Q1 2024 Patria Investments Limited Earnings Call

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Operator: Good day, and thank you for standing by. Welcome to the PATRA First Quarter 2024 Earnings Conference. At this time, all participants are in a listen-only mode.

Speaker Change: Good day, and thank you for standing by and welcome to the patch up first quarter 'twenty 'twenty four earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question answer session to ask a question.

Operator: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, please press star 1 1 on your telephone. You will then hear an automated message advising you of your handbook. To withdraw your question, please press star 1 1 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference call over to your first speaker for today, Andre Medina from Patria's Shareholder Relief. Andre, please go ahead.

During this session. Please press star one on your telephone.

We'll then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again.

Speaker Change: Be advised that today's conference is being recorded I would now like to hand, the conference call over to your first speaker for today Andre Medina from Patrick shareholder Relations.

Andre Medina: Andre Please go ahead.

Andre Medina: Yeah.

Andre Medina: Thank you. Good morning, everyone, and welcome to Patria's first quarter 2024 earnings call. Speaking today on the call are our Chief Executive Officer, Alex Saigh, and our Chief Financial Officer, Ana Russo. We are also joined by our Chief Corporate Development Officer, Marco DiPolito, and our Chief Economist, Luiz Fernando Lopes, for the Q&A session. This morning, we issued a press release and an earnest presentation detailing our results for the quarter, which you can find posted on the investor relations section of our website or on Form 6K filed with the Securities and Exchange Commission.

Andre Medina: Thank you good morning, everyone and welcome to <unk> first quarter 2024 earnings call.

Andre Medina: Today on the call are Chief Executive Officer, Alex <unk>, and our Chief Financial Officer, I know, who.

Andre Medina: We are also joined by our Chief Corporate Development Officer, Mark with your quality and our Chief economist, Mr. Ananda logs for the Q&A session.

Andre Medina: 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 web site or on form 6K filed with the Securities and Exchange Commission.

Andre Medina: This call is being webcast, and a replay will be available. Before we begin, I would like to remind you that today's call may include forward-looking statements that 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.

Andre Medina: This call is being webcast and a replay will be available.

Andre Medina: Before we begin I would like to remind you that today's call may include forward looking statements, which are uncertain and do not guarantee future performance and undue reliance should not be placed on them.

Andre Medina: But Joe assumes no obligation and does not intend to update any such forward looking statements.

Andre Medina: Such statements are based on current management expectations and involve inherent risks, including those discussed in the risk factor section of our latest Form 20-F annual report. I also note that no statement on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Patria fund, as a foreign private ishva. Patria reports financial results using International Financial Reporting Standards, or IFRS, as opposed to US GAAP.

Andre Medina: Such statements are based on current management expectations and involve Harrington risks, including those discussed in the risk factors section of our latest form 20-F annual report.

Andre Medina: Also note that no statement on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any parts of your funds.

Andre Medina: As a foreign private issuer.

Andre Medina: The reports financial results using international financial reporting standards or Ifr S as opposed to U S. GAAP.

Andre Medina: Additionally, we would like to remind everyone that we will refer to certain non-GAAP 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 earnest presentation. Now, I'll turn the call over to Alex. Thank you, Andrea, and good morning, everyone.

Andre Medina: Additionally, we would like to remind everyone that we will refer to certain non-GAAP measures, which we believe are relevant in assessing the financial performance of the business, but which should not be considered in isolation from or a substitute for measures prepared in accordance with <unk>.

Andre Medina: Reconciliations of these measures to the most comparable <unk> measures are included in our earnings presentation.

Andre Medina: Now I will turn the call over to Alex.

Alex: Thank you Andrea and good morning, everyone.

Alexandre Teixeira de Assumpo Saigh: The first quarter of 2024 marked a great start for the year, and I'm very pleased with the performance we delivered. We generated $35.1 million of fee-related earnings in the quarter, representing a 13% increase from 1Q23, with only 20% of this growth coming from acquisitions. We delivered more than $31.3 million of distributable earnings, or $0.21 per share, and announced a quarterly dividend of $0.18 per share. We raised $1.1 billion year-to-date through April and over $5.1 billion in the last 12 months. We are confident we are on track to meeting our $5 billion fundraising target for the year.

Alex: The first quarter of 2024 marked a great start for the year.

Alex: I'm very pleased with the performance we delivered.

Alex: We generated $35 $1 million of fee related earnings in the quarter.

Alex: Representing a 13% increase from <unk> 23, with only 20% of this growth coming from acquisitions.

Alex: We delivered more than $31 $3 million of distributable earnings.

Alex: Or <unk> or.

Alex: Sure.

Alex: And announced a quarterly dividend of <unk> 18 per share.

Alex: We raised $1 $1 billion year to date through April and over $5 1 billion in the last 12 months.

Alex: We are confident we are on track towards meeting our 5 billion fund raising targets for the year.

Alexandre Teixeira de Assumpo Saigh: At the portfolio level, we generated solid investment performance, which helped offset the impact from realizations and FX movements. Generating strong investment returns for our fund investors remains our primary objective, and their strong performance continues to support our healthy net accrued performance fee balance of $514 million, or $3.41 per share as of March 31st. Total AUM and fee-earning AUM have grown more than 17% and 20% from one year ago, respectively, with only 1 3rd of this growth coming from acquisition. This past Monday, we were thrilled to announce the closing of our acquisition of Aberdeen's private equity solutions business.

Alex: At the portfolio level, we generated solid investment performance, which helped offset the impact from realizations and FX movements.

Alex: Generating strong investment returns for our fund investors remain our primary objective and this strong performance continues to support our healthy net accrued performance fee balance of $514 million.

Alex: Or $3 and 41 per share as of March 31.

Alex: Total AUM and fee, earning AUM have grown more than 17% and 20% from one year ago, respectively with only one third of this growth coming from acquisitions.

Alex: This past Monday, we were thrilled to announce the closing of our acquisition of Aberdeen private equity solutions business.

Alexandre Teixeira de Assumpo Saigh: As previously announced, The Acquires platform, when combined with Patria's existing global private markets vehicle, will form a new vertical, Global Private Market Solutions, or GPMS, with aggregate fee earning AUM of over $10 billion. We believe the breadth and scale of this new vertical positions Patria as a premier gateway to global private markets for underserved investors in LATAM. Also, on the M&A front, we are marking good progress towards closing the pending acquisition of Credit Suisse's real estate business in Brazil with up to $2.4 billion in fee-earning AOM as of 1Q24. We now have all the required regulatory approvals in place, and we expect to hold the necessary fund shareholder votes to approve the transfer of the management contract.

Alex: As previously announced the acquired platform when combined with <unk> existing global private markets vehicles, we will form a new vertical.

Alex: Global private market solutions or GPS.

Alex: With aggregate fee, earning AUM of over $10 billion.

Alex: We believe the breadth and scale of this new vertical positions Patria as the Premier Gateway to global private markets for under served investors in Latam.

Alex: Also on the M&A fronts, we are marking good progress towards closing the pending acquisition of credit Suisse's real estate business in Brazil with up to $2 $4 billion in fee, earning AUM as of <unk> 24.

Alex: Sure.

Alex: We now have all the required regulatory approvals in place and expect to hold the necessary funds shareholder vote to approve the transfer of the management contracts.

Alexandre Teixeira de Assumpo Saigh: Driven by strong organic growth and our accretive acquisition strategy, we remain confident in our ability to deliver our previously communicated 2024 FRE target of $170 million and our 2025 target of FRE in excess of $200 million, reflecting year-over-year growth of 15% and over 17% respectively. Digging deeper into our expanding platform and pro forma for acquisition. Our 1Q24 fee-earning AUM reached over $34 billion, representing over 4x growth in the three years since our IPO. Notably, pro forma for the acquisitions, permanent capital comprises about 20% of our fee-earning AUM, up from insignificant levels at the time of our IPO. The expanding breadth.

Alex: Driven by strong organic growth.

Alex: Our accretive acquisition strategy.

Alex: We remain confident in our ability to deliver our previously communicated 2024 F. R E target of $170 million.

Alex: Our 2025 targets of Fr E in excess of $200 million.

Alex: Reflecting the year over year growth of 15% and over 17% respectively.

Alex: Digging deeper in our expanding platform and pro forma for acquisition.

Alex: Our <unk> 24 fee, earning AUM reached over 34 billion.

Alex: Representing over four X growth in the three years since our IPO.

Alex: Notably pro forma for the acquisitions.

Alex: Permanent capital comprises about 20% of <unk>.

Alex: Our fee, earning AUM upfront insignificant levels at the time of our IPO.

Alex: The expanding breadth scope and earnings power of our platform as highlighted by the fact that.

Alexandre Teixeira de Assumpo Saigh: The scope and earnings power of our platform is highlighted by the fact that, first, we have grown from a two-product asset manager at the time of our IPO into a diversified alternative manager with pro forma $34 billion of fee-earning AUM, spanning across a range of strategies and investment vehicles, including private equity, infrastructure, credit, real estate, public equities, and global private market solutions. The recent launch of our Infrastructure Private Credit Fund highlights how we are leveraging our expanded platform to bring new and differentiated investment solutions to our clients.

Alex: Number one we have grown from a two product asset manager at the time of our IPO into a diversified alternative manager with pro forma $34 billion.

Alex: Our fee, earning AUM spanning across a range of strategies and investment vehicles, including private equity.

Alex: Infrastructure credit real estate public equities and global private market solutions.

Alex: The recent launch of our infrastructure private credit funds highlight how we are leveraging our expanded platform to bring new and differentiated investment solutions to our clients.

Alexandre Teixeira de Assumpo Saigh: Two, we offer an expanding range of product structures in order to meet investor objectives, and with permanent capital, drawdown funds, and SMAs representing over 70% of our fee-earning AUM, underscoring the inherent stickiness of our management fee revenues and fee-related earnings. Three, We are diversified across currencies, and importantly, 70% of our pro forma fee earnings AUM is denominated in hard currencies, US dollars, British pounds, and euros.

Alex: We offer an expanding range of product structures in order to meet investor objectives, and with permanent capital drawdown funds and SMA, representing over 70% of our fee, earning AUM.

Alex: Scoring the inherent stickiness of our management fee revenues and fee related earnings.

Alex: Sorry.

Alex: We are diversified across currencies and importantly, 70% of our pro forma fee earnings AUM.

Alex: Denominated in hard currencies U S dollar British pounds and euros.

Alexandre Teixeira de Assumpo Saigh: As we think about our path forward, it's important to emphasize that organic growth of existing and acquired investment platforms post-acquisition remains our top priority. This is highlighted by the fact that, from year end 2018 through 2023, our free earning AOM, excluding the initial inflows of acquisitions, grew at a CAGR of 17%. While sensible organic growth is our top priority, diversification through inorganic expansion remains a key component of our strategy. We believe in the ongoing consolidation within the asset management industry.

Alex: As we think about our path forward, it's important to emphasize that organic growth of existing and acquired investment platforms post acquisition remains our top priority.

Alex: This is highlighted by the fact that.

Alex: From year end 2018 through 2023, our fee, earning AUM, excluding the initial influence of acquisitions grew at a key goal of 17%.

Alex: While sensible organic growth is our top priority diversification through inorganic expansion remains a key component of our strategy.

Alex: We believe in the ongoing consolidation within the asset management industry.

Alexandre Teixeira de Assumpo Saigh: And often, M&A is the most efficient way to capture new avenues of growth. It can speed time to market and allows us to capture the opportunities we see in the region through the addition of skilled and culturally aligned investment teams with strong investment track records, complementary and differentiated investment strategies, and new distribution capabilities. In some instances, buying may also be cheaper than raising equivalent amounts of capital through placement agents.

Alex: And as many times.

Alex: <unk> is the most efficient way to capture new avenues of growth.

Alex: It can speed time to market and allows us to capture the opportunities we see in the region.

Alex: Addition of skilled and culturally aligned investment teams with strong investment track Records.

Alex: <unk> and differentiated investment strategies and new distribution capabilities.

Alex: In some instances buying may also be cheaper than raising equivalent amounts of capital through placement agents.

Alexandre Teixeira de Assumpo Saigh: Overall, we are very proud of the differentiated and diversified investment platform we have built both organically and inorganically, making us the largest alternative asset management platform in the region in terms of direct assets under management, revenues, and fee-related earnings, as we remain very excited regarding our future growth process. Now, let's have a closer look at our investment verticals. This past March, Private Equity International released its 2023 PEI Awards, ranking Patria Privilege as the Firm of the Year in Latin America. This was our second year of participation and the second win in a row. The Award with Flex.

Alex: Overall.

Alex: We are very proud of the differentiated and diversified investment platform, we have built both organically and inorganically.

Alexandre Teixeira de Assumpo Saigh: Making us the largest alternative asset management platform in the region in terms of direct assets under management revenues and fee related earnings.

Alex: As we remain very excited regarding our future growth prospects.

Alex: Now, let's have a closer look into our investment verticals.

Alex: This past March private equity International released its 2023.

AI Awards ranking battery private equity as the firm of the year in Latin America.

This was our second year of participation and the second win in a row.

Alexandre Teixeira de Assumpo Saigh: The award reflects the market recognition of consistent performance sector knowledge commitment and leadership in Latin America.

Alexandre Teixeira de Assumpo Saigh: Market recognition of consistent performance, sector knowledge, commitment, and leadership in Latin America. Investment performance excellence is highlighted by the 20-year pooled net IIR in US dollars of our flagship private active funds, 17.5%, as of the 1st Q24. For comparison purposes, as of 3Q23, the latest available market data from Cambridge Associates, our pooled performance was 18.3%, which represented 11.9% of excess returns over the past 20 years relative to Cambridge benchmark returns in LATAM over the same period. Patria Privilege also generated excess returns relative to Cambridge benchmarks when compared to emerging markets, Asia, and the US, with excess returns over 7.1%. 7.2% and 3.3%, respectively.

Alexandre Teixeira de Assumpo Saigh: Investment performance excellent as highlighted by the 20 year pools net IRR in U S dollars of our flagship private equity funds of 17, 5%.

Alexandre Teixeira de Assumpo Saigh: As of the first Q 'twenty four.

Alex: For comparison purposes as of <unk> 23, the latest available market data from <unk> Associates, our pool performance was 18, 3%.

Alexandre Teixeira de Assumpo Saigh: Which represented 11, 9% of excess returns over the past 20 years relative to Cambridge benchmark returns in Latam.

Alexandre Teixeira de Assumpo Saigh: Over the same period.

Alexandre Teixeira de Assumpo Saigh: Patria private equity also generated excess returns relative to Cambridge benchmarks, when compared to emerging markets Asia and the U S.

Alexandre Teixeira de Assumpo Saigh: With excess returns over seven 1%.

Alexandre Teixeira de Assumpo Saigh: Seven, 2% and three 3% respectively.

Alexandre Teixeira de Assumpo Saigh: In what remains a challenging private equity fundraising environment, this strong track record helps our fund-raising efforts. In first Q24, we signed a new $65 million co-investment in our new Vintage Private Equity Fund, which is currently in the market. We have secured approximately $1.2 billion of commitments as of 1Q24 for our new vintage buyout fund, with fundraising outperforming in LATAM, Asia, and the Middle East, as the private active fundraising environment in the U.S. remains challenging. Nevertheless, we continue to see a path to reaching $2 billion of commitments.

Alexandre Teixeira de Assumpo Saigh: In what remains a challenging private equity fund raising environment. This strong track record.

Alexandre Teixeira de Assumpo Saigh: Helps our fund raising efforts.

Alexandre Teixeira de Assumpo Saigh: In first Q 'twenty, four we signed a new $65 million co investment in our new vintage private equity fund, which is currently in the market.

Alexandre Teixeira de Assumpo Saigh: We have secured approximately $1 $2 billion of commitments as of <unk> 24 for our new vintage buyout fund with fund raising outperforming in Latam Asia and the Middle East.

Alexandre Teixeira de Assumpo Saigh: The private equity fund raising environment in the U S remains challenging.

Alexandre Teixeira de Assumpo Saigh: Nevertheless, we continue to see a path to reaching $2 billion of commitments.

Alexandre Teixeira de Assumpo Saigh: Beyond our flagship funds, our private equity platform, currently with $11.7 billion in AUM, offers growth equity and venture capital funds, strategies that we did not offer at the time of our IPO. With regard to our infrastructure vertical and new product development, in 1Q24, we raised over $60 million for one of our infra-corporate funds, with a focus on mature energy distribution and transmission activities.

Alexandre Teixeira de Assumpo Saigh: Beyond our flagship funds are private equity platform currently with $11 7 billion in AUM.

Alexandre Teixeira de Assumpo Saigh: Also <unk>.

Alexandre Teixeira de Assumpo Saigh: Our first growth equity and venture capital funds Strat.

Alexandre Teixeira de Assumpo Saigh: Strategies that we did not offer at the time of our IPO.

Alexandre Teixeira de Assumpo Saigh: With regards to our infrastructure vertical and new product development.

Alexandre Teixeira de Assumpo Saigh: In <unk> 'twenty, four we raised over $60 million for.

Alexandre Teixeira de Assumpo Saigh: For one of our <unk> corporate funds.

Alexandre Teixeira de Assumpo Saigh: With focus on mature energy distribution and transmission assets.

Alexandre Teixeira de Assumpo Saigh: This was the third capital raise for this specific vehicle and is close to our initial target. This strategy, which represents permanent capital AUM, continues to gain scale and now totals more than $310 million in AUM. In contrast to the struggles many managers have been facing with regard to generating realizations, our flagship drawdown business has seen a pickup in realization activity for LPs, which is a crucial driver of fundraising for our latest vintage flagship infrastructure fund, which is now in the market.

Alexandre Teixeira de Assumpo Saigh: This was the third capital raised for this specific vehicle.

Alexandre Teixeira de Assumpo Saigh: And if closed above our initial targets.

Alexandre Teixeira de Assumpo Saigh: This strategy, which represents permanent capital AUM continues to gain scale and now totals more than $310 million in AUM.

Alexandre Teixeira de Assumpo Saigh: In contrast to the struggles many managers have been facing with regard to generating realizations.

Alexandre Teixeira de Assumpo Saigh: Our flagship drawdown business has seen a pickup in realization activity for Lps.

Alexandre Teixeira de Assumpo Saigh: Which is crucial driver of fundraising for our latest vintage flagship infrastructure fund, which is now in the market.

Alexandre Teixeira de Assumpo Saigh: As of 1Q24, we have already secured over $1 billion of commitments for the new fund and are making progress towards our goal of raising $2.5 billion. We believe the investment opportunity within infrastructure is very attractive and have already started to deploy this capital. To illustrate, in 1Q24, we announced a $110 million commitment to a greenfield solar plant in Colombia with a 360-megawatt installed capacity, representing the largest solar farm in the country, with $300 million of projected capex. Also, the first announced investment from this fund, a toll road concession in the south of Brazil with a 30-year contract protected against inflation and a 20-year traffic history, began operations during 1Q24 ahead of

Alexandre Teixeira de Assumpo Saigh: As of <unk> 24, we have already secured over $1 billion of commitments for the New fund.

Alexandre Teixeira de Assumpo Saigh: And are making progress towards our goal of raising $2 5 billion.

Alexandre Teixeira de Assumpo Saigh: We believe the investment opportunity within infrastructure is very attractive and have already started to deploy this capital.

Alexandre Teixeira de Assumpo Saigh: To illustrate Q1'twenty, four we announced a $110 million commitment to a greenfield solar plant in Colombia, with a 360 megawatts installed capacity.

Alexandre Teixeira de Assumpo Saigh: Representing the largest solar farm in the country.

Alexandre Teixeira de Assumpo Saigh: With $300 million of projected Capex.

Alexandre Teixeira de Assumpo Saigh: Also the first announced investment from this fund a toll road concession in the south of Brazil, with a 30 year contracts protected against inflation and a 20 year traffic history began operations. During <unk> 24 ahead of plan.

Alexandre Teixeira de Assumpo Saigh: Looking at investment returns as of 1Q24, the pooled net IIR in US dollars for our two latest vintage funds was 12.3%, outperforming the Hamilton Lane Global Infrastructure Medium benchmark and the Dow Jones Brookfield Global Infrastructure Index by 4.1% and 12.4%, respectively. Finally, in 1Q24, we contributed 50 million Brazilian Reais, or approximately $10 million, out of a limited capsule exposure of 100 million Reais, or approximately $20 million, in order to provide C-Capital to TRIA, our new and separate energy trading company.

Alexandre Teixeira de Assumpo Saigh: Looking at investment returns as of <unk> 20 for the Pool's net IRR in U S dollars for our two latest vintage funds was 12, 3% outperforming the Hamilton Lane global infrastructure medium benchmark and the Dow Jones Brookfield <unk>.

Alexandre Teixeira de Assumpo Saigh: Mobile infrastructure index by four 1% and 12, 4% respectively.

Alexandre Teixeira de Assumpo Saigh: Finally in <unk> 'twenty, four we contributed $50 million, Brazilian reais or approximately $10 million.

Alexandre Teixeira de Assumpo Saigh: Out of a limited capital exposure of 100 million reais or approximately $20 million.

Alexandre Teixeira de Assumpo Saigh: In order to provide seed capital to trio.

Alexandre Teixeira de Assumpo Saigh: Our new and separate LNG trading company.

Alexandre Teixeira de Assumpo Saigh: TRIA was created to access a high growth opportunity we see in a fragmented sector with compelling fundamentals. We believe Patria's investment team has the skill set and expertise to help build this business, which has significant synergies with our infrastructure portfolio companies. Patria, through its seed capital investment, holds a 67% stake in Trier, which began its operations this April.

Alexandre Teixeira de Assumpo Saigh: Korea was created to acts as a high growth opportunity, we see in a fragmented sector with compelling fundamentals.

Alexandre Teixeira de Assumpo Saigh: We believe factory as investments team has the skill set and expertise to help build this business.

Alexandre Teixeira de Assumpo Saigh: Which has significant synergies with our infrastructure portfolio companies.

Alexandre Teixeira de Assumpo Saigh: <unk> seed capital investments holds a 67% stake in <unk>.

Alexandre Teixeira de Assumpo Saigh: Which began its operations this April.

Alexandre Teixeira de Assumpo Saigh: Other shareholders include four well-respected minority partners with recognized expertise in energy trading. Over time, our goal is to develop TRIA into an asset management business with the intention to raise private credit vehicles to fund both power generators and consumers with energy-backed contracts. Our credit vertical continues to generate strong and consistent returns to our investors. As of 1Q24, our three largest strategies, LATAM High Yield, LATAM Local Currency, and Chilean Fixed Income, have each outperformed their relevant benchmarks for all reported periods. 1Q24, 1 year, 3 years, 5 years, and since inception.

Alexandre Teixeira de Assumpo Saigh: Other shareholders include four well respected minority partners with recognized expertise in energy trading.

Alexandre Teixeira de Assumpo Saigh: Over time, our goal is to develop Korea into an asset management business with the intention to raise private credit vehicles to fund both power generators and consumers with energy box contracts.

Alexandre Teixeira de Assumpo Saigh: Our credit vertical continues to generate strong and consistent returns to our investors.

Alexandre Teixeira de Assumpo Saigh: As of <unk> 24.

Alexandre Teixeira de Assumpo Saigh: Our three largest strategies Latam high yields Latam local currency and Chile in fixed income.

Alexandre Teixeira de Assumpo Saigh: Each outperformed their relevant benchmarks for all reported periods.

Alexandre Teixeira de Assumpo Saigh: <unk> 24, one year three years five years and since inception.

Alexandre Teixeira de Assumpo Saigh: Specifically, our lockdown high-yield strategy with $3.6 billion in AUM has outperformed its relevant benchmark by more than 370 basis points since inception in early 2000. In the last 12 months, we have raised over $900 million for our credit products, including approximately $300 million in 1Q24. The early AUM grew more than 19% organically from one year ago and more than 4% sequentially. In addition to the three aforementioned strategies, Patria's diversified credit platform, with approximately $6 billion in AUM, offers funds in private credit, Infra, private equity, and receivables.

Alexandre Teixeira de Assumpo Saigh: Specifically, our long term high yield strategy with $3 $6 billion in AUM has outperformed its relevant benchmark by more than 370 basis points since inception in early 2000.

Alexandre Teixeira de Assumpo Saigh: In the last 12 months, we raised over $900 million for our credit products, including approximately $300 million.

Alexandre Teixeira de Assumpo Saigh: <unk> 24.

Alexandre Teixeira de Assumpo Saigh: Fee, earning AUM grew more than 19% organically from one year ago.

Alexandre Teixeira de Assumpo Saigh: And more than 4% sequentially.

Alexandre Teixeira de Assumpo Saigh: In addition to the three aforementioned strategies flatterers diversified credit platform with approximately $6 billion in AUM.

Alexandre Teixeira de Assumpo Saigh: First funds in private credit.

Alexandre Teixeira de Assumpo Saigh: Infra private credit and receivables.

Alexandre Teixeira de Assumpo Saigh: Private credit strategies continue to see strong momentum globally, and expanding this vertical both organically and potentially through M&A remains a key priority. To illustrate, we are currently raising a U.S. dollar-denominated last-time focus private credit fund with a first closing expected in the second quarter of this year. We hope to have more news on this soon. Turning now to public equities, let me take a moment here to congratulate Pablo Echeverria. Moneda's founder and head of Patria's public equities. For our Pionero Fund, for which Pablo has been the portfolio manager since its inception, we focus on small and medium-sized companies in Chile.

Alexandre Teixeira de Assumpo Saigh: Private credit strategies continued to see strong momentum globally and expanding this vertical.

Alexandre Teixeira de Assumpo Saigh: Both organically and potentially through M&A remains a key priority.

Alexandre Teixeira de Assumpo Saigh: To illustrate we are currently raising a U S dollar denominated Latam focused private credit fund with a first closing expected for the second quarter of this year.

Alexandre Teixeira de Assumpo Saigh: We hope to have more news on this soon.

Alexandre Teixeira de Assumpo Saigh: Turning now to public equities, let me take a moment here to congratulate bubble agility.

Alexandre Teixeira de Assumpo Saigh: One of the founder and head of Patriot public equities for our fuel narrow fund for which <unk> has been the portfolio managers since its inception.

Alexandre Teixeira de Assumpo Saigh: Focus on small and medium sized companies in Chile.

Alexandre Teixeira de Assumpo Saigh: Pioneero reached its 30th anniversary this March, with impressive performance along the way, including a 19.6% return in the past 12 months and a 13.5% annualized return since inception, which translates into a 45 times multiple for capital invested on day one.

Alexandre Teixeira de Assumpo Saigh: <unk> will reach its 30 <unk> anniversary this march with impressive performance, along the way including and.

Alexandre Teixeira de Assumpo Saigh: A 19, 6% return in the past 12 months and a 13, 5% annualized return since inception.

Alexandre Teixeira de Assumpo Saigh: Which translates into a 45 times multiple for capital invested in day one.

Alexandre Teixeira de Assumpo Saigh: This investment platform, with $2.8 billion in AUM, offers a range of products, including Penlatam, large and small caps, as well as Chilean large and small caps, and Private Investments in Public Equities, or PIPE. With regard to PYPE, we were very pleased to launch our PYPE Chile fund this quarter and close, and Fund with an initial $55 million raised in 1Q24 and which we believe is well positioned to Focusing on our next vertical, real estate fundraising, continues on a solid path.

Alexandre Teixeira de Assumpo Saigh: This investment platform with $2 8 billion in AUM.

Alexandre Teixeira de Assumpo Saigh: Offers a range of products, including Pan Latam.

Alexandre Teixeira de Assumpo Saigh: Large and small caps as well as Chile in large and small caps and private investments in public equities or pipes.

Alexandre Teixeira de Assumpo Saigh: With regard to pipe, we were very pleased to announce our pipe Chile this quarter.

Alexandre Teixeira de Assumpo Saigh: And closed.

Alexandre Teixeira de Assumpo Saigh: And fund with an initial $55 million raised in <unk> 24.

Alexandre Teixeira de Assumpo Saigh: And which we believe is well positioned from scale.

Alexandre Teixeira de Assumpo Saigh: Focusing on our next vertical real estate fund raising continues a solid path.

Alexandre Teixeira de Assumpo Saigh: Over the past 12 months, we generated over $1 billion of organic inflows, and total AUM reached $3.8 billion. For perspective, as of 1Q23, AUM totaled 1.6 billion dollars. This organic growth included a strong 1Q24 with $235 million of new capital raised. Beyond the attractive organic growth, we continue to pursue what we believe to be great opportunities to consolidate the real estate investment trust market in the region. In November 2023, we closed our new partnership with Bank Colombia, adding a $1.4 billion real estate investment trust and best-in-class distribution capabilities in the Colombian market. One month later, we announced the agreement to acquire Credit Suisse Real Estate Business in Brazil, or CSHG Real Estate, a platform with $2.4 billion in assets under management.

Alexandre Teixeira de Assumpo Saigh: Over the past 12 months, we generated over $1 billion of organic inflows and total AUM reached $3 8 billion.

Alexandre Teixeira de Assumpo Saigh: For perspective as of <unk> 23.

Alexandre Teixeira de Assumpo Saigh: AUM totaled $1 6 billion.

Alexandre Teixeira de Assumpo Saigh: This organic growth included a strong <unk> 24 with $235 million of new capital raise.

Alexandre Teixeira de Assumpo Saigh: Beyond the attractive organic growth, we continue to pursue what we believe to be great opportunities to consolidate the real estate investment trust market in the region.

Alexandre Teixeira de Assumpo Saigh: In November 2023, we closed our new partnership with Bancolombia, adding a $1 4 billion.

Alexandre Teixeira de Assumpo Saigh: Real estate investment Trust and best in class distribution capabilities in the Colombian market.

Alexandre Teixeira de Assumpo Saigh: One month later, we announced the agreement to acquire credit Suisse real estate business in Brazil, or CFS <unk> real estate platform with $2 $4 billion in assets under management.

Alexandre Teixeira de Assumpo Saigh: Altogether, we have grown our real estate vertical to a pro forma AUM of over $6 billion, with approximately 90% being permanent capital. Finally, let's do a quick overview of our newest platform, Global Private Markets Solutions, or GPMS. This new vertical focuses on serving clients as a gateway to private markets on a global scale through proprietary and third-party products. On the proprietary front, we currently offer primaries, secondaries, and co-investment strategies across various drawdown funds and listed vehicles, which are permanent capital, in addition to separately managed accounts or SMAs.

Alexandre Teixeira de Assumpo Saigh: Altogether, we have grown our real estate vertical to pro forma AUM of over $6 billion.

Alexandre Teixeira de Assumpo Saigh: With approximately 90% being permanent cap.

Alexandre Teixeira de Assumpo Saigh: Finally, let's do a quick overview of our newest platform global private market solutions or GPS.

Alexandre Teixeira de Assumpo Saigh: This new vertical focuses on serving clients as a gateway to private markets on a global scale through proprietary and third party products.

Alexandre Teixeira de Assumpo Saigh: On the proprietary fronts, we currently offer primaries secondaries.

Alexandre Teixeira de Assumpo Saigh: And co investment strategies across various drawdown funds and listed vehicles.

Alexandre Teixeira de Assumpo Saigh: Which are permanent capital.

Alexandre Teixeira de Assumpo Saigh: In addition to separately managed accounts or Sma's.

Alexandre Teixeira de Assumpo Saigh: With a 10 to 15-year track record, these three strategies, primaries, secondaries, and co-investments, have generated consistent and strong returns, with pooled IIRs in euros of 18%, 20%, and 20% since inception and Azor to Q23, respectively. On a pro-forma basis, it manages over $8 billion in fee-earning AUM. In addition to the recently acquired business, as of 1Q24, Patria managed $1.9 billion of fee-earning AOM in third-party funds, of which $1.5 billion were through feeder funds that direct Latin American capital to global private markets. The business we have been active in for over a decade. The feeder fund business has raised over $300 million in the last 12 months, with approximately $60 million raised in 1Q24.

Alexandre Teixeira de Assumpo Saigh: With a 10 to 15 year track record.

Alexandre Teixeira de Assumpo Saigh: These three strategies primaries, secondaries and co investments.

Alexandre Teixeira de Assumpo Saigh: Have generated consistent and strong returns with pool.

Alexandre Teixeira de Assumpo Saigh: In euros of 18%.

Alexandre Teixeira de Assumpo Saigh: 20%.

Alexandre Teixeira de Assumpo Saigh: And 20% since inception.

Alexandre Teixeira de Assumpo Saigh: And as off.

Alexandre Teixeira de Assumpo Saigh: <unk> 23, respectively.

Alexandre Teixeira de Assumpo Saigh: On a pro forma basis advantages over $8 billion in fee, earning AUM.

Alexandre Teixeira de Assumpo Saigh: In addition to the recently acquired business.

Alexandre Teixeira de Assumpo Saigh: <unk> <unk> 24.

Alexandre Teixeira de Assumpo Saigh: <unk> managed $1 $9 billion of fee, earning AUM in third party funds of which $1 5 billion dollars' worth through feeder funds, that's direct Latin American cast on global private markets.

Alexandre Teixeira de Assumpo Saigh: Our business we have been.

Alexandre Teixeira de Assumpo Saigh: Active in for over a decade.

Alexandre Teixeira de Assumpo Saigh: The feeder fund business has raised over $300 million in the last 12 months.

Alexandre Teixeira de Assumpo Saigh: With approximately $60 million raised in <unk> 24.

Alexandre Teixeira de Assumpo Saigh: In aggregate, our GPMS platform is being launched with over $10 billion in fee-earning AUM and represents a complementary pillar of growth as we serve as a gateway for Latin American investors to private markets on a global scale. Before I pass the call over to Ana to give you more details on the numbers for the quarter, let me take a quick moment to give another perspective on the diversification of our vectors of growth.

Alexandre Teixeira de Assumpo Saigh: In aggregate, our GPS platform as being allowance with over $10 billion in fee, earning AUM.

Ana: And represents a complementary pillar of growth as we serve as a gateway for Latin American investors to private markets on a global scale.

Ana: Before I handle the call over to <unk> to give you more details on the numbers for the quarter.

Alexandre Teixeira de Assumpo Saigh: Let me take a quick moment to give another perspective on the diversification of our vectors of growth.

Alexandre Teixeira de Assumpo Saigh: Prior to our IPO, close to $7 billion of our total $8 billion of fee-earning AUM, or over 85%, served global clients looking to invest in PAN-LATAM alternatives. Today, Proforma for the pending CSHG real estate deal of our $34 billion in fee-earning AUM, approximately 35% continues to be sourced from global clients looking to invest in PAN-LATAM alternatives. 35% is sourced from local clients seeking to invest in regional strategies, and twenty-five percent is from local investors focused on local alternative products.

Ana: Prior to our IPO close to $7 billion of our totaled $8 billion of fee, earning AUM.

Alexandre Teixeira de Assumpo Saigh: Our over 85% served global clients looking to invest in Pan Latam alternatives.

Alexandre Teixeira de Assumpo Saigh: Today pro forma for the pending <unk>.

Alexandre Teixeira de Assumpo Saigh: <unk> real estate deal of our $34 billion in fee, earning AUM approximately 35% continues to be sourced from global clients looking to invest in Pan Latam alternatives.

Alexandre Teixeira de Assumpo Saigh: 35% is sourced from local clients seeking to invest in regional strategies.

Alexandre Teixeira de Assumpo Saigh: 25% is from local investors focus on local alternative products and finally, 5% comes from local clients investing in global alternatives.

Ana Cristina Russo: And finally, five percent comes from local clients investing in global alternatives. I believe this clearly illustrates the amazing job this team has been doing in executing our growth plans and diversifying our business. Now, I turn the call over to Ana. Thank you, Alex, and good morning, everyone.

Ana: I believe this clearly illustrates the amazing job. This team has been doing on executing our growth plans and diversifying our business now.

Ana: Now I'll turn the call over to Atlas.

Ana: Thank you Alex and good morning, everyone.

Ana Cristina Russo: It was indeed a great start of the year as Patria continues to deliver steady and strong results. As we grow and diversify our platform, it is important to maintain and enhance the comparability of our KPIs and metrics with those of our peers. And with that in mind, we will classify two line items on our non-GAAP P&L which had no significant impact on our reported results. First, rebates originally under the expense line, placement, fee amortization, and rebates are now directly deducted from fee revenues as a contra revenue item, making our fee revenues more comparable with.

Ana: It was indeed, a great start of the year <unk> continues to deliver steady and strong results.

Ana Cristina Russo: As we grow and diversify our platform. It is important to maintain and enhance the comparability of our API and niches with those of our peers.

Ana Cristina Russo: And with that in mind, we reclassified two line items on our non-GAAP, P&L, which had no significant impact.

Ana Cristina Russo: Reported results.

Ana Cristina Russo: Sorry.

Ana Cristina Russo: Well originally under the expense line blatant amortization year to date and now directly to some key revenues as a contra revenue item.

Ana Cristina Russo: Key revenue comparable with peers.

Ana Cristina Russo: This has no impact on reported fee-related earnings, but does slightly increase our reported FII margin by around 2.3 percentage points in first quarter 2015, and 1.6 percentage points in 2020. Second, unrealized gains and losses were reclassed below distributor earnings, and this move makes our DE even closer to a cash-based net. Further details on these two reclassifications can be found on our earnings presentations, which, among other things, highlights that $1.5 million of unrealized gains that were moved from net financial income and expense to a new line called unrealized gains, losses on investment below these would have decreased 2023 distributor earnings per share by only a, As mentioned by Alex, following the completion of the acquisition of the private equity solutions business from Aberdeen, we have now launched a new vertical, Global Private Market Solutions, or GPMS.

Ana Cristina Russo: This has no impact on reported fee related earnings.

Ana Cristina Russo: <unk> increased our reported ethane margin by around two three percentage points in first quarter 2000.

Ana Cristina Russo: And one 6% checkpoint interval training today.

Ana Cristina Russo: Now realized gains and losses were recorded below distributor.

Ana Cristina Russo: This is <unk>.

Ana Cristina Russo: Nick <unk>, even closer to our cash.

Ana Cristina Russo: Yeah.

Ana Cristina Russo: Further details related to reclassification can be some.

Ana Cristina Russo: Mutations.

Ana Cristina Russo: The other thing.

Ana Cristina Russo: That $1 $5 million of early June that were moved from net financial income and expense to new line called earlier gain lots of unused.

Ana Cristina Russo: <unk> would have decreased 2020 to England's pivotal earnings per share, but only.

Ana Cristina Russo: As mentioned by Alex following the completion of the acquisition of the private equity solutions business from Amex.

Ana Cristina Russo: We have now launched a new vertical global private market solutions or Japan.

Ana Cristina Russo: This vertical, with pro forma fee earnings AUM over $10 billion, also includes $1.9 billion from our third-party distribution business, which was previously under advisory and distribution. As detailed in our earnings presentation, the remaining assets in advisory and distribution will be reallocated to other asset classes. With that, Patria's platform will be based in six words: private equity, infrastructure, credit, real estate, public equity, and global private market solutions.

Ana Cristina Russo: This vertical with transformer fee, earning AUM over $10 billion.

Ana Cristina Russo: Also includes $1 9 billion from our third party distribution.

Ana Cristina Russo: Which was previously under.

Ana Cristina Russo: And its condition.

Ana Cristina Russo: As detailed on our earnings presentation that will be mainly in advice and distribution will be reallocated to other asset classes.

Ana Cristina Russo: With that let's just last one will be based in Pittsburgh.

Ana Cristina Russo: Private equity infrastructure credit.

Ana Cristina Russo: The state public equity and global talent market service.

Ana Cristina Russo: Let's now review the results for the first quarter. In Q1 2024, fee-related earnings of $35.1 million were up 13% versus Q1 2023, with a margin of 58%, reflecting an increase of 2.3 percentage points compared to last year after adjusting for the expense reclassification noted earlier. Q1 2024 FRE was aligned with Q4 23 when excluding the seasonal and one-time impacts from the fourth quarter of 2023. As our FRE continues its growth, total fee revenues in Q1'24 increased by $4.5 million, or 8% from Q1'23, to $6.6 million. This increase was mainly driven by growth in credit fee earnings in U.N., as a result of net inflows and appreciation in our credit funds, which drove an approximate 20% increase in related fee revenues.

Speaker Change: Let's now review the results for the first quarter.

Ana Cristina Russo: Q1, 2024 key related earnings of $35 $1 million was up 13% versus Q1 2023 with a margin of 16%, reflecting an increase of two three percentage points compared to last year after adjusting for the expense reclassification.

Ana Cristina Russo: You did earlier.

Ana Cristina Russo: Q1, 2020 for FY <unk> was in line with Q4 2003, when excluding the seasonal and onetime impact from fourth quarter of 2023.

Ana Cristina Russo: Our FRE continue this growth.

Ana Cristina Russo: Total fee revenue in Q1, 'twenty four increased by $4 5 million or 8% from Q1 to $6 6 million.

Ana Cristina Russo: Increase was mainly driven by growth in <unk> earnings.

Ana Cristina Russo: As a result of net inflows and appreciation in our credit funds, which below an a plus next 20% increase in related fees.

Ana Cristina Russo: Higher year-over-year fee revenues also benefited from the November 23 closing of our partnership with Bancolom and new commitments and deployments in Private Equity Fund 7, which continues to fundraise. Excluding Q4 2023, a one-time impact, our fee revenues continue to grow sequentially. These one-time impacts were, one, the crystallization of incentive fees of $4 million in our credit and public equity verticals, and two, a one-time management fees catch-up of $2.5 million for private equity funds. Total operating expenses for personal expenses plus GME were $284.8 million for the quarter, mostly in line with Q1-23, adjusted to reflect the reclassification noted earlier.

Ana Cristina Russo: Hi.

Ana Cristina Russo: <unk> also benefits John that November 'twenty, three closing of our partnership with local loans.

Ana Cristina Russo: <unk> commitments and deployment in private equity expense, seven which continues to sunlight.

Ana Cristina Russo: Excluding Q4 'twenty thing to the one time impact our fee revenue continued to grow sequentially is that work one consolidation of incentive fees of $4 million in our credit and public equity vertical.

Ana Cristina Russo: Two one time management's team catch up of $2 5 million for private equity funds.

Ana Cristina Russo: Total operating expenses for personnel expenses.

Ana Cristina Russo: <unk> was $284 8 million for the quarter, mostly in line with Q1, 'twenty, Italy adjusted to reflect the reclassification regulatory.

Ana Cristina Russo: Patria delivered distributed earnings of $31.3 million in Q1'24, equating to $0.21 per share, $7.7 million lower than the first quarter of 2023, fully driven by $10 million of performance-related earnings in Q1'23. We also crystallized $26.6 million of performance-related earnings in Q4'23, which drove the variance versus the current quarter in addition to the one-time impact of FRE, mentioned before. Additionally, corporate income tax rose this quarter to $2.8 million when compared to $1.1 million in Q1'23, mainly due to a larger contribution from our business in Chile, Brazil, and Colombia.

Ana Cristina Russo: Boston delivering the similar earnings of $31 3 million in Q1, 'twenty four equating to 21 per share $7 7 million lower than the first quarter of 2000 from three fully driven by $10 million of performance related earnings in Q1 'twenty three.

Ana Cristina Russo: Also crystallized $26 6 million of performance related earnings into FY, 'twenty, three which drove the balance that's in the current quarter. In addition to the onetime impact of FRE mentioning before.

Ana Cristina Russo: Additionally, corporate income tax rose this quarter to $2 8 million compared to $1 1 million in Q1, <unk>, mainly due to the larger contribution from our business in Chile, Brazil Coke.

Ana Cristina Russo: We declared a dividend per share of 18 cents for Q124, which reflects an 85% payout ratio. As mentioned previously, beginning 2024, we expect to distribute 85% of our distributed earnings, excluding performance-related earnings and realized gains from our energy trading platform Net-of-Taxes, up to $100 million in order to fund M&A obligations and pay down debt. Going forward, we will continue to evaluate our distribution policy with a focus on, one, paying a stable and growing dividend driven by fee-related earnings, and two, maintaining our balance sheet strength with an appropriate amount of leverage and ability to pursue acquisitions and receivables on the list.

Ana Cristina Russo: We declared a dividend per share up <unk> <unk> or.

Ana Cristina Russo: Q1, 'twenty score, which will reflect an 85% payout ratio.

Ana Cristina Russo: As mentioned previously beginning to anything for we expect to receive an 85% of our distributor earnings excluding performance related earnings and realized gain some energy trading platform net effect.

Ana Cristina Russo: Up to $100 million in order to fund M&A obligations and paying down debt loan.

Ana Cristina Russo: Going forward, we will report.

Ana Cristina Russo: And as we evaluate our distribution policy with a focus on one thing a stable and growing in driven by accumulated earnings and maintaining our balance sheet strength with an appropriate amount of leverage and the ability to pursue acquisitions and Windsor.

Ana Cristina Russo: Our March 2024 balance sheet shows $83.4 million of debt, with the majority reflecting our long-term financing lines and $10 million from our Rebuilding Credit Facility. This debt was incurred to fund the first tranche of our acquisition of a real estate business from Credit Suisse, including related expenses.

Ana Cristina Russo: Our March 2022, our balance sheet shows $83 $4 million of debt with the majority, reflecting our long term financing line and $10 million from our revolving credit facility.

Ana Cristina Russo: This debt was incurred to fund the first tranche of our acquisition of real estate statements from credit Suisse, including related expense.

Ana Cristina Russo: Future obligations will be funded by a combination of cash, debt, and equity. In regard to equity, based on our pending closing M&A, we expect to issue less than 4 million shares throughout the year, which would result in less than 156 million shares in aggregate at year end. Based on our FRE target for 2024, this implies an FRE between $1.08 and $1.12 per share, between 10% and 12% higher than 2023 FRE per share of $99.70.

Ana Cristina Russo: Future obligations will be funded by a combination of cash debt and equity.

Ana Cristina Russo: In regard to equity Nathan our pending closing timing, we expect to issue less than 4 million shares.

Ana Cristina Russo: Of the year, which would result in less than 156 million shares in aggregate at the year.

Ana Cristina Russo: Based on our FY <unk> target for 2024, it does imply a naphtha and between $1 <unk>.

Ana Cristina Russo: $1 <unk> per share.

Ana Cristina Russo: Yes.

Ana Cristina Russo: And 12% higher than 2023 per share up 91.

Ana Cristina Russo: However, the full-year benefit of the closing M&A will only take place in 2025, where our FRE target ranges between 200 and 225 million dollars. That gives us an FRA per share between $1.25 and $1.40, already including any additional expected share issue. Therefore, our compounded growth between 2023 and 2025 in FRE per share could be up to 40%. Net-a-Cool performances were up almost 20% versus Q1'23, reaching $514 million, with over $300 million coming from our two most mature. Infrastructure Fund 3, currently in the catch-up phase, and Private Equity Fund 5, also under Harvard Simplified. Despite strong underlying performance, quarter-over-quarter Net-A-Coup performance decreased by 4%, mainly due to the share price of our publicly listed companies and currency.

Ana Cristina Russo: However, the full year benefit of the closing date.

Ana Cristina Russo: Take place in 2025.

Ana Cristina Russo: Our FY <unk> target ranges.

Ana Cristina Russo: 200 and $225 million.

Ana Cristina Russo: That gives us an FRE per share between $1 25.

Ana Cristina Russo: 140.

Ana Cristina Russo: Does that include any ambition expect a share issue.

Ana Cristina Russo: Therefore, our compounded growth through 2023 and 2025%.

Ana Cristina Russo: That said could be up to 40%.

Ana Cristina Russo: Net accrued performance fees were up almost 20% versus Q1, 2003, reaching $514 million with over $300 million coming from our two most mature funds infrastructure from three currently under catch up phase and private equity fund <unk> outgrown their habits.

Ana Cristina Russo: Despite some underlying performance quarter over quarter net accrued performance fees decreased by 12% mainly by share price of our publicly listed company and current user.

Ana Cristina Russo: These accruals now represent $3.41 per share. As we progress in the year, we expect our management fee revenues to be supported by ongoing fee-earning AUM inflows across the platform, particularly in credit, driven by inflows and performance. Fundraising in Real Estate, Deployment, and Infrastructure 5, in addition to new acquisitions. As a result, we remain confident in reaching our $172 million FRE goal for this year, assuming a margin between 56% and 58%.

Ana Cristina Russo: <unk> now represents $3 41 per share.

Ana Cristina Russo: And the progress in the year, we expect our management fee revenues to be supported by ongoing earnings inflows across the platform, particularly in credit driven by inflows in performing funds.

Ana Cristina Russo: One way is in real estate.

Ana Cristina Russo: One in the infrastructure side in addition to new applications.

Ana Cristina Russo: As a result, we remain confident in reaching our $170 million FRE goal for this year, absolutely in margin between 56 and 58%.

Ana Cristina Russo: This slightly lower margin reflects the nature of our newly acquired and pending acquisitions. We expect FRE growth to be back and robust towards the second half of 2024 due to the combination of organic growth and the timing of the closing of our acquisition. I will now turn back to Alex for closing remarks. Thank you, Ana.

Ana Cristina Russo: This is slightly lower margin reflects the nature of our newly acquired pending acquisition, we expect FRE growth to be back end loaded towards the second half of 2024. This is a combination of organic growth and the timing of the closing of our acquisition I will now turn back to Alex for closing remarks.

Alexandre Teixeira de Assumpo Saigh: One last thing before we start the Q&A. In light of our great 1Q24 results, multiple organic growth initiatives, the closing of our acquisition of the private equity solutions business from Aberdeen, and the good progression towards the closing of the CSHG real estate deal, I am even more confident we will reach both our financial and AUM targets. We are comfortable with getting our fee-related earnings to at least $170 million this year, on the way to more than $200 million in 2025, as we embark on our next chapter of growth.

Alex: Thank you Anna one last thing before we start the Q&A.

Alexandre Teixeira de Assumpo Saigh: In light of our grades <unk> 24 results multiple organic growth initiatives. The closing of our acquisition of the private equity solutions business from Aberdeen.

Alexandre Teixeira de Assumpo Saigh: And a good progression towards the closing of the <unk> real estate deal.

Alexandre Teixeira de Assumpo Saigh: I am even more confident we will reach both our financial and AUM targets.

Alexandre Teixeira de Assumpo Saigh: We are comfortable in getting our fee related earnings to at least a $170 million this year.

Alexandre Teixeira de Assumpo Saigh: All the way through more than $200 million in 2025.

Alexandre Teixeira de Assumpo Saigh: As we embark on our next chapter of growth.

Alexandre Teixeira de Assumpo Saigh: We look forward to sharing more details with you at our next PAX Investor Day, expected later this year. We thank you for your time and are happy to take your questions. Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Alexandre Teixeira de Assumpo Saigh: We look forward to sharing more details with you at our next packs Investor day expected for later this year.

Alexandre Teixeira de Assumpo Saigh: We thank you for your time and are happy to take your questions.

Alexandre Teixeira de Assumpo Saigh: Thank you as a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press Star One line again, please standby while we compile the.

Operator: To withdraw your question, please press star 1, 1 again. Please stand by while we compile the Q&A roster. Your first question comes from the line of Craig of Bank of America. Craig, please go ahead.

Operator: Q&A roster.

Craig: Your first question comes from the.

Craig: The line of Craig of Bank of America, Greg. Please go ahead.

Craig William Siegenthaler: Hey, good morning. It's Craig Siegenthaler from Bank of America. Alexandre, Marco, I hope you're both doing well. Hi, Craig. How are you?

Craig: Hey, good morning, its Craig Siegenthaler from Bank of America, Sean here, Mark I hope, you're both doing well.

Alexandre Teixeira de Assumpo Saigh: Thanks for participating. We're all well here. Thanks a lot.

Craig William Siegenthaler: Hi, Craig how are you. Thank you and thanks for participating well, we're well here. Thanks, a lot opioids.

Alexandre Teixeira de Assumpo Saigh: We're doing good. So our first question is about fundraising. You raised $1.1 billion in the quarter. You're on the way to the $5 billion target this year. Based on recent client conversations and Marketing Schedules, how do you expect the remaining roughly $4 billion to come in during the year? And should we expect lumpy flows in certain quarters when you have a larger close with Private Equity 7 and Infrastructure 5, when those close? Hi Greg, how are you?

Craig: Opioids were doing good. So our first question is on fundraising you raised $1 1 billion on the quarter you are on the way to the $5 billion target this year.

Alexandre Teixeira de Assumpo Saigh: Based on recent client conversations.

Alexandre Teixeira de Assumpo Saigh: I think I would divide the four billion equally between the next three quarters. Our history shows that the third and fourth quarters are a little hotter; we raise a little bit more money. I think that's basically, human nature; I think it gets to the second semester, everybody has a driver that and goals to meet. And so, and we also, our sales team also has goals to meet. So they actually push a little harder.

Alexandre Teixeira de Assumpo Saigh: And marketing schedules, how do you expect the remaining roughly $4 billion to come in during the year and should we expect lumpy flows certain quarters. When you have a larger closed with private equity seven and infrastructure five windows get announced.

Speaker Change: Hi, Greg how are you.

Alexandre Teixeira de Assumpo Saigh: Sure.

Alexandre Teixeira de Assumpo Saigh: I think I would I would divide the 4 billion equally between the next three quarters.

Alexandre Teixeira de Assumpo Saigh: Our history shows that the third and fourth quarter are a little hotter, we raised a little bit more money.

Alexandre Teixeira de Assumpo Saigh: Yes.

Alexandre Teixeira de Assumpo Saigh: Basically human nature of things you get to the second semester everybody has.

Alexandre Teixeira de Assumpo Saigh: Drives that and goals to meet and sold and we also are salespeople. So hospitals meet so they actually pushed a little a little harder, but in the first quarter is normally a little slower because people come back from end of the year vacation or whatever so that that has been our tradition.

Alexandre Teixeira de Assumpo Saigh: But, and the first quarter is normally a little slower because people come back from, you know, the end of the year vacation or whatever. So that, that has been our tradition for the last 20 years, to be honest. So I think it's going to be more or less the same pattern this year. Over the last 12 months, we've raised 5.1. So, this quarter until the second quarter of 2023, and I think we're going to maintain the same pace.

Alexandre Teixeira de Assumpo Saigh: And for the last 20 years to be honest, so I think it's going to be more or less the same pattern. This year.

Alexandre Teixeira de Assumpo Saigh: Over the last 12 months, we've raised $5 one.

Alexandre Teixeira de Assumpo Saigh: Billions so.

Alexandre Teixeira de Assumpo Saigh: This quarter until the second quarter of 'twenty, three and I think we're going to maintain the safe peso again, I will divide the $4 billion.

Alexandre Teixeira de Assumpo Saigh: So, again, I will divide the $4 billion equally. We have these chunky, as you mentioned, fundraising for infrastructure, Fund 5, and private equity, Fund 7, but I think they're going to be evenly distributed as we see our, as you said, our scheduled road shows, and people that are very, very advanced in due diligence going to credit, to their investment committees, et cetera. We definitely see things moving more or less equally over the next three quarters, correct? Alexandre, thank you.

Alexandre Teixeira de Assumpo Saigh: Equally we have these chunky as you mentioned fundraising for infrastructure from silent buyback different seven, but I think theyre going to be.

Alexandre Teixeira de Assumpo Saigh: Evenly distributed as we see our as you said our schedule of Roadshows.

Alexandre Teixeira de Assumpo Saigh: People are very very advanced in the due diligence going through credit to their investment committees et cetera.

Alexandre Teixeira de Assumpo Saigh: Definitely see things moving more or less.

Alexandre: Fully over the next three quarters Thats correct.

Craig William Siegenthaler: Just for my follow-up, you guys have been very active on the M&A front, arguably more active than I think anyone predicted two years ago, and you're clearly consolidating the private markets industry in LATAM. But I wanted to get an update on how your objectives have evolved and what you think about dry powder given cash, debt capacity, and the stock currency. No, okay. Thank you. Yes, I definitely think we, I think we, uh, we managed, and we are trying hard to. Are you guys there? Can you hear me?

Alexandre: Our xiaomi thank you.

Speaker Change: Just for my follow up I mean, you guys have been very active on the M&A front arguably more active than I think anyone predicted two years ago.

Craig William Siegenthaler: And you're clearly consolidating the private markets industry.

Craig William Siegenthaler: And let Tom I wanted to get an update on how your objectives have evolved and how you think about dry powder, given cash debt capacity and the stock guarantee today.

Speaker Change: Okay. Thank you, yes, I think definitely we I think we we manage and we are trying hard surface.

Craig William Siegenthaler: Rich.

Speaker Change: Are you guys there.

Speaker Change: And here I can hear you well I just said I just sort of sound like the line has gone down.

Alexandre Teixeira de Assumpo Saigh: Yeah, I can hear you. Ah, wow. I just heard a sound. I thought that the line had gone down. So, going back here and repeating myself for one second. Yes, we have been managing to consolidate the market in LATAM. I think this is very, very important.

Speaker Change: So going back to UN repeating myself for one second.

Alexandre Teixeira de Assumpo Saigh: Yes, we have been managing to consolidate the market in Latam I think this is very very important as you know.

Alexandre Teixeira de Assumpo Saigh: As you know, most of our clients are global institutional clients and local institutional clients, and they want to have a smaller number of relationships globally and locally. So we would like to be that one relationship in LATAM, one or two relationships in LATAM. And we want to offer these clients not only one product of one asset class but several products of one asset class and products of several other asset classes as well, as you saw in our diversification.

Speaker Change: Most of our clients, our global institutional clients and local institutional clients. So they want to have a smaller number of relationships globally and locally so.

Alexandre Teixeira de Assumpo Saigh: We would like to be dot one relationship in some one or two relationships in Latam and we want to offer these clients not only want products of one asset class with several products of one asset class in products of several other asset classes as well as you saw our diversification.

Alexandre Teixeira de Assumpo Saigh: I think we are very well placed with what we have already acquired, putting us in a very good position to continue expanding organically. And most of what we did for the earnings, fee-related earnings increase over the last four quarters was organically driven, given that we did not close any major acquisitions last year. We signed, but we did not close.

Alexandre Teixeira de Assumpo Saigh: I think we're very well placed with what we already acquired.

Alexandre Teixeira de Assumpo Saigh: Putting us in a very good position to continue expanding.

Alexandre Teixeira de Assumpo Saigh: Organically and most of what we did over this earth.

Alexandre Teixeira de Assumpo Saigh: Earnings fee related earnings increased over the last.

Alexandre Teixeira de Assumpo Saigh: Four quarters were organically.

Alexandre Teixeira de Assumpo Saigh: Organically driven given that we do not close.

Alexandre Teixeira de Assumpo Saigh: And we closed the Aberdeen Global Private Market Solution business acquisition in April, so it was not included in the quarter of 2024. So with that, I think we are very well placed. We might do other minor acquisitions but not major ones. The only market still pending for us to go into is Mexico. Within that time, we do, of course, sell our products to Mexican institutional investors, but we don't have an asset management business there with local products in Mexico as we now have in Colombia, Chile, and Brazil.

Alexandre Teixeira de Assumpo Saigh: A major acquisitions last year, we signed but we do not close and we closed the Aberdeen.

Alexandre Teixeira de Assumpo Saigh: Global private market solution business acquisition in April so it did not it was not included with quarter of 'twenty four.

Alexandre Teixeira de Assumpo Saigh: So with that.

Alexandre Teixeira de Assumpo Saigh: We are very well placed we might do other.

Alexandre Teixeira de Assumpo Saigh: Minor acquisitions, but not major.

Alexandre Teixeira de Assumpo Saigh: The market is still pending for us to come in to go into is Mexico within Latam will do of course sell our products through Mexico institutional investors, but we do have an asset management business there with local products in Mexico as we now have in Colombia, Chile and Brazil.

Alexandre Teixeira de Assumpo Saigh: There, I think we're looking to get into that market and try to find the right way and the right asset class. As we mentioned in previous calls, I think real estate is one that actually does favor our entrance there because, in Mexico, they have a reasonably sizable market of real estate investment trusts, around the $50 billion real estate investment trust market. So that would be the move, but nothing as major, I think, as the Credit Suisse real estate business or the Arberdeen Global Private Market Solutions business.

Alexandre Teixeira de Assumpo Saigh: They are I think we're looking to do it together to get into that market and trying to find the right way and the right asset class as we mentioned in previous calls that the real estate.

Alexandre Teixeira de Assumpo Saigh: Is one that's actually.

Alexandre Teixeira de Assumpo Saigh: Does favor our entrance there because they have in Mexico. They have a reasonably sizeable market of real estate investment trust around 50 billion Reals.

Alexandre Teixeira de Assumpo Saigh: Real estate investment Trust market.

Alexandre Teixeira de Assumpo Saigh: <unk>.

Alexandre Teixeira de Assumpo Saigh: That would be the move but nothing nothing as major.

Alexandre Teixeira de Assumpo Saigh: I think as the credit Suisse, our real estate business or <unk>.

Alexandre Teixeira de Assumpo Saigh: Dr. Bradeen are global private market solutions business correct.

Alexandre Teixeira de Assumpo Saigh: As far as dilution of shares, I think Ana came to, during her call, tried to give you guys, all of us, fee-related earnings per share. And we did end 2023 with a fee-related earnings per share of 99 cents of a dollar. And I think we talked personally, Greg, about that.

Alexandre Teixeira de Assumpo Saigh: As far as dilution of shares I think on a king.

Alexandre Teixeira de Assumpo Saigh: Joining her at coal I think she tried to give you guys and all of us.

Alexandre Teixeira de Assumpo Saigh: <unk> related earnings per share.

Alexandre Teixeira de Assumpo Saigh: And we did in 2023 with our fee related earnings per share of 99 cents of one dollar and I think we've talked to firstly, Greg about that in the future even USA what it would be great. If you guys gave a fee related earnings per share for that of course would include not only the fee related earnings in absolute dollar amounts.

Alexandre Teixeira de Assumpo Saigh: And I think even you say, look, it would be great if you guys gave a fee-related earnings per share. But that, of course, would include not only the fee-related earnings in absolute dollar amounts but also your guys' projections of share issuance. And so the fee-related earnings per share combines those two numbers.

Alexandre Teixeira de Assumpo Saigh: Also your guys projections of shares issuance in Saudi.

Alexandre Teixeira de Assumpo Saigh: Fee related earnings per share combined those two numbers. So 24, we expect the.

Alexandre Teixeira de Assumpo Saigh: So 24, we're expecting 108 to 112, so an increase over the 99 cents, which is the 170 million divided by the number of shares that we expect to have by the end of the year because we're going to issue some shares to do acquisitions between now and the end of the year to pay for the acquisitions that we already did between now and the end of the year. So that's approximately three, four million shares. You add to the number of shares that we have today in the base. Then you give, and now you use the 170 million dollar number. It gives 108 to 112.

Alexandre Teixeira de Assumpo Saigh: 108 to 112, so an increase over the 99.

Alexandre Teixeira de Assumpo Saigh: Which is the 170 million divided by.

Alexandre Teixeira de Assumpo Saigh: The number of shares.

Alexandre Teixeira de Assumpo Saigh: We expect to have by the end of the year, because we have the issues of shares to do acquisitions between now to pay the acquisitions that we already did between now and the end of the year.

Alexandre Teixeira de Assumpo Saigh: So that's approximately three 4 million shares you add to the number of shares that we have today the base.

Alexandre Teixeira de Assumpo Saigh: And then you know you use a what $70 million number it gives way to 112.

Alexandre Teixeira de Assumpo Saigh: As you know.

Alexandre Teixeira de Assumpo Saigh: Uh huh.

Alexandre Teixeira de Assumpo Saigh: This year, we are managing actually to close on the acquisitions earlier than.

Alexandre Teixeira de Assumpo Saigh: As you know, this year, we are managing to close on the acquisitions earlier than we expect. So we see that the probability of us reaching the $170 million number is increasing as we go along the year.

Alexandre Teixeira de Assumpo Saigh: And then we expect so we see that the probability of us reaching the $170 million number is increasing as we work along with the year over year and I will give you more news in the second quarters issued in the second quarter, we do actually have.

Alexandre Teixeira de Assumpo Saigh: And I'll give you more news in the second quarter. If in the second quarter, we do actually have the credit sales real estate funds transferred to us, I think that probability will increase even more. And we get very, you know, that's why I'm saying here that now I'm saying that at least $170 million of fee-related earnings this year, not the target. I'm saying at least, because of everything that I said.

Alexandre Teixeira de Assumpo Saigh: The crisis real estate funds transfer to us I think therefore that you will increase even more and we get there is notes that's why I'm, saying here that now it seems that at least $170 million of fewer days authorities. This year not a target I'm seeing at least because of everything that I said, when we look into 'twenty five and what do I use.

Alexandre Teixeira de Assumpo Saigh: When we look into 25, and what do I use, what will I like to use a fee-related earnings per share in 25? Because we are issuing the shares to pay for the acquisitions. And it's very important that we pay with acquisitions, because then we retain those very good managers because these shares that these managers receive, the managers that are selling their businesses, have a long lock-up of five years. So I need to use that.

Alexandre Teixeira de Assumpo Saigh: Well I like to use a fee related earnings were <unk> 25, because we are issuing the shares to pay for the acquisitions.

Alexandre Teixeira de Assumpo Saigh: It's very important that we do pay with acquisitions could then we retain those very good managers, though because these shares that these managers receive.

Alexandre Teixeira de Assumpo Saigh: The advantage of our selling their businesses.

Alexandre Teixeira de Assumpo Saigh: Longer lockup of five years, so I need to use that I could use more cash, but it's also very strategic for us for us to use the shares but we have to issue the shares give those shares to those people and then the results don't come in day, one, but the shares dilution coming day, one so when I look into 2025, when I have the full benefits of.

Alexandre Teixeira de Assumpo Saigh: I could use more cash, but it's also very strategic for us to use the shares. But we have to issue the shares, give the shares to those people, and then the results don't come on day one, but the share dilution comes on day one. So when I look into 2025, when I have the full benefits of the whole year, of the results of these businesses that we bought in our P&L, running through our P&L, and the $225 million of FRE guidance, and again, the chances that we're going to hit are becoming higher and higher as we close these acquisitions, is $1.25 to $1.40 per share, FRE per share.

Alexandre Teixeira de Assumpo Saigh: The whole year of the results of these businesses that we bought in our P&L running through our P&L.

Alexandre Teixeira de Assumpo Saigh: The 200 225.

Alexandre Teixeira de Assumpo Saigh: FRE guidance and again, the chances that we're going to hit there are becoming higher and higher as we close these acquisitions is $1 25 to $1 40.

Alexandre Teixeira de Assumpo Saigh: Per share FRE per share.

Alexandre Teixeira de Assumpo Saigh: So when we compare the 99 cents of FRE per share in 2023 and $1.25 to $1.40, we can see a 30, 40% increase over two years or whatever, a 15, 20% increase per year on a compounded basis.

Alexandre Teixeira de Assumpo Saigh: So when we compare the 99 of <unk> per share in 2023, and $1 25 to $1 40.

Alexandre Teixeira de Assumpo Saigh: If we could see a 30% 40% increase over two years or whatever 50, 20% increase.

Alexandre Teixeira de Assumpo Saigh: The increase per year on a compounded basis.

Alexandre Teixeira de Assumpo Saigh: And I'm saying here that at least we're gonna do these numbers because of everything that we've been able to do. So it is, I think that hopefully, by giving an FRE per share target as well, will help you guys, everybody to see our expectation of share dilutions. Alexandre, thank you.

Alexandre Teixeira de Assumpo Saigh: Uh huh.

Alexandre Teixeira de Assumpo Saigh: I am saying here that at.

Alexandre Teixeira de Assumpo Saigh: At least we're going to do these numbers because of their fingers.

Alexandre Teixeira de Assumpo Saigh: <unk> been able to do.

Alexandre: So it is.

Alexandre Teixeira de Assumpo Saigh: I think thats, a hopefully by giving you the FRE per share.

Alexandre: And I did as well we will help you guys everybody to see our expectation of share dilutions that's correct.

Speaker Change: Alexandra. Thank you. Thank you.

Operator: One moment for your next question. The next question comes from the line of William from Actiao, BBA. William, please go ahead. Good morning, everyone.

Speaker Change: One moment for your next question.

Operator: Yeah.

Operator: Okay.

Operator: The next question comes from the line of William from <unk> BBA.

William: Please go ahead.

William Barranjard: Thank you for the call and taking my question. So I would just like to confirm some information about the two recently announced MNAs. Regarding the average one, I have a question.

William: Good morning, everyone. Thank you for the call and taking my question.

William Barranjard: Just wanted to confirm some information about the two recently announced in the nation.

William Barranjard: Regarding the averaging one.

William Barranjard: I have a question two when should we expect.

William Barranjard: When should we expect it to show up in your FRA numbers? So can I consider the last two months of the second quarter of this year already, or will there be any deferment to the numbers? And just confirming on the CS real estate acquisition uh if I can only expect to see FRE improvements regarding this one in 2025. William, thank you very much for your question. This is Alex again here.

William Barranjard: Each of showing our FRE numbers. So can I considered already that Q last months months of the second quarter of this year or will it be.

William Barranjard: Will there be any difference to the numbers.

William Barranjard: And just confirming on the SaaS real estate acquisition.

William Barranjard: If I can only expect to CFR.

Alex: <unk> regarding this one in 2025.

William Barranjard: William Thank you very much for your question. This is Alex again here.

William Barranjard: <unk>.

Alexandre Teixeira de Assumpo Saigh: Yes, for the May and June question on the Aberdeen numbers, we did close this last Monday, the 28th of April. So as of the 1st of May, we will then incorporate those numbers in our P&L. They're gonna run through our P&L. And yes, as you know, the Aberdeen business has a positive FRE. I don't want to be redundant with you, but just going over to refreshen our minds here. It's an $8 billion fee-paying AUM business if we consider that it has around 30. 35, uh, uh, basis, uh, of, uh, No, you want to go ahead. What did you say?

Alex: Yes for the May and June.

Speaker Change: <unk> on the Aberdeen.

Alexandre Teixeira de Assumpo Saigh: The numbers, we did close this last Monday the 28th.

Alexandre Teixeira de Assumpo Saigh: April.

Alexandre Teixeira de Assumpo Saigh: So as of first of May.

Speaker Change: We will then.

Alexandre Teixeira de Assumpo Saigh: Incorporate those numbers in our P&L theyre going to run through our P&L and yes as you know the operating business has a positive.

Alexandre Teixeira de Assumpo Saigh: FRE.

Alexandre Teixeira de Assumpo Saigh: Remembering that we mentioned that.

Alexandre Teixeira de Assumpo Saigh: Just going over there whether it be redundant with you, but just going over to refresh our minds here some $8 billion fee AUM.

Alexandre Teixeira de Assumpo Saigh: Business.

Alexandre Teixeira de Assumpo Saigh: If we consider that it has around 30%.

Alexandre Teixeira de Assumpo Saigh: 35.

Alexandre Teixeira de Assumpo Saigh: There is a basis.

Alexandre Teixeira de Assumpo Saigh: Yes.

Marco Nicola DIppolito: Mark is here with us, and I think he can continue here. So, 30 to 40 basis points, 8 billion of fee-paying AOM that gives you a guidance for the fee-paid AOM accretion, with 30%, this is in a 30% margin. So we have approximately, you know, we're still looking to a two-year impact of about 11 million. That's what we're talking about.

Alexandre Teixeira de Assumpo Saigh: No.

Speaker Change: Go ahead, Matt wanted to save money.

Marco Nicola DIppolito: As far as what Mark is here with us.

Mark: I think he can continue here.

Marco Nicola DIppolito: Turning to the <unk> 30.

Marco Nicola DIppolito: <unk> 30 to 40.

Marco Nicola DIppolito: Basis points 8 billion.

Marco Nicola DIppolito: Our fee paying AUM that gives you a guidance of the fee paid AUM accretion.

Marco Nicola DIppolito: <unk>.

Marco Nicola DIppolito: With the 30%.

Marco Nicola DIppolito: 30% margin. So we have approximately <unk> will consider a full year impact of that $11 million.

Marco Nicola DIppolito: Let me talk about industry basically looking to a per quarter basis near Socgen bottleneck of $5 5 million approximately.

Marco Nicola DIppolito: And if we basically look at it on a quarterly basis, we are talking about 5.5 million approximately of FRE in terms of quarterly base. But as Alex mentioned, it's two months that we're gonna consider as of May, which is gonna be already accounted for in our report. And then for your second question, I think conservatively we are expecting fee-related earnings from the Credit Suisse real estate business as of 2025 or the end of 2024, which basically is significant for 2025 onward, so conservatively, that's what I suggest you use, William.

Marco Nicola DIppolito: In terms of quarter base, but as Alex mentioned it.

Marco Nicola DIppolito: Two months that we can consider.

Marco Nicola DIppolito: Which is going to be already accounted in our results.

Speaker Change: And therefore your second question.

Marco Nicola DIppolito: I think conservatively we are expecting.

Marco Nicola DIppolito: Fee related earnings from credit.

Marco Nicola DIppolito: Credit Suisse real estate business is off 25 or end of 'twenty, four which basically insignificant for 'twenty five onwards. So.

Speaker Change: <unk> is that right.

Marco Nicola DIppolito: That's what I suggest to use William.

Marco Nicola DIppolito: We are in the middle of the process of... transferring the funds from the Credit System Administration to our administration. As you know, we have to do these shareholder meetings, and we are now going through the process. The process is going fine.

Marco Nicola DIppolito: We are in the middle.

Marco Nicola DIppolito: All of the process of.

Marco Nicola DIppolito: Transferring the funds from the credit Suisse Administration, two hour administration as you know we have to do the shareholders' meeting.

Marco Nicola DIppolito: And we are now going through the process. The process is going fine. We got overview of course, the older completions versus where we are in place.

Alexandre Teixeira de Assumpo Saigh: We got all of the, of course, all the completion precedents were in place. So we started this shareholders' agreements process, and everything is again moving okay, but it's very hard to say where we're gonna land. So, conservatively, I would say 2025.

Alexandre Teixeira de Assumpo Saigh: So we started these our shareholders' agreements.

Alexandre Teixeira de Assumpo Saigh: Process and everything again is moving okay, but it's very hard to say, where we're going to land.

Alexandre Teixeira de Assumpo Saigh: So conservatively I would say 2025, I'll keep you guys.

Alexandre Teixeira de Assumpo Saigh: I'll keep you guys updated on that as we move along the quarter, but I would start with 2025 as a baseline. Okay, very clear. Thank you, Alex, Marco, and Ana.

Alexandre Teixeira de Assumpo Saigh: Updated on that.

Alexandre Teixeira de Assumpo Saigh: As we move along the quarter, but I.

Alexandre Teixeira de Assumpo Saigh: I will start with 2025 as a baseline.

Speaker Change: Okay very clear thank you I'll ask Mark <unk>. Thank you.

William Barranjard: Thank you. One moment for your next question. Your next question comes from the line of Beatriz from Goldman Sachs. Beatriz, please go ahead.

Speaker Change: One moment for your next question.

William Barranjard: Yeah.

Beatriz: Your next question comes from the line of BHF from Goldman Sachs BHF. Please go ahead.

Beatriz Bomfim de Abreu: Hi everyone, good morning. Thank you for the call. So my question is on expenses. We saw an increase in both personnel and GNA expenses this quarter. If you could give us a little bit more color on what happened there and what we should expect as a normalized level going forward. And maybe, as a second question, you should be reflecting Aberdeen's acquisition in the last... to Q now that it's closed, and that certainly should add more variables to the equation. But what are you expecting? Hi, good morning, this is Ana.

Beatriz: Hi, everyone. Good morning. Thank you for the call. So my question is on expenses.

Ana: So we saw an increase in both personnel and G&A expenses. This quarter, if you could give us a little bit more color on what happened there and if we should expect of us.

Ana: A normalized level going forward.

Ana: And maybe as a second question.

Ana: You should.

Ana: Collecting Aberdeen acquisition in the last two months of this quarter Q now that it's closed.

Ana: And that certainly should add more variables to be equation, but what are you expecting in terms of FRE margin going forward.

Ana: Thank you.

Beatriz Bomfim de Abreu: Yes.

Ana Cristina Russo: So I just want to refer as well to our deck just so we are clear with the numbers we are looking at. So our personal expense line goes from Q1 2023 of 16.8 to 16 million, and our DNA has an increase of from 7.6 to 8.8.

Beatriz Bomfim de Abreu: Okay.

Beatriz Bomfim de Abreu: Good morning. This is Andrew so I just want to restore as well to our deck. Just so we're clear within arrhythmia looking at so our personnel expense line goes from Q1, 2023, a 16, 8% to $60 million.

Ana: And our G&A has an increase from.

Ana: Seven 6% to $8 eight so when you are looking to overall there is a slight increase for overall, let me talk about operating expenses.

Ana Cristina Russo: So when we look at the overall picture, there is a slight increase of 0.4 overall when we talk about operating expenses. But in terms of personnel, personnel expenses, there is a positive impact or, likely, almost as we mentioned out that these could be able to proxy for the next for the next quarter. As we mentioned last quarter, 16 million includes our equity compensation program is likely, and also there is, you know, as we progress in our business, some outsourcing of personal expenses to the GNA.

Ana Cristina Russo: But in terms of personnel.

Ana Cristina Russo: Personnel expenses, there is a positive impact or likely our SME lending mentioned our debt.

Ana Cristina Russo: It could be a proxy for the next.

Ana Cristina Russo: For the next quarter as we mentioned last quarter $16 million includes our equity compensation program is likely and also daily.

Ana Cristina Russo: Also, our GNA includes, as we mentioned this quarter, more investment in the measles; we have higher marketing and commercial activities, which is reflected in GNA. This is sometimes when we look at the year as seasonal, because there are some quarters that are, you know, we have more activities than others, so you can see that there are related expenses. And on top of that, this quarter, we have fully accounted for expenses compared to the first quarter 2023 of Bancolombia, which impacts both revenue and the expenses line. So this also includes something when we talk about inorganic.

Ana Cristina Russo: As we progressed in our business from outsourcing from personal expenses to G&A.

Ana Cristina Russo: Our G&A includes as we mentioned.

Ana Cristina Russo: This quarter more investment on the reason that we have a higher marketing and commercial activities, which are reflected in G&A. This is suddenly looking through the year is seasonal because there are some quarters.

Ana Cristina Russo: We have more activities in Illinois, but you can see that our.

Ana Cristina Russo: We later.

Ana Cristina Russo: On top of that this quarter. We have we are accounted for extremely expensive compared to the first quarter 2023 of non Colombia, which impact both revenue and expenses line as well. So this also includes some when we talk about inorganic.

Ana Cristina Russo: Okay.

Ana Cristina Russo:

Ana Cristina Russo: I think the second question was on the FRE margin. If we look into it, so what we mentioned during the, actually, in my speech, that we think that the margin could be between 56 and 58% for the year, that mostly accounts for the nature of the new business we are including and acquiring, which has a lower FRE margin than our current business. That's the reason we also, when I mentioned about going forward, we think that there is a consolidation phase, and in the future, this margin should actually Yeah, what has happened over the last years, Beatriz, and this is Alex here, and again, thanks for your question. Thanks for participating.

Ana Cristina Russo: I think the second question was on the FRE margin.

Speaker Change: If youre looking to sell what we mentioned during the.

Alex: Actually on the pitch that we think that the margin could be.

Ana Cristina Russo: 3% to 6% and 68% for the year that mostly the accounting for the nature of the new business we are.

Alex: Including than we are.

Ana Cristina Russo: <unk>, which has a lower margin.

Alex: Our current business. That's the reason we also when I mentioned about going forward.

Alex: We think that there is a consolidation phase.

Ana Cristina Russo: What this means in the future these margins should actually progressively going up but for this year, we think about between 650 acres.

Ana Cristina Russo: Yeah, what has happened over the last years directories and this is Alex here and again, thanks for your question and thanks for participating.

Alexandre Teixeira de Assumpo Saigh: We had, as when we went public, a margin of around 60% or 60.961. And then as we did the Moneda acquisition, the margins came down to around 55 or 56. And then we did, of course, run after the synergies; margins went back up to close to 60. And then we did other acquisitions; margins came down a little bit. And then last year, the margins were around 61%. Again, as you may recall, we did not close on any acquisitions last year.

Alexandre Teixeira de Assumpo Saigh: We had as when we when we went public a margin of around 60% or 60 961, and then as we note that did the <unk> acquisition the margins came down to around $55 56.

Alexandre Teixeira de Assumpo Saigh: And then we did of course run after the synergies margins went back up.

Alexandre Teixeira de Assumpo Saigh: To close to 60, and then with the other acquisitions margins came down a little bit and then last year the margins were around 61% again.

Speaker Change: As you May recall, we have not.

Alexandre Teixeira de Assumpo Saigh: So it was an era of no integration that we managed to push the margin for the whole year of 2023 back to over 60%. So this year, I think, and next year, 2025, I think it's going to be the same fashion.

Alexandre Teixeira de Assumpo Saigh: Closed on any acquisitions last year. So it was a year of integration that we managed to push the margin for the whole year of 2023 back to over 60. So this year I think in next year 2025, I think is going to be the same fashion. This.

Alexandre Teixeira de Assumpo Saigh: This year is going to be a little pressed downward, as I just mentioned, 56 to 58, because we are taking on these acquisitions. We have redundancies in the first moments, and we have a little lower margins in the first moments because, you know, the businesses that we acquired were run by these other firms that own them, Credit Suisse and Aberdeen, differently and with lower margins. And as we put them into our business and incorporate them, we gain synergy.

Alexandre Teixeira de Assumpo Saigh: This year is going to be a little stressed downwards, especially on the.

Alexandre Teixeira de Assumpo Saigh: Just mentioned, 56% to 58, because we are taking on these acquisitions, we have redundancies in the first of all listen we have a little lower margins in the first moments.

Alexandre Teixeira de Assumpo Saigh: Because the.

Alexandre Teixeira de Assumpo Saigh: The businesses that we acquired were run by these other firms.

Alexandre Teixeira de Assumpo Saigh: All of them credit Suisse in Aberdeen.

Alexandre Teixeira de Assumpo Saigh: A differently.

Alexandre Teixeira de Assumpo Saigh: We had lower margins.

Alexandre Teixeira de Assumpo Saigh: As we put them into our business and incorporates.

Alexandre Teixeira de Assumpo Saigh: So I definitely see that we're going to go back to the 60% margins as we look into 2025 onwards. But this year, specifically because of these two acquisitions, margins are a little bit compressed downwards. But we already identified this as, to be honest, this is what we do for a living in our private equity shop. We did over 300 acquisitions. We consolidated more than, I don't know how many sectors. You probably know the story there.

Alexandre Teixeira de Assumpo Saigh: We gained synergies so I definitely see that we're going to go back to the 60% margins as we look into 'twenty five onwards, but this year specifically because of these two acquisitions margins a little bit compressed downward.

Alexandre Teixeira de Assumpo Saigh: But we are already identified this as though to be honest. This is what we do for living.

Alexandre Teixeira de Assumpo Saigh: Our private equity shops.

Alexandre Teixeira de Assumpo Saigh: We did over 300 acquisitions, we've consolidated more than I don't know how many sectors.

Alexandre Teixeira de Assumpo Saigh: And so we feel very comfortable in this model of doing acquisition. And then we have integration of systems, integration of processes, integration of culture and people. And then we bring margins back up. It's something that I did as a CEO of several of our portfolio companies in the private equity, asset class, and what I'm doing now here with the same team, Marco, Ricardo, Daniel, and Ana and whatever. So we feel comfortable with this model and feel comfortable we're going to get back to the 60% margin next year and going forward. Just for the sake of clarity, this is Marco, as you build up your model.

Alexandre Teixeira de Assumpo Saigh: Probably know the story there and so we feel very comfortable in this model of doing acquisition and then we have integration systems integration of processes and duration of culture and people and then we bring margins back up is something that idea of the seal for several of our portfolio companies in private equity.

Alexandre Teixeira de Assumpo Saigh: Asset class and what I'm doing now here with the same team.

Marco: Michael cargo Danielle.

Marco: She is.

Alexandre Teixeira de Assumpo Saigh: So we feel comfortable in this with this model with this model and I feel comfortable we're going to get back to the 60% margin.

Speaker Change: Next year and going forward. Thank you.

Alexandre Teixeira de Assumpo Saigh: Just for the sake of clarity here this is Marco.

Alexandre Teixeira de Assumpo Saigh: As you build up your model and your.

Marco Nicola DIppolito: And you look at your presentation on page 13, where you have asset by asset. As Ana said, we have reclassified the assets, and now you see GPMF there with $1.9 billion. What you're going to see in the next quarter is we're going to aggregate $8 billion to that $1.9 billion, or at least $8 billion, and the average fee paying AWAM is 50 to 60.

Marco: Look through your presentation on page 13, where you have asset by asset.

Marco Nicola DIppolito: As in our food, we have request the assets and now Youll see gpm's, there with $1 9 billion.

Marco Nicola DIppolito: What youre going to see in the next quarter.

Marco Nicola DIppolito: We've got an aggregate 8 billion to debt one nine.

Marco Nicola DIppolito: Or at least 8 billion.

Marco Nicola DIppolito: And the average fee paying AUM.

Marco Nicola DIppolito: Is 50 to 60.

Marco Nicola DIppolito: And the margin is between 30 and 40. So what you're going to see, this is a 60 basis point. And the margin, the FRA margin, is between 30 and 40. Okay, so I thought it would be important to provide full clarity here as you build up your model.

Marco Nicola DIppolito: And the margin is between 30 and 40, so what youre going to see 50 to 60 basis basis points in the margin.

Marco Nicola DIppolito: <unk> margin is.

Marco Nicola DIppolito: 30 to 40, okay. So although it will be it will be important to provide full clarity here as you build up your model.

Alexandre Teixeira de Assumpo Saigh: And I think if I make my final comment here, Beatriz, I think I will no longer answer your question, but I think we'd like to add another comment here before we turn to another question. The whole idea was back then, prior to the IPO, I think, was to have other asset classes that were significant and had scale and, therefore, also had margins. So private equity was already there, and we already have a reasonable big asset class.

Marco Nicola DIppolito: And I think the final.

Marco Nicola DIppolito: Final comment here via trees, I think know long answer to your question whatsoever.

Alexandre Teixeira de Assumpo Saigh: But I think I would like to add another comments here before we turn to another question.

Alexandre Teixeira de Assumpo Saigh: The whole idea was back then prior to IPO, the IPO or if it gets to have other asset classes that full factory.

Alexandre Teixeira de Assumpo Saigh: Our significant and has the scale and therefore also has margins.

Alexandre Teixeira de Assumpo Saigh: So with a private equity was already there.

Alexandre Teixeira de Assumpo Saigh: Already have reasonable big asset class.

Alexandre Teixeira de Assumpo Saigh: At that time, it was around 45% of the 8 billion CPM, now it's around 11, so it basically doubled, more than doubled, infrastructure the same, they're sizable, and we reach a larger size and with the new Vintage Fund, Infrastructure Fund 5, even more so. Then, we built a very significant credit vertical that's around $6 billion today, and with fundraising, should end the year with around $7 billion of ePay AOM there in credit, where we have a good amount of private credit, infra-private credit, and mid-market high-yield Brazil private credit. Now, we have a dollar-denominated LATAM private credit. All of these products we launched, of course, agricultural receivables, discounts, and a private credit fund in Brazil, we launched, of course, with the intelligence of our Chilean partners.

Alexandre Teixeira de Assumpo Saigh: At that time.

Alexandre Teixeira de Assumpo Saigh: It was around 45% of the P&C AUM noise around 11, so basically doubled more than doubled.

Alexandre Teixeira de Assumpo Saigh: Infrastructure. The same there is no sizable and we reach more size.

Alexandre Teixeira de Assumpo Saigh: And with the new vintage funds.

Alexandre Teixeira de Assumpo Saigh: Infrastructure fund five even more so.

Alexandre Teixeira de Assumpo Saigh: Then we built.

Alexandre Teixeira de Assumpo Saigh: A very significant credits vertical that's around $6 billion today and with fund raising should end the year with around $7 billion of fee paying AUM there.

Alexandre Teixeira de Assumpo Saigh: Credit.

Alexandre Teixeira de Assumpo Saigh: Where we have.

Alexandre Teixeira de Assumpo Saigh: A good amount of private credit.

Alexandre Teixeira de Assumpo Saigh: For our private credit mid market high yield, Brazil private credit now we have a dollar denominated Latam private credit.

Alexandre Teixeira de Assumpo Saigh: All of these products will allow us of course, though.

Alexandre Teixeira de Assumpo Saigh: Agricultural receivables.

Alexandre Teixeira de Assumpo Saigh: Discounts private credit fund in Brazil, We launched of course with the intelligence of our Chilean partners.

Alexandre Teixeira de Assumpo Saigh: And so that's going to become $7 billion. And I see that asset class also moving ahead of $10 billion, together with private equity over $10 billion, and infrastructure over $10 billion. Then comes real estate.

Alexandre Teixeira de Assumpo Saigh: So that's going to become was $7 billion and I see that asset class OXXO movie head of 10, together with the private equity over 10 infrastructural within that comes our real estate and we did several acquisitions there will be.

Alexandre Teixeira de Assumpo Saigh: The <unk> acquisition that we did and also the credit Suisse Real estate acquisition that we did is already a $6 $7 billion asset class and I see that is also going to over time.

Alexandre Teixeira de Assumpo Saigh: We haven't even such Mexico as I mentioned earlier on this call today, the real estate investment Trust market in Mexico is a $50 billion market and I think this is very right for us to participate in that market.

Alexandre Teixeira de Assumpo Saigh: And we did several acquisitions there in the [inaudible] market. Finally, now GPMS is already starting with over $10 billion. So another so that's the asset class number five, that I see no $10 billion plus in the near future, with very, very good margins because that kind of numbers that I gave you gives scale, and we managed then to push margins back to 60%. So private equity, infrastructure, Real Estate, and GPMF.

Alexandre Teixeira de Assumpo Saigh: Finally analogy pms.

Alexandre Teixeira de Assumpo Saigh: Starting with over $10 billion.

Alexandre Teixeira de Assumpo Saigh: So another so thats asset class number five that I see now $10 billion plus in.

Alexandre Teixeira de Assumpo Saigh: The near future with very very good margins because that that kind of the numbers that I gave you a good scale and we manage then to push push margins back to the 60% so private equity infrastructure.

Alexandre Teixeira de Assumpo Saigh: Credits.

Alexandre Teixeira de Assumpo Saigh: Real estates and Pms.

Alexandre Teixeira de Assumpo Saigh: So, that's what we're trying to do, instead of having one or two asset classes that were significant for us, private equity, again, 45% of $8 billion; infrastructure was also around 45% of $8 billion at IPO. We have five asset classes that I see, $10 billion plus going forward, with very good margins and very scalable in LATAM. So, that was the whole strategy, to go into other asset classes that we have, a very large, tangible, addressable market that we can become significant in, that we can scale up, with the magic number that I gave you, $10 billion plus, and with that, margins would come up again to the 60% FRE margin.

Alexandre Teixeira de Assumpo Saigh: That's that's what we're trying to do is set up having one or two asset classes.

Alexandre Teixeira de Assumpo Saigh: Significant for.

Alexandre Teixeira de Assumpo Saigh: For us.

Alexandre Teixeira de Assumpo Saigh: Private equity again, 45% of <unk> billion.

Alexandre Teixeira de Assumpo Saigh: Infrastructure was also around 45% of the buildings.

Alexandre Teixeira de Assumpo Saigh: We have five asset classes that I see 10 billion for us going forward.

Alexandre Teixeira de Assumpo Saigh: With very good margins.

Alexandre Teixeira de Assumpo Saigh: Very scalable.

Alexandre Teixeira de Assumpo Saigh: In Latam so.

Alexandre Teixeira de Assumpo Saigh: So that was the whole strategy go into.

Alexandre Teixeira de Assumpo Saigh: There are asset classes that we have a very large tangible addressable market that we can be so significant that we could scale up.

Alexandre Teixeira de Assumpo Saigh: With a magic number that I gave you $10 billion plus on where that margin has come up again.

Alexandre Teixeira de Assumpo Saigh: So the 60% FRE margin. So that's the whole that's the vision that I think we are there, but now it's more execution I think we already half hour.

Alexandre Teixeira de Assumpo Saigh: So that's the whole vision, and I think we're there; now it's more execution. I think we already have our major asset classes acquisitions done, as I responded to Craig earlier in this call here today. Thank you, Beatriz. I'm sorry about the long answer. Thank you, Alex.

Alexandre Teixeira de Assumpo Saigh: Major asset classes acquisitions done as I responded to Greg.

Speaker Change: Earlier in this call here today. Thank you for your traditional sorry about the long answering.

Speaker Change: Thank you Alex sorry.

Speaker Change: Thank you Michael.

Alexandre Teixeira de Assumpo Saigh: Okay.

Operator: One moment for your final question. Your final question comes from the line of Ricardo from BTG Patruel. Ricardo, please go ahead. Good morning, everyone.

Speaker Change: One moment for your final question.

Operator: Yes.

Operator: Okay.

Operator: Yeah.

Operator: Okay.

Operator: Your final question comes from the line of Ricardo from BTG Pactual Ricardo. Please go ahead.

Ricardo Buchpiguel: I have a couple of questions on my side. First, we saw that during the quarter, management fee yield over the year in the WAM declined around 12 bps to 1.07% in Q1. So I wanted to understand what happened there, if it's something because of mix, if it's something because of an adjustment in a certain segment, and what a sustainable level would be assuming the Aberdeen acquisition and without just us seeing what happened, right?

Ricardo: Good morning, everyone I have a couple of questions on my side.

Ricardo Buchpiguel: We started during the quarter, our management fee yield over this year and even a declining around 12 bps to one point here of 7% to one four I wanted to understand what happened there.

Ricardo Buchpiguel: The tradeoff makes it in 17 because of a alright.

Ricardo Buchpiguel: Alright adjustment.

Ricardo Buchpiguel: Second segment.

Ricardo Buchpiguel: While a sustainable level would be.

Ricardo Buchpiguel: Assuming the Abbott acquisition and without just surprised to see.

Ricardo Buchpiguel: What happened right.

Ricardo Buchpiguel: And also, now that the acquisition is approved, I imagine that capturing all the top-line synergies should take some time, right? So I wanted to understand a little bit more about the environment in which the company is right now in terms of inflows, in terms of AUM growth, especially for this year. Thank you.

Ricardo Buchpiguel: And also another the epic acquisition is approved.

Ricardo Buchpiguel: Imagine that capturing all the topline synergies should take some time right. So I wanted to understand a little bit more on what environment.

Ricardo Buchpiguel: Companies right now in terms of inflows in terms of AUM growth.

Ricardo Buchpiguel: Especially for prices here. Thank you.

Ricardo Buchpiguel: Okay, thank you very much, Ricardo. Thanks for participating in our call. Okay, so the management fee yields..., as you saw here on page, for everybody to be on the same page, it's page 13 of the presentation. Yes, I think it's a question of mix, so answering your question, as we gave the guidance that we were going to raise around $5 billion in 2023, we raised $4.8 billion. We gave those numbers in our fourth quarter, 23 call in February, and within that $4.8 billion, we raised more real estate than we expected, more credit than we expected.

Ricardo Buchpiguel: Okay.

Speaker Change: You're very much Chicago, thanks for participating here in our call.

Ricardo Buchpiguel: Okay. So.

Ricardo Buchpiguel: The management fee yields.

Ricardo Buchpiguel: As you saw here page for everybody to be in the same pages page 13 of the presentation.

Ricardo Buchpiguel: Yes, I think it's a question of mix so answering your question.

Ricardo Buchpiguel: As you as.

Ricardo Buchpiguel: We gave the guidance that we were going to raise around $5 billion in.

Ricardo Buchpiguel: In 2023, we raised $4 eight.

Ricardo Buchpiguel: $1 billion, we gave those numbers.

Ricardo Buchpiguel: Sure.

Ricardo Buchpiguel: Fourth quarter 2003 call in February.

Ricardo Buchpiguel: The.

Ricardo Buchpiguel: And we raised.

Ricardo Buchpiguel: Within that portfolio did in more real estate than we expected.

Ricardo Buchpiguel: More credit than we expected.

Ricardo Buchpiguel: And those two asset classes, if you look here through page 13, you see that these two asset classes have a relatively lower fee than the other asset classes as compared to private equity. As we do, we raise a lot of infrastructure as well, but we have to deploy the money. For real estate and for credit, Ricardo, as we raise the money, we already start charging fees because we charge on the NAV. Most of these funds are listed funds, which in the case of the Real Estate Investment Trust, the FEEs in Brazil, as you know.

Ricardo Buchpiguel: And.

Ricardo Buchpiguel: Those two asset classes, if you look.

Ricardo Buchpiguel: Here through page eight <unk> page 13, I'm, sorry, you'll see that these two asset classes do have a relatively lower fee than the other asset classes as compared to private equity and infrastructure.

Ricardo Buchpiguel: As we do we raised a lot of infrastructure as well, but we have to deploy the one for real estate of four credits Chicago.

Ricardo Buchpiguel: As we raise the money we already start charging fees, because we charge on the.

Ricardo Buchpiguel: Most of these funds are listed funds of which in the case of the real estate investment trusts.

Ricardo Buchpiguel: CES in Brazil, as you know and credit as you raise the money.

Alexandre Teixeira de Assumpo Saigh: And in credit, as you raise the money, you already start charging fees on that amount. Infrastructure We did raise, and private equity as well, a substantial amount of money as well. But you have to invest that money to charge fees because we charge on investment. So, as we then invest the money throughout 2024, the money that was raised in 2023, then we will see the margins pick up a little bit because of that, sorry, the average effective management fee rate.

Alexandre Teixeira de Assumpo Saigh: As you already start charging seasonal debt amounts.

Alexandre Teixeira de Assumpo Saigh: Infrastructure, we did raise in private equity so a substantial amount of money as well, but you have to invest up money.

Alexandre Teixeira de Assumpo Saigh: To charge fees, because we charge on invested.

Alexandre Teixeira de Assumpo Saigh: So as we then invest the money throughout 2020 for the money that was raised in 2023, then we will see it.

Alexandre Teixeira de Assumpo Saigh: Margins.

Alexandre Teixeira de Assumpo Saigh: Pick up a little bit because of that sorry the.

Alexandre Teixeira de Assumpo Saigh: Average effective management fee rates.

Alexandre Teixeira de Assumpo Saigh: But going to your other question, which is important here, as we do the GPMS acquisition that has, as Marco mentioned a couple of minutes ago, a lower fee, where do we land with all these movements? Our view is that we're going to land 2024 with a very similar effective management fee rate that we have here today because we're going to be investing, as I mentioned, private equity and infrastructure that we raise that has a little higher fees, but we will then incorporate GPMS, which has a little lower fees.

Alexandre Teixeira de Assumpo Saigh: But going to your just your other question, which is important here as we do the <unk> acquisition to have as Michael mentioned, a couple of minutes ago.

Alexandre Teixeira de Assumpo Saigh: Lower fee, where do we land with all this now we're going to our view is that we're going to land 2024 with a very similar effective management fee rate that we have year to date, because we're going to be investing as I mentioned private equity and infrastructure that we raised that has a little higher fees, but we will do.

Alexandre Teixeira de Assumpo Saigh: So as we do our projections here, Ricardo, we're going to land 2024 with similar numbers that you saw on page 30. Okay, because these are the two events here pushing the effective management fee rates up a little bit, but the GPMS pushing the effective management fee rates a little down on the AUM growth for GPMF. We were very conservative, so we didn't project much for this year because it's a carve-out business, so we don't have a whole lot of time.

Alexandre Teixeira de Assumpo Saigh: It incorporates GPS that has a little lower fees. So as we do our projections here hiccup, but we're going to land 2024 with similar numbers that you saw here on page 13.

Alexandre Teixeira de Assumpo Saigh: Because these are the one <unk>.

Alexandre Teixeira de Assumpo Saigh: Two events, you're pushing a little bit of market share the effective.

Alexandre Teixeira de Assumpo Saigh: Effective management fee rates up with the Gms pushing the effective management fee rates.

Alexandre Teixeira de Assumpo Saigh: All the AUM growth for GPS.

Alexandre Teixeira de Assumpo Saigh: We were very conservative so we didn't project much for this year.

Alexandre Teixeira de Assumpo Saigh: Because it's a carve out business. So we know how the whole panel.

Alexandre Teixeira de Assumpo Saigh: Taking on a business that you're carving out from another business is different than buying the business by itself, because there are more complications there on the system side, on the integration side, etc. And we had, I'm congratulating Ana here and her team, a flawless execution of that.

Alexandre Teixeira de Assumpo Saigh: Taking on a business that youre carving out from another business, it's different than buying the business by itself because.

Alexandre Teixeira de Assumpo Saigh: The more complications there on the on the system side on the integration side et cetera.

Alexandre Teixeira de Assumpo Saigh: On Monday, everybody was up and working under our systems. They were already managing to collect all of their prior data. We have over 14 terabytes of information transfer from our Aberdeen to our system, blah, blah, blah, blah. So it's a great preparation. Not only do I congratulate Ana and her team, but I also thank the Aberdeen team that actually worked with us so digitally.

Speaker Change: We had the congrats.

Alexandre Teixeira de Assumpo Saigh: Congratulating you on a hero and her team a flawless.

Alexandre Teixeira de Assumpo Saigh: Execution of that Monday, everybody was up on the working under our systems.

Alexandre Teixeira de Assumpo Saigh: They were already happy hour.

Alexandre Teixeira de Assumpo Saigh: Managing to collect all of their prior data we have over 14 terabytes of information transfer from our average each of our systems level of our vessels, great preparation not only and I congratulate out on her team, but I also thank the <unk> team that actually worked with are sold digitally no really great guys.

Alexandre Teixeira de Assumpo Saigh: They were really great guys with a very positive agenda, wanting to make this thing actually go as best as possible. A very organized firm and very prepared, the firm, Aberdeen. So we didn't project much. However, as we did talk to the investors, and here it's interesting to say that one hundred percent of the investors approved the change of control. One hundred percent. It's hard to get a hundred percent in anything, right? So all of the investors were in favor and supportive.

Alexandre Teixeira de Assumpo Saigh: A very positive agenda wanting to make this thing actually do.

Alexandre Teixeira de Assumpo Saigh: Golar asbestos past.

Alexandre Teixeira de Assumpo Saigh: Very organized affirmed.

Alexandre Teixeira de Assumpo Saigh: Very prepared.

Alexandre Teixeira de Assumpo Saigh: <unk>.

Alexandre Teixeira de Assumpo Saigh: So we then project much however, as we.

Alexandre Teixeira de Assumpo Saigh: Did talk to the investors and he is interesting to say that 100% of the investors approved the change of control.

Alexandre Teixeira de Assumpo Saigh: Hundred percent nice, it's hard to get 100% in anything right. So all of these vessels were in favor and supporting we could not fund raise during that period up to this Monday Chicago, because we have not closed the deal. However of course, you are they are talking to Lps and to investors asking them.

Alexandre Teixeira de Assumpo Saigh: We could not fundraise during that period up to this Monday, Ricardo, because we had not closed the deal. However, of course, you're there talking to LPs and to investors and asking them to approve the change of control. We also asked them their appetite to support us in the near future, and we got very positive results from those conversations. So we were very pleased that not only did a hundred percent of them approve the change of control, but the feedback that we got from them was very positive.

Alexandre Teixeira de Assumpo Saigh: To approve the change of control, we also asked them their appetite.

Alexandre Teixeira de Assumpo Saigh: Four no.

Alexandre Teixeira de Assumpo Saigh: <unk> in the near future and we got very positive results from those conversations. So we were very pleased that not only the 100% of them approved the change of control, but the feedback that we got from them was very positive.

Alexandre Teixeira de Assumpo Saigh: If you guys come out to the market, we would support you, blah, blah, blah. It has to do as well with the fact that secondaries and primaries and co-invest, mainly secondaries, are a hot product at the moment, right? Credit, and real estate in Brazil, because interest rates are projected to come down, and GPMS, mainly secondaries, right? Because we are here. The secondaries, as you know, are actually giving liquidity to general partners and LPs that are willing to come out of funds, given that DPI has been slower globally. These GPs and LPs are looking for liquidity, and that's how a secondary fund comes in and provides that liquidity. So that's why it's a sought-after product, right?

Alexandre Teixeira de Assumpo Saigh: You guys come out to the market, we will support you blah blah blah. It has to do as well with the fact that the secondaries and primaries and co invest maybe secondary is a hot product at the mall right credit real estate in Brazil, because interest rates are projected to come down.

Alexandre Teixeira de Assumpo Saigh: And G Pms, mainly secondaries right because we are.

Alexandre Teixeira de Assumpo Saigh: Here the second there is as you know.

Alexandre Teixeira de Assumpo Saigh: Is it gives us actually giving liquidity two general partners.

Alexandre Teixeira de Assumpo Saigh: Lps that are willing to come out of funds given that DPI has been slower globally. These GPS Lps are looking for liquidity and Thats, how our secondary fund comes in and provides that liquidity. So thats why the sought after products right. Because this is the moment for secondaries for credit.

Alexandre Teixeira de Assumpo Saigh: Because it's the moment for secondaries, for credit, because of the high interest rates, and for real estate in Brazil, because interest rates are starting to come down, and you probably followed our real estate investment trust. We were trading at a small discount a year, a year and a half ago of 10 to 15 percent. Now they're trading at a premium, and number three, secondaries, right? So, of course, they liked the team because a hundred percent of them approved the change of control.

Alexandre Teixeira de Assumpo Saigh: Those are the high interest rates real estate in Brazil, because interest rates are coming down.

Alexandre Teixeira de Assumpo Saigh: We followed our real estate investment Trust, we're trading at a small discount a year year and a half ago, a 10% to 50% of the trading at a premium.

Alexandre Teixeira de Assumpo Saigh: And number three secondary right. So the of course, they liked the team which was a 100% of them approve the change of control of course, they said, they're going to support US which was very very good and also it has to do.

Alexandre Teixeira de Assumpo Saigh: Of course, they said they were going to support us, which was very, very good. And also, it has to do with the fact that it's a hot product under this market environment that we're living in, okay? Now, as the closing happens, we are going to be able to do official fundraising because we couldn't, we were prohibited by the regulatory authorities, and we're going to have a better view, and I'll keep you guys posted, but we were very pleased.

Alexandre Teixeira de Assumpo Saigh: With the fact that it's a hot product.

Alexandre Teixeira de Assumpo Saigh: Under this market environment that we're living okay.

Alexandre Teixeira de Assumpo Saigh: Now as the coals they happen, we are going to be able to do efficient fundraising.

Alexandre Teixeira de Assumpo Saigh: Because we couldn't we were prohibited by the regulatory authorities and we're going to have a better view and I'll keep you guys posted but we were very pleased as far as our projections are concerned again just to repeat.

Alexandre Teixeira de Assumpo Saigh: As far as our projections are concerned, again, just to repeat, we were conservative, and we did not project much fundraising for this product. So, to complement one topic here, bear in mind that most of this fee paid in AOM is paying fees over NAV, and the natural appreciation of the assets will be incorporated into the revenue of the business. That's also because the unit has been performing quite well with 20% returns on secondaries and co-investments and about 16% returns on primaries. That is a meaningful contribution to the fee income. I hope I didn't take too much.

Alexandre Teixeira de Assumpo Saigh: We were conservative and we do not project much fundraising for this product this year.

Alexandre Teixeira de Assumpo Saigh: Sure complement one topic here bear in mind that most of this fee paying AUM.

Alexandre Teixeira de Assumpo Saigh: Paying fees over <unk>.

Alexandre Teixeira de Assumpo Saigh: And the natural appreciation.

Alexandre Teixeira de Assumpo Saigh: The assets will.

Alexandre Teixeira de Assumpo Saigh: Incorporated into the revenue.

Alexandre Teixeira de Assumpo Saigh: The business scope.

Alexandre Teixeira de Assumpo Saigh: Thats also within because the unit has been performing quite well.

Alexandre Teixeira de Assumpo Saigh: With <unk>.

Alexandre Teixeira de Assumpo Saigh: 20% returns on secondaries, and co investments and about 60% returns on primaries.

Alexandre Teixeira de Assumpo Saigh: That is a meaningful contribution to the PPA neighbor.

Alexandre Teixeira de Assumpo Saigh: Yeah.

Alexandre Teixeira de Assumpo Saigh: Okay.

Alexandre Teixeira de Assumpo Saigh: I hope I got it.

Ricardo Buchpiguel: Yes, so if I may do a quick follow-up on that talk. We saw that during the cold quarter, the level of deployment in private equity and infrastructure declined a little bit. So it was like, was previously around $100 million and was around $400 million, if I'm not mistaken, in Q1. So I wanted to understand if that was something that happened only for a quarter, and we should see the pace closer to the previous quarters going forward, or we should see like a, kind of a more structured deceleration in terms of deployment.

Alexandre Teixeira de Assumpo Saigh: Okay.

Speaker Change: If I may do a quick follow up here on the topic.

Ricardo Buchpiguel: Start that during the call acquired the level of deployment private REIT private equity and infrastructure decline a little bit so.

Ricardo Buchpiguel: Like what's prevented at around $100 million and was around 400, maybe getting some other mistaken.

Ricardo Buchpiguel: So I wanted to understand.

Ricardo Buchpiguel: If that is something that dislocation that happened only for a quarter and you should see the pace.

Ricardo Buchpiguel: Or to the previous acquirers.

Ricardo Buchpiguel: Going forward or.

Ricardo Buchpiguel: We should see like a kind of a more structured deceleration in terms of deployment.

Ricardo Buchpiguel: No, it's just a coincidence that what you just described happened in this quarter. There's nothing more to it, to be honest. And I think there is, in general, you're going to see that the first quarters are a little slower. And again, don't ask me why, but I think there's a big human nature factor there.

Speaker Change: No. It's just it's just a coincidence.

Ricardo Buchpiguel: It happened.

Ricardo Buchpiguel: In this quarter, what you just described it.

Ricardo Buchpiguel: Carlo.

Ricardo Buchpiguel: There's nothing more to it to be honest.

Ricardo Buchpiguel: I think in general Youre going to see the first quarters are a little slower and again I'll ask me why but simple.

Alexandre Teixeira de Assumpo Saigh: People get close to the end of the year; they want to close the deal, they have goals to meet. Not only does the seller want to sell, the buyer wants to buy, and the advisors want to get their fees, so everybody kind of pushes in the right direction to close the deal. And then the first quarter is normally quieter, but that's more or less the path.

Ricardo Buchpiguel: The accumulator factor there.

Alexandre Teixeira de Assumpo Saigh: People get closer to the end of the year they want to close the deal.

Alexandre Teixeira de Assumpo Saigh: They have goals to meet.

Alexandre Teixeira de Assumpo Saigh: Not only the seller wants to sell the <unk> supplier.

Alexandre Teixeira de Assumpo Saigh: Biases once they get their fees, so everybody kind of pushes in the right direction to close the deal.

Alexandre Teixeira de Assumpo Saigh: Then the first quarter is normally quieter.

Alexandre Teixeira de Assumpo Saigh: That's that's more or less.

Alexandre Teixeira de Assumpo Saigh: Yes.

Alexandre Teixeira de Assumpo Saigh: Even on privatization and concession, maybe the government has the same, the same kind of human nature, a trade. They don't do much with sessions and privatizations in January and February. I think it has to do with everything that I said. So the years start picking up as of March and April.

Alexandre Teixeira de Assumpo Saigh: Even on the privatization and concessions maybe the government has to say.

Alexandre Teixeira de Assumpo Saigh: The same kind of human nature.

Alexandre Teixeira de Assumpo Saigh: They don't do much concessions and privatizations in general in February I think it has to do with everything that I said, although the year start picking up as of March April.

Alexandre Teixeira de Assumpo Saigh: It's a natural circumstance. There's nothing to report there. Besides, it's something natural; there's nothing structural going on.

Alexandre Teixeira de Assumpo Saigh: It's a natural circumstance nothing nothing to report there.

Alexandre Teixeira de Assumpo Saigh: Besides its something natural nothing nothing.

Alexandre Teixeira de Assumpo Saigh: Structural going on.

Speaker Change: But in a very very clear thank you guys.

Speaker Change: Thank you.

Ricardo Buchpiguel: Got it. Very, very clear. Thank you, guys. Yeah, thank you. As they say, Ricardo, Brazil, starts off the carnival, right?

Alexandre Teixeira de Assumpo Saigh: As they say hey cargo through Brazil starts after carnival.

Operator: This concludes the question and answer session. Sorry, Operator, I interrupted you, but I've got to go ahead, Operator. I'm sorry, thank you. That's okay.

Speaker Change: This concludes our question and answer session.

Operator: Okay.

Operator: Sorry, operator, I interrupted you with them they'll go ahead, operator I'm sorry.

Operator: This concludes the question and answer session. I would now like to turn it back to Alex Saigh for closing remarks. Well, thank you very much. I think the final message here, again, is FRE for Share. That's, I think, number one, two, and three messages here.

Speaker Change: That's okay. Sorry. This concludes the question and answer session I would now like to turn it back to Alex <unk>.

Alexandre Teixeira de Assumpo Saigh: For closing remarks.

Alexandre Teixeira de Assumpo Saigh: Well. Thank you very much I think the final message here again.

Alexandre Teixeira de Assumpo Saigh: <unk> per share Thats, I think number one to free message here growing FRE FRE per share very healthily.

Alexandre Teixeira de Assumpo Saigh: Growing FRE for Share is very helpful this year versus next. And again, the FRE for Share for this year of $108 to $112 per share compared to $0.99 last year is affected by the fact that we issue the shares, but we don't get the full benefit of the acquired assets. So, as we look into next year, 2025, when we have the full year of the acquired assets running through our P&L, and, of course, then reflecting them in our FRE, we're projecting $125 FRE for Share to $140 FRE for Share, which is the $200 to $225 million FRE numbers that I gave you guys. And I'm very confident with those numbers. But even if we look at these numbers here, the $1.40, and the $2.25 versus the $0.99.

Alexandre Teixeira de Assumpo Saigh: This this year versus a mix and again the FRE per share for this year of one <unk> to $112 per share compared to <unk> 99 last year.

Alexandre Teixeira de Assumpo Saigh: Is affected by the fact that we issue the shares where we don't get the full benefit of the of the year.

Alexandre Teixeira de Assumpo Saigh: <unk> assets.

Alexandre Teixeira de Assumpo Saigh: So as we look into next year of 2025 that we have the.

Alexandre Teixeira de Assumpo Saigh: The full year of the acquired assets are running through our P&L.

Alexandre Teixeira de Assumpo Saigh: <unk> for us.

Alexandre Teixeira de Assumpo Saigh: Reflecting that in our FRE, we go we projected a $1 25.

Alexandre Teixeira de Assumpo Saigh: For $8 per share and to 140 <unk> per share which is.

Alexandre Teixeira de Assumpo Saigh: The $200 million to $225 million FRE numbers that I gave you guys and.

Alexandre Teixeira de Assumpo Saigh: I'm very confident with those numbers, but even if we look at these numbers here the 142 25 versus the <unk> 99.

Alexandre Teixeira de Assumpo Saigh: Now we are increasing FRE per share by 40% between these two years, 2024-2025, and so we're comfortable there. We're comfortable we're going to hit the numbers. I think using FRE per share, I think answers a lot of the questions of potential dilution for acquisitions. And going back to the strategic... instruments of using shares for acquisitions. It is not a question of just capital structure.

Alexandre Teixeira de Assumpo Saigh: We are increasing FRE per share by 40% between these two years 'twenty four 'twenty five.

Alexandre Teixeira de Assumpo Saigh: And so we're comfortable there we're comfortable that we're going to hit the numbers I think using the FRE per share I think answers a lot of the questions of potential dilution for acquisitions.

Alexandre Teixeira de Assumpo Saigh: It is strategically important for us to retain the manager, the portfolio manager, to come along to these acquisitions as we do lock up these shares for five years, etc. So we have, you know, it is a very important instrument. Compensation, retention, and acquisition instruments. Even if we had all the money possible in the world on our balance sheets, I think we would still use some shares in order to retain those people, as we are a very people-driven business.

Alexandre Teixeira de Assumpo Saigh: Going back to the strategic.

Alexandre Teixeira de Assumpo Saigh: Uh huh.

Alexandre Teixeira de Assumpo Saigh: Instruments of using shares for acquisitions is not a question of just capital capital structure is strategically important for us to retain the manager of the portfolio manager that come along with these acquisitions as we do lock up the share so five years et cetera. So we havent, though it is a very.

Alexandre Teixeira de Assumpo Saigh: Important.

Alexandre Teixeira de Assumpo Saigh: Instruments compensation retention and acquisition instruments.

Alexandre Teixeira de Assumpo Saigh: Even if we had all the money possible in the world and our balance sheets I think we would still use.

Alexandre Teixeira de Assumpo Saigh: Some shares in order to retain those those people as we are a very people driven business. So thank you very much again for your time.

Alexandre Teixeira de Assumpo Saigh: So thank you very much again for your time, and I know you guys have had a very, very busy day today, so being here on our call is an honor to us because other of our peers and other companies are releasing their results. So again, thanks for your patience, thanks for your support. I hope to see you guys in person.

Alexandre Teixeira de Assumpo Saigh: And I know there was a very very busy day today. So you guys being here in our call is an honor to us because other of our peers are.

Alexandre Teixeira de Assumpo Saigh: And other companies are.

Alexandre Teixeira de Assumpo Saigh: We see the results. So again, thanks for your patience. Thanks for your support and hope to see you guys in person. Thank.

Speaker Change: Thank you bye bye.

Operator: Thank you. Bye-bye. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Thank you for watching! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Operator: [music].

Operator: Sure.

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