Patria Investments and Moneda Combine to Create $26bn Private Equity Platform in Latin America

Sep 4, 2021 | News

Patria Investments, a global alternative asset manager, announced today that it will combine with Moneda Asset Management, a leading asset manager headquartered in Chile.

When completed, the transaction will create an unrivaled investment platform in Latin America, with $25.9bn in assets under management and a leader in Private Equity, Infrastructure and Credit investments in the region.

The combination will enhance Patria’s product offering by adding the largest credit investment platform in Latin America. It will also create the number one Private Investments in Public Equities (PIPE) manager in the region. The combination of the two operations will add geographical exposure within Latin America through client base and product offering and will open the opportunity for cross selling, leveraging a complementary investor base.

With more than $10bn in assets under management across credit and public equities, Moneda is a leading investment firm in Latin America, with more than 25 years of history and a track record of top quartile performance, profitability and growth. Moneda also has a robust bottom-up investment strategy that drives alpha generation.

“Our leadership team is thrilled that both companies are coming together. We are quickly delivering on the expansion strategy that we presented during our initial public offering earlier this year,” said Alexandre Saigh, Patria’s CEO. “The transaction will be accretive to earnings per share within the first year.”

The combined platform will manage over $9.7bn in Private Equity, $ 5.5bn in Credit (including $650m exposure to Private Credit), $5.1bn in Infrastructure, $2.0bn in Advisory & Distribution, $3bn in PIPE and Public Equities and $500m in Real Estate investments, in most cases with top quartile returns.

Free Webinar: Private Investments in Space: Is Now the Right Time?

Learn More
  • How can PE get involved with the space economy that is estimated to hit $1 trillion by 2040?
  • What is the risk profile with space investments?
  • What did limited partners learn from the internet evolution that can be utilized when investing in space?

“Complementary is the word that defines this transaction,” said Olimpio Matarazzo, senior managing partner and chairman of the board at Patria. “The product offerings and the geographical and currency exposures are a perfect fit. Patria is a leader in Private Equity and Infrastructure investments in Latin America, and Moneda is the top credit investor in the region. In addition, both companies have a similar culture, based on partnership and exceptional client service.”

“This combination will leverage Moneda’s outstanding track record and deal sourcing capabilities to lead the development of private credit in Latin America with unique local expertise while also continuing to develop our strategic investments in public equities in the region,” said Pablo Echeverría, Moneda’s chairman.

“With Patria, we will have the opportunity to expand our cross selling of products, leveraging a complementary investor base,” said Alfonso Duval, Moneda’s CEO. “It is worth noting that both companies are partnerships led by like-minded, entrepreneurial teams. There’s been a strong cultural alignment among the teams since the onset,” said Mr. Duval.

Under the agreement, Moneda partners will receive an upfront consideration of $315m, in a combination of $128m in cash and $187m in PAX.

Class B common stock. There will be an additional consideration payable in years two and three after closing, subject to certain retention metrics for Moneda’s partners, and a potential earnout payable after 2023, in a combination of cash and PAX Class A common stock, subject to the achievement of certain revenue and profitability targets.

The transaction is expected to close by the end of 2021, subject to regulatory approvals and certain other customary conditions.

Source: Yahoo Finance

Can’t stop reading? Read more