to option arrangements from acquisition-related activity of businesses (13)Reflects the shares issued-due to the share-based incentive plan
28 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). DE is derived from and reconciled to, but not equivalent to, its most directly comparable IFRS 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 other fee revenues, 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 or advised 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.