Patria Investments Limited (PAX): Business Model Canvas [Dec-2025 Updated]

You're digging into how Patria Investments Limited actually makes its money, and after two decades watching this space, I can tell you their late 2025 model is a masterclass in LatAm alternative asset consolidation. Forget the noise; their engine is built on scaling Fee-Earning Assets Under Management-which hit $37.2 billion by Q2 2025-while aggressively acquiring specialists like Solis Investimentos to broaden their Credit offering. They are actively fundraising for $6.3-$6.6 billion this year, aiming to convert that scale into steady Fee-Related Earnings between $200-$225 million, all underpinned by that sticky management fee revenue. Honestly, understanding this canvas is key to seeing why they are a major player now; check out the full breakdown below to see exactly how they connect their value proposition to those institutional Limited Partners.

Patria Investments Limited (PAX) - Canvas Business Model: Key Partnerships

You're looking at how Patria Investments Limited (PAX) builds scale and capability through its network of external entities. It's not just about what they own; it's about who they work with to access capital, expertise, and new markets. Here's the breakdown of those critical external relationships as of late 2025.

Strategic acquisitions of specialized managers like Solis Investimentos for credit expansion

Patria Investments Limited made a significant move to bolster its credit platform by agreeing to acquire a 51% stake in Solis Investimentos on November 26, 2025. This specialized manager focuses on Collateralized Loan Obligations (CLOs) in Brazil.

This transaction is set to add approximately $3.5 billion in Fee-Earning Assets Under Management (FEAUM) to Patria's credit business. On a pro-forma basis as of the third quarter of 2025, this acquisition increases Patria's total Credit FEAUM by over 40% to more than $11.7 billion. Following this, Credit assets will represent over 25% of Patria's total FEAUM. Solis itself manages over 120 funds and serves more than 30,000 investors. The CLO market in Brazil, where Solis is a leader, has seen its AUM exceed $150 billion as of September 2025.

Co-investment partners for large-scale Private Equity and Infrastructure deals

Patria leverages relationships with sophisticated capital providers to execute large deals across its Private Equity and Infrastructure strategies. These partners are essential for deploying significant capital alongside Patria's own funds.

For instance, in the first quarter of 2025, Patria closed on approximately $1 billion in commitments from Asian sovereign wealth fund investors specifically for customized investment accounts that feed into their current vintage private equity buyout and infrastructure development funds. This shows direct partnership for large-scale deployment.

Asset Class Focus	Partner Type Indication	Recent Capital Activity/Scale
Private Equity Buyout & Infrastructure	Asian Sovereign Wealth Funds	Closed approximately $1 billion of commitments in Q1 2025
Private Equity (General)	Patria Private Equity Trust plc	Invests via co-investments alongside private equity managers
Real Estate	Established Regional Partners	Platform invests via joint ventures with regional partners in Latin America

Global General Partner (GP) network for the Private Market Solutions (GPMS) platform

The Global Private Market Solutions (GPMS) vertical, launched in 2024 after acquiring the private equity solutions business from abrdn, is built on an extensive network of General Partners (GPs) globally. This platform acts as a gateway for Latin American LPs to access global private markets.

The GPMS platform currently manages over $10 billion of AUM. This scale is supported by relationships with over 250 GPs invested in their vehicles. The acquired abrdn business, which formed the core of GPMS, already had investment relationships with more than 150 general partners. The team supporting this strategy globally numbers over 40 professionals.

• GPMS AUM: +US$10 billion
• Total GPs Invested: +250
• Pre-acquisition GP relationships (abrdn legacy): More than 150
• Investment Regions for GPMS: US, Europe, and Asia

Local financial institutions for distribution into LatAm wealth management

Patria relies on local financial institutions to distribute its products to institutional and wealth management clients across Latin America. The Solis acquisition, for example, enhances distribution reach into local institutional and wealth management markets.

Historically, Patria has a strong distribution team with leadership that has experience at major banks, suggesting deep institutional ties. André Penalva, Head of Sales & Distribution for Latam, previously worked at J.P. Morgan's private banking division and the corporate sales desk at Chase Manhattan Bank. Patria also has various wholly-owned subsidiaries for distribution, such as Patria Investments Uruguay Agente de Valores S.A., which handles broker, advisory, investor relations, and marketing functions in Uruguay.

Banking partners for debt financing of portfolio companies and fund leverage

Banking partners are crucial for providing debt financing for portfolio companies and for fund leverage, which is reflected in Patria's financial covenants. As of September 30, 2024, Patria maintained a covenant requiring its Total Debt (comprised of all loan facilities from banks) to Fee Related Earnings (FRE) not to exceed 2.5:1.0. This covenant implies ongoing, material relationships with banks for securing loan facilities.

Furthermore, Patria's history includes transactions with major financial players, such as the sale of its Credit Suisse REIT business in Brazil for up to 650 million reais (approximately $130 million at the time). This type of transaction often involves coordination with the selling institution's banking arms.

Finance: draft 2025 debt facility utilization report by Monday.

Patria Investments Limited (PAX) - Canvas Business Model: Key Activities

You're looking at the core engine of Patria Investments Limited-the things they must do well to keep the whole model running. It's all about deployment, capital raising, and smart buying.

Continuous fundraising is a constant, with the full-year 2025 target raised to between $6.3 billion and $6.6 billion. They hit $3.2 billion in Q1 2025 and added another $1.3 billion in Q2 2025. By the third quarter of 2025, year-to-date fundraising reached $6 billion, putting them well on track to exceed the high-end of that target.

The firm's operational backbone is supported by its scale; total Assets under Management (AUM) exceeded US$50 billion as of the third quarter of 2025. Fee-related earnings (FRE) in Q3 2025 were $49.5 million, maintaining an FRE margin of 58.5% for that quarter. Fee-earning AUM stood at $37.2 billion as of Q2 2025.

Here's a quick look at the fundraising progress:

Metric	Amount	Period/Target
Full-Year 2025 Fundraising Target (Raised)	$6.3 billion to $6.6 billion	Full Year 2025
Q1 2025 Fundraising	$3.2 billion	Q1 2025
Q2 2025 Fundraising	$1.3 billion	Q2 2025
Year-to-Date Fundraising (as of Q3)	$6 billion	Q3 2025

Active management and operational improvement is evidenced by strategic realizations and AUM growth. The company has a track record of strong development capacity, with over $20 billion in CapEx developed or contracted. Furthermore, about 20% of Patria Investments Limited's fee-earning AUM is held in permanent capital vehicles.

Identifying and executing accretive acquisitions is a clear growth lever. They recently added significant AUM through several transactions:

• Acquired 7 listed REITs in Brazil, adding approximately $600 million in AUM.
• Acquired Vectis Gestao, adding $291 million in AUM to the Real Estate Brazil portfolio.
• Announced agreement to acquire 51% stake in Solis Investimentos, adding approximately US$ 3.5 bn in AUM.

Investment origination and due diligence relies on deep local expertise. Patria Investments Limited has 37 years of experience. Their on-the-ground presence supports investment origination across key regions:

• Latin America
• Europe
• The U.S.

Structuring new investment vehicles focuses on diversification, especially in credit. In 2024, they raised $1.4 billion in credit strategies. The Solis acquisition specifically expands capabilities in the Asset Back Security (ABS) and CLO (Collateralized Loan Obligation) markets, which saw CLO AUM in Brazil exceed US$ 150 billion as of September 2025. Finance: draft 13-week cash view by Friday.

Patria Investments Limited (PAX) - Canvas Business Model: Key Resources

You're looking at the core assets that power Patria Investments Limited's operations right now. These aren't just line items; they are the engine for their business.

Fee-Earning Assets Under Management (FEAUM) is a primary resource, standing at approximately $37.2 billion as of Q2 2025. This figure reflects AUM available to generate management fees. To be fair, the total Assets Under Management (AUM) figure is even larger, having exceeded $50 billion by the end of Q3 2025. This growth is significant, coming from only about $14 billion in AUM at the time of their IPO in 2021.

The firm's multi-decade track record is a foundational resource. As of late 2025, Patria has 37 years of experience, establishing a strong brand reputation specifically within Latin American private markets. This longevity helps secure client trust and capital deployment.

Here's a quick look at some of the latest financial metrics that represent the scale of these managed resources:

Metric	Value (as of late 2025)	Reporting Period
Fee-Earning AUM	$37.2 billion	Q2 2025
Total AUM	Exceeded $50 billion	Q3 2025
Net Accrued Performance Fee Balance	$394 million	Q2 2025
Fundraising Year-to-Date	$6 billion	Q3 2025

Patria Investments Limited relies heavily on its deep on-the-ground investment teams and sector experts in key regions. This local proficiency is crucial for identifying opportunities inaccessible to remote managers. Their investment focus spans several key areas:

• Investment Regions: Latin America, Europe and the U.S.
• Asset Classes: Infrastructure, Credit, Real Estate, Private Equity, Solutions (GPMS), and Public Equities.
• Main Sectors: Agribusiness, Power & Energy, Healthcare, Logistics & Transportations, Food & Beverage and Digital & Tech Services.

The proprietary deal sourcing network for mid-market opportunities is another vital resource. Patria focuses on the mid-market segment, using its local presence to source compelling deals. For instance, in Q2 2025, they executed inorganic growth by acquiring 7 listed REITs in Brazil, adding approximately $600 million in high-margin, permanent capital fee-earning AUM.

The Net accrued performance fee balance, which represents potential future earnings if investments are realized at current valuations, stood at $394 million as of June 30, 2025 (Q2 2025). This balance rose approximately 7% from the first quarter of 2025, mainly due to currency fluctuations.

Finance: review the impact of the $394 million accrued performance fee on Q3 2025 distributable earnings by Monday.

Patria Investments Limited (PAX) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Patria Investments Limited (PAX), and the numbers from late 2025 show a firm hitting major scale.

Access to high-growth, underpenetrated Latin American alternative asset classes

Patria Investments Limited offers a focused entry point into Latin America, a region where alternative asset penetration remains lower than in developed markets. This is supported by deep local expertise across key sectors like Agribusiness, Power & Energy, Healthcare, Logistics & Transportations, Food & Beverage and Digital & Tech Services. The firm's strategy is built on this on-the-ground experience.

Diversified investment platform across six core asset classes (e.g., Private Equity, Credit)

The platform's diversification is a key value driver, spreading risk across six distinct areas. As of the third quarter of 2025, Total Assets Under Management (AUM) surpassed US$50 billion, which is more than 3.5x the AUM reported at the time of the 2021 IPO. Fee-earning AUM (FEAUM) reached $38.8 billion in Q3 2025.

Here is a snapshot of the scale across key asset classes as of late 2025 data:

Asset Class	Metric	Value (Late 2025)
Total AUM	Assets Under Management (Q3 2025)	Over US$50 billion
Fee-Earning AUM	FEAUM (Q3 2025)	$38.8 billion
Credit	Fee Earning AUM (as of end of 2022 comparison)	$6.5 billion (up 43% since end of 2022)
Real Estate	Fee Earning AUM (Q3 2025)	Over $6 billion
Infrastructure	Flagship Fund 5 Raised Capital	Approximately $2.9 billion

Consistent, long-term returns through active management and operational value creation

The focus is on delivering returns through active management, which is reflected in the firm's earnings power. For the third quarter of 2025, Fee Related Earnings (FRE) hit $49.5 million, marking a 22% year-over-year increase. Distributable Earnings (DE) for Q3 2025 were $46.9 million, or $0.30 per share, representing a 31% year-over-year jump. The firm is on track to exceed its full-year 2025 fundraising target of $6.6 billion.

The value proposition is supported by strong forward-looking metrics:

• 2025 full-year Fee-Related Earnings guidance range: $200 million to $225 million.
• Expected capital to deploy over the next 12 to 18 months from Q3 2025: Over $3 billion of pending fee-earning AUM.
• Expected total fundraising from 2025 through 2027: $21 billion.

Global reach for investors via the GPMS platform in Europe and the U.S.

Patria Investments Limited has expanded its footprint beyond Latin America, with investment regions explicitly listed as Latin America, Europe and the U.S.. The Global Private Market Solutions (GPMS) business is a key part of this global expansion, enhanced by the 2024 acquisition of the Private Equity Solutions platform. The firm generated over $600 million of organic net inflows into fee-earning AUM in Q2 2025 alone.

Permanent capital vehicles offering stable, long-duration investment exposure

A significant portion of the AUM base is structured as permanent capital, which provides stability to the fee base. For instance, in the Real Estate segment, approximately 90% of its over $6 billion in FEAUM is in permanent capital structure listed funds. This structure is designed to offer clients stable, long-duration investment exposure. The company declared a quarterly dividend of $0.15 per share for the third quarter of 2025.

Patria Investments Limited (PAX) - Canvas Business Model: Customer Relationships

You're managing relationships with some of the world's most sophisticated capital allocators; that requires more than just a quarterly update. Patria Investments Limited focuses on deep, embedded partnerships, especially with its major institutional Limited Partners (LPs).

Dedicated, high-touch relationship management for major institutional LPs

The core of Patria Investments Limited's client retention is its dedicated service model for large institutional capital. This isn't a one-size-fits-all approach; it's about embedding with the LP's investment committee. The firm's success in fundraising, raising over $1.5 billion in Q3 2025 alone, speaks directly to the trust built through this high-touch engagement. Furthermore, the company is targeting $21 billion in total fundraising across 2025 through 2027, which requires sustained, high-conviction commitment from existing anchor clients.

Customized investment accounts (SMAs) for large, sophisticated investors

While specific numbers on Separately Managed Accounts (SMAs) aren't public, the firm's focus on the mid-market segment across Private Equity, Credit, Real Estate, and Infrastructure implies a high degree of customization. The ability to raise $6 billion year-to-date in 2025, on track to exceed the $6.6 billion full-year target, suggests they are structuring bespoke mandates to meet unique institutional risk/return profiles. The platform's structure supports this, with asset classes including Private Equity, Credit, Real Estate, and Infrastructure.

Investor relations team focused on transparency and quarterly earnings calls

Patria Investments Limited maintains a clear channel for all shareholders, evidenced by the regular cadence of investor communication. The Investor Relations team, led by individuals like Andre Medina, hosted the Q3 2025 Earnings Conference Call on November 4, 2025, providing detailed financial data and outlook guidance. Transparency is key when managing capital through economic cycles. For instance, they reported IFRS Net Income attributable of $22.5 million for Q3 2025 and provided forward guidance for Fee Related Earnings (FRE) through 2027.

Here are the capital metrics that underscore the scale of their client relationships as of Q3 2025:

Metric	Value (as of Q3 2025)	Context
Total Assets Under Management (AUM)	Surpassed $51.2 billion	More than 3.5x the level at IPO in 2021.
Fee-Earning AUM (FEAUM)	$38.8 billion	Up 14% year-over-year.
Q3 2025 Fundraising	Over $1.5 billion	Contributed to $6 billion raised year-to-date.
Total Institutional Shareholders (13F/G Filers)	276	Gauging the breadth of institutional interest.
Sticky Capital Percentage (FEAUM)	Approx. 20% in permanent capital vehicles	Indicates long-term, low-redemption client base.

Long-term, multi-fund relationships with a high rate of re-up capital

The stickiness of the capital base is a strong indicator of successful long-term relationships. Economically, their fee-earning AUM is highly predictable; approximately 90% of it resides in vehicles with no or limited redemption features. The firm's organic growth rate, which was an annualized rate of about 6% based on fee-earning AUM in the first half of 2025, shows clients are consistently committing new capital across vintages. The company is targeting $21 billion in fundraising from 2025-2027, a clear signal of expected multi-fund commitment renewal.

Digital communication for public shareholders and retail fund investors

For the broader shareholder base, communication is streamlined through digital channels. Patria Investments Limited distributes earnings releases via its website, https://ir.patria.com/, and email lists. Public shareholders receive updates on metrics like the quarterly dividend, which was declared at $0.15 per share for Q3 2025. The total share count at the end of Q3 2025 stood at 158,000,000 shares, following a total return swap to repurchase 1.5 million shares during the quarter, showing active management of the public float.

You can track the evolution of their capital base with these key performance indicators:

• Fee Related Earnings (FRE) margin for Q3 2025: 58.5%.
• FRE grew 22% year-over-year to $49.5 million in Q3 2025.
• Distributable Earnings per share for Q3 2025: $0.30, up 31% year-over-year.
• The largest ownership group is private companies at 52%, with institutions holding a significant stake as well.

Finance: draft 13-week cash view by Friday.

Patria Investments Limited (PAX) - Canvas Business Model: Channels

You're looking at how Patria Investments Limited gets its capital and communicates with its owners; it's a multi-pronged approach across direct relationships, public markets, and strategic acquisitions. Here's the breakdown of the channels they use as of late 2025.

Direct sales and placement agents for commingled funds with Limited Partners (LPs)

The core of capital raising relies on direct engagement with LPs through their internal teams and placement agents for commingled funds. This channel drives the bulk of their asset gathering efforts. The momentum here is strong, evidenced by the total capital raised year-to-date.

• Fundraising year-to-date (Q3 2025): $6 billion.
• Capital raised in Q3 2025: over $1.5 billion.
• Full-year fundraising target for 2025: $6.6 billion.
• Projected capital to be raised from 2025 through 2027: $21 billion.

Publicly listed vehicles like the Patria Private Equity Trust (PPET) on the LSE

Patria Investments Limited uses publicly listed vehicles, like the Patria Private Equity Trust plc (PPET) on the London Stock Exchange (LSE), as a distinct channel to attract capital from a different investor base. This vehicle provides liquidity and access to European investors interested in private equity exposure.

Here are some key statistics for PPET as of late 2025:

Metric	Value/Date
Last Actual NAV (p)	827.3p (as of October 31, 2025)
Estimated NAV at September 30, 2025 (pence per share)	821.7 pence
Net Assets (£)	£1,219,452,883
Market Cap (£)	£903,452,529
Annual Report Ongoing Charge (%)	1.06%
Dividend Yield (%)	2.14%
Q3 2025 Declared Dividend (per share)	4.40p (Ex-div September 18, 2025)

The trust's share price on December 5, 2025, was 611.96, trading 2.55% below its 52-week high of 628.00. The investment management fee is 0.95% p.a. of the NAV, with no incentive fee payable.

Wealth management distribution channels for local LatAm retail and institutional investors

Distribution through wealth management channels is being significantly bolstered by strategic M&A activity, specifically targeting the rapidly growing Collateralized Loan Obligation (CLO) market in Brazil. Solis Investimentos, which serves asset managers, bank treasuries, family offices, and wealth management clients, is key to this channel expansion.

• Solis manages over 120 funds.
• Solis serves more than 30,000 investors.
• Solis funds have grown at approximately 45% compound annual growth rate since 2021.

Investor Relations website and public webcasts for shareholder communication

Patria Investments Limited uses its Investor Relations infrastructure to keep stockholders, potential investors, and financial analysts informed. This is a critical channel for managing market perception and fulfilling disclosure requirements. They defintely keep this channel active.

• The company releases financial results and hosts conference calls via public webcast.
• The Q3 2025 earnings call was hosted at 9:00 a.m. ET on November 4, 2025.
• Webcast replays are available on the Shareholders section of the website at https://ir.patria.com/.
• Patria distributes earnings releases via its website and email lists.

Direct acquisition of AUM through M&A, like the Solis Investimentos deal

Direct acquisition of Assets Under Management (AUM) via mergers and acquisitions is a stated channel for platform expansion. The agreement to acquire 51% of Solis Investimentos is a prime example of this strategy in late 2025.

The impact of this deal on the Credit platform is substantial:

Metric	Pre-Acquisition (Q3 2025)	Pro-Forma Impact
Added Fee-Earning AUM from Solis	N/A	approximately $3.5 billion
Total Credit Fee-Earning AUM	Implied: ~ $8.2 billion	More than $11.7 billion
Credit FEAUM as % of Total FEAUM	Implied: < 25%	Over 25%
Total Company AUM (as of Q3 2025)	Surpassed $50 billion	N/A

The total Fee Related Earnings (FRE) margin for Patria stood at 58.5% in Q3 2025.

Patria Investments Limited (PAX) - Canvas Business Model: Customer Segments

Patria Investments Limited (PAX) serves a diversified client base across its global alternative asset management platform, which managed over $51 billion in Assets Under Management as of the third quarter of 2025.

The primary customer segments are:

• Major global institutional investors, including pension funds and sovereign wealth funds.
• High-Net-Worth Individuals (HNWIs) and Family Offices, with a strong historical focus in Latin America.
• Insurance companies and other financial institutions looking for long-duration assets.
• Growing participation from institutional capital sources in Asia, the Middle East, and Europe.
• Public shareholders holding common stock on the NASDAQ Global Select Market (PAX).

The platform acts as a gateway for Latin American and global capital to invest in alternative investments in Latin America, and vice-versa. The firm's investment regions include Latin America, Europe, and the U.S. Fundraising momentum in the first half of 2025 reached almost $4.5 billion, with the full-year target now expected to exceed $6.6 billion.

While specific client type segmentation for late 2025 is not explicitly detailed in the latest reports, the composition of the Assets Under Management (AUM) by asset class, based on end of Q3 2023 figures, gives an indication of where capital is concentrated:

Asset Class	AUM Percentage (End of Q3 2023)
Private Equity	39.8%
Infrastructure	17.6%
Credit	17.5%
Public Equities	9.6%
Real Estate	6.5%
Advisory & Distribution	9%

The Credit franchise saw a recent expansion, adding approximately US$ 3.5 bn in AUM through a partnership announced in November 2025. Fee-earning AUM (FEAUM) stood at $35 billion at the end of Q1 2025.

For public shareholders, the company declared a quarterly dividend of $0.15 per share in the third quarter of 2025. The shares outstanding reported around the third quarter of 2025 were 153.6 million.

Patria Investments Limited (PAX) - Canvas Business Model: Cost Structure

You're looking at the cost side of Patria Investments Limited's business, which is heavily weighted toward the people who actually generate the returns. For an asset manager like Patria Investments Limited, the cost structure is a direct reflection of its talent and scale. It's not like a widget factory where raw materials are the main spend; here, it's about compensation and keeping the global offices running.

Primarily fixed costs related to compensation for investment professionals and staff form the bedrock of the expense base. Personnel costs are the largest component, representing the salaries, bonuses, and benefits for the teams managing the assets. These costs are largely fixed in the short term, as you can't easily shed top-tier investment talent when AUM dips slightly. For the three-month period ended March 31, 2025, Personnel expenses were reported at $29,068 thousand, or approximately $29.07 million.

The overall operating cost picture is clearer when looking at the combined expenses. Operating expenses, which Patria Investments Limited bundles to include personnel and General and Administrative (G&A) expenses, totaled approximately $35 million in the second quarter of 2025. This figure was noted as practically flat compared to the first quarter of 2025, but it reflected a year-over-year increase of 10.7%, mainly due to the impact of acquisitions. This $35 million figure is the baseline run rate you should keep in mind for near-term quarterly spending.

The General and administrative expenses cover the necessary overhead to operate a global platform. This includes costs for compliance, technology infrastructure, and maintaining offices across Latin America, Europe, and the U.S. For the three-month period ended March 31, 2025, General and Administrative expenses were reported as $11,683 thousand, or about $11.68 million. This is a key area where you see the cost of global reach.

You can see a breakdown of these core expenses below, keeping in mind that the combined figure from Q2 2025 is the most recent total operating spend reported:

Cost Component	Period/Context	Amount (USD)
Personnel Expenses	Three Months Ended March 31, 2025	$29.07 million
General and Administrative Expenses	Three Months Ended March 31, 2025	$11.68 million
Total Operating Expenses (Personnel + G&A)	Q2 2025	Approx. $35 million

The most significant variable cost is tied directly to investment success: performance-related compensation, or carried interest. This is the profit share that flows to the investment professionals when funds hit their hurdle rates and realize gains. While Fee-Related Earnings (FRE) are relatively stable, performance fees are lumpy. As of the end of Q2 2025, the net accrued performance fee balance stood at $394 million, which rose about 7% from the first quarter of 2025. This balance represents potential future compensation expense, though no performance-related earnings were generated in Q2 2025 itself.

Finally, you must account for costs associated with M&A integration and platform expansion. These are often non-recurring or front-loaded costs that impact the reported operating expenses temporarily. The year-over-year increase in operating expenses in Q2 2025 was explicitly attributed to the impact of acquisitions. This spending supports the firm's growth strategy, which includes a raised 2025 fundraising target between $6.3 billion and $6.6 billion. The underlying management fee rate, which drives the stable revenue base funding these costs, averaged 95 basis points over the last four quarters, with an expected average between 92 and 94 basis points going forward.

Here are the key drivers influencing the cost structure:

• Personnel costs are the largest fixed component.
• Acquisition integration drives temporary spikes in OpEx.
• Performance compensation is variable and tied to fund realization.
• G&A reflects the cost of global compliance and technology.

Finance: draft 13-week cash view by Friday.

Patria Investments Limited (PAX) - Canvas Business Model: Revenue Streams

You're looking at how Patria Investments Limited (PAX) pulls in its money, which is heavily weighted toward recurring management fees, but with a significant kicker from performance fees when the funds do well. This structure is typical for a leading alternative asset manager in Latin America.

The core of the revenue engine is the Fee-Related Earnings (FRE), which is the recurring revenue stream before certain non-cash items. Patria Investments Limited reaffirmed its full-year 2025 target for Fee-Related Earnings to be between $200 million and $225 million. For a snapshot, the third quarter of 2025 saw FRE come in at $49.5 million, showing solid sequential and year-over-year growth driven by asset growth and margin expansion.

Management Fees (MFs) are charged on Fee-Earning Assets Under Management (FEAUM). As of the third quarter of 2025, FEAUM stood at $38.8 billion. While the average basis point charged can fluctuate based on fund mix and vintage, the expected average Management Fee rate is around 96 basis points on FEAUM. The growth in this revenue line reflects strong fundraising, including a total of $4.5 billion raised in the first half of 2025, which is 75% of the initial $6 billion target for the year.

Performance Fees (Incentive Fees) are the variable component, earned only when fund returns surpass agreed-upon hurdle rates. These fees are recognized when realized, but some are included in FRE if they are measured and received on a recurring basis, though the amount fluctuates. Patria expects to realize an additional approximate $15 million in incentive fees in the fourth quarter of 2025, as this quarter is often the strongest for recognizing these fees, particularly from the credit and public equity platforms.

The business also generates revenue from Transaction and advisory fees related to portfolio company activities, though these are typically less predictable than the management fees. Furthermore, revenue from permanent capital vehicles helps provide a more stable, long-term fee income base as these structures are designed for longer duration capital deployment.

Here's a quick look at some of the key financial metrics underpinning these revenue streams as of late 2025:

Revenue Component Metric	Value / Target	Period / Context
Full-Year 2025 FRE Target	$200 million - $225 million	Full Year 2025 Guidance
FRE (Reported)	$49.5 million	Q3 2025
Fee-Earning AUM (FEAUM)	$38.8 billion	Q3 2025
Expected Average Management Fee Rate	Around 96 basis points	On FEAUM
Expected Incentive Fee Realization	Approximate $15 million	Q4 2025
Total 2025 Fundraising (H1)	$4.5 billion	First Half of 2025
Estimated Full-Year 2025 Revenue (Consensus)	$342.65 million	Fiscal Year 2025 Estimate

You can see the recurring base is solid, with the FRE margin in Q3 2025 rising to 58.5%. This margin improvement is a key focus, stemming from asset growth and integration of recent acquisitions.

The sources of fee income are diversified across strategies, which helps smooth out the lumpy nature of performance fees. The platform includes:

• Private Equity strategies
• Credit strategies
• Infrastructure investments
• Real Estate platforms
• GPMS (General Partner Management Services)

The reliance on recurring management fees over performance fees is a structural strength; for instance, the Q2 2025 results showed no performance-related earnings, but the FRE growth continued.

Finance: draft 13-week cash view by Friday.