Patria Acquires WP Global Partners to Enhance U.S. Market Presence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Acquisition Overview: Patria Investments has announced the acquisition of U.S.-based private equity solutions manager WP Global Partners, which will enhance its investment capabilities in North America and significantly strengthen its competitive position in the middle market.
- Asset Management Growth: Upon completion of the transaction, Patria's Global Private Markets Solutions (GMPS) Fee Earning Assets under Management (FEAUM) will exceed $13.3 billion, with nearly 40% of investments focused on U.S. assets, further solidifying its market position.
- Team Integration and Expansion: WP has 30 employees, including over 10 experienced investment professionals, and integrating its team will enhance Patria's investment and fundraising capabilities, driving its global diversification strategy forward.
- Financial Impact and Outlook: The transaction involves an all-cash base price equivalent to 1.7% of FEAUM, and it is expected to have a positive impact on Free Cash Flow and Adjusted Earnings in the first year, further propelling the company's growth.
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Analyst Views on PAX
Wall Street analysts forecast PAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAX is 17.00 USD with a low forecast of 17.00 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 14.670
Low
17.00
Averages
17.00
High
17.00
Current: 14.670
Low
17.00
Averages
17.00
High
17.00
About PAX
Patria Investments Limited is a Cayman Islands-based global alternative investment company. The Company’s product offering encompasses six product lines, such as private equity, infrastructure, credit, public equities, real estate, and global private markets solutions. It seeks to provide global and Latin American investors with investment products that allow for portfolio diversification and consistent returns. Patria Private Equity seeks to create consistent quartile returns. It makes private investments in public equities. Patria Infrastructure performs equity investments in a diversified portfolio of infrastructure-related assets in Brazil and selected other Latin American countries. It has investment in real assets. It offers its clients a range of different credit solutions, and in addition to capital, the Company offers management advice. Its investment portfolio consists of healthcare, education, food and beverages, diversified agribusiness, transportation, energy, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Patria Acquires WP Global Partners to Enhance U.S. Market Presence
- Market Expansion: Patria Investments has announced the acquisition of WP Global Partners, a U.S.-based private equity solutions manager, which will enhance its investment capabilities in North America and significantly strengthen its competitiveness in the middle market.
- Asset Management Growth: Post-acquisition, Patria's Global Private Markets Solutions (GMPS) Fee Earning Assets Under Management (FEAUM) will exceed $13.3 billion, with nearly 40% of investments focused on U.S. assets, further solidifying its market position.
- Team Integration: WP has 30 employees, including over ten experienced investment professionals, and integrating this team will enhance Patria's investment and fundraising capabilities, supporting its global diversification strategy.
- Financial Impact: The cash base price of the transaction is equivalent to 1.7% of FEAUM, and it is expected to have a positive impact on Patria's Free Revenue (FRE) and Distributable Earnings (DE) in the first year, further driving company growth.
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Patria Investments Acquires WP Global Partners to Enhance Market Position
- Acquisition Overview: Patria Investments has agreed to acquire U.S.-based private equity solutions manager WP Global Partners in an all-cash deal, which will enhance Patria's scale in a strategic market, particularly strengthening its private equity capabilities in the lower-middle market.
- Financial Impact: The transaction involves a cash base price equivalent to 1.7% of fee-related AUM (FEAUM) and includes an all-cash earn-out subject to specific performance parameters to be paid in 2029, expected to positively impact fee-related earnings (FRE) and distributable earnings (DE) in the first year.
- AUM Growth: The addition of WP's approximately $1.8 billion in fee-related AUM will increase Patria's pro-forma total GPMS FEAUM to over $13.3 billion, significantly enhancing its competitive position and client reach in the market.
- Strategic Significance: This acquisition not only broadens Patria's relationships with GPs but also strengthens its client engagement capabilities in the U.S. market, further solidifying its leadership position in the lower-middle market.
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