Good day, and thank you for standing by. Welcome to the Patria Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference, over to your speaker today, Rob Lee, Head of Shareholder Relations. Please go ahead.

Thank you. Good morning everyone and welcome to Patria's fourth 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 statements, which are uncertain, do not guarantee future performance and undue reliance should not be placed on them. Patria assumes no obligation and does not intend to update any such forward-looking statements. Such statements are based on current management expectations and involve risks, including those discussed in the Risk Factors section of our latest Form 20-F annual report. Also note that no statements on this call constitute an offer to sell or a solicitation of an offer to purchase an interest in any Patria fund. As a foreign private issuer, Patria reports financial results using International Financial Reporting Standards or IFRS as opposed to U.S. GAAP. Additionally, we would like to remind everyone that we will refer to certain non-IFRS measures, which we believe are relevant in assessing the financial performance of the business, but which should not be considered in isolation from, or as a substitute for measures prepared in accordance with IFRS. Reconciliations of these measures to the most comparable IFRS measures are included in our earnings presentation. Now I will turn the call over to Alex. Alex?

Thank you, Rob and good morning, everyone. The fourth quarter capped a very exciting and indeed transformational year for Patria, as we raised $5.5 billion exceeding our full year fundraising target of $5 billion. Fundraising included approximately $300 million we raised in our advisory business, for third party managers for, which we earned a placement fee, with a balance of $5.2 billion contributing to our asset base. A wide variety of strategies and products contributed to our fundraising, most of which did not exist at our IPO. We also achieved our 2024, FRE fee related earnings target of $170 million or $1.12 per share, reflecting the resiliency of our business and the momentum we have built heading into 2025. As we highlighted at our recent Investor Day on December 9, the greater diversification of our platform is paying off and we are confident in our new three-year target we introduced at Investor Day. Now let me quickly summarize, our full year 2024 and fourth quarter results before we move on to some of the other highlights for the quarter. First, we are pleased to report that we achieved our full year 2024 fee related earnings target of $170 million, up 15% from 2023, while fee related earnings per share reached $1.12, up 13%. For the fourth quarter, fee related earnings reached $55 million, up 35% from the prior quarter and 18% from fourth quarter 2023. On a per share basis, fee related earnings of $0.36 in the fourth quarter rose 35% from the third quarter, and 13% year-over-year. Heading into 2025, we believe we are on track, to reach our full year fee related earnings target of $200 million to $225 million, or $1.27 to $1.43 per share. Next, we generated over $41 million in performance related earnings, or PRE…

Thank you, Alex and good morning, everyone. As Alex mentioned, the fourth quarter kept an exciting and transformative year for Patria, as we significantly enhanced the diversification, growth potential and resiliency of our business, achieve our 2024, FRE and fundraising goals, and unveiled our new three-year targets at our recent Investor Day. We believe we are entering the year with the momentum necessary to meet our 2025 objectives. Let's review our full year and fourth quarter results. As Alex highlighted earlier, we are very pleased that we achieved our fundraising target for 2024. Our fee AUM rose 38% year-over-year to approximately $33 billion and this increase was largely driven by $11 billion from acquisitions mainly in GPMS and real estate, partially offset by an FX impact of about $1.9 billion, due to the appreciating dollar of which $1.5 billion occurred in the fourth quarter. Total inflow to fee AUM of $4.2 billion, were offset by the planned step down of Private Equity Fund IV that we reviewed on our last earnings call, as well as expected realizations in GPMS, dividends across the platform and redemptions in public equities. In the quarter, Patria generated approximately $380 million of net inflows. Despite outflow pressure in public equities. However, mainly due to the appreciating dollar, fee AUM declined 3% quarter-over-quarter. Although the appreciation of the U.S. dollar negatively impacts fee AUM, it had little impact on our FRE in the quarter. As we reviewed our Investor Day, our FRE has limited sensitivity to FX movements, as our expense base provides a substantial hedge, against currency movements that may impact fee revs and our fee revenues. Based on our current asset class mix, a 10% variance in soft currencies against the dollar impacts FRE, by only about 2%. It's worth noting that since the…

[Operator Instructions] Our first question comes from Beatriz de Abreu with Goldman Sachs. Your line is open.

Hi, good morning everyone. Congrats on the results and thank you for taking my question. I have two questions. The first one would be a clarification on PRE. So on the sale of Aguas Pacifico press release you mentioned that the sale would be completed in 1Q although the transaction was signed in the last quarter of 2024, so just wanted to understand, if we should expect something or an additional distribution on PRE, or if all the distribution happened in 4Q. Also, if you have any visibility regarding other exit strategies of Infra Fund III, anything you're able to comment on that would be really helpful. A second question would be on the redemption on public equities and credit strategies in 4Q. If you see that trend continuing or reverting into the first quarter of 2025? Thank you.

Thank you Beatriz or Beatriz, thank you very much for your question. This is Alex here and nice to talk to you again. On PRE and then the credit redemption. On PRE, I think we did sign the deal late 2024. All the conditions precedent to the deal as of today have already been completed. So the closing of the deal actually happened last week. So the deal is basically done. Of course. Now you know that these M&As, this is kind of the normal process now you significant, and then there are conditions precedents that includes several regulatory bodies antitrust, this that we had other regular conditions precedents also that has to do with this particular deal. But again all the conditions precedents were completed and resolved by last week. So the deal was closed. It did generate approximately $60 million of performance fees. All $40 million approximately $40 million accounted for the general partner and $20 million as bonus. We do break down the performance fees in 35% goes to the team. So 35% of $60 million is approximately $20 million that's paid out to the team. So we do not account for that. It does not run through our P&L it is paid directly to the team. And $40 million we account as performance fees approximately $40 million, which is 65% of $60 million. All accounted for in the fourth quarter. Because the deal was signed in the fourth quarter, and by accounting procedures and measures we have to account it in the fourth quarter. Just as a general comment, I feel comfortable that we are on target there with the guidelines that we gave in our last PAX Day. December 9 of 2024, the $120 million to $140 million of performance fees over the next three…

That was very clear. Thank you. Alex.

Thank you.

Thank you. And our next question comes from William Barranjard with Itau BBA. Your line is open.

Thank you everyone for your time. I have two questions here. I think the first one is more related to the fundraising figure expected for 2025, which in a release is around $6 billion. If you could give us a little bit more color on how you expect the breakdown of it by the strategies. And my second question is on the debt figure you disclosed. So, net debt of US$190 million. But I just wanted to check if the indication given, from you during the Investor Day of that debt per FRE are maintained. So if it is maintained, it is okay if I should expect the current gross debt levels, to be maintained throughout until 2027?

Yes. Thank you very much, William. Nice to talk to you as well. Thanks for your questions. I'll try to answer the fundraising question, then I'll turn over to Ana. On your question on the net debt. We would like to give us the flexibility on the $6 billion fundraising target. It's very hard to pinpoint exactly. Of course, we have a very, very well organized planning for the whole year of 2025 and for '26 onwards per asset class. We have 38 different strategies within these asset classes. Six asset classes that we have and per channel per geography. It's extremely well done, and organized by the commercial team that today is headed by Daniel Sorrentino, my partner. But we don't give out the breakdown of the $6 billion, because we like to keep this flexibility. Maybe we raise more here. Maybe we close on an SMA. SMA, they are chunky, right? Normally, SMAs are $500 million plus to $1 billion, to $10.5 billion. So These chunks of SMAs can close and the SMA for a specific strategy. And that can change the mix as we move forward during 2025. However, as we see things during the year, as we mentioned, we did raise around $5.3 billion, $5.4 billion in 2025. $300 million of those were placement agents, related fundraising, which does not add to our fee earnings AUM base. We just receive a fee. So we have to go from $5.2 billion to $6 billion. So it is of course a jump. But given what we have been doing and growing this ability of fundraising and more products, more strategies, more geography over time. We feel comfortable that we're going to get there. Now having said that, what I can say is as I look into 2025, at…

Hi, good morning. So our net debt as we go up $190 that mentioned in this call is in line of our expectation. I think if you remember when we discussed our earnings call, the last earnings calls in Q3, this is what our expectation, and this net that is impacted, our funding was impacted by our M&A payments, and also the year-end obligations that we had. So this was something that we expected to, as it was in line with our expectation. When we look going forward, we look into two things. First is we have a likely reduction in the first half of the year, which as we progress the first quarter and the second quarter, but a more, I would say higher reduction in the second half of the year. But our debt to FRE ratio is expected, as we discussed during the PAX Day, to be slightly below our one-to-one debt. So it's going to be slightly below, so that when we look into that, you can look into a reduction throughout the year as we progress through our 2025.

Thank you. Thank you very much for the complete answer.

Thank you, William.

Thank you. [Operator Instructions] Our next question comes from Ricardo Buchpiguel with BTG Pactual. Your line is open.

Good morning, everyone, and thank you for the opportunity of making questions. I have also two here on my slide. So first we saw that Chile approved pension reform this year that would add more money for the local pension funds. And I imagine that credit and public equities would be very benefited with that. So I wanted to hear a little more on your thoughts on the potential this reform could add, and talk a little bit about the timing on how you're expecting potential impacts of that. And also related to the reform, I think another possibility that we could have, is more inflows coming from pension funds to infrastructure and private equity, local products, right. You mentioned the call. They are looking to build more kind of a local specific product for each region. So I wonder if you guys are already, kind of preparing to build more local Chilean private equities, and infrastructure funds in order to seize this opportunity. And another thing that I wanted to ask is if you could talk a little bit about your expectations on real estate inflows this year, right. Because it's a asset class that I believe it's more connected to the funding in Brazil. right. And given the tough macroeconomic scenario we are facing, it's fair to expect that perhaps it'll be harder for you to launch new funds or do follow-ons these years. Given the exposure, perhaps most of the growth would come from other regions in the real estate segment? Thank you.

Yes, thanks for the question. Ricardo, Nice talking to you as well. Starting on the pension fund reforms in Chile, I think it's taking one step back. I think it's not only Chile. I think that in general, given the kind of governments that Chile, Colombia, Mexico that have recently elected these three countries, all of these three leaderships, these three Presidents of these three countries have actually approved reforms, to increase the contributions to the pension funds. Of course, the increase of these contributions comes mostly from the employer, not the employee, but whatever. So in Mexico, from around 6% to around 12%. In Chile, the same trend of increasing contributions to the pension funds in Colombia, the same. So actually we're here in the bank of America Conference. The Bank of America, Mexican economist did put out a report that the total pool of pension fund managed money of the Mexican pension funds, Colombian, Peruvian, Chilean and Brazilians, which total approximately 700 and something billion, will basically double to $1.5 trillion in the next five years, because of exactly what you said, plus of course NAV appreciation. So these pension funds, they do have a home biased approach, to investing plus regulatory restraints in investing outside of the country. And in addition, in Colombia and in Mexico, pension funds are also required to invest in assets that promote the development of the economy. And private equity and infrastructure fits right into those categories. So they investing in our funds in Colombia and New Mexico, private equity and infrastructure funds, they comply with that requirement of the regulation. Okay. And we are seeing that the same might happen in Chile as well. And interesting enough, the same is actually being considered to happen in the U.K. in the United…

Thank you, that's very clear. And just a very quick follow-up. How much is the brick and mortar strategy over the total AUM from the real estate?

Real estate Brazil is approximately R$23 billion. I think there's other questions coming during and I'll come back to you.

Page 17 will give you the investment performance. It will also give you the breakdown of the AUM and by type.

Ricardo, I think the Investor Presentation, Rob is just mentioning here the Investor Presentation on Page 17, we give all of our real estate investment trust, AUM, NAV and performance. And we'll do the math as I answer the other questions here over the call. But I know that the total is approximately R$23 billion. I'll give you the breakdown in a couple of minutes if you don't mind.

Thank you. Thank you very much.

Thank you.

Thank you. I'm showing no further questions at this time. [Operator Instructions] I'm showing no further questions at this time. I would now like to turn it back to Alex Saigh for closing remarks.

Okay. Great. And just as a side note, Ricardo, just doing the math, we reach out to you offline to give you this breakdown of the R$23 billion of REITs. How much is brick and mortar? How much is securities? So thanks for your patience. Now, coming back to the closing remarks. Again, we're very, very pleased and extremely honored and happy with the team. At the end of the day, we managed to reach these results. Again, the guidance and reaching the target of $170 million of fee earnings AUM and distributable earnings of $189 million with performance fees of $40 million plus, et cetera. An extremely good year for no 2024 for us. Extremely happy. We are a people business and I hear, I really want to congratulate the huge efforts that was done in environments that sometimes were not very pro. The business that we faced globally, geopolitical issues, whatever, around the world. And going into 2025, we're very excited. We had a good January already. Looking into the year, as I mentioned, I think we feel very comfortable in reaching the $6 billion fundraising targets. Also we see that we will deliver on the $200 million, $225 million FRE, and also with good perspective of generating additional performance fees with the sale of us of several of our assets of funds that do generate carry, excited here and thanks for your patience. Thanks for keeping up with us here for this call. I hope to see you presently in this conference here, or shortly as we visit you at your offices. Thanks a lot. Talk to you guys soon. Bye-bye.

This concludes today's conference call. Thank you for participating. You may now disconnect.