Patria Investments Ltd. Q4 FY2024 earnings call

• Fundraising: Exceeded the $5 billion fundraising target for 2024, raising $5.5 billion, including ~$300 million in advisory assets for third-party managers. • Fee Related Earnings: Achieved full-year fee related earnings target of $170 million, with fourth quarter fee related earnings up 35% from prior quarter. • Performance Related Earnings: Generated over $41 million in performance related earnings from the sale of Aguas Pacifico, on track to deliver updated cumulative performance related earnings guidance of approximately $120 million to $140 million through 2027. • Asset Allocation: Asset base remains sticky with 20% in permanent capital vehicles and ~90% in vehicles with no or limited redemption rights. Over 70% of 2024 fundraising and 50% in Q4 2024 came from local investors in local products. • Business Diversification: Expanding investment and product capabilities to serve new pools of investors globally, with GPMS business focused on middle market private equity investments in Europe and North America, and local investment and distribution capabilities built in regions like Brazil, Colombia, etc.

In 2024, Patria achieved a full-year fee related earnings target of $170 million, up 15% from 2023, with fee related earnings per share reaching $1.12, up 13%. For the fourth quarter, fee related earnings were $55 million, up 35% from the prior quarter and 18% from Q4 2023, with per share fee related earnings of $0.36, up 35% from Q3 and 13% year-over-year. The firm generated over $41 million in performance related earnings, primarily from the sale of the Chilean decentralization project Aguas Pacifico in Infrastructure Fund III. Fee earning AUM rose 38% year-over-year to approximately $33 billion, but declined 3% sequentially in the fourth quarter due to dollar appreciation. Net organic inflows in fee earning AUM in the fourth quarter were positive $380 million, with each investment vertical except public equities generating positive inflows.

• Fee Related Earnings: On track to reach full-year fee related earnings target of $200 million to $225 million, or $1.27 to $1.43 per share in 2025. • Fundraising: Enter 2025 with positive momentum and target $6 billion in fundraising. • Performance Related Earnings: On track to deliver updated cumulative performance related earnings guidance of approximately $120 million to $140 million through 2027, with Infrastructure III Fund being the primary source of carry generation through 2025.

• Macro Environment Uncertainty: Near term macro headwinds within the region and global uncertainty, such as the impact of the U.S. election on cross border flows. • Currency Volatility: FX volatility can impact fee related earnings, although the expense base provides a natural hedge. • Geopolitical Risk: Latin America has low geopolitical risk, but global geopolitical issues can still affect the business.

Q: Clarification on PRE and redemption in credit strategies.

A: The Aguas Pacifico deal was closed last week, generating ~$60 million in performance fees, with 35% paid to the team. Redemptions in credit strategies in 2025 are expected to be small with positive net new money flows.

Q: Breakdown of 2025 fundraising and debt.

A: Flexibility in 2025 fundraising target of $6 billion, with no specific breakdown given; net debt of $190 million in line with expectations, expected to reduce throughout 2025.

Q: Pension reform impact and real estate inflows.

A: Pension fund reforms in Latin American countries will increase managed money, with local products like private equity and infrastructure funds benefiting; real estate inflows in Brazil affected by high interest rates, but security strategies in real estate may perform well.