Q2 2024 Patria Investments Ltd Earnings Call Transcript
Key Points
- Management fees reached over $70 million, up 14% year-over-year and 12% sequentially.
- Fee-related earnings (FRE) reached $39.5 million, representing year-over-year and sequential growth of 17% and 13%, respectively.
- AUM finished the quarter with more than $40 billion, a robust 43% increase compared to the second quarter of 2023 and 26% versus the first quarter of 2024.
- Strong fundraising with $1.3 billion of organic inflows in the quarter and approximately $5 billion over the last 12 months.
- Announced a share repurchase program of up to 1.8 million shares over the next 12 months, reflecting a focus on creating long-term shareholder value.
- Expenses continue to be tightly managed, but the onboarding of the abrdn acquisition, which has a lower margin, impacted the FRE margin.
- Net accrued performance fee balance declined both year-over-year and sequentially, almost entirely due to foreign exchange movements.
- Effective tax rate in Q2 2024 came in at 7%, with expectations to trend towards 10% in 2025.
- Higher share count reflecting shares issued for incentive and deferred compensation and contingent payments.
- Debt levels are expected to average approximately $130 million over the next 6 months and potentially reach a peak of around $190 million at the year-end.
Good day, and thank you for standing by. Welcome to the Patria Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rob Lee, Head of Shareholder Relations. Rob, please go ahead.
Thank you. Good morning, everyone, and welcome to Patria's Second Quarter 2024 Earnings Call. Speaking today on the call are our Chief Executive Officer, Alex Saigh; and our Chief Financial Officer, Ana Russo; and our Chief Economist, Luis Fernando Lopes for the Q&A session. This morning, we issued a press release and earnings presentation detailing our results for the quarter, which you can find posted on the Investor Relations section of our website or on Form 6-K filed with the Securities and Exchange Commission.
This call is being webcast, and a replay will be available. Before we begin, I'd like to remind everyone that today's call may include forward-looking
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