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| Statement |
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| Once closed, this transaction will launch a new vertical for Patria called Global Private Market Solutions, which adds fast-growing secondaries and co-investment strategies and will enhance our ability to offer diversified global alternatives exposure to our clients |
| So this is actually could be expandable and it's a very strong program |
| This is a people business, and we truly have a fantastic group of talented people pushing this company forward |
| With strong performance in both earnings streams, we delivered more than $70 million of distributable earnings or $0.47 per share for 4Q '23, bringing distributable earnings for the full year 2023 to $188 million or $1.26 per share |
| And again, we feel very good beginning 2024 now in a strong pace with the guidance that we already mentioned over the call here a couple of times |
| So this is – it was by strategy, not by chance that we’re here today, thank God I think we’re well positioned here |
| Given our performance in 2023, our organic growth initiatives and the additional earnings power embedded in our pending M&A transactions, I'm confident in our path to meet these targets |
| So we have a very interesting menu sets today of over 30 products that give us this ability to continue growing the platform very healthy and actually very comfortable today that we can actually deliver on the guidance that we gave late ‘22 |
| So not a lot of FRE coming through this year, but very solid FRE coming for next year |
| So we have very good numbers for the first quarter, to be honest |
| We finalized a stronger year with 1% to 2% of our FIA guidance, and this result continues to keep us on track to deliver at least $170 million FRE in 2024 as well as our 2025 FRE target of at least $200 million |
| And on the buy side and the sell side, right? And on the sell side, specifically, which are realizations that you asked for my guidance is, we will continue – we have a very strong and we will continue with a very strong divestment agenda |
| And has evolved, actually, when we launched in Q3, as mentioned in previous quarter, has actually had a really great acceptance across |
| Within this backdrop, we believe there's a compelling opportunity in a very fragmented independent trading space |
| So we were extremely pleased |
| Patria delivered a strong quarter and a solid year, with significant growth of our main KPIs, and we remain a consistent path to reach our 2025 targets |
| But vis-a-vis the benchmark, I think '22 was a good year and a slightly better year as we came in from 2021 also with the low benchmarks, and we did hit for some accounts |
| The VBI real estate platform had a fantastic year with broad inflows across the product offering totaling more than $750 million |
| I think that this is a remarkable achievement |
| For us to sustain strong inflows, we have to always continue to perform to our clients, and I'm very pleased with the strong returns our strategies are delivering |
| We saw particularly strong performance in the fourth quarter with more than $1.1 billion in positive valuation impact driving full year 2023 appreciation to more than $1.9 billion |
| Leading the charge here was strong performance in some of our larger publicly traded positions in the private active platform like Lavoro, our agriculture inputs distributor, SmartFit, our low-cost gem chain and Ultrapar, our gas station network company |
| Of course, not only the macro situation improved, but the performance of the funds were extremely positive, beating benchmarks in most of them during 2023 |
| The strategies in our public exits vertical also generated strong gains with PAN, Latam strategies yielding nearly 29% in U.S |
| And I gave some of the numbers during the call, but I'm extremely pleased and really groundbreaking performance |
| And importantly, through this growth, I believe we have maintained the high standards of investment performance that is valued and demanded by our clients, and this always remains the key to our growth over the long term |
| Our high-yield Latin fund with 14%, 15% net returns, our small-cap and large-cap atom strategy for public equities between 20% and 30% returns and small cap Chile, the same extremely positive returns, of course, the macro situation that benefit the inflows plus the performance of the fund, both of them working together for this kind of inflows that I mentioned over $750 million for each of these strategies, the whole vertical of public equities |
| To finish here, I'm very pleased with Patria's performance in 2023 and our growth path, and I'm very proud of what we have accomplished in the 3 short years since our IPO |
| We see good momentum for this fund to become a meaningful contributor to fees in the next few years |
| Patria has a long and successful track record in the energy sector being one of the largest investors in solar, wind, small hydro, natural gas and transmission assets |
| Statement |
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| Just to understand if there was anything in particular why they didn't grow as fast as the fee-earning AUM in the quarter and also incentive fees were also a little bit lower |
| So it kind of led you to being slightly below your FRE guidance for the year, just to think going forward, if any downside risks on the guidance that you've given for the $170 million for next year, $200 million in FRE for 2025 |
| Tito Labarta And just on the incentive fees, they were also lower than they were last year |
| Total operating expenses, including personnel and administrative expenses totaled $18.9 million in Q4 '23, down $5 million compared to Q4 '22 |
| We have some specific issues with our U.K |
| While it's challenging to guide you on PRE in a given quarter or year, we said we could generate $180 million of performance fee realizations between our Investor Day and the end of 2025 |
| I think the chances of us hitting the numbers went up over the last quarters |
| And Credit Suisse business most likely by the end of this year, given the complexities of -- or in the particularities of the closing of this transaction |
| So it’s a little longer than usual |
| On the public equity and public platform that you asked, we had a 2022 net outflows, I think we mentioned in previous quarters about 2022 |
| Of course, we have to continue to work very hard and deliver |
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