Patria Investments reaffirmed its 2026 fee-related earnings target of $225 million to $245 million but now expects the full-year FRE margin to come in modestly below its 58% to 60% target. CEO Alexandre Saigh reported that quarterly fundraising reached $2.3 billion, bringing the year-to-date total to $4.5 billion and keeping the firm on track to exceed its $7 billion full-year target, with fee-earning assets under management rising to $48.9 billion. CFO Raphael Denadai said total fee revenues were approximately $105.8 million and fee-related earnings were $57.1 million, yielding a 54% FRE margin for the quarter, while distributable earnings per share came to $0.32. The margin shortfall was attributed to the short-term impact of acquisitions and ongoing investments, though management remains confident in achieving the 58% to 60% target for 2027 and beyond. A key highlight was a new $1 billion commitment from an existing sovereign wealth fund client to a multi-asset separately managed account, which helped push pending fee-earning AUM up about 20% to $4 billion.
Patria Investments LtdReaffirmed 2026 FRE target and strong fundraising, but margin shortfall due to acquisitions and investments.