Patria Investments Stock Earnings Reports

Patria Investments reported a strong start to 2026 with fundraising of $2.1 billion in 1Q26 and fee-earning AUM of $45.8 billion (pro forma ~$47.5 billion including WP Global Partners), driven by organic flows and recent acquisitions (Solis and three Brazilian REITs). Fee-related earnings (FRE) were ~$51 million for the quarter (FRE margin 54.6%), distributable earnings per share were $0.27 (+14% YoY), and total fee revenues were $92.6 million (+20% YoY). Management reaffirmed full-year 2026 FRE guidance of $225–$245 million and a multi-year FRE target for 2027 of $260–$290 million, while expressing confidence in reaching a long-term FRE margin of 58–60% as integration and expense phasing normalize. The company completed a $350 million fixed-rate private note issuance (5-, 7-, 10-year tranches, avg. cost 6.4%), reducing reliance on revolvers and leaving pro forma net debt/FRE at ~0.8x. Investment performance remains a core strength (over 80% of fee-AUM in funds outperforming benchmarks), with credit, infrastructure, and GPMS showing notable momentum. Management tempered expectations for near-term performance-related earnings (PRE), lowering the three-year PRE outlook (4Q24–4Q27) to $80–$100 million from the prior $120–$140 million target due to timing of realizations; they see additional PRE likely beyond 2027 (e.g., Private Equity Fund VI). Capital allocation priorities include completing deployments of ~$3.3 billion of pending fee-AUM, disciplined balance-sheet management, continued share-count management (target ~158–160m shares), and selective business development focused on Latin America and U.K./Europe (with limited U.S. expansion beyond GPMS).