Patria Investments Limited (PAX): History, Ownership, Mission, How It Works & Makes Money

Patria Investments Limited (PAX) has cemented its position as Latin America's premier alternative asset manager, but are you clear on how this 37-year-old firm drives its impressive growth engine? In the third quarter of 2025 alone, the firm reported Fee-Related Earnings (FRE) of $49.5 million, a 22% year-over-year jump, demonstrating their ability to convert their massive scale into bottom-line results. As Assets Under Management (AUM) surpassed the $50 billion mark, and with $6 billion raised year-to-date in 2025, you need to understand the precise mechanics behind their private equity, infrastructure, and credit strategies that are fueling this expansion beyond Latin America into Europe and the U.S.

Patria Investments Limited (PAX) History

Patria Investments Limited's Founding Timeline

Year established

While the firm's roots trace back to the 1988 founding of Banco Patrimônio, its core private equity business, which became Patria Investments Limited, was formally established in 1994.

Original location

The company started in Brazil, specifically São Paulo, establishing its initial focus on the Latin American market before expanding its global footprint.

Founding team members

The firm was started by a team of four founders: Alexandre Saigh, Danilo Gargantini, Luiz Otávio da Motta Veiga, and Olympio Matarazzo. Alexandre Saigh continues to serve as the Co-Founder, CEO, Senior Managing Partner, and Director.

Initial capital/funding

The initial capital pooled by the founders to start the firm in 1994 was a relatively modest $3 million. This seed money launched what would become a leading alternative asset manager in the region.

Patria Investments Limited's Evolution Milestones

Patria Investments Limited's Transformative Moments

The biggest shift for Patria Investments wasn't just a single deal; it was the strategic pivot from a regional private equity shop to a diversified, global alternative asset manager. That 2010 partnership with Blackstone was defintely the catalyst, giving them the institutional backing and global playbook they needed to scale.

The 2021 IPO on Nasdaq, raising capital and listing under the ticker PAX, was the moment they truly arrived on the global stage. It provided the permanent capital base to fund their 'buy-and-build' strategy across Latin America, plus it signaled a commitment to US-level transparency. The subsequent acquisitions, like the association with Moneda Asset Management, immediately boosted their Assets Under Management (AUM) and diversified their product offerings beyond private equity into credit and public equities.

This strategy is clearly paying off in the near-term. For the 2025 fiscal year, the firm has seen strong financial performance, demonstrating the resilience of their diversified platform amidst market volatility. Here's the quick math: the firm reported Q3 2025 revenue of $86.50 million, contributing to a last twelve months (LTM) revenue of $405.80 million ending September 30, 2025. They are now managing over $50 billion in Total AUM as of the third quarter of 2025, which is a massive leap in scale.

What this estimate hides is the focus on Fee-Related Earnings (FRE), which is the stable part of their business. Management is confidently targeting a full-year 2025 FRE between $200 million and $225 million, underscoring the success of their fee-generating funds. If you want a deeper dive into the numbers, you should check out Breaking Down Patria Investments Limited (PAX) Financial Health: Key Insights for Investors. Your next step is to map their Q4 2025 guidance against that FRE target.

Patria Investments Limited (PAX) Ownership Structure

Patria Investments Limited's ownership structure is unusual for a publicly traded alternative asset manager, dominated by a single private entity, which gives them substantial control over the firm's strategic direction.

This concentrated ownership means that while you can trade the stock on the Nasdaq, the firm's decision-making is heavily influenced by its founding private company, so understanding who holds the shares is defintely crucial for any investor.

Patria Investments Limited's Current Status

Patria Investments Limited is a publicly traded company, listed on the Nasdaq Global Select Market under the ticker symbol PAX. The company completed its initial public offering (IPO) in January 2021.

As of November 2025, the company commands a market capitalization of approximately $2.29 Billion USD, reflecting its position as a leading alternative asset manager focused on Latin America and expanding into global private markets.

The firm operates as a subsidiary of Patria Holdings Limited, which is the key to understanding the control dynamic.

For a deeper dive into the firm's financial health, you can check out Breaking Down Patria Investments Limited (PAX) Financial Health: Key Insights for Investors.

Patria Investments Limited's Ownership Breakdown

The ownership is highly concentrated, with a single private entity holding the majority of outstanding shares, a critical factor that governs the firm's strategic moves and governance. Here's the quick math on the breakdown of the total shares outstanding, which was approximately 159.5 million as of mid-2025.

Patria Investments Limited's Leadership

The firm is steered by a seasoned management team and co-founders who have decades of experience in the alternative asset space, ensuring continuity and deep market knowledge, especially across Latin America.

The key figures driving the company's strategy and operations as of November 2025 include:

• Alexandre Teixeira de Assumpcao Saigh: Co-Founder, Chief Executive Officer, Senior Managing Partner, and Director.
• Olímpio Matarazzo Neto: Senior Managing Partner and Chairman, overseeing the board's direction.
• Ana Cristina Russo: Partner and Chief Financial Officer (CFO), who manages the firm's financial strategy and reporting.
• Daniel Rizardi Sorrentino: Managing Partner and Global Head of Commercial, focusing on client and product distribution.
• Andre Franco Sales: Chief Executive Officer and Chief Investment Officer of Infrastructure, leading a core asset class.
• Marco Nicola D'Ippolito: Chief Executive Officer of Global Private Markets Solutions, spearheading the firm's international expansion.

This leadership structure, combining co-founder vision with specialized asset class and functional expertise, is designed to execute their target of generating $200 million to $225 million in Fee-Related Earnings (FRE) for the 2025 fiscal year.

Patria Investments Limited (PAX) Mission and Values

Patria Investments Limited (PAX) operates with a dual focus: delivering consistent, attractive returns for clients while also creating a long-lasting, positive impact in the regions where it invests, primarily Latin America. This means their success isn't just measured in dollars but in the sustainable development they help finance.

You're looking at an alternative asset manager that sees itself as more than a capital allocator; it's a value creator, which is a key distinction in the private markets space. For instance, their total Assets Under Management (AUM) surpassed $51 billion as of the third quarter of 2025, but the real story is how that capital is deployed.

Given Company's Core Purpose

Patria's core purpose goes beyond simply managing capital; it is about 'winning with purpose' by making a sustainable and positive mark on the sectors they operate in. They leverage their on-the-ground expertise to identify and develop quality assets, which is how they manage to consistently hit targets like the Fee-Related Earnings (FRE) target of $200 million to $225 million for the 2025 fiscal year.

Official mission statement

The firm's mission is fundamentally about being the essential bridge between global capital and regional opportunities, all while maintaining a high ethical bar.

• Crafting unique investment opportunities for our clients.
• Building a legacy in the regions where we operate.
• Making a sustainable and positive mark on the sectors in which we operate.
• Developing quality assets, bringing in innovations, and increasing market competitiveness.

This focus on long-term value creation is why they invest their own money alongside yours, ensuring a true alignment of interests (a concept known as 'skin in the game').

Vision statement

Patria's vision is rooted in specialization and impact, positioning themselves as the definitive gateway to a complex, high-growth region.

• Be the regional and sector specialist in alternative asset management.
• Deliver consistent results for clients by assessing market trends.
• Create long-lasting impact for all stakeholders.

They are defintely executing on this, as evidenced by their 2025 fundraising, which totaled approximately $6 billion year-to-date and is on track to exceed the full-year target of $6.6 billion.

Given Company slogan/tagline

While a snappy, single-word slogan isn't used, their strategic positioning serves as their operating mantra for investors.

• Gateway to Alternative Investing in LatAm.
• Delivering attractive returns through long-term investments.
• Promoting inclusive and sustainable development.

The fact that their Fee-Earning AUM (FEAUM) grew to approximately $38.8 billion in Q3 2025 shows this strategy is resonating with investors who want both performance and purpose. If you want to dig deeper into the numbers, you should check out Breaking Down Patria Investments Limited (PAX) Financial Health: Key Insights for Investors.

Patria Investments Limited (PAX) How It Works

Patria Investments Limited operates as a global alternative asset manager, primarily focused on identifying and actively managing long-term, value-creating investments in the mid-market segment across Latin America, Europe, and the U.S. The company makes money by charging management fees on its significant Assets Under Management (AUM) and earning performance fees when its funds exceed benchmark returns.

Patria Investments Limited's Product/Service Portfolio

Patria's platform offers a diversified set of investment strategies, specializing in resilient sectors like Agribusiness, Healthcare, and Infrastructure. The firm's total AUM surpassed $50 billion as of Q3 2025, supported by strong fundraising momentum.

Patria Investments Limited's Operational Framework

The operational process is built on a deep, on-the-ground presence that allows for proprietary deal sourcing and active management, which is defintely a differentiator. The firm's model is designed to generate Fee Related Earnings (FRE), which are highly predictable and grew to $49.5 million in Q3 2025.

• Proprietary Sourcing: Local teams, with over 37 years of experience, identify compelling, non-auctioned investment opportunities in the mid-market segment across Latin America.
• Value Creation: The firm applies an operational excellence model, embedding sector experts and company managers into portfolio companies to drive strategic and operational improvements, not just financial engineering.
• Fundraising and Capital Deployment: The company raised $6 billion year-to-date through Q3 2025, and plans to deploy $3.2 billion in fee-earning AUM over the next 12-18 months, prioritizing Infrastructure and GPMS.
• Revenue Generation: Revenue primarily comes from management fees, which are often based on net asset value (NAV) for over 60% of their assets, ensuring a stable, recurring revenue stream. Performance fees (carried interest) provide upside upon successful exits.

Patria Investments Limited's Strategic Advantages

Patria's competitive edge comes from a high-barrier business model that is difficult for new entrants to replicate. This model combines local market knowledge with a diversified global platform, which is critical for navigating complex emerging markets.

• Regional Specialization: Being the leading alternative asset manager in Latin America provides unparalleled local proficiency and access to deals that global competitors often miss.
• Diversified Platform: The six product lines (Private Equity, Infrastructure, Credit, Real Estate, Public Equities, GPMS) and expansion into Europe and the U.S. mitigate regional and sector-specific risks, allowing the firm to target a 2025 FRE of $200 million to $225 million.
• Aligned Shareholder Value: Operating costs remained flat in the nine months ending September 30, 2025, despite significant AUM growth, underscoring cost efficiency and a focus on shareholder returns, including a projected $0.65/share dividend.
• Client-Centric Solutions: The GPMS offering provides institutional investors with flexible private market exposure, meeting the growing demand for liquidity and customized portfolio solutions. You can learn more about who invests in Patria's funds here: Exploring Patria Investments Limited (PAX) Investor Profile: Who's Buying and Why?

Patria Investments Limited (PAX) How It Makes Money

Patria Investments Limited, a leading alternative asset manager focused on Latin America, primarily makes money by charging management and advisory fees on the substantial pool of capital it manages for clients, known as Assets Under Management (AUM). This stable, recurring revenue stream is supplemented by performance-related earnings (carried interest) realized when its underlying investments, such as private equity and infrastructure funds, are successfully sold at a profit.

You're looking for the engine room of the business, and honestly, it's all about the predictable fees. The performance fees are the upside, but the management fees pay the bills and drive the core profitability.

Patria Investments Limited's Revenue Breakdown

For the third quarter of the 2025 fiscal year, Patria Investments Limited reported total revenue of $86.5 million. The revenue structure is heavily weighted toward the stable fees generated from its growing base of fee-earning AUM (FEAUM).

Here's the quick math: Fee Related Earnings (FRE) for Q3 2025 were $49.5 million, which represents the profit after deducting operating expenses from the Fee Revenue. The fact that no performance-related earnings were generated in Q3 2025 means the total revenue of $86.5 million was almost entirely driven by management and advisory fees. This highlights the stability of the business model, which is defintely a good sign for investors who prioritize recurring income.

Business Economics

The core economic fundamental for Patria Investments Limited is the Fee-Earning Assets Under Management (FEAUM) base, which reached approximately $38.8 billion in Q3 2025, up 14% year-over-year. This figure is what generates the steady management fees, typically charged as a percentage of committed capital or net asset value, regardless of short-term investment performance. This is the bedrock of the firm's value.

• Pricing Strategy: The firm uses a classic 2-and-20 model (or variations thereof) common in alternative asset management: a management fee (the '2') charged on AUM, and a performance fee (the '20') on profits above a specified hurdle rate.
• Fee Margin Stability: The Fee Related Earnings (FRE) margin-which shows how efficiently management fees convert to pre-tax, pre-performance fee profit-was a healthy 58.5% in Q3 2025. This is a strong indicator of cost control and operating leverage.
• Organic Growth: Fundraising remains robust, with the company on track to exceed its full-year 2025 target of $6.6 billion, having already raised $6 billion year-to-date. This organic growth directly feeds the FEAUM, ensuring future fee revenue growth.

What this estimate hides is the potential lumpy nature of Performance-Related Earnings (PRE). While PRE was zero in Q3 2025, the firm has reaffirmed a long-term PRE target of $120 million to $140 million through the end of 2027, driven by expected monetization events in funds like Infrastructure Fund III. You can't rely on it quarter-to-quarter, but it provides a significant, though variable, boost to shareholder returns over a full cycle.

Patria Investments Limited's Financial Performance

Patria Investments Limited's financial health as of Q3 2025 demonstrates a strong, growing platform that is effectively converting assets into distributable cash flow for shareholders. The firm's total Assets Under Management (AUM) surpassed the $50 billion mark in Q3 2025, a significant milestone.

• Distributable Earnings (DE): Q3 2025 DE reached $46.9 million, which translates to $0.30 per share, representing a 31% year-over-year increase. This is the most critical metric for shareholders, as it represents the cash available for dividends.
• FRE Guidance: Management is confident in its full-year 2025 Fee Related Earnings guidance, expecting to be slightly higher than the entry level of their $200 million to $225 million target range.
• Dividend Payout: The company declared a quarterly dividend of $0.15 per share in Q3 2025, payable in December 2025.
• Capital Deployment: The firm has a substantial pipeline, with over $3 billion in pending fee-earning AUM from recent fundraising that is expected to be deployed over the next 12 to 18 months, mainly from the flagship Infrastructure Fund V.

If you want to dive deeper into who is investing in this growth story, you should check out Exploring Patria Investments Limited (PAX) Investor Profile: Who's Buying and Why?

Next Step: Your Investment Committee needs to model the impact of the 2026 FRE target range of $225 million to $245 million on your projected dividend yield by the end of Q1 2026.

Patria Investments Limited (PAX) Market Position & Future Outlook

Patria Investments Limited is positioned as the largest independent alternative asset manager focused on Latin America, with total Assets Under Management (AUM) exceeding $51 billion as of November 2025. The firm is a trend-aware realist, leveraging its deep regional expertise to capture capital flows driven by global diversification and the near-shoring trend, even as it navigates complex emerging market volatility.

You should expect the firm to exceed its full-year 2025 fundraising target, which was upwardly revised to the high end of $6.6 billion, signaling strong institutional confidence in its diversified platform.

Competitive Landscape

Patria's competitive edge comes from its multi-decade, on-the-ground track record, particularly in the mid-market private equity and infrastructure segments, where it can source deals inaccessible to global peers. Here is a snapshot of its standing against key regional and global players with significant Latin American exposure as of 2025:

Here's the quick math: Patria's AUM is over $51 billion, which is why it commands a leading share in the pure-play LatAm alternative space, even when facing global behemoths like Brookfield, which has approximately $61 billion of AUM tied to South America across its broader strategies. This is defintely a scale game.

Opportunities & Challenges

The firm's forward strategy focuses on accretive acquisitions and riding secular tailwinds, but it must manage the inherent political and economic risks of emerging markets.

Industry Position

Patria Investments Limited holds its ground as the premier gateway for global institutional investors seeking exposure to Latin American private markets. Its 20-year track record of Private Equity (PE) funds delivering an Internal Rate of Return (IRR) of 18.3% significantly outpaces the industry average, which is the real differentiator.

• Fee-Earning AUM (FEAUM) Growth: FEAUM reached $38.8 billion in Q3 2025, up 14% year-over-year, providing a stable foundation for management fee revenue.
• Deleveraging Focus: The firm is expected to reach a low Debt-to-FRE ratio of just 1x in late 2025, providing significant financial firepower for future acquisitions without needing to tap public markets.
• Shareholder Return: The firm maintains an annual dividend of $0.60 per share for 2025, representing a strong yield even with a focus on retaining capital for growth.

The core of the business is its ability to translate local knowledge into outperformance for global clients. For a deeper look at the capital behind this growth, you should read Exploring Patria Investments Limited (PAX) Investor Profile: Who's Buying and Why?