Patria Investments Limited (NASDAQ:PAX) Q4 2022 Earnings Call Transcript

We saw Brazil growing around 3% and then a little notch higher than that last year and 1.5% to 2% something percent this year; same in Chile, same in Colombia, same in Mexico, again, the whole needs for these real estate investments. And if we — and emphasizing also the whole near-shoring and friendly shoring that I mentioned in my earnings call, Mexico on that front I think really stands out, because it will need a lot of investments in logistics and also factories, whatever and the real estate market in Mexico I think we’ll be looking to take part of this near-shoring thesis. So we’re very excited with this opportunity. We tripled our AUM in the real estate space in Brazil last year, mainly through the acquisition of VBI. And I think we really look forward to continue to expand this space.

Lastly, as we do expand within the REIT market, it is a permanent capital structure product. So that also is extremely interesting for us because it does give us predictability in our future earnings because of the permanent capital nature of the product. So I hope we answered your both questions. Please advise us if we missed anything.

Beatriz Abreu: No, that’s very clear. Thank you.

Operator: Thank you. . I would now like to hand the conference back over to Mr. Alex Saigh for closing remarks.

Alex Saigh: Well, thank you very much, again, for your participation in this call, your patience to go through this 50 minutes, an hour with us. I think as all of us mentioned here, Ana, Marco and Josh, myself, Alex, are extremely pleased with 2022 results. I think we did manage to hit our targets and the targets that we actually designed for 2022 and late ’21, when we had a different world environment and a different market for alternative assets. As we look into ’23, I think we’re confident that we’re going to be able to deliver again on our $150 million guideline for FRE and hopefully be able also to convert some of that performance fees into realizations throughout the next years. We have over $400 million of inventory, right, of performance fees.

And some of our funds, namely our infrastructure fund III are already in the carry mode or carry status. So thanks again. And I also want to again congratulate the team for an amazing year. Far from easy, but I think the team managed to perform. We wouldn’t be having this call here if it were not for the team, their competence, their dedication, and congratulate Ana as well here on her new CFO role. So as we go through ’23, Ana will be taking more of a protagonist role here in our finance department as a CFO as Marco leaves our corporate development side and looks for additional exciting acquisition opportunities for Patria. Thanks, again. Hope to see you soon. And have a great week. Thank you.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.