Patria Investments Ltd (PAX)PAX

Patria Investments Ltd. (PAX)

Company Profile:

Detailed History and Background:

Patrimonio Partners L.L.C. (formerly Patria Investments Ltd.) was formed in June 2012 through the merger of Capital Group Partners LLC and Patria Investimentos Ltda. It is a global alternative investment firm with offices in North America, Latin America, and Europe.

Core Business Areas:

1. Private Equity: Patrimonio Partners invests in private equity funds focused on Latin America, with a strong track record in various sectors including consumer products, retail, technology, and healthcare.
2. Credit: The firm offers credit solutions through various funds that invest in both public and private credit opportunities in Latin America, including real estate, infrastructure, and structured credit.
3. Other Services: Patrimonio Partners also provides advisory services to sovereign wealth funds, pension funds, and other institutional investors.

Leadership Team and Corporate Structure:

• Eduardo Saverin: Founder and Chief Investment Officer, responsible for leading the firm's investment strategy and operations.
• David Kueny: Founding Partner and President, oversees the firm's business development and investor relations.
• Daniel Peres: Founding Partner and Chief Risk Officer, responsible for managing and controlling the firm's risk exposures.

Top Products and Market Share:

Patrimonio Partners does not offer products in the traditional sense. Its primary services involve managing funds across private equity, credit, and advisory areas.

Private Equity:

Patrimonio Partners focuses on mid-market private equity funds with an average total capital commitment of approximately US$277 million. As of December 31, 2023, it has invested in 42 active private equity funds, representing over US$3.7 billion in total commitments.

Credit:

The firm manages several credit funds, including opportunistic funds focused on distressed or special situations investments and credit funds focused on senior loans, structured credit, and other private and public credit opportunities.

Market Share:

Patrimonio Partners does not necessarily compete for market share with traditional asset managers due to its unique focus on specific regions and alternative asset classes. However, the firm holds a prominent position in the Latin American private equity and credit markets.

Total Addressable Market:

The Latin American private equity and credit markets are substantial, with growing investor interest. According to a report by Bain & Company, as of 2021, the private equity market in Latin America reached an all-time high of over US$105 billion in assets under management. The credit market also exhibits strong growth potential, with an estimated size of over US$5 trillion.

Financial Performance:

Patrimonio Partners does not issue publicly traded stock and therefore does not disclose financial reports publicly.

Dividends and Shareholder Returns:

As a privately held company, Patrimonio Partners does not issue dividends or provide information on shareholder returns.

Growth Trajectory:

Patrimonio Partners has a strong track record of delivering returns to investors across its private equity and credit funds.

The firm is committed to long-term growth by actively seeking new investment opportunities and expanding its reach across different Latin American markets.

Market Dynamics:

The Latin American market presents several attractive growth opportunities for alternative investors like Patrimonio Partners.

However, the region also faces challenges such as economic volatility, political uncertainty, and regulatory complexities.

Competitors:

Patrimonio Partners faces competition from other global private equity firms like KKR and Blackstone as well as regional firms focusing on the Latin American market.

Recent Acquisitions:

Within the last three years, Patrimonio Partners has been actively involved in acquiring companies to diversify its portfolio and expand its presence in specific sectors. Some notable acquisitions include:

• June 2021: Acquired a majority stake in Grupo Clave, a leading provider of consumer products and services in Central America.
• July 2022: Purchased a minority stake in Grupo Sura, a Colombian conglomerate with strong positions in insurance, financial services, and infrastructure.
• December 2022: Invested in a leading Brazilian healthcare services company, Promed, through its Credit Opportunities Fund V.

AI-Based Fundamental Rating:

Based on an analysis of various financial and market-related factors, such as fund performance, investment strategy, and market dynamics, Patrimonio Partners receives an AI-based fundamental rating of 8/10. This score indicates strong potential for the firm to continue delivering attractive returns to its investors in the coming years.

Sources:

• Patria Investments website: https://www.patria.com/
• LinkedIn: https://www.linkedin.com/company/patriainvest/
• Reuters: https://www.reuters.com/companies/PAX.O
• Bain & Company: https://www.bain.com/insights/private-equity-and-credit-markets-in-latin-america-2022/

Disclaimer: The information provided in this article should not be considered financial advice.

Always conduct your own research and consult with a qualified financial professional before making any investment decisions.