Patria: Infrastructure Fund III reaches performance fee realization threshold

Patria Investments confirmed today that Patria Infrastructure Fund III, through divestment activity in 6 portfolio companies and additional portfolio cash flows, has reached its return of capital and performance hurdle necessary to monetize performance fees. In December 2022, Patria announced definitive agreements for the divestment of ODATA, a Brazilian data center service provider, and partial divestment of Entrevias, a toll road operator in the state of Sao Paulo, which follows the sale of 4 additional portfolio companies in prior periods. The progress of this portfolio to date reflects Patria’s commitment to investing across relevant Latin American infrastructure sectors to address structural bottlenecks and generate positive impact to the economy and population. It also illustrates the power of Patria’s strategic approach to infrastructure investment in the region, demonstrating the ability to develop, de-risk and sell high-quality assets to global strategic players, and generate attractive returns for investors. Combined with the addition of incremental portfolio cash flows in December, cumulative proceeds to the Fund’s investors are expected to reach approximately $2.1 billion, surpassing the Fund’s performance fee realization hurdle. Distributions from recent activity are expected to generate at least $15 million in net realized performance fees to be recognized in the fourth quarter of 2022. Patria’s Infrastructure Fund III is a $1.7 billion 2013 vintage fund which has invested in 10 portfolio companies. Based on valuations as of September 30, 2022, the Fund has achieved a gross multiple of invested capital of 2.1x and a net IRR of 13%, resulting in $127 million of Net Accrued Performance Fees. Following the recent activity, the Fund’s remaining portfolio of 5 active investments is performing well and also positioned for divestment over the next few years.