Q2 2025 Patria Investments Ltd Earnings Call

Operator: Good day, thank you for standing by. Welcome to the Patria Q2 2025 Earnings Conference Call. I would now like to turn the conference over to your speaker for today, Rob Lee, Head of Shareholder Relations. Please go ahead.

Good day and thank you for standing by.

Welcome to the Patra.

Second quarter, 2025 earnings conference call.

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Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today. Rob Lee head of shareholder relations. Please go ahead.

Rob Lee: Thank you. Good morning, everyone. Welcome to Patria's Q2 2025 Earnings Call. Speaking today on the call are our Chief Executive Officer, Alexandre Saigh, our Chief Financial Officer, Ana Russo, and our Chief Economist, Luiz Fernando Lopes, for the Q&A session. 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 website or on Form 6-K filed with the Securities and Exchange Commission. This call is being webcast, and a replay will be available. Before we begin, I'd like to remind everyone that today's call may include forward-looking statements which 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.

Thank you. Good morning everyone. Welcome to part 3 of the second quarter 2025 earnings call.

Speaking today in the call are our chief executive officer, Alex sides, and our Chief Financial Officer Anna Roose, and our chief Economist Luiz Fernando Lopes for the Q&A session.

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 website or on form. 6K files of the Securities and Exchange Commission. This call is being webcast and a replay will be available.

Before we begin, I'd like to remind everyone that today's call may include forward-looking statements, which are uncertain. They do not guarantee future performance, and undue reliance should not be placed on them.

Rob Lee: Such statements are based on current management expectation and involve risks, including those discussed in the Risk Factors section of our latest Form 20-F annual report. Also, note that no statements on this call constitute an offer to sell or a solicitation of an offer to purchase an interest in any Patria fund. As a foreign private issuer, Patria reports financial results using International Financial Reporting Standards, or IFRS, as opposed to US GAAP. Additionally, we would like to remind everyone that we will refer to certain non-IFRS 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 earnings presentation. Now I will turn the call over to Alex.

Patriot assumes. No obligation and does not intend to update. Any such forward-looking statements.

such statements are based on current management, expectation and involve risks, including those discussed in the risk factor section of our latest form 20th, annual report,

Also note that no statements on this call, constitute an offer to sell or a solicitation of an offer to purchase an interest in any Patria fund.

As a foreign private issuer, Parsha reports Financial results, using international financial reporting standards or IFRS as opposed to us gaap.

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 earnings presentation.

Now, I will turn the call over to Alex.

Alexandre Saigh: Thank you, Rob. Good morning, everyone. In Q2, we made continued progress leveraging and expanding the diversified platform we have built the past several years as fundraising was a solid $1.3 billion in the quarter, led by our credits, infrastructure, real estate, and GPMS, Global Private Market Solutions businesses. Total fundraising over H1 of the year reached approximately $4.5 billion, 75% of our original $6 billion target for 2025. Reflecting our strong fundraising momentum and confidence in our outlook, we now expect full-year fundraising for 2025 to be 5% to 10% higher than our initial target, or $6.3 billion to $6.6 billion versus the original $6 billion guidance. We also reported Q2 2025 fee-related earnings of $46.1 million, representing 8% sequential and 17% year-over-year growth, while Fee-Earning AUM grew 6% sequentially and 20% year-over-year. Total AUM reached $48.7 billion.

Thank you, Rob, and good morning everyone.

In the second quarter we made continued progress leveraging and expanding the Diversified platform. We have built the past several years as fundraising was a solid 1.3 billion dollars in the quarter.

Led by our credits.

Infrastructure real estate and gpms Global private Market Solutions businesses.

And total fundraising over the first half of the year reached approximately $4.5 billion.

75%.

Of our original 6 billion targets for 2025.

Reflecting our strong fundraising momentum and confidence in our Outlook.

We now expect a four-year fundraising effort for 2025.

to be 5% to 10% higher than our initial targets or

6.3 billion dollars to 6.6 billion dollars versus the original 6 billion dollars guidance.

We also reported second quarter 25 fee related earnings of 46.1 million.

Representing 8% sequential growth and 17% year-over-year growth.

While C earning AUM.

Grew 6% sequentially and 20% year over year.

And total AUM reached.

48.7 billion dollars.

Alexandre Saigh: Importantly, we generated over $600 million of organic net inflows into Fee-Earning AUM in Q2 2025, $1.3 billion over H1 this year, and $2.4 billion over the last 12 months. Year to date, net inflows reflect an annualized organic growth rate of about 8% based on Fee-Earning AUM since the start of the year. This is an important KPI to monitor over time, as it highlights our ability to drive organic revenue and earnings growth independent of M&A and investment returns. Overall, our diversification and the expansion of our investment and product capabilities is paying off in the form of robust fundraising and profitable net organic growth, enhancing our confidence in the 3-year targets we introduced at our Investor Day last December.

Importantly, we generated over 600 million dollars of organic. Net inflows into fee Ernie AUM in the second quarter of 25.

1.3 billion dollars over the first half of this year.

And 2.4 billion dollars over the last 12 months.

Year to date. Net inflows reflects an annualized, organic growth rate of about 8%.

based on fee earning AUM since the start of the year,

This is an important kpi to monitor over time. As it highlights, our ability to drive organic revenue and earnings growth, independence of m&a and investment returns.

Overall, our diversification and the expansion.

Of our investments and products capabilities is paying off in the form of robust, fundraising and profitable. Net organic growth.

Enhancing our confidence in the 3-year targets. We introduced at our investor day last December.

Alexandre Saigh: Now, let me quickly summarize our Q2 results before we move on to some of the other highlights for Q2. First, Fee-Related Earnings per share of $0.29 in Q2 2025 rose 7% sequentially and 11% year-over-year, driven by higher management fees due to higher Fee-Earning AUM, as well as a higher Fee-Related Earnings margin as we continue to focus on expense management even as we invest in our business. Overall, we remain comfortable with our 2025 Fee-Related Earnings target of $200 to $225 million, or $1.25 to $1.40 per share, reflecting at the midpoint of the range approximately 20% year-over-year growth. We generated $39 million of Distributable Earnings in Q2 2025, or $0.24 per share, up 4% sequentially and 9% year-over-year, driven by strong Fee-Related Earnings growth. We did not generate performance-related earnings in this Q2.

Now, let me quickly summarize our second quarter results before we move on to some of the other highlights for the quarter.

First.

Fee-related earnings per share of 29 cents in the second quarter of 2025 grew 7% sequentially and 11% year-over-year.

By higher management fees.

Due to higher fee, earning AUM.

As well as a higher.

Fee related. Earnings margin as we continue to focus on expense management, even as we invest in our business,

Year growth.

We generated 39 million of distributable earnings in the second quarter of 25 or 24 cents per share up 4%, sequentially and 9% year-over-year.

By strong fee related earnings growth.

We did not generate performance related earnings in this quarter.

Alexandre Saigh: The net accrued performance fee balance of $394 million, or $2.47 per share, rose approximately 7% from the Q1 of this year, mainly due to the depreciation of the dollar. For perspective and notwithstanding changes in the value of the public holdings in our carry funds, underlying business trends at our private equity portfolio companies generally remain positive. In local currency, EBITDA at our non-public private equity portfolio companies rose approximately 25% on average over the past year as we focus on resilient sectors of the economy such as agribusiness, food and beverage, and healthcare. Furthermore, Infrastructure Fund III, with $47 million of net accrued performance fees, is in full realization mode, and we continue to expect it will be the main source of realized performance-related earnings over the balance of 2025 and through 2026.

The net accured performance fee balance of 394 million or $2.47 cents per share.

Rose approximately 7% from the first quarter of this year, mainly due to the differentiation of the dollar.

For perspective and notwithstanding changes in the value of the public Holdings in our carry funds.

Underlying business trends at our private active portfolio.

Companies, generally remain positive.

In local currency, keep it up at our non-public private Equity, portfolio companies, Rose approximately 25% on average.

Over the past year as we focus on resilient sectors of the economy, such as Agri business.

Food, and beverage and Healthcare.

Furthermore.

Infrastructure. Fund 3 with 47 million of net, accured performance fees.

Is in full realization modes.

And we continue to expect, it will be the main source of realized performance related earnings.

Over the balance of 2025 and through 2026.

Alexandre Saigh: On that note, we remain confident that we can achieve our performance-related earnings targets of $120 to $140 million for Q4 2024 through 2027. Against this target, we realized $41 million of performance-related earnings in Q4 2024 and expect to realize an additional $15 to $20 million of performance-related earnings over H2 of this year. Moving on, Fee-Earning AUM of $37.2 billion rose a robust 20% year-over-year and 6% sequentially. There are several important things to keep in mind regarding our Fee-Earning AUM results. Net organic inflows in Q2 2025 were over $600 million, $1.3 billion year to date, and $2.4 billion over the past year.

On that note, we remain confident that we can achieve our performance related earnings, targets of 120 to 140 million for the 4 quarter of 24.

Through 2027.

Against this target, we realized 41 million of performance related earnings.

In the fourth quarter of 24.

And expect to realize an additional 15 to 20 million dollars of performance related earnings, over the second half of this year.

Moving on.

Earning AUM of $37 2 billion.

Rose, a robust 20% year over year and 6% sequentially.

There are several important things to keep in mind.

Guarding our fee, earning AUM results.

Net organic inflows in the second quarter of 'twenty five were over $600 million.

One $3 billion year to date and $2 $4 billion over the past year.

Alexandre Saigh: This was our 4th straight quarter of positive net organic Fee-Earning AUM growth, and our annualized organic growth rate over H1 2025 was over 8% based on Fee-Earning AUM since the start of the year. Additionally, it is very important to mention that our organic growth was helped by 34% year-over-year reduction on redemptions. We believe this highlights how our expanded platform is primed to grow organically, supported by the capabilities we have acquired through our M&A activity, in addition to those we have developed internally. As a result, we have built a better and more resilient business. Indeed, one of the key features of our business is that it's built to grow no matter the macroeconomic environment.

This was our fourth straight quarter of positive net organic fee, earning AUM growth.

And our annualized organic growth rates over the first half of 2025.

It was over 8%.

<unk> on fee, earning AUM since the start of the year.

Additionally, it is very important to mention that our organic growth was helped by 34% year over year reduction on redemptions.

We believe this highlights how our expanded platform is primed to grow organically.

Courted by the capabilities, we have acquired through our M&A activity. In addition to those we have developed internally.

As a result, we have built a better and more resilient business.

Indeed.

One of the key features of our business is that it's built to grow no matter the macro economic environments.

Alexandre Saigh: For example, in a high interest rate environment where concerns over inflation may be high, such as the current one, strategies such as credit and infrastructure investments with high yields and/or built-in inflation protections are in demand relative to equity-oriented strategies. When interest rates decline and those concerns recede, we would expect demand for more equity-oriented strategies such as equity REITs or private equity to improve. With regards to acquisitions, our ability to leverage our platform and scale to drive growth through incremental M&A is exemplified by the Brazilian REIT acquisitions we announced in Q2 2025 and closed in July.

For example.

In a high interest rate environment, where concerns over inflation may be high such.

Such as the current one.

Strategies, such as credit and infrastructure investments with high yields and or built in inflation protections are in demand.

Relative to equity oriented strategies.

When interest rates decline.

And those concerns received.

We would expect demand for more equity oriented strategies, such as equity Reits.

Private equity to improve.

With regards to acquisitions, our ability to leverage our platform and scale to drive growth through.

Through incremental M&A.

As exemplified by the Brazilian REIT acquisitions, we announced in the second quarter of 2025 and closed in July.

Alexandre Saigh: At a time when the interest rate environment in Brazil makes it difficult to raise capital in listed REITs, we were able to use our position as market leaders to go shopping on the floor of the exchange and acquire a total of seven listed REITs, which are expected to add approximately $600 million of high margin, permanent capital Fee-Earning AUM. This is an example of how M&A can be an attractive alternative to fundraising, as the prices paid for acquisitions are often similar to or even lower than what it would cost to fundraise the same amount of capital. Fee-Earning AUM in the quarter also benefited from continued strong investment returns and a positive FX impact.

At a time when the interest rates environment in Brazil makes it difficult to raise capital and listed Reits.

We were able to use our position as market leaders.

To go shopping on the floor of the exchange.

And acquire a total of seven listed Reits.

Which are expected to add approximately $600 million of high margin.

Ordinary capital fee, earning AUM.

This is an example of how M&A.

Can be an attractive alternative to fund raising as.

As the prices paid for acquisitions are often similar.

<unk> or even lower than what it would cost to fund raise the same amount of capital.

Fee, earning AUM in the quarter.

<unk> benefited from continued strong investment returns and a positive FX impact.

Alexandre Saigh: Keep in mind that, as we highlighted at Investor Day, the fee-related earnings impact from soft currency FX volatility is modest, given that most of our expenses base is denominated in local currencies, providing a substantial natural hedge. As we reviewed at our Investor Day back on 9 December, based on our current asset class mix, a 10% variance in soft currencies against the dollar impacts fee-related earnings by only 2%. Moving on to fundraising, as I noted at the start of my remarks, we are pleased to report that we raised $1.3 billion in Q2, approximately $4.5 billion over H1, and are raising our initial $6 billion target for 2025 by 5% to 10% to $6.3 billion to $6.6 billion.

Keep in mind that as we highlighted at Investor day.

The fee related earnings impact from soft currency FX volatility is modest given that most of our expense base is denominated in local currencies.

Providing a substantial natural hedge.

As we reviewed at our Investor day back on December 9th.

Based on our current asset class mix.

10% variance in soft currencies against the dollar impacts fee related earnings by only 2%.

Moving on to fundraising.

Noted at the start of my remarks.

We are pleased to report that we raised $1 $3 billion in the second quarter.

Approximately $4 $5 billion over the first half of the year.

And are raising our initial 6 billion target for 2025 by 5% to 10%.

$263 billion to $6 6 billion.

Alexandre Saigh: The quarter's strong results, coming on the heels of our record fundraising in Q1 of this year, highlights the diversified product offering and distribution capabilities of the platform we have been building. Fundraising continues to benefit from new strategies and products we have introduced over the past several years, including various institutional products targeted to local institutional investors in local currencies. As of the end of Q2 2025, approximately 20% of our Fee-Earning AUM were in permanent capital vehicles, the growth of which remains a key long-term objective. Drilling down into some of the fundraising highlights for the quarter, credit was once again a standout, led by solid flows into our flagship LatAm US dollar high yield strategy. Infrastructure benefited from another closing on our flagship development fund, Patria Infrastructure Fund V, and co-investments with demand driven by Asian and local institutional investors.

The quarters strong results coming on the heels of our record fund raising in the first quarter of this year.

Highlights the diversified product offering and distribution capabilities of the platform we have been building.

Fund raising continues to benefit from new strategies.

And products, we have introduced over the past several years, including various institutional products targeted to local institutional investors in local currencies.

As of the end of.

The second quarter of 2025.

Approximately 20% of our fee, earning AUM.

We're in permanent capital vehicles.

The growth of which remains a key long term objectives.

Drilling down into some of the fund raising highlights for the quarter.

Credit was once again, a standout led by solid flows into our flagship Latam U S dollar high yield strategy.

Infrastructure benefitted from another closing on our flagship development Fund infrastructure fund five and co investments.

With demand driven by Asian, and local institutional investors.

Alexandre Saigh: It is worth noting that over H1 2025, fundraising in infrastructure is approximately 3 times greater compared to all of 2024, led by Patria Infrastructure Fund V, which has reached $2.5 billion of commitments between the drawdown fund and fee-paying co-investment vehicles. Fundraising in credit has already reached 85% of the level achieved in 2024, which was itself a strong year. We believe these extraordinary results highlight how we are leveraging our strong investment performance in these verticals and the investments we have made in our platforms. In addition, Patria Private Equity Fund VII reached $1.4 billion inclusive of related fee-paying co-investment vehicles. It is important to keep in mind that as we expand our business, a large portion of the capital we raise will only flow into Fee-Earning AUM as capital is deployed.

It is worth noting that over the first half of 2025.

Fund raising in infrastructure is approximately three times greater compared to all of 2024.

Led by infrastructure fund five.

Which has reached $2 5 billion of commitments between the drawdown funds and fee paying co investment vehicles.

Fund raising in credits has already reached 85% of the level achieved in 2024.

Which was itself a strong year.

We believe these extraordinary results.

Highlights how we are leveraging.

Our strong investment performance in these verticals and the investments we have made in our platforms.

In addition, private equity funds seven reached one 4 billion inclusive of related fee paying co investment vehicles.

It is important to keep in mind that as we expand our business.

<unk> portion of the capital we raise.

Will only flow into fee, earning AUM.

As capital is deployed.

Alexandre Saigh: Our current pending Fee-Earning AUM totals about $3.3 billion, down modestly from the $3.5 billion in Q1 of this year due to deployment partially offset by fundraising. While the level of pending Fee-Earning AUM can vary over the short term, over time we would expect it to grow as our fundraising grows and we raise more capital in drawdown funds, SMAs, and similar fund structures. Our efforts to diversify our platform and increase the resiliency of our business could not be timelier considering the highlighted global macro uncertainty and increased volatility that has gripped economies and markets around the world since the proposed imposition of widespread tariffs by the United States on its trading partners and the uncertainty over future trade and economic policies.

Our current pending fee, earning AUM totals about three 3 billion down.

Down modestly from the $3 $5 billion in the first quarter of this year.

Due to deployment, partially offsets by fundraising.

While the level of pending fee, earning AUM can vary over the short term.

Over time, we would expect it to grow as our fund raising gross.

And we raise more capital in drawdown funds.

<unk>.

And similar fund structures.

Our efforts to diversify our platform and increase the resiliency of our business.

Could not be timelier, considering the highlighted global macro uncertainty and increased volatility that has gripped economies and markets around the world.

Since the proposed in position of widespread tariffs by the United States on its trading partners.

And the uncertainty over future trade and economic policies.

Alexandre Saigh: Against this backdrop, it is important for investors to understand and appreciate how the region in general, and Patria specifically, are positioned in these uncertain times. Consider President Trump's renewed threats to impose high tariffs on multiple trading partners, including high tariffs on imports from Brazil, which if implemented, could have some negative impact on the Brazilian economy. However, the continued uncertainty caused by these on again, off again threats, in fact highlights why LatAm and Europe are becoming more attractive destinations for global capital as investors rethink their global asset allocations. While much uncertainty remains, we believe these regions and Patria are positioned to weather and indeed possibly thrive in these challenging conditions. Consider that at the strategy or investment level, our private equity investments are mostly oriented towards domestic consumption markets, not export markets.

Against this backdrop.

It is important for investors to understand and appreciate how the region in general and factory specifically our position in these uncertain times.

Consider president Trump's renewed threats to impose high tariffs on multiple trading partners.

Include the high tariffs on imports from Brazil.

Which if implemented.

We have some negative impact on the Brazilian economy.

However.

The continued uncertainty caused by this.

On again off again threats in fact highlights why Latam and Europe are becoming more attractive destinations for global capital as the investors rethink their global asset allocations.

While much uncertainty remains we believe these regions and patria are positioned to weather and indeed, possibly thrive in these challenging conditions.

Consider that.

At the strategy or investment level, our private equity investments are mostly oriented.

Towards domestic consumption markets not export markets.

Alexandre Saigh: Infrastructure by its nature is local, and our GPMS solutions business is focused on European and to a lesser extent United States middle market private equity secondaries, primaries, and co-investments. Direct exposure to export-focused businesses and/or investments in the United States is minimal. Investments in Brazil account for approximately 30% of our invested assets. As we noted earlier, demand for our credit and infrastructure products increases in periods of high interest rates and higher inflation concerns. Also, demand for our GPMS products increases as global institutional investors look for liquidity and flexible portfolio solutions for their middle market private equity exposure. Our current exposure to Mexico is minimal at below 3% of AUM. Long term, however, we believe Mexico remains an attractive market for expansion.

Infrastructure by its nature is local and now where GPS solutions business.

His focus on European and to lesser extent United States.

Middle market private equity secondaries primaries and co investments.

Direct exposure to export focused businesses and our investments in the United States is minimal.

Investments in Brazil account for approximately 30% of our invested assets.

As we noted earlier demand for our credits and infrastructure products increases in periods of high interest rates and higher inflation concerns.

Also demand for our GPS products increases as global institutional investors look for liquidity and flexible portfolio solutions for the middle market private equity exposure.

Our current exposure to Mexico is minimal at below 3% of AUM.

Long term however, we believe Mexico remains an attractive market for expansion.

Alexandre Saigh: As the prospects for a trade war remain high, we believe LatAm as a region is a beneficiary, given the region's low level of geopolitical risk and export markets that focus on in-demand agricultural ag products, in addition to both hard and soft commodities. With a population of over 650 million people and a combined GDP of over $6.5 trillion, the region also has a large and growing internal markets that provide an attractive export destination for trading partners. The trade war is also driving global investors to take a deeper look at Europe as an alternative destination for investment capital, as investors become increasingly concerned that the United States may become a less reliable partner.

As the prospects for a trade war remained high.

We believe that as the region is a beneficiary.

Given the region's low level of geopolitical risks and.

And export markets that focus on in demand agricultural.

Products in addition to both hard and soft commodities.

With a population of over 650 million people and they combined GDP of over $6 five trillion.

The region also has a large and growing internal markets that provide an attractive export destination for trading partners.

The trade War is also driving global investors to take a deeper look at Europe as an alternative destination for investment capital.

As investors become increasingly concerned that the United States make become a less reliable partner.

Alexandre Saigh: From Patria's perspective, as investors in Latin America for over 37 years with significant boots on the ground resources, we have extensive experience in dealing with and investing through periods of high interest rates, FX volatility, and economic uncertainty. As the go-to alternative manager in LatAm, the recent tariff-induced economic uncertainty and other trade actions by the United States have led to increased interest from Asian, Middle Eastern, and increasingly European investors in our infrastructure and other investment strategies, including our European private equity solutions business as investors seek alternative destinations outside the United States to deploy capital and earn returns. This is exemplified by the significant portion of this year's fundraising, which has been sourced from Asian investors. Our business is also built to serve local investors at the local level.

From Patras perspective, as investors in Latin America for over 37 years with significant boots on the ground resources, we have extensive experience in dealing with and investing through periods of high interest rates FX volatility and economic uncertainty.

As the go to alternative manager in Latam.

The recent tariff induced economic uncertainty and other trade actions by the United States.

Have led to increased interest from Asian, middle Eastern and increasingly European investors in our infrastructure another investment strategies.

<unk>, our European private equity solutions business as investors seek alternative destinations outside the United States to deploy capital and earn returns.

This is exemplified.

The significant portion of this year's fundraising, which has been sourced from Asian investors.

Our business is also built to serve local investors at the local level.

Alexandre Saigh: We continue to see early signs of increased allocations to alternatives from local investors and institutions that are both under-allocated to alternative strategies and often required to invest locally, and understandably have a home country bias in times of economic stress and uncertainty. Local investors in LatAm and Europe accounted for approximately 55% of our fundraising over H1 2025 and 68% in 2024. Finally, economically, our fee-earning AUM and management fees are very sticky and highly predictable as approximately 20% of our fee-earning AUM are in permanent capital vehicles and approximately 90% in vehicles with no or limited redemption features. At the same time, our fee-related earnings has little sensitivity to soft currency FX volatility, as we mentioned earlier.

We continue to see early signs of increased allocations to alternatives from local investors and institutions that are both under allocated to alternative strategies.

And often required to invest locally.

And understandably have a home country bias in times of economic stress and uncertainty.

Local investors in Latam and Europe accounted for approximately 55% of our fund raising over the first half of 2025 and 68% in 2024.

Finally, economically our fee, earning AUM and management fees are very sticky and highly predictable.

Approximately 20% of our fee, earning AUM are in permanent capital vehicles, and approximately 90% in vehicles with no or limited redemption features.

At the same time, our fee related earnings has little sensitivity to soft currency FX volatility as we mentioned earlier.

Alexandre Saigh: Pulling this all together, our financial results and ongoing fundraising momentum provide additional evidence that our strategy to diversify and grow our business both organically and inorganically, while also increasing our resilience, is paying off. We believe we are off to a strong start to deliver on our 2025 goals, including the new fundraising target of $6.3 billion to $6.6 billion and fee-related earnings of $200 to $225 million, or $1.25 to $1.40 per share. Additionally, we expect to achieve the 2027 targets we unveiled at our Investor Day, such as total Fee-Earning AUM of $70 billion and fee-related earnings of $260 million to $290 million, or $1.60 to $1.80 per share. Now, let me turn the call over to Ana to review our financial results in more detail. Thank you.

Pulling this all together our financial results and ongoing fundraising momentum.

The additional evidence that our strategy to diversify and grow our business both organically and Inorganically, while also increasing our resilience is paying off.

We believe we are off to a strong start to deliver on our 2025 goals, including the new fund raising targets of $6 3 billion to $6 6 billion.

And fee related earnings of 200.

With $225 million or $1 25.

To $1 40 per share.

Additionally, we expect to achieve the 2027th targets, we <unk> at our Investor day, such as total fee, earning AUM of $70 billion.

And fee related earnings of 260 million to $290 million or $1 60.

Two $1 80 per share.

Now, let me turn the call over to Anna to review our financial results in more detail. Thank you.

Ana Russo: Thank you, Alex, and good morning, everyone. As Alex highlighted, we are very pleased with the strong momentum we achieved as we raised $1.3 billion in Q2 and about $4.5 billion over the H1 of the year. Clear proof that the strategic investments we've made in our investment platforms, products, and distribution capabilities are paying off. The strong results in the quarter increases our confidence that we are on track to achieve our 2025 objectives and off a solid start of our three-year plan. Let's review our Q2 results. As Alex highlighted in his remarks, our robust fundraising year-to-date demonstrates that we are well on track to achieve and indeed surpass our initial $6 billion target for the year against a backdrop of increased global uncertainty and volatility. Our CAUM rose 20% year-over-year and 6% sequentially to approximately $37 billion.

Thank you Alex and good morning, everyone.

Highlighted we are very pleased with the strong momentum we achieved and we raised $1 3 billion in the second quarter and about <unk> 5 billion over the first half of the year clear proof that these strategic investments we've made in our investment platform products and distribution capabilities.

These strong results in the quarter increases our confidence that we are on track to achieve our 2025 objectives and a solid start.

Yes.

Let's review, our second quarter results.

As Alex highlighted in his remarks, our robust sudden making year to date demonstrate that we are well on track to achieve and indeed surpassed our initial 6 billion target for the year against a backdrop of increasing global uncertainty and Valencia.

Our AUM rose, 20% year over year, and 6% sequentially to approximately 37 billion.

Ana Russo: While acquisitions contributed to the year-over-year increase, the strong growth reflects a combination of solid net organic inflows, as well as the positive contribution from strong investment performance and FX movement due to the appreciating US dollar. It's particularly noteworthy that in Q4, Patria generated over $600 million of net inflows into CAUM, bringing our year-to-date to $1.3 billion and approximately 8% annualized organic growth. This is the fourth straight quarter of the net organic inflows, highlighting our expanding fundraising capabilities, coupled with the stickiness and resilience of our assets. While the US dollar depreciation in the quarter contributed to our strong sequential growth in AUM and Fee-Earning AUM, importantly, however, and as we highlighted in prior calls, FX fluctuations have limited impact on our FRE, since our expense base provides a substantial hedge against currency movement that may impact our Fee-Earning AUM and consequently our fee revenues.

While acquisitions contributed to the year over year increase based strong growth reflects a combination of solid net inflows as well as the positive contribution from strong investment performance and FX movements due to the appreciating U S.

It is particularly noteworthy.

This quarter generating over $6 million up net inflows into brink.

Bringing our year to date to one 3 billion and the process.

8% annualized organic growth.

This is the fourth straight quarter of net.

Hi, Randy.

Spending fundraising capabilities coupled with.

Yes.

<unk>.

While the U S dollar depreciation in the quarter contributed to our strong sequential growth in the land and sea.

Importantly, however, and as we highlighted in prior calls.

Exclude durations have limited impact on our FRE.

Alright expense base provides us with substantial hedge against currency movements that may impact our fee.

And consequently, our feedback.

Ana Russo: As we reviewed at our Investor Day back on 9 December, based on our current asset class mix, a 10% variance in soft currencies against the dollar impacts FRE by only about 2%. Pending Fee-Earning AUM total about $3.3 billion, down somewhat from Q1 due to the active deployment, partially offset by fundraising. This Pending Fee-Earning AUM, combined with our fundraising goals, the 20% of Fee-Earning AUM are in permanent capital vehicles and the almost 35% of Fee-Earning AUM in the drawdown funds with an average life of six and a half years all point to our ongoing ability to generate net organic growth over time. Total fee revenue in Q2 reached $81.1 million, up 14% over the prior year and about 5% sequentially.

As we reviewed at our Investor day back on December nine based on our current asset class me, 10% down in soft currencies against the dollar impact FRE.

About 2%.

Randy.

Total about $3 3 billion down from last from the first quarter due to the active deployment.

Thanks, Tom.

This is Tom Irwin.

When combined with our fundraising goals the 20% of <unk>.

Permanent capital vehicle and the 35%.

One we did draw down funds with an average lateral of six.

Yes.

I'll point to are ongoing.

So Jimmy.

Growth.

Total fee revenue in the second quarter reached $81 $1 million up 14% over the prior year and about 5% sequentially. The sequential increase was driven by strong growth in <unk>.

Ana Russo: The sequential increase was driven by strong growth in fee-earning AUM and some incremental incentive fees from one of our real estate funds in Brazil and from the strong active public equity performance. It is worth mentioning that due to the timing of net asset flows into fee-earning AUM, management fee revenues in Q2 did not reflect the full impact of the quarter's asset growth. Our management fee rate averaged 95 basis points over the last trading 4 quarters. As we reviewed at our Investor Day, we are steadily diversifying our business and introducing new investment strategies and product structures, which are key drivers of our growth. Consequently, our management fee rate will continue to evolve, and we expect our fee rate to average between 92 and 94 basis points over the coming quarters, but with the potential to vary depending on the mix.

And some incremental incentive fee from one of our real estate in Brazil, and some of these strong active equity performance.

It's worth mentioning that due to the timing of net asset flows into C. Wang.

Management <unk> Avenue.

Second quarter did not reflect the full impact of the quarters.

Growth.

Our management fee rate averaged 95 basis points over the last trailing four quarters as the review at our Investor Day, we are.

Diversifying our business and introducing new investment strategy and product traction, which are key drivers of our growth. Consequently, our management fee rate will continue to evolve and we expect our <unk> rate to average between 92, and 94 basis points over the coming quarters, but with the potential.

Just to vary depending on.

Ana Russo: Moving on, operating expenses, which include personnel and G&A expenses, total approximately $35 million in the quarter, practically flat versus Q1 2025 and up 10.7% year-over-year. The year-over-year increase mainly reflects the impact of acquisitions. The very slight sequential increase reflects our continued focus on expense controls and capturing operating efficiency, even as we continue to invest in the business. Looking ahead, we believe Q2 personnel and G&A expenses combined are good baseline run rate. Putting it all together, Patria delivered fee-related earnings of $46.1 million in the quarter, up 17% versus the prior year and 8% sequentially, with an FRE margin that rose 170 basis points sequentially to 56.8% in the quarter. We continue to expect the full year margin to fall within the range of 58% to 60% guidance as we grow fee revenues and capture incremental expense synergies from our acquisitions.

Moving on operating expenses, which include personnel and G&A.

Total approximately 35 million in the quarter practically flat versus Q1, 2000, and up 10, 7% year over year.

Year over year increase mainly reflects that.

Impact of acquisition.

The very large sequential increase reflects our continued focus on expense controls and capturing operating efficiency, even as we continue to invest in it.

Looking ahead in the second quarter personnel.

G&A expenses combined im good baseline run rate.

Putting it all together Patterson delivered fee related earnings of $46 1 million this quarter up 17% versus the prior year and 8% sequentially with an operating margin that really got 170 basis points sequentially.

The six 8% in the quarter.

We continue to expect the full year margin to fall within the range of 68% to 60% guidance as the growth.

Capture incremental.

Synergies from our acquisitions.

Ana Russo: We want to remind everyone that Q4 is often our strongest in terms of FRE margin, driven by the recognition in the quarter of most of our high margin incentive fees from our credit and public equities products. Regarding FRE, with H1 completed and as our visibility into remainder of 2025 improves, we remain very confident in our ability to hit our 2025 target FRE range of $200 to 225 million and 2027 FRE target of $260 to 290 million with an FRE margin target of 58% to 60%. Next, our net financial and other income and expense in Q2 2025 total -$4 million, reflecting mainly interest expenses on our credit facilities, partially offset by income generated in our new energy trading platform, TRIA, which contributed about $0.7 million in the quarter.

We want to remind everyone that the fourth quarter is often our strongest in terms of ethane much driven by the recognition in the quarter of most of our high margin incentive fees from our credit and public equities.

Regarding SME with half of the year.

And as our visibility into remainder of 2025 improve we remain very confident in our ability to exceed our 2025 target range of 200 to 225 million.

And 2020 as in FY, <unk> target of $260 million to $290 million with an FRE margin target of 50% to 60%.

Our net finance and other economics.

Second quarter 2000.

Total of negative $1 million on it.

Reflecting mainly interest expense on our credit facility, partially offset by income generated.

Energy trading platform.

Which contributed about <unk> 7 million in this quarter.

Ana Russo: As of Q2, net debt totaled approximately $130 million, and our net debt to FRE ratio of 0.6 times was well below the 1 time at the end of the quarter, in line with our long-term guidance. As we manage our cash flow and capital structure over the balance of the year, we expect our debt level to remain relatively unchanged, even as we fund M&A-related deferred cash payments of approximately $40 million throughout year-end, including the latest REIT acquisition in Brazil. Following this payment, our current deferred M&A-related cash payments through 2027 will be approximately $100 million, consistent with our guidance at our December Investor Day.

Yes.

Second quarter net debt totaled approximately 30 million.

Net debt to equity ratio.

It.

Once well below one time at the end of the quarter.

With our long term.

As we manage our cash flow and capital structure.

So of the year.

We expect that to be.

Being relatively unchanged, even as we fund M&A related deferred cash payments of approximately $40 million throughout the year.

Including the latest acquisition in Brazil.

Just wanted to sustain our current it for M&A related cash.

It.

Would it be a constantly.

Consistent with our guidance.

Absolutely.

Ana Russo: Given our expectations regarding our net debt over the balance of the year and a somewhat higher contribution from Tria, our net financial and other expenses line should be at about 30% lower over the coming quarters compared to the second quarter. Our effective tax rate in the quarter was 8%, an increase of 1 percentage point versus the prior quarter, mainly reflecting our mix of jurisdictions. We expect our tax rate over the coming years to hover around 10% annually, but will vary quarter to quarter depending on the evolving mix of our business, although we expect 2025 to be below 10%. Of note, as exemplified in Q4 2024, quarters with large amounts of PRE tend to have lower tax rates, as PREs largely generate in low or no-tax jurisdictions.

Consequently, giving our expectations regarding our net debt over the balance of the year.

The higher contribution from <unk>, our net finance and other expenses line shouldnt be at about 30% lower over the coming quarters compared to the second quarter.

Our effective tax rate in the quarter was 8% an increase of one percentage point versus the prior.

Third quarter, mainly reflecting our <unk> subsidiaries.

We expect our tax rate over the coming years to hover around 10% annually, but it will vary quarter to quarter, depending on the evolving mix of our business, Although we expect 2025 to below 10%.

Of note as exemplified in the fourth quarter of 2004 quarters with large amounts of PRA tend to have lower tax rates SPRI is largely generated in low or no actually fix.

Ana Russo: In Q2 2025, we generated $38.8 million of Distributable Earnings, up 15% year over year and over 5% sequentially, mainly reflecting higher FRE, partially offset by higher net financial interest expense and higher debt. Q2 DE per share of $0.24 was up 9% versus prior year and 4% sequentially, mainly on higher FRE, partially offset by higher share count versus both Q2 2024 and Q1 2025. Regarding the share count, we finished the quarter at 159.5 million shares and continue to expect the share count to average between 158 and 160 million from 2025 to 2027 inclusive share repurchase, which will be focused of offsetting stock-based compensation. On that note, the board of directors voted to renew and increase our share repurchase program, and over the next 12 months, we have the authorization to repurchase up to 3 million shares.

In the second quarter 'twenty, five we generated 38 by $8 million of distributable earnings.

Up 15% year over year and over 5% sequentially, mainly reflecting higher FRE, partially offset by higher net financial income and expense and higher.

Second reported <unk> per share up 21.

9% versus prior year, and 4% sequentially, mainly on higher FRE.

Partially offset by higher share count.

Second quarter, 'twenty, four and first quarter 2000.

Regarding the share count we finished this quarter at 159 5 million shares and continue to expect the share count to average between 158 and 160.

From 2025 through 2020 inclusive of share repurchases, which will be focused on offsetting stock based compensation.

On that note and board of directors voted to renew and increased our share repurchase program and over the next 12 months, we have the authorization to repurchase up to 3 million.

Ana Russo: We did not repurchase shares in the quarter, we remain our intention to repurchase shares over the balance of 2025 and keep our share count within the target range. Finally, as we announced during the Investor Day, the board approved for 2025 a quarterly dividend per share of $0.15. Overall, we are very pleased with our Q2 results and the momentum we have built as we continue to diversify and improve the resilience of our business. We believe we are on track to meet our FRE targets for 2025, we are excited regarding the growth opportunity that lies ahead. Thank you everyone for dialing in, we are now ready to answer your questions.

We did not repurchase shares in the quarter, but it remains our intention to repurchase shares over the balance of 2025 and keep our share count is in the target range.

Finally, as we announced during the back seat.

The board approved our 2025 quarterly dividend per share of <unk> 15.

Overall, we are very pleased with our second quarter results and the momentum we have built as we continue to diversify and improve the resilience of our debt. We believe we are on track to meet our target by 2025, and we are excited regarding the growth opportunity that lies ahead.

Thank you everyone for dialing in.

We're now ready to answer your question.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone. We also ask that you limit yourself to 1 question and 1 follow-up. As well, wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question today will be coming from the line of Rodrigo Ferreira of Bank of America. Your line is open.

Thank you.

A reminder, today, we would like to ask a question. Please press star one on your telephone.

So ask that you limit yourself to one question and one follow up as well wait for your name and company to be announced before proceeding with your question one moment, while we compile the Q&A roster.

And the first questioner today will be coming from the line of Rodrigo Vieira.

<unk> of America. Your line is open.

Rodrigo Ferreira: Morning. I hope everyone is doing well, and thank you for taking my question. You've mentioned how Mexico is an area of interest for future expansion. What type of partner acquisition would you look for there? Is that the next target as we think about your $14 billion target of inorganic inflows from the Investor Day?

Good morning, I hope, everyone is doing well and thank you for taking my question.

You've mentioned, how Mexico is an area of interest for future expansion.

The type of partner acquisition would you look for there and is that the next target as we think about your $14 billion target of inorganic inflows from the Investor day.

Alexandre Saigh: Thank you, Rodrigo, for the participation here in our Q&A session. Just as a note, I think before we begin here the Q&A session, I would like to acknowledge here the tragic and senseless events that occurred earlier this week at BlackRock and other firms in their building in New York that led actually to the death of a friend or one of their employees and others in their building. We have many friends at BlackRock, given our decade-long relationship with them, and we are heartbroken here of the tragedy they had to endure. Our best wishes go out to everyone there, and indeed everyone and their respective families that suffered at the hands of this very senseless violence.

Thank you have a legal further participation here in our Q&A session.

Just as a note I think before we begin here in the Q&A session I would like to.

Acknowledge here.

Tragic and senseless events that occurred earlier this week at bloxom.

And the other firms and they are building in New York that led actually to the depth of our friends.

One of their employees and others and they are building we have many friends in Boston, given our decade long relationship with them.

And we are heartbroken here of the strategy they've had to endure.

And our best wishes go out to everyone, there and indeed that everyone and their respective families have suffered.

The hands of this very sensitive styles.

Alexandre Saigh: Going back to Mexico here, Rodrigo, I think Mexico is definitely, as we've mentioned here, in a long-term perspective an attractive market as the second largest economy in Latin America, as you know. The way I think that we see Mexico as of now is to try to find local partners in some of the asset classes that we think are better to expand at the current moment of the country. Real estate being one of them and credit, and infrastructure, I think being the other ones. On the real estate front, we did actually buy a very small real estate fund in Mexico, the FIBRAs, which is now similar to the REITs in the US, similar to the FIIs, the Fiagros here in Brazil. It was a very small acquisition, so we didn't announce it.

Going back to Mexico here of data I think we are.

We have Mexico is definitely not as we had mentioned here in a long term perspective on attractive market in the second.

Largest economy in Latin America.

As you know.

The way I think that we see Mexico as of now is too.

Tried to find local partners in some of the asset classes that we think are.

Better.

To expand at the current moment of the country, So real estate being one of them in credit and.

In infrastructure I think being the other ones.

On the real estate front, so we did actually buy very small.

The real estate fund in Mexico, the <unk>.

Which has no similar to the rates in the U S similar to the <unk> in Brazil.

It was a very small acquisition so within the analysis if Lucy.

Ana Russo: It was a total assets of this Mexican real estate REIT of $26 million.

Total assets of this.

Mix and real estate fees of $26 million.

Alexandre Saigh: We did buy the management company together with a local partner called Lexington, that is a real estate manager in Mexico. This management company, the JV between us and them, 50/50, will then manage this $26 million FIBRA. In addition to buying this small management company that manages just this FIBRA, this $26 million FIBRA, we did buy a portion of the shares of the FIBRA. As an asset, it will be an investment in our balance sheet. The strategy here is to continue to grow, raising money mainly for no logistics real estate in Mexico. I don't know if you did see this latest news or not, two weeks ago, the largest Mexican FIBRA, Fibra Uno, did announce a spinoff together with new money of its industrial properties, its logistics properties, and raised in this spinoff plus IPO over $400 million of fresh capital.

We did buy the management company together with a local partner called Lexington.

Real estate manager in Mexico.

And this management company, the JV between us and them.

We will remain at 50 50 will then manage this $26 million of EBITDA.

In addition to buy this a small management company.

Managers just this given that this $26 million fever, we did buy.

A portion of the shares of the zebra So awesome assets, there will be an investment in our balance sheet.

The strategies here is to continue to grow.

Raising money is.

Mainly for logistics real estate in Mexico, I don't know if you. If you did see this latest news or not but.

Two weeks ago, the largest Mexican fever.

<unk> did announce a spinoff together with new money.

Of its industrial properties its logistics properties.

<unk> raised in this spinoff plus IPO.

Over $400 million of fresh capital.

Alexandre Saigh: What did Fibra Uno did do, and I believe that Fibra Uno is the largest real estate investment trust in Latin America with around $5 billion of assets. Actually, $15 billion of assets, of $10 billion of debt, so $5 billion of net worth. Probably is the largest real estate investment trust in LATAM listed in the Mexican stock exchange and did the spinoff of their industrial assets. There is a demand for industrial assets in Mexico, as you can see from this deal that happened two weeks ago. Our strategy is to use this small FIBRA that we did acquire in order to expand into the Mexican also industrial assets, and logistic assets. It's slow steps that we're going to take here, so we don't want to have to take a very large step into Mexico as of now.

So what this depot.

Do.

I believe that <unk> is the largest real estate investment Trust in Latin America.

Around $5 billion of assets.

Actually $15 billion of assets of $10 billion of debt.

Those are at work.

So probably is the largest real estate investment trust in my.

Listed in the Mexican stock exchange and did the spin off of their industrial assets.

So there is a demand for.

For industrial assets in Mexico as you can see from this deal that happened two weeks ago.

And our strategy is to use.

This is a small fee that we did acquire in order to expand into the Mexican also industrial assets logistics assets.

It's no slow slow steps.

We are going to take years. So we don't have we don't want to have to take a very large step into Mexico as of now but as this came about as a very unique opportunity.

Alexandre Saigh: This came about as a very unique opportunity. The Mexican authorities are not actually giving out authorization for new FIBRAs, so that's why we decided to buy one. We decided to buy a small one so we can actually learn and grow from there into other assets. We're excited about the deal, of course. It's very small. It doesn't move the needle at all given the size of the FIBRA, but very excited as a first step. With that, I think we also, as I mentioned earlier in the answer here, a huge opportunity to grow in the credit space in Mexico. We do get exposure to the credit space in Mexico through our pan-regional credit funds. Our flagship fund, which is the High Yield LATAM pan-regional dollar-denominated fund, but does carry securities issued by Mexican economies in US dollars.

The Mexican authorities are not actually.

Giving out authorization for new <unk>, So thats, why we decided to buy one and.

And we decided to buy a small one so we can actually learn and grow from there.

Institute.

Other assets.

We are excited about the deal of course, it's very smaller doesn't move the needle at all given the size of the fever, but very excited as a first step.

With that I think we have I think we also as I mentioned earlier and the answer here.

Huge opportunity to go into in the credit space in Mexico.

We do.

Get exposure to the credit space in Mexico through our regional credit funds.

Our.

Flagship fund, which is the high yields a thumb.

Bend mutual dollar denominated funds up dust Gary.

Securities issued by Mexican economies in U S dollars in total we have a 3% exposure.

Alexandre Saigh: In total, we have a 3% exposure of our total assets into Mexico. A very small exposure, most of that is in credit and some in equities, public equities. As you know, the pension system in Mexico is growing very healthily. It's basically doubling in the next 5 years in AUM. NAV growth is one reason, but the main reason is the higher contributions that the government approved that from the employers to the pension funds. It is the largest pool of pension funds in Latin America. Mexico is the second-largest economy in Latin America, but the pension funds do manage the largest pool of capital, $350 billion approximately, versus $250 billion here in Brazil, versus $150 to $180 billion in Chile. This largest pool, $350 billion, will double in 5 years. We have to tap that market with local products.

Our total assets into Mexico, very small exposure, but most of that is in credit and some inaccuracies public equities.

As you know the pension system in Mexico is growing very healthily as.

Basically doubling in the next five years in assets under management.

<unk> growth is one reason, but the main reason.

The higher contributions that the government approved.

From the employers to the pension funds. It is the largest pool of pension funds in Latin America, Mexico is the second largest economy in Latin America by the pension funds to manage the largest pool of capital to $150 billion approximately versus $2 50 billion.

Here in Brazil versus a 150 to 180 billion.

So and this largest pool of 350 billion will double.

In five years, so we have to tap that market.

With local products fee rates are very local products.

Alexandre Saigh: FIBRA is a very local product, a real estate investment trust in Mexico that we just acquired, and we intend to actually launch other local products into the Mexican economy, targeted initially to the institutional investors. The main investors of this small FIBRA are the Mexican pension funds, and one of them being the largest, the Mexican pension fund that is now our client, together with a couple of other pension funds that became our clients. We have local clients now in Mexico investing in a local product, which is this FIBRA managed by us. This is what we intend to do in Mexico. Will it be a major portion of the $14 billion that you mentioned in the later part of your question? I don't think so, Rodrigo.

Allstate investment trusts in Mexico that we just acquired and we turn and we intend to actually launch other local products into the Mexican economy targeted initially to the institutional investors.

Finally, the main vessels of this small fever, or the Mexican pension funds and one of them being the largest the Mexican pension fund.

It is now our clients together with a couple of other pension funds and became our clients. So we have local clients now in Mexico investing in the local product, which is the CEVA managed by us.

So this is what we intend to do in Mexico.

Will it be a major portion of the $14 billion that you mentioned.

No.

Later part of your question I don't think so competitive I think it's still.

Alexandre Saigh: I think it's still early to say that over the next 2 years up to the end of 2027, I think Mexico is going to be still very modest, very small portion of our total AUM or TIG. Thank you. I hope I answered your question.

Early to say that over the next two years up to the end of 2007, I think Mexico is going to be still very modest very small for.

A portion of our total <unk> Ziegler. Thank you I hope I answered your question.

Rodrigo Ferreira: Thank you, Nello. That was great. For my follow-up, can you touch on how the deployment pipeline looks like at the moment, particularly in infrastructure? How should we think about the pace of deployment there, given the $3.3 billion of uncalled capital?

Thank you.

Great for my follow up can you touch on how the deployment pipeline looks like at the moment.

Particularly in infrastructure, how should we think about the pace of deployment there given the $3 3 billion of uncalled capital.

Alexandre Saigh: Yes. Thanks for the second question here. Yeah, we are now excited with all the fundraising for this H1, as you've probably heard during the call. We have this, for us, sizable pool of capital that we can actually invest, the $3.3 billion that you mentioned. Infrastructure, I think is one of the main asset classes is $1.3 billion out of the $3.3 billion, so a third of that pending Fee-Earning AUM. We have a lot of things in the pipeline in infrastructure, mainly in Brazil and Colombia. The usual suspects that we feel very comfortable in investing, for example, toll roads. A lot of auctions are going on in Brazil, as you know, over the next months, we pretend to select the what we consider the best ones to participate.

Yes, so thanks for the.

The second question here.

We are excited with all the fund raising for for this first half of the year as you as you probably heard during the call and we have this for us sizable.

All of cap so that we can actually invest a $3 3 billion that you mentioned and infrastructure I think is.

One of the main asset classes. It's one three out of the three three so a third of that pending fee, earning AUM.

We have a lot of things in the pipeline and infrastructure.

In Brazil and Colombia.

The usual suspects.

We feel very comfortable with investing for example toll roads a lot of auctions are going on in Brazil. As you know over the next months and we pretend to select what we consider the best wants to participate.

Alexandre Saigh: We have not only the fund investing, Infrastructure Fund V, but we have a pool of fee-paying co-investors that want to invest alongside, making us able to actually sign bigger checks for bigger concessions. We also see the energy market in Colombia as very attractive. As you know, we are finalizing the construction of the largest solar panel farm in Colombia, serving the largest utility company there. We plan to expand that relationship. We also look into water sanitation. We also look to other sectors of the infrastructure industry, mainly these three are our priorities as we speak. Also, what we also have is in GPMS, the other $1.4 billion out of the $3.4 billion, another basically 40% of the money there, money that we have raised.

We have not.

Not only the fund investing infrastructure from five because we have a pool of TB co investors that once we invest alongside so making us.

<unk> actually signed bigger checks.

For bigger concessions.

We also see.

The energy market in Colombia.

Okay.

Very very attractive as you know.

We are finalizing the construction of the largest solar panel farm in mix in Columbia, serving the largest utility company there.

Though we plan to expand that relationship.

We also.

Look into.

Water sanitation, we also look to.

Other sectors of the infrastructure.

Industry, but mainly D. C are our priorities as we as we speak.

Yes.

Also what we also have as in.

India.

And the ZIP <unk> the other $1 4 billion out of the $3 4 billion. So another basically.

40% of the money there.

That we have raised one of them our flagship.

Alexandre Saigh: One of them, our flagship Secondaries Opportunities Fund V, investing in secondaries, buying positions of other LPs and GPs, mid-market, mainly European private equity funds. Very excited with that product as LPs seek for liquidity of their portfolio. It's a very hot product right now, and we are very well-positioned with our GPMS and SOF V, another SMA that we did raise within our GPMS industry segment. Thank you. I hope I answered your question.

Secondaries opportunity fund five.

Investing in secondaries buying positions of other Lps and GPS.

Mid market.

Named European private equity fund, so very excited with that product.

As LPC seek for liquidity.

Their portfolio. So it's a very hot products right now and we are very well positioned with our gms.

US and sulfide another smbs that we did raise within the allergy BMS sector industry segments. Thank you I hope I answered your questions.

Rodrigo Ferreira: Yes. Thank you.

Yes. Thank you.

Operator: Thank you. One moment for the next question. Our next question will be coming from the line of Tito Labarta of Goldman Sachs. Your line is open.

Thank you and one moment for the next question.

Our next question will be coming from the line of Pete on America <unk>.

Common Sachs. Your line is open.

Tito Labarta: Hi, this is Tito from Goldman. I think I was called, but I just make sure. Good morning Alex and everyone. Thank you for the call, and thank you, my question. Alex, my question, I guess on the higher fundraising that you're expecting for the year, one, just to clarify, that is separate from the REIT that you announced that you acquired of around BRL 600 million, right? That should be considered inorganic, right? The 5% to 10% increase in fundraising is organic, just to clarify that. If so, what is driving that? Because as you mentioned, interest rates are still high in Brazil, but you seem to be getting some more interest here. Where do you see that interest is coming from that's leading to the better fundraising? Thank you.

Hi, This is <unk> from Goldman I think I was called I.

I guess to make sure.

Good morning.

And everyone. Thank you for the call and taking my question.

Alex My question I guess on that.

Higher fund raising that you're expecting for the year. One just to clarify that is separate from the REIT that you announced that you acquired of around $600 million right. So it would be.

No it should be considered inorganic right.

5% to 10% increase in fund raising.

Inorganic just to clarify that and if so what is driving that because as you mentioned right interest rates are still high in Brazil, but you seem to be getting some more interest there so where do you see that interest is coming from that so you can sort of better run rate. Thank you.

Alexandre Saigh: Yes. Hi, Tito. Thanks for participating, and thanks for the question here. Yes, the uplift in the guidance from $6 to $6.3 to $6.6 billion or 5% to 10% higher is in addition to the approximately $600 million of AUM REITs that we bought in Brazil. Of course, also in addition to the small Mexican $26 million there that I just mentioned while answering Rodrigo's question from BofA. It is in addition. In addition to the $6.3, $6.6, we did this acquisition of $600 million of Brazilian REITs plus the $26 million of a small Mexican REIT. We see a lot of interest coming from Asian investors, Middle Eastern, Europeans mainly, and LatAm, local to local, into our infrastructure credits and GPMS products. Infrastructure again, inflation protected with alpha.

Yes, hi, thanks for participating and thanks for the question here.

Yes, the uplift in the guidance from 6% to six 8% to $6 $6 billion of 5% to 10% higher in addition.

Two the $600 million of approximately $600 million.

Of AUM.

<unk> reached that we bought in Brazil.

Of course also in addition to the small Mexican $26 million there.

Just mentioned.

While answering <unk> question.

From Boston.

So we see it is it is in addition to that so in addition to the six months decreased six we did this acquisition of $600 million of Brazilian Reais, plus a 26 million, albeit small Mexican wheat.

We see a lot of interest coming from.

Okay.

Asian investors middle East than Europeans, mainly and Latam local to local.

Into our infrastructure credits and <unk> products.

So infrastructure again inflation protected with alpha.

Alexandre Saigh: We see a lot of the local pension funds in the region, in Latin America, willing to get exposed to this product because of the nature of the inflation-protected revenues that we have for infrastructure and the long-term contracts and concession contracts that is part of the business, that is a characteristic of this business. On the credit side of the interest rates and on alpha, we have been delivering great returns. Probably going to see as we file our presentation right now, which we did actually file last night, I'm sorry. You can see the returns on the credits, all of our credit strategies performing very well as our infrastructure strategy is as well.

So, but we see a lot of the local pension funds in the region in Latin America, we need to get exposed to this product because of the nature of the inflation protected.

Use that we have for infrastructure in the long term.

Contracts in concession contracts that we that is part of the business the disease.

At the risk of this of this business.

On the credit side of the low interest rates and an alpha we have been delivering great returns.

Or are we going to see as we file.

Our presentation.

Presentation, right now, which we didn't actually final statements sorry.

You can see the returns on the credits all of our credit strategy is performing very well as our.

Our infrastructure strategies as well so continue to deliver.

Alexandre Saigh: Continue to deliver alpha throughout our credit strategies, which then of course attracts investors to be able to tap into the high interest rate environment of most of the Latin American countries, high real interest rates in most of these Latin American countries. A continued interest from investors. We also see a slight shift as I tried to describe and mention during my part of the earnings call, of investors looking into LatAm as a place to allocate capital versus the US. I don't see people actually redeeming money from the US, but I think people are rethinking about the additional allocation into the US. And a small shift of this additional allocation into LatAm is already for us here a huge amount of money.

Alpha throughout our credit strategies, which then of course attracts investors too.

To be able to tap into the high interest rate environment, most of the Latin American countries high real interest rates in most of these Latin American countries. So a continued interest from investors.

We also see a slight shifts as I tried to describe.

Describe I mentioned during my part of the earnings call of investors looking to us as a place to allocate capital versus the U S.

I don't see people actually read.

Jamie money from the U S, but I think the additional allocation.

I think people are rethinking about the additional level of which it into the U S and a small shifts.

This additional locations into Latam is already.

Already for us here, a huge amount of money.

Alexandre Saigh: As we see a small shift coming from Asian investors, a small shift coming from Middle Eastern investors, LatAm investors willing to invest more locally, given the volatility, the whole bias nature that people actually feel in certain times. European investors now with a trade agreement between the European bloc, European Union, and the South American market. All of this together adds the uncertainty, the tariffs in the US, the trade agreements, be it bilateral, be it made between Latin American and Europe, for example. The allocation of the additional amount of capital, not 100% in the US as we were seeing during the year 2024. A bit of that's being shifted to other regions, LatAm being one of them. All of this together, and of course we are the go-to alternative assets manager in the region, is benefiting us in the fundraising.

So as we see a small shift coming from Asian investors, a small shift coming from Moody's investors last time investors willing to invest more locally.

Given the volatility of the whole biased nature that people actually field in these uncertain times and European investors now with the trade.

Agreement between European Block European Union, and the cellphone market all of this together adds uncertainty the tariffs in the U S.

The trade agreements be bilateral will be made between.

Latin America and in Europe for example.

Allocation of.

The additional amount of capital not 100% of the U S. As we as we were seeing in.

During the year of 2020 for a bill that's being shifted to other regions Latam being one of them all of this together and of course, we are the go to alternative assets.

<unk> in the region is benefiting us in the fundraising.

Alexandre Saigh: This is the Q4, sequential quarter that we see net new money in a very positive and growing. That's why we feel comfortable that we can actually uplift the guidance here. Also within the Brazilian setup that you mentioned, high interest rates, yes, but our credit products here are also doing well and have been able to raise capital in addition. Again, investors trying to tap this high real interest rates environment, high interest rate environment in Brazil as well. I hope I answered your question.

This is the fourth quarter.

Sequential quarter that we see net new money.

And they are very positive and growing.

So that's why we feel comfortable that we can actually help lift the guidance here.

And also within within India.

The Brazilian setup.

Set up that you mentioned high interest rates, yes bus our credit products Youre also doing well.

<unk> Suisse capsule in addition, again.

Investors trying to attack is a high real interest rates environments for 15 months in Brazil as well.

I hope I answered your question.

Tito Labarta: Yeah, no, that's very helpful, very thorough. Thank you, Alex. Maybe just a follow-up. Given that you are maintaining your guidance for FRE, should we assume to already see a step change from all this fundraising in Q3? I know Q4 tends to be seasonally stronger. You get the incentive fees. Just to get to that guidance, FRE will need to go up in H2. Should we already begin to see that in Q3 or should we expect most of that in Q4?

Yes, no that's very helpful. Very thorough thank you Alex maybe just a follow up.

Given that you are maintaining.

Your guidance for FRE, I mean should we assume already a step change from August fund, raising and three Q I know <unk> thinks would be seasonally stronger you get the incentive fee just to get to that guidance FRE you will need to go up in the second half of the year, but two we already begin to see that in <unk> or should we expect most of that is.

Alexandre Saigh: Yeah, I think most of that more tail-ended, because we now have to, which is the good part of it and the fun part of it, for all of my portfolio managers here, we have to then invest this money. As we invest the money, this money becomes then invested capital that we can charge fees, revenues, et cetera. There's a small time lag, so as we are already in late July, early August here, we'll see more in Q4. What is the message here? Now we will deliver the guidance of $200 to 125 million of FRE. We feel very comfortable with that given all the fundraising that transforms into revenues. We get into, not at the end of 2025, when we get into 2026 in a very strong position.

Yes, I think most of that more deal ended.

Because we know how to which is the good part of it in the front part of it.

For all of my portfolio managers here, we have to then invest this money.

And as we invest the money.

Money becomes van.

Invested capital that we can charge fees revenues et cetera.

There is a small time back so as we.

We're already in.

Late July early August here, I would see more in.

In the fourth quarter.

But what is the message here.

We will deliver the guidance of $225 million. So therefore, we feel very comfortable with that given all the fundraising that transforms into revenues.

And we get into that because we added 75, when we get into 2026 and a very strong position.

Alexandre Saigh: If these investments are not made this year, it's going to be made late this year, turning into revenues early 2026. Puts us in a very good position to deliver 2026, heads us to 2027. That's why we feel comfortable as it's a very long-term, sticky management fee business that we manage. We can see 2027 delivering the $260 to 290 million of FRE guidance. All of the fundraising in the beginning of the three-year plan, because we could have this fundraising later in the three-year plan, we would still hit the numbers, now all of this good fundraising at the beginning of the three-year plan makes it even more comfortable that we will deliver. If we do a simple math here, Tito, our fee-related earnings in the Q2 was approximately $44 million.

Because these investments.

Investments are not made this year is going to be late this year. So attorney into revenues early in 2026, so puts us significant very good position.

To deliver 26, and then heads us through 'twenty seven that's why we feel comfortable as it's a very long term sticky sticky management fee business that we manage.

We can see 2027 delivered the $260 million to $290 million of FRE guidance. So all of the fund raising in the beginning of the year plant because we could have this fund raising later in the three year plan, we would still with the numbers, but now all of this is a good fund raising the beginning of this year.

It makes us even more comfortable that we will deliver it.

If we do a simple last year Chico.

Our fee related earnings in the second quarter was approximately $44 million.

Alexandre Saigh: Again, just remembering there is no incentive fees in Q2. If you multiply that by 4, we are already at $176 million. If we add $10 to 12 million of incentive fees that happens in Q4, we are at $186, 188. We are touch off the $200 million, which is the entry level of the range of $200 to 125. $12 million of additional Fee-Related Earnings in the next 2 quarters is a small amount. If you do the math, I have to invest more or less $1.3 to 1.5 billion, and we have $3.3 already pending Fee-Earning AUM. I think we are in a very good position. Of course, we have to do great investments because our name of the game here is to continue delivering great returns, as we are. With great returns, we manage to then raise more money.

Again, just remembering there's no incentive fees in the second quarter.

If you multiply that by four.

We already have $176 million.

If we add $10 million to $12 million of incentive fees that happens in the fourth quarter, whereas 186 188. So we are touch off the $200 million, which is the entry level of the range of 200 to 125.

So $12 million of additional fee related earnings in the next two quarters as well.

It's a small amounts if you do the math I have to invest more or less.

One three to $1 $5 billion and we have three <unk>.

<unk>. So I think we're in a very good position.

Of course, we have to do great investments because our name of the game here is to continue the dividend great returns as we are with great returns, we manage them raise more money, but of course, we are going to be great investments with trilogy.

Alexandre Saigh: Of course, we're going to do great investments with the high-quality portfolio managers that we have here at Patria. I'm sure that we're going to do that. We are in a good position. We are in a good position between if I do half of my Fee-Earning AUM that I have in inventory as of today, things work in the way that I just described, and here we are delivering the $200 to 225 million of FRE and putting us in a strong position to start 2026. Good position to be in. We, of course as you know, we have a very sophisticated CRM structure to manage our fundraising. We can see the, what we call internally here, the funnel, all the way from a lead to a subscription document signed.

High quality portfolio managers that we have here at <unk> I'm sure that we're going to do that but we are in a good position. We are in a good position between baidu half of my feet.

But I have an inventory as of today things things working the way that I just described.

We are delivering.

The 200 to 225, Novartis, FRE and putting us in a strong position to start 2006.

So good position to be in.

We of course as you know.

We have a very sophisticated.

CRM structure to manage our fund raising we can see the what we call internally the funnel all the way from a lead.

To a subscription documents signed and when we see that funnel.

Alexandre Saigh: When we see that funnel, it makes us comfortable that we can hit the 5% to 10% higher guidance of the $6 billion that we announced as a fundraising guidance for 2025. We're in a great position. I'm happy for the team, and congratulations for my team here, for Patria's commercial team. They did a great job this H1 of the year. Thank you, Jim.

Also it makes us comfortable that we can hit.

The 5% to 10% higher guidance of the $6 billion.

We announced of the fund raising guidance for 25 so.

No no great position I'm happy for the team and congratulations for my for my team here for <unk> commercial team did a great job. This this first half of the year. Thank you chip.

Tito Labarta: Okay. No, very clear. Thank you, Alex.

Okay, no very clear thank you Alex.

Operator: Thank you. One moment for the next question. The next question will be coming from the line of Ricardo Buchpiguel of BTG. Your line is open.

Thank you one moment for the next question and the next question will be coming from the line of Ricardo back the cloud.

Of BTG your line is open.

Ricardo Buchpiguel: Good morning, everyone, thank you for the opportunity of making questions. You mentioned the 7 REITs acquisition, the presentation, expected to add $600 million in Fee-Earning AUM. Could you walk us through the timeline for when they will start being consolidated on your results? Will any shareholder approval from this REIT be required? If so, are there any meaningful costs that will be associated with these approvals? Thank you.

Good morning, everyone and thank you for the opportunity to making questions.

Mentioned, the seven reached acquisition the presentations that could shred $600 million and if you have anything land could you walk us through the timeline for when they will start being consolidated in our results. We were any shareholder approval from this would be required and if so are there any meaningful cost will be associated with these approvals.

Thank you.

Alexandre Saigh: Hi, Ricardo. Thanks for the question. Thanks for participating. We did two acquisitions here, or a group of REITs that we acquired from Genial. As you know, it's the Brazilian local bank. A group of REITs that we bought from a local alternative asset manager, real estate alternative asset manager called Vectis Gestao. On the Vectis Gestao front, we did the acquisition of one of their holding companies, which managed these funds. The transaction is basically already closed. We did sign and already closed. You will see these numbers already in Q3, adding to our Fee-Earning AUM, as we did announce in July. In the case of Genial, we have to go through the assemblies. We have to call shareholders votes. For 90% of the funds, we already got the approval.

Hi, Carlos Thanks for the question Thanks for participating.

We did that too.

The acquisitions here or a deal.

<unk> of rights that we acquired from a shift.

A shift from <unk> as you know, it's the Brazilian local bank.

And a group of rights that we bought from a local.

I will turn the asset manager in real estate in terms of our asset management victories.

On the effective fronts.

We did the acquisition of <unk>.

One of their holding companies.

Which manage through these funds.

So the transaction is basically already closed.

So we did sign an already close.

So you will see these numbers already in the third quarter, adding to our fee, earning AUM was as we did announce in July.

In the case of <unk>.

We have to go through the assemblies, we ask the call I shared our shareholders' votes.

But for 90% of the funds, we already got the approval.

Alexandre Saigh: Too much detail here, you probably know that we need 25% of the quota holders of each fund to actually vote to transfer the management of these REITs from Genial to us. For 90% of the AUM, we already got the votes in for the shareholders meetings. They're still going on because it's 45 days that we have in order to reach out for these votes. We already have more than 25% count as of today. We are in a good position. Just 10% of the Genial funds, which is a $30 million fund out of the whole $600 million that we did acquire, 5% we're still counting to get to the 25%. I think we'll probably get there because we still have a couple of weeks to go, which is the 45-day period within the shareholders meeting that we did call for.

The.

Too much detail here, but.

Probably no.

But we need a 25% of the quota holders of each funds to actually votes.

<unk>.

Transfer the managements of these rights from Ginny out to us.

490% of the AUM, we already got the votes in.

Sure.

Shareholders' meetings, they are still going on because these are 45 days.

We have.

In order to reach out for these boats, but we already have more than 25% counts as of today.

So we're in a good position.

<unk>.

10% of Virginia funds, which is the.

$30 million funnel in the whole $600 million.

We did acquire.

5%, we're still counting to get to the 25% I think we will probably get there we still have.

A couple of weeks ago.

Which is the.

45 day period within the shareholders' meeting that we did.

Call for and in the worst of the worst case, we can extend that.

Alexandre Saigh: In the worst of the worst case, we can extend that, but it's only 5% of the AUM. You're probably going to see during our Q3 of 2025. Revenues from that is on an annualized basis of $3 million. Going forward, it should add $1.5 million to our revenue, which should translate into a $1 million of Fee-Related Earnings, not annualized. For the year, $2 million for annualized, but for the year, $1 million, as we did do this transaction in July. It doesn't move the needle, but it's a $1 million that we will add to our FRE within the year of 2025. The costs associated with these are irrelevant. It's basically calling on a shareholders meeting and a very insignificant cost. That it doesn't move the needle at all of our transaction costs. I think this is it.

But there is only 5% of the U S. So.

What are we going to see during our third quarter.

Of 2025.

Revenues from that is on an annualized basis.

$3 million, so going forward it should add $1 5 million to our red.

Revenue.

Which should.

Translates into a $1 million of fee related earnings.

Not annualized.

For the for the year, one is it $2 million annualized but for the year of $1 million as we did this transaction.

In July.

So it's not it doesn't move the needle, but it's $1 million.

That will add to our FRE.

The year of 2025.

It's.

The costs associated with these are already relevant basically calling on a shareholders' meeting.

Very very insignificant cost.

That is not it doesn't move the needle at all of US in view of our transaction costs.

<unk>.

And.

I think this is it.

Ricardo Buchpiguel: Very clear. Just to follow up here, still on the real estate segment, we saw a pickup in fundraising during the quarter. If you could comment on what type of investors are driving the demand, which products are they mainly focusing in, will be helpful. Also, if you could comment if we should see this level of fundraising from Q2 in the following quarters also would be helpful. Thank you.

Great very clear and just a follow up here is still under real estate segment, we saw pickup in fund raising during the quarter. If you could comment on why type offering faster than I'm driving demand, which projects are they.

Mainly focusing in will be helpful.

And also if you could comment if we should see this level of fund raising from Q2 in the following quarters also would be helpful. Thank you.

Alexandre Saigh: Yeah. I think our funds have been performing extremely well, and I congratulate here the portfolio managers and my partners that run the business. Mainly the industrial logistics, which is the HGLG11, and also the urban retail fund, which is the HGRU11, the ticker of these two funds. Of course, the credit fund as well, doing very well given the times of high interest rates as we are living in Brazil right now. We announced a follow-on offering for the logistics fund, the HGLG11, as we speak, a BRL 2 billion follow-on. We already have BRL 1 billion taken, which we are exchanging assets for shares of the fund. Investors that own assets, own real estate assets are in this follow-on offering, are exchanging these assets and receiving, in exchange, shares of the fund.

Yes.

<unk> has been performing extremely well.

Congratulating here the portfolio managers and life partners that run the business.

Mainly.

Industrial logistics, which is the H G LG.

And also the urban.

Retail fund, which is the <unk> are you.

The ticker of these two funds.

And of course, the credit fund as well as we'll be very well given.

The times of high interest rates that we are living in Brazil right. Now. So we are we announced the follow on offering for the logistics funds of the HG LG.

As we speak.

<unk> as a follow on.

We already have a 1 billion reais taken which we are exchanging.

Assets for no shares of the funds so investors Thats owned assets on real estate assets are in this follow on offering are exchanging these assets and we see in the exchange shares of the funds that accounts for more or less half of the offering and the other half of your offering would be new money.

Alexandre Saigh: That accounts for more or less half of the offering, and the other half of the offering would be new money. It's a significant offering that we are running right now. The other fund that looks into a good position to be able to do a follow-on is our street retail fund, the HGRU11. Which, why do we see that? Because the share price is trading at a very close level to the NAV of the fund, and so puts us in a good position to do a follow-on. Street retail, logistics, of course, more than an office fund, and credit also doing very well. Again, it's high interest rates environment, but been able to manage the funds. Our logistics funds very well, managed them very well.

So it's a significant offering that we are.

We're running right now and the other funds that looks into a good position to be able to do a follow on is.

Our street retail.

The <unk> are you.

Which.

Why do we see that because.

The share price is trading at.

Very close level to the NPV of the fund and.

Puts us in a.

A good position to do a follow on.

Street retail logistics.

Of course more than.

Then on office fund and credit also doing very well.

So we're very again the high interest rates.

Environments, but being able to manage the funds.

Our logistics funds very well known manage them very well with our logistics partners is the largest in the segments.

Alexandre Saigh: Our logistics fund is the largest in the segment, that attracts a lot of investors because of its size, because of its liquidity. Same with the street retail, was the largest of the segment. The Brazilian economy is doing reasonably well. I think there are those particular things of Brazil, one of them is very high interest rates, very high real interest rates, the economy continues to perform reasonably well. GDP at around 3% growth for 2025, which is impressive. You would imagine that such a high interest rates, it would cause a slowdown of the economy, the economy will probably finish 2025 posting a 3% growth. That reflects in all our businesses. As you know, Brazilians find a way to protect themselves against inflation, indexing, hedging, et cetera. To the good and to the bad, to what I'm saying.

So that attracts a lot of investors because of its size because of its liquidity same with street retail was the largest of the segments.

The Brazilian economy is doing reasonably well.

No.

And those.

Particular things in Brazil, and one of them is very.

A very high interest rates are very high real interest rates, but the economy continues to perform reasonably well.

Around 3% growth for 2025, which is impressive.

Would you would imagine.

Such a high interest rates.

No.

Cause a slowdown of the economy when the economy will probably finish 2025, posting a 3% growth.

That reflects in all our businesses.

And as Youll know Brazilians find a way to protect themselves against inflation indexing hedging et cetera. So that goes to the goes to the back to what I'm, saying.

Alexandre Saigh: We see in our private equity portfolio, EBITDA, I think I mentioned during my earnings call, organically up 20% year-over-year, which is the whole portfolio. We have everything in the portfolio now from Fund 4 to all the way to Fund 7. Exposures to several sectors. Our private equity portfolio is a quasi-ETF of the Brazilian economy now because it's exposed to so many different sectors. That 20% EBITDA growth organic. It's over 30 something% if I consider the acquisitions. Again, as the Brazilian particularities of the Brazilian economy, we continue to perform given this environment. We continue to fundraise and in real estate, in infrastructure, for infrastructure, for real estate, and for credit. I hope I answered your question, Pablo. Thank you.

And.

We see in our private equity portfolio EBITDA.

I mentioned during my earnings call organically up 20% year over year, which is the whole portfolio and we have everything in the portfolio from fund for its all the way through fund seven.

Exposures with several sectors disquiet.

Our private equity <unk> is a quasi.

EGF of the Brazilian economy.

So many different sectors in that 20% EBITDA growth organic.

It's over 30 something percent if I consider the acquisition.

So again.

Right.

<unk> is a Brazilian particularity of it was in the economy. We continue to perform given this environment and we continue to fund raise.

In real estate and infrastructure for infrastructure for real estate and for credit I Hope I answered your question. Thank you.

Ricardo Buchpiguel: Thank you. Very clear.

Thank you very clear.

Operator: Thank you. One moment for the next question. The next question will come from the line of William Barranjard of Itaú BBA. Your line is open.

Thank you one moment for the next question.

And the next question will come from the line of William.

Baron yard.

BBVA Your line is open.

William Barranjard: Okay. Good morning. Thank you everyone for the presentation. I have a couple of questions here. Starting with a first one regarding fundraising. I just wanted to pick your brains on how do you think the recent news flow regarding the US tariffs on Brazil affected maybe the mood of international investors towards Brazil and the region? I would say it apparently didn't affect so much because of the upward guidance revision, but maybe if you could comment here a little bit. I have a second question now regarding a different topic, regarding net debt, dividends, and buybacks. Ana commented during the call the net debt should remain stable throughout the year, right? Also that you should use this new buyback program as a way to keep the number of outstanding shares in the range of the guided range, right?

Hey, good morning. Thank you everyone for the presentation I have a couple of questions here.

Starting with the first one regarding fundraising or just wanted to.

Topeka brands on how do you think the recent news flow regarding the U S tariffs on Brazil affected maybe the Buda international investors towards Brazil in the region.

I would say it apparently didn't affect so much because of the upward guidance revision, but maybe you could comment could comment here a little bit and I have a second question regarding <unk>.

Topics regarding the net debt dividends and buyback.

And our commentary during the call.

Net debt remained stable throughout the year right and also that you should use this new buyback program.

As a way to keep the number of outstanding shares in the range of the guidance range right. So.

William Barranjard: I wanted to understand here what should we see in order for the dividends increase from the $0.50 per share we've been seeing for the past year and a half. When do you expect net debt to decrease, and if we should see that in order for this dividend to increase again?

I wanted to to understand here, what should we see in order for the dividend.

The increase from the 50 cents per share with being seen for the past year and a half.

Yeah.

When do you expect net debt to <unk>.

The decrease in <unk>, we should see that in order for this dividend.

To increase again.

Alexandre Saigh: Okay. Thank you very much, Guilherme. Thanks, William, for participating in the call with us. I'm sorry. First question on US tariffs. They're all predictions and expectations, right? It's very hard to understand exactly what's going to happen given that we haven't lived in an environment similar to this for a while now, for over 50, 60, 70 years. We don't have a lot of data to be able to go back and understand what are the exact effects. Of course, my general view, higher tariffs globally, it's not good news for global trade, for global growth in general. Making this general comment. How will the cost of these tariffs be absorbed by the supplier of the goods and services, by the importer of the goods and services? It's hard to say. I think it will probably be absorbed within the whole system.

Okay. Thank you very much.

Thanks for the thanks, William for participating in the call without from source.

First question on U S tariffs.

They're all predictions and expectations, but it is very hard to understand exactly what's going to happen given that we haven't lived in an environment similar to this for a while now over 50 60 70 years. So we don't have a lot of data to be able to go back and understand what.

R&D exact.

Okay affects of course, my general view.

<unk> globally.

It's not good news for global trade for global growth.

In general.

This general comments, how will the stores be it.

The cost of these towers be absorbed by the supplier of the goods and services by the in Florida, because it serves its hard to say.

It will probably be absorbed within the whole system.

Alexandre Saigh: As far as Brazil is concerned, as you know, 12% of our exports are directed to the US, and 45% of that 12% were exempt from the tariffs. 45% of 12 exempt, 55% of the 12, around 6% of our exports are going to the US with higher tariffs. We might see some additional, I think, exemptions. For example, coffee, it seems it doesn't make a lot of sense given the exemptions that the Trump administration gave on products similar to coffee with the rationale that if there is a plant or something that does not grow in the US, they have to import it without tariffs, and coffee is one of them. Coffee does not grow in the Northern Hemisphere.

As Brazil is concerned.

12% of our exports.

Are directed to the U S.

And a lot of <unk>.

45% of that 12% were exempt from the tariffs.

So 45% of 12 exempt so 55% of the 12 around 6% of our exports.

Going to the U S with Hyatt <unk> and <unk>.

We might see some additional I think exemptions for example, coffee it seems it doesn't make a lot of sense given the exemptions.

The Trump administration gave on products similar to coffee.

With the rationale.

There is a.

A plant or something.

Well not that does not grow in the U S. They absolutely, Florida, we all tariffs and coffee is one of them coffee, which will does not grow.

In the northern Hemisphere.

Alexandre Saigh: That can be another 5% to 7% of the exports, and also might be affected by 35% to 40% of the export, not 55% as of now. In the end, I think it might not really change the needle dramatically for Brazil. I have here, Luiz Fernando Lopes with us. Our initial math does account for a 0.2 to 0.4 of a reduction in GDP, and the whole thing gets into effect and nothing comes back. That was more of tariffs on 100% of the goods. Tariffs on 55% of the goods is more to the 0.2, 0.3 than the 0.4. As I was mentioning earlier, we were expecting GDP to grow around 3% this year in Brazil. We might see, by the end of the year, that reducing to an annualized growth rate of 2.6, 2.7 because of the tariff.

So that it can be another 5% to 7% of the exports.

So might be effected by 35% to 40% of the exports.

Not $55 off now.

So.

And I think we are.

It might not really change the needle dramatically for Brazil.

Half yearly for them to look is with us.

Our initial math does account for a point.

Two to four of our reduction in GDP and the whole thing gets into effect and nothing comes back and that was more of the 100% of dollars on 100% of the goods parison, 55% of the goods that was more to the point to 3.4. So also.

I was mentioning earlier, we were expecting GDP to grow around 3% this year in Brazil.

So we might see.

By the end of the year that reduced to an annualized growth rates of 2627 because of the tariff.

Alexandre Saigh: Of course, it's painful, but I don't think it's dramatic in the sense that our 3% GDP growth will go down to zero in Brazil, something like that. It's, as we say here, on the margin. Right? On the margin. That, I think, is more of the economic impact. I think of the second part of your question, I think there's a political impact, which is, of course, I think everybody's concerned and attention that these tariffs are not really derived from trading issues, but they come from political issues. That puts us in a more uncertain scenario, right? Because even if we go back and we have good trade negotiations, but we didn't fix, as far as Mr. Trump is concerned, the political side of it, now where do we land? That puts us in a more uncertain position.

So it's of course, it's so painful but.

But I don't think it's dramatic in the sense that our 3% GDP growth throughout we will down to zero in Brazil, something like that.

On the on the as we say here on the margin right on the margin.

No.

So thats I think its more of the economic impact I think.

Second part of your question I think if there is a political impact.

Which is no cause I think everybody is.

Concern.

<unk>.

So not really.

Derived from trading issues.

They come from political issues that puts us in a more.

Uncertain scenario right because even if we go back and we helped with trade negotiations, but we did fix as far as Mr. Trump is concerned the political side of it where we land.

And so that puts us in a more.

Uncertain position.

Alexandre Saigh: It's harder to say where will this thing land? The third thing that I would say before I conclude the question here. Other regions of the world, Middle Eastern, Asian, and European, I think they have moved in the direction of investing more in Latin America. As we see from our higher and robust fundraising for H1 2025, and we see the pipeline with very robust fundraising for the next 5, 6 months of 2025. Some of it has to do with this. I think, Look, I'm going to direct my exports not into the US. I'm going to direct my exports to Latin America. The Chinese car industry, for example, they're very competitive. They're directing their exports to Brazil and other countries in LATAM. Other European manufacturers and service providers are directing exports to LATAM and Brazil in particular.

So it's harder to say no deal where will this thing Glenn so.

The third thing that I would say before I will conclude the question here.

Other regions of the World Middle East, Indonesia and Europeans.

They have moved.

In the direction of investing more in Latin America.

As we see from our higher and robust fundraising for the first half of 'twenty five and we see the pipeline with very robust fundraising.

For the next.

Five to six months of 2025.

And some of some of it has to do with this I think they look kind of direct.

My exports into the U S and we're going to direct my exports to Latin America.

The Chinese car industry for example, they're very competitive they're directing their experts in Brazil and other countries in Latam.

Other.

European manufacturers and service providers are directing exports through laptop and Brazil in particular.

Alexandre Saigh: That, of course, brings them to invest more, be it financial investors, be it strategic investors in the country. We didn't see any blip in the interest. On the contrary, we saw more interest in the region. I think it has to do. They say it, actually, our clients say that the uncertainty now of the US economy in general and maybe the uncertainty of the US being that trade partner that we thought that it was in the past, I'm going to look for new markets, for new partners. Even if they shift the small amounts of their total, and it's only the new money and in the margin of the new money, that's already huge amount of money for us, right? For Brazil, we have an FDI of around $60 to 70 billion. Another $5 to 10 billion raises the FDI by 10%.

No of course.

Brings them to invest more b as financial investors be strategic investors.

The country and we didn't see any.

Blip in the interest on the contrary, we saw more interest in the region and I think you'd have to do they see it out actually our clients see that the uncertainty.

Of the.

Now the U S.

Economy in general and maybe in circumstances U S. B that trade partners that we thought that it was in the past.

Look for new markets for new partners, and even if they shift to small amounts of their total.

Only the new money and in the margin of the new money, that's already huge amount of money for us.

For Brazil, we have an FDI of around $60 billion to $70 billion.

No another $5 billion to $10 billion raise of the SDI by 10% in terms of day to day storms devices $10 billion is not a lot of money.

Alexandre Saigh: In today's terms, $5 to 10 billion is not a lot of money. Look at us now. We're managing close to $50 billion, a Brazilian alternative investment manager. Even us could raise another $10 billion, would be another 10% of our AUM, and that increases the FDI into Brazil by 5% to 10%, which is amazing. I think we continue to be in a good position. Finalizing my answer, I think the effects of the tariffs are marginal. I think it's not going to cause major harms in Brazil. Of course, particular sectors are going to suffer a lot more than what I just mentioned. We look into a 0.2 to 0.4 reduction in GDP, out of a 3% growth in GDP for Brazil. Of course, very painful, but not very dramatic. My main concern is on the political side, where we land there.

It will get us nowhere managing close to $50 billion, the Brazilian outside the investment bank.

So even us could raise another $10 billion would be another 10% of our AUM and that's all.

Increases.

Into Brazil by Pfizer, 10%, which is amazing.

So I think we still we continue to be in a good position. So final finalizing my answer I think it's.

The effects of the pirates are marginal theyre not.

Got it.

I think I'm not going to cause major harms in Brazil of course particular sectors are going to suffer.

A lot more than what I just mentioned.

We look into a point to 2.4 reduction in GDP.

Out of a 3% growth in GDP from Brasil plural.

<unk> very painful, but not very dramatic.

But my main concern is on the political side, where we land there.

Alexandre Saigh: Nevertheless, investors continue to show very high interest in our products and in the region. On the net debt, the share count, dividends, recounts here, William, what I can say is, like Ana mentioned, we see net debt remaining relatively flat from the number that we posted by the end of Q2 2025, around $120 million, $130 million net debt. Probably finish the year with $120 million, $130 million of net debt. Share count, we are at 159.5. The range that we gave at our 9 December 2024 Investor Day was 158 million to 160 million shares, and I think we're going to stay within that share count. We don't foresee any increase in the dividends as of today. We continue with $0.15 per share per quarter.

But nevertheless, investors continue to show very high interest in our products in the region.

On the net debt the share count dividends recounts here really and what I can say is like.

As I mentioned received net debt remained relatively flat from the number that we posted.

By the end of the second quarter of 2005 around 120 $130 billion net debt.

Probably finish the year with 102000 $230 million of net debt.

Share counts, we are $1 59 five.

The the range that we gave.

At our December nine 2024, Investor Day was 158 160 million shares and I think we're going to stay in that within that share count.

And we don't foresee any increase in the dividend as of today.

So we continue.

<unk> 15 per share per quarter, and our board last week approved the dividends.

Alexandre Saigh: Our boards last week approved the dividends of $0.15 per share to be paid for Q2 2025. We see that dividends will remain in Q3 and Q4. As we approach the end of the year, and if the fundraising continues to go the way that we are seeing, and the uncertainties that we just described in my answer here, recedes, and we see 2026 as robust as we are seeing when I answer my question here to Tito from Goldman Sachs, we can review this dividend policy. As of today, we're remaining with $0.15 per share for Q3 and Q4. Thank you. I hope I answered your question.

<unk>.

<unk> per share to be paid for for the second quarter of 2025, and we see that dividend. So we remain in this third quarter and the fourth quarter.

As we approach the end of the year and if the fund raising continues to go the way that we see.

And.

The uncertainties that we've just described in my answer here.

Receipts.

We see 2026 us.

As robust as we are seeing.

What I answer my question here to Tito <unk> from Goldman.

We can review this dividend policy, but as of today, we remain with 50 per cent per share for the third quarter and the fourth floor.

I hope I answered your question.

William Barranjard: Of course. You did. Very complete. Thank you, Alex.

Very complete thank you Alex.

Operator: Thank you. One moment for the next question. The next question will come from the line of Guilherme Grespan of JPMorgan. Your line is open.

Thank you one moment for the next question.

And the next question will come from the line of <unk>.

Pardon me.

Spin of Jpmorgan Your line is open.

Guilherme Grespan: Good morning, Alex and team. My question is more as well to pick your brain a little bit, related how you think the business, Alex, in relation to geography. Just the context of the question, I have been having more and more debates around a Brazil potential bull case scenario next year. This bull case, I think it's a combination of potential administration change plus lower rates. Some investors are seeing the scenario of a risk-on scenario in Brazil. My question to you is how you see Patria nowadays and how much should we expect in terms of benefits from Brazil specifically. Because if you go into the past, 10 years ago, you used to be a very specific, concentrated asset in Brazil, right? I think for the right reasons, you diversified a lot the business.

Hey, good morning, Alex and team.

My question is more as.

As well to pick your brain a little bit related how do you how do you think the.

Business, Alex in relation to geography.

The context of the question.

I have been having more and more debates around.

Brazil potential Bull case scenario next year.

<unk> I think it's a combination of potential.

Administration change plus lower rates.

So some investors are seeing on the scenario of a risk off scenario in Brazil.

Question to you is how do you see Boston and nowadays and how much should we expect in terms of benefits from Brazil, specifically, because if you will in the past 10 years ago, you used to be.

Very specific concentrated offsetting Brazil, right, but I think for the right reasons, you via diversified lots of business Nowadays, Brazil, I think if I recall correctly, so only 25% of the fundraising.

Guilherme Grespan: Nowadays, Brazil, I think if I recall correctly, is only 25% of the fundraising. If you can recap, I'm not sure how much it represents in terms of asset allocation. My point to you is, if we see this bull case scenario in Brazil in terms of risk-on environment, do you think fundraising trends are expected to accelerate? At this point, do you think it's reasonable to see a steady growth going forward, independent if Brazil does super well or not? That's it. Thank you.

And if you can recap.

I'm not sure how much it represents in terms of cost at that location.

But my point to you is if we see this bull case scenario in Brazil in terms of risk on environment do you think are fund raising.

Trends are expected to accelerate.

At this point that you think is reasonable to see a steady growth.

Going forward independent.

Brazil, the Super well, we're not that's it.

Thank you.

Alexandre Saigh: Thank you, Guilherme. Thanks for your question. No, definitely so. I think if there was a re-rating, as you just explained, linked to the political shift to a center-right government in Brazil, definitely, in my view, fundraising and prices of assets post-election will rise. We've been seeing that, and we've been following that, and we do cover that very closely, and you can see from all kinds of graphs and data points what happens in the shifts from center-left to center-right in economies like Brazil. There's some correction or increase in the prices of assets before, a big correction in prices of the assets post the election, and increases in fundraising in general. What I would like to highlight is not just Brazil.

Thank you let me thanks for your question.

Well definitely so I think if there was a re rating.

As you as you just explains linked to the political shifts.

When a center right government in Brazil definitely in my view fund raising and prices of assets post election will rise.

And we can see that we've been following that.

We do cover that very closely and you can see from all.

<unk> kind of grass and data points.

What happens with that.

And the shifts from central App to send the rights in economies like Brazil.

The there are some.

Correction or increasing the prices of assets before but.

A big correction in prices of the assets post the election.

And increases in fund raising and Jeff.

But what I would like to highlight this is not just Brazil.

Alexandre Saigh: We, not by chance, but by strategy, as you mentioned, we did diversify our business into other countries in Latin America first and then into Europe. What you just mentioned about Brazil is also happening in other countries in Latin America, mainly in Chile and Colombia. Today, on the liability side, we have 65% of our fundraising from investors that are based outside of Latam, 20% from investors based outside of Brazil, Latin investors that are not Brazilians or based in Brazil, and 15% of our fundraising coming from Brazilian-based investors. 65, 20, 15. On the asset side, where do we invest this money? It's more or less a third, a third, a third. A third in Brazil. It's 28%, 30%. I'm just rounding the numbers to make it easier here and illustrate my example. A third in Latam ex Brazil and a third outside of Latam.

Yes.

Not by chance, but by strategy as you mentioned, we did diversify our business into other countries in Latin America first and then Europe.

And what you just mentioned about Brazil is also happening in other countries in Latin America, mainly in Chile and Colombia.

Today on the liability side.

We have 65% of our fund raising from investors are based outside of lepton.

20% from investors based outside of Brazil, Latam Latam investors that are not Brazilians are based in Brazil, and 15% of our fund raising coming from Brazilian based investors 65 50.

On the asset side, where do we invest this money is more or less a third a third a third a third in Brazil.

It's 20%, 30% I'm just rounding the numbers to make it easier here and illustrate my example.

Third and Latam ex Brazil in the third outside of lesser.

Alexandre Saigh: Okay? Taking a view of the third, which is Latam ex Brazil, and I also mentioned earlier, it's just 3% in Mexico, it's mainly Chile, Peru, and Colombia. These three countries are going over the next four to 12 months or four to 18 months through elections. We already see the same effect that you just mentioned for Brazil in Chile. Most probably, the election polls are showing us that a center-right government in Chile will win, is it Mrs. Matthei or Mr. Kast. That puts us in a very good position to re-rate Chile. You can see that the more liquid securities in the Chilean economy are already being priced up. We can see also fundraising of our Chilean clients will be more exposed to this re-rating of Chile going up.

Okay.

So taking a view of a third which is locked down ex Brazil.

And I also mentioned earlier is just 3% in Mexico, So, it's mainly Chile, Peru and Colombia.

These three countries are growing.

Our growing over the next <unk>.

Six three et cetera.

So with 12 months of four to 18 months through elections.

And we already see the same effect that you just mentioned for Brazil and Chile.

Most probably the election polls are showing us that a center right.

Government in Chile will win.

As Matteo Mr gas and that puts us in a very good position to re rate Chile.

So we can see you can see that.

More liquid securities in the Chilean economy has already been priced up.

And we can see also fund raising of actually clients would be more exposed to this re rating of Chile going up so we are raising more money into that to bet.

Alexandre Saigh: We're raising more money in Chile to bet on this re-rating strategy, election strategy, or election arbitrage, as we call. We go then next, which the presidential elections in Chile should happen at the end of 2024. We go into 2026. We have elections in Colombia and Peru. In Colombia the same. A little behind Chile because the elections in Colombia is just in Q2 of 2026. What the polls show today, that most probably we're going to have a center-right government because the popularity of the current government, our president there, Mr. Petro, is really, really low. With that, the whole re-rating, the whole election arbitrage, and we're playing, of course, with that. We're seeing investors willing to invest in our funds.

On this re rating strategy or election strategy or election arbitrage was recall.

And we go then next which is presidential elections, the GDR happening should happen at the end of this year. Then we go into 2026, we have elections in Colombia and Peru.

And in Colombia, the same the same.

Behind the Chile, because the elections in Colombia is just in the in the second quarter of 2026, but what the polls show today.

Most probably we're going to have a sense of right governments because of the popularity of the current government present, there Mr batteries really really low.

With that the whole <unk> the whole election arbitrage and were played.

Of course with that.

We see investors willing to invest in our funds is no.

Alexandre Saigh: We're having success in raising a private equity fund in Colombia, success in raising an infrastructure fund in Colombia, and mostly through our institutional investors clients. They are saying exactly that you mentioned about Brazil, about Colombia. Peru comes next. We have the vice president of Peru actually took over as the running president, and she is then conducting elections in 2026. She managed to do the same thing that Mrs. Rousseff managed, right? Her popularity is lower than the inflation in Peru, which is a rare position to be in. Her population is lower than the inflation in Peru, which I think her population is around 2%, 3%. I don't know how low can you get. How can you get lower than that, right? Inflation in Peru around 4. Inflation in Peru is higher than her popularity.

We're having success in raising a private equity fund in Colombia success in raising an infrastructure fund in Colombia, and mostly through our institutional investor clients and they are saying exactly that that you mentioned about Brazil about Colombia.

And then the rule comes next and we have a vice president of Peru actually took over.

As the running president and she has been conducting elections in 2026.

And.

She managed to do the same thing that this is a assessment as Reits popularity is lower than the inflation.

Is it a rare rare positions with Ian.

Her population is lower than inflation moves I think for populations around two 3%.

Hello can you get.

How can you get lower than that right.

And inflation is below around four so inflation, but it was higher than her popularity. We normally see here at Baxter that when your popularity rate is lower than the inflation rates I think it's time for you to go right.

Alexandre Saigh: We normally say here at Patria that when your popularity rate is lower than the inflation rate, I think it is time for you to go, right? Which is, I think, the case of the Peruvian president. She is going to be substituted by a center-right president. The Peruvian economy also has this election arbitrage. Then comes us, Brazil, end of 2026. Very early to say 16 months before an election, 18 months before an election, so many things can happen. I think there is a chance of the center-right government to win the elections here in Brazil, and that arbitrage play will come into effect. We see that into play more of the hedge funds that we see invest in some of our funds. We see the local investors already betting on that. We see also several data points.

I think the case of the proved and presence and she is going to be substituted by the sensor right presence. So reuben, causing you also houses election arbitrage and then it comes us Brazil.

End of 'twenty six.

Very very early to say.

No.

16 months before an election, so many say 18 months before an election, so many things going to happen.

I think theres, a chance of the central government.

And the elections here in Brazil, and Thats arbitrage play will come into effect and we see that.

Into play more of the hedge funds that we see investing some of our funds we see the local with vessels already betting on that.

We see also several data points.

Alexandre Saigh: As you know, we had a very large, sizable short position on the real in the beginning of the year. That short position basically diminished. I don't think people are in a buy long position, but I think the short position went to a neutral position. Same in the stock exchange. I think the short went to a neutral position. I haven't seen here in Brazil because it's the latest, it's the fourth country in my list here, Chile, Colombia, Peru, and then comes elections in Brazil. We're a little further down the road, the Brazilian elections. I already saw a shift from a short position to a neutral, and we might get into a long buy position as we head into the end of 2025 and 2026, and the elections polls shows that the center right in Brazil have a good chance to win.

We had a very large sizable short position on the rail and the year to year that short position basically diminished I don't think before in the in a buy long position, but I think the short position went to a neutral position.

Same as the stock exchange I think the short once with neutral position. So I haven't seen here in Brazil, because it's the latest as it is the fourth country and might this year Chile.

Colombia, Peru and that comes elections in Brazil. So we're a little further down the road the Brazilian elections, so, but I already saw a shift from a short position so unusual and we might get into a long by position as we head into.

At the end of 'twenty, five 'twenty six and the elections a poll shows that the center right in Brazil have a good chance to win.

Alexandre Saigh: Yeah, very exciting moments, to be honest, William. We're going to play this two-thirds of our assets, as I mentioned, invested here in the region, not only in Brazil. In Mexico, we don't see that, of course. The president there was just reelected for a 6-year term. It's amazing. We look into the Mexican, Colombian, and Chilean economy. Why are these economies being able to have low interest rates in Brazil? Very simple. The fiscal, right? Mexico is investment grade with a 50% debt-to-GDP. Chile is investment grade, OECD, and Mexico is also OECD member. Chile, investment grade, OECD member, and also interest rates coming down with a fiscal stance relatively under control, 40% debt-to-GDP. Colombia, not investment grade, but it's 50% debt-to-GDP, moving a notch up to 50-something percent of debt-to-GDP, but the leadership in Colombia is quite complex.

So, yes, very exciting moments to be honest.

William.

And.

We are going to play this two thirds of our assets as I mentioned the investors here.

In the region not only in Brazil.

In Mexico, we don't see that of course.

There was just reelected for six year term.

So.

It's amazing.

Looking to the Mexico and Colombia.

The Chilean economy why are these economies.

Having.

To have low interest rates in Brazil, very simple the fiscal right.

Mexico is investment grade with a 50% debt to GDP, Chile is investment grade or in Mexico has also received in the Chilean investment grade OECD member.

And also.

Interest rates coming down.

With a fiscal <unk> or <unk>.

<unk> relatively under control, 40% debt to GDP, Columbia, not investment grade, but it's 50% debt to GDP moving a notch up to 50000 people so thats the GDP.

The leadership in Colombia is quite complex.

Alexandre Saigh: Us here with gross debt at 76% of gross debt-to-GDP. The fiscal says a lot about these four countries as well, right, that I just mentioned. We might have even not only a center-right government winning the next election, but a solution, or at least a path to a solution to our fiscal problem, and that adds to the whole re-rating or election arbitrage in Brazil. Pretty excited, to be honest. We see all of this happening in all of these countries, and we did expose Patria on purpose by strategy to these countries.

Last year with gross debt of 76% of gross debt to GDP. So the fiscal says a lot about these four countries as well that I just mentioned so we might have even not only a center right government winning the next election, but a solution or the supplier to a solution through our fiscal problem on that.

No actually the whole re rating.

Our elektron arbitrage in Brazil, so pretty excited to be honest as are.

We see all of this happening in all of these countries and we did expose botryoid purpose by strategy to these countries.

Alexandre Saigh: Last, if I go to Europe, we're basically exposed to the UK. UK is doing reasonably well given the situation, and went out and already signed a tariff deal with the US administration, which seems as a good tariff deal given what the European Union signed and given what Japan signed. They are on the good side. That also is an economy that's interesting a lot of infrastructure investors because of their higher defense spending, et cetera. I'm pretty excited here, William, and I hope I answered your question. Guilherme, I'm sorry. I hope I answered your question. It's Guilherme and William is the Brazilian and English version. Sometimes I say the Brazilian version or the English version. That's why. I'm sorry I confused, Guilherme. Thank you.

And there's no lastly, if I go to the Europe, where basically exposed to the U K.

UK is doing reasonably well given the situation that went out and already signed a deal with.

U S administration, which seems as good tariff deal given whats the European Union sign of given what your pet side. So there is a good site.

And that also has an economy that.

Interesting a lot of infrastructure investors because of their higher defense spending et cetera. So a pretty excited here, we didn't really I hope I answered your question, Okay, and sorry, I hope answers.

Okay.

William is the Brazilian and English version or something right.

Is that the Brazilian version of the English version, So that's why I'm, sorry confusing yes. Thank you.

Guilherme Grespan: No problem at all. Thank you, Alex.

No problem at all thank you Alex.

Okay.

Operator: Thank you. This does conclude the Q&A session. For today, I would like to turn the call over to Alexandre Saigh, CEO, for closing remarks. Please go ahead.

Thank you and this does conclude the Q&A session for today I would like to turn the call over to Alexander CEO for closing remarks. Please go ahead.

Alexandre Saigh: Thank you very much. Thanks for the call. Thanks for coordinating the call as well. Again, we're very excited with the news of the H1 of the year, and are looking to a great 2025. Thanks for your participation. Thanks for the patience, and I hope to see you all in person and safe in the near future. Thank you. Bye-bye.

Thank you very much thanks for the call and thanks for coordinated the call as well.

Again, we're very excited with the unused over the first half of the year and are looking to a great 2025. Thanks for your participation. Thanks for the patience and I hope to see you all in person and safe in the near future. Thank you Bye bye.

Operator: Thank you all for participating in today's conference call. You may now disconnect.

Thank you all for participating in today's conference call you may now disconnect.

[music].