Patria Investments Ltd Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Siegenthaler - Bank of America - Analyst : Good morning, Alexandre. Hope everyone's doing well. My question is on fundraising. So, with $4.2 billion raised year-to-date, you're now in striking distance of the $5 billion target for the full year. And GPMS is driving more than half the inflows just in this past quarter. So, I wanted your perspective on how GPMS has altered your organic growth trajectory. And do you expect it to continue generating an outsourced contribution to fundraising relative to its size going forward?

Question: Craig Siegenthaler - Bank of America - Analyst : Thank you Alexan, very comprehensive. Just for my follow up also on fundraising, specifically on private equity seven and infrastructure five. Should we expect? Final closes for large closes for both in four Q and then Alessandri, we heard your commentary on a $500 million SMA with an Asian Sovereign Wealth Fund. And I think that will invest directly in private equity. Seven. Infrastructure Five. Can you help us with the timing and size of that one? Does that also flow in, in the fourth quarter?

Question: Craig Siegenthaler - Bank of America - Analyst : Thank you, Alessandra. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 2:00PM, PAX.OQ - Q3 2024 Patria Investments Ltd Earnings Call

Question: Beatriz Abreu - Goldman Sachs - Analyst : Hi, good morning, everyone. Thank you for the call and for taking my questions. I have two questions. One on FRE margin if you could please repeat your expectations for FRE margin for next year. I didn't quite catch that, but I wanted to know if you expect some expansion to happen in FRE margins in 2025. Due to synergies that you may be able to capture some acquisition. And also, I understand the margins should maybe go up and for you as revenues are usually higher because of incentive fees. But should we expect that that margin to, to go back to 53% to 54% level and one Q next year, is that increasing throughout the year? It would be great to get some colour on that. And for my second question, second question on the tax rate, you mentioned that you still expect 6 to 8% tax rate this year. And that would imply a lower effective tax rate in four Q. Maybe you could give more call on what would be the reason behind that? A patient and we should expect the effective tax rate to increase towards the 10% already in the next year. Thank you.

Question: Beatriz Abreu - Goldman Sachs - Analyst : Perfect. No, that was all very clear. Thank you, Alex.

Question: Ricardo Buchpiguel - BTG Pactual - Analyst : Hi everyone and thank you for the opportunity of making questions. I have just one from my side. Can you please comment if the environment velocity in the infrastructure fund hit the hurdle rate given the deration in the micro condition, there is in any way affect or this particular segment has been much impacted by the interest in Brazil with higher rates and effects. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 2:00PM, PAX.OQ - Q3 2024 Patria Investments Ltd Earnings Call

Question: Ricardo Buchpiguel - BTG Pactual - Analyst : Oh, very clear. Thank you. And just a follow up on one thing you mentioned, you said that incentive fees could be in the 10 level. Is that correct? You just want to confirm if that makes sense for, for Q4.

Question: Ricardo Buchpiguel - BTG Pactual - Analyst : Thank you. Thank you very much.

Question: Guilherme Grespan - J.P. Morgan - Analyst : Good morning Alexan and team. Thank you for the call and opening it up for questions. Just two on my side. The first one is actually pretty quick. I think I mentioned among the incentive fees that part of it comes from real estate. I just want to confirm which product inside real estate generated performance fees just to be sure we have it. Here, I think the, the ballpark, the, the bulk of it is going to come from, from private credit, right? But just to confirm the real estate products, which one generates performance. And the second one, it's more on the product. Strategy, Alex, you talked a lot about infrastructure and GPMS. But I, I wanted to get your review on private credit. You touched a little bit during the call but has been a booming. I think industry in Brazil and globally. I think most of your strategy today, it's still Chilean legacy, right? Monita Business. I just want to get your, your thoughts if you feel that there is an opportunity in Brazil or in the rest of Latin to develop the business, I think was part of the deal as well. But just want to, to get the kind of milestones on what you're thinking about this strategy in Brazil and the business outside Chile. Thank you.

Question: Guilherme Grespan - J.P. Morgan - Analyst : That's clear, Alex Thank you.

Question: Unidentified participant - - Analyst : Thank you Alex and for your time. So, my question here is also on the topic of product expansion, but here more broadly. So, I would like to understand if you still think there is any product or region that is not already included in your portfolio, but you would like to expand there in a medium term. So, like I understand you're already in the process of digesting recent acquisitions. But if there's any appetite for the next year, maybe two years to go to another region, other products and complementing it if in order to expand on those fronts, if you see it necessarily through M&A or in organic, in organic movements, or if you believe organic movements would suffice here. Thank you. Yeah.

Question: Unidentified participant - - Analyst : Yeah, you did. It was very, very. Broad. Thank you.