Financial Data and Key Metrics Changes - The third quarter of 2024 saw management fees reach approximately 78million,up2641 million, representing year-over-year growth of close to 13% [10][34] - Fee-related earnings per share in the quarter was 0.26,upmorethan6535 million or 0.23pershare[11][12]−NetfeerevenueinQ3reached75.9 million, up 28% year-over-year, and 207.6millionyear−to−date,up1934 billion, a 9% sequential increase and 58% year-over-year [13] - Real Estate Fee Earning AUM grew to over 6billion,approximately906.5 billion, up 43% since the end of 2022, driven by strong organic net inflows and market appreciation [25] - GPMS (Global Private Market Solutions) raised over 1.8billioninthesecondandthirdquarters,indicatingstrongfundraisingmomentum[27]MarketDataandKeyMetricsChanges−Approximately402 billion to investors in infrastructure funds since the start of 2023, indicating strong capital recycling [29] Company Strategy and Development Direction - The company aims to diversify and grow its business both organically and inorganically, with a focus on becoming the premier gateway for local investors to invest in locally managed alternatives [20] - The strategy includes expanding into new product structures and enhancing distribution capabilities, which has led to significant growth in fundraising [19][22] - The company is positioned to capitalize on the growing demand for alternative products within Latin America, particularly in infrastructure and credit [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the 5billionfundraisingtargetfor2024,withstrongorganicgrowthexpectedtocontinueinto2025[8][16]−Thecompanyanticipatesimprovementsinfee−relatedearningsandmarginsasitintegratesnewlyacquiredbusinessesandcapturesoperatingefficiencies[44][86]−ManagementhighlightedthepositiveoutlookforinfrastructureinvestmentsinBrazil,despitebroadereconomicchallenges,citingsuccessfulauctionsandforeigninterestinlocalprojects[95][100]OtherImportantInformation−Thecompanydeclareda0.15 per share dividend for the quarter, with plans to maintain this through the fourth quarter of 2024 [17] - The company expects its debt to reach a peak of approximately 190 million at the end of the year, with a plan to reduce debt levels as cash generation improves [54][56] Q&A Session Summary Question: Fundraising and GPMS Contribution - Management noted that GPMS has significantly altered the organic growth trajectory, with strong fundraising momentum expected to continue [63][64] Question: Final Closes for Private Equity VII and Infrastructure V - Management confirmed that Private Equity VII is still targeting 2 billion, with the SMA from the Asian sovereign wealth fund not included in current numbers [72][73] Question: FRE Margin Expectations - Management expects FRE margins to improve in 2025, with a mid-50s number anticipated for Q1 and upper 50s by year-end [81][86] Question: Tax Rate Expectations - The effective tax rate is expected to be between 6% and 8% for the full year, with a gradual increase towards 10% in the coming years [82][88] Question: Infrastructure Fund Performance - Management indicated that the infrastructure segment is experiencing a mini boom, with successful auctions and strong foreign interest [95][100]
Patria(PAX)2024-11-05 22:18