There’s a lot of dispersion in global equity markets:
Brazil has been a bright spot through Q4-2021 and Q1-2022. However macro aside, Patria, a LatAm focused alternatives firm, reported a great set of Q1-2022 numbers:
| Metric (Year over Year) | Result |
| Fee Related Earnings / Share | +84% |
| Distributable Earnings / Share | +90% |
| Dividend / Share | +90% |
| Fee Paying AUM | +136% |
| Organic FPAUM | +28% |
| Accrued Carry Balance | +99% |
| PE Fund V Net IRR ($USD) | 32% (3.1x) |
| PE Fund VI Net IRR ($USD) | 27%(1.5x) |
| Infra Fund III Net IRR ($USD) | 13% (2.0x) |
| Infra Fund IV Net IRR ($USD) | 37% (1.7x) |
| LatAm High Yield Relative Annual Performance | +403bps (22 yrs) |
- While the earnings numbers seem large due to the acquisition of Moneda, their new credit platform, organic growth of fee paying AUM just under 30% is all one can ask for.
- Furthermore, the company indicated that it is tracking at ~48% 2022 growth in per-share fee earnings, which will accelerate as deployment happens during the remainder of the year.
- Tangibly, their flagship PE fund held a first close which is on target for a 50% larger vintage, their growth equity platform is out in market right now for its first fund, and Moneda / Patria are kicking off joint fundraising / cross-selling
In a world in which there is plenty of uncertainty and surprises, it was good to see a solid set of earnings and positive outlook. However, the Brazilian presidential election is coming up and may setup for a nasty surprise.
Disclosure: We own shares of Patria Investments, this is not investment advice. Do your own work.