Patria Investments cleared its full-year fundraising goal a quarter early, pulling in $6.9 billion year to date through Q3. CEO Alex Saigh called it a path toward another record year, with pending fee-earning AUM still in the pipeline.
Revenue of $104.2 million exceeded expectations and grew roughly 20% year over year, with adjusted EPS also exceeding expectations. Management fees, the core of the business, climbed 17% year over year, driven by higher fee-earning AUM from organic inflows and the integration of the Solis, RBR, and WP Global Partners acquisitions.
The one number investors will want to square: fee-related earnings margin compressed to 53.7% from 58.5% a year ago. Fee-Related Earnings rose in dollar terms, but personnel and G&A expenses climbed 31% year over year, absorbing more of the revenue gain than the prior-year period did.
Total AUM reached $62.4 billion, up 22% year over year, with fee-earning AUM up 24%. Net accrued performance fees rose, largely on share price appreciation in PE Fund VI, giving the firm a deferred earnings cushion heading into the final quarter. A quarterly dividend of $0.1625 per share pays on December 11.
