Patria Investments to acquire private equity solutions business from abrdn

Patria Investments announced an agreement for the carve-out acquisition of a private equity solutions business from abrdn. Upon closing, the acquired platform together with this existing business will form a new vertical – Global Private Markets Solutions. On a pro forma basis, GPMS is positioned to launch with an aggregate FEAUM of over $9B and will be led by Marco D’Ippolito. This vertical will further develop a complementary pillar of growth to serve as a gateway for Latin American investors to access private markets on a global scale. Transaction includes total consideration of up to ~GBP 100M payable to the seller in cash, with GBP 80 million as base value and GBP 20 million contingent on certain performance factors. Timing of payments includes GBP 60 million payable at closing, GBP 20 million payable at 24 months from closing, and up to GBP 20 million payable at 36 months from closing pending certain performance factors. The initial payment of GBP 60 million will be financed through a bank credit facility maturing 36 months after closing. The transaction is expected to close in the first half of 2024 pending regulatory approvals, and is expected to be accretive to Patria shareholders in 2024.