Patria moves Chilean desalination project between funds

Published 31/01/2025, 14:42
Patria moves Chilean desalination project between funds

GRAND CAYMAN – Patria Investments Limited (NASDAQ: PAX), an alternative asset manager with a market capitalization of $1.85 billion, has announced the near completion of the sale of Aguas Pacifico, a water desalination project in Chile, from Patria Infrastructure Fund III to Patria Infrastructure Fund V and other global investors. The transaction was initially agreed upon in December 2024 and is expected to finalize in the first quarter of 2025. According to InvestingPro data, the company maintains a healthy gross profit margin of 60.34% and offers an attractive dividend yield of 4.98%.

Aguas Pacifico, which is currently under construction, is situated in a region of Chile facing severe water scarcity. The project’s transfer underscores Patria’s strategy to invest in Latin American infrastructure that addresses critical needs and promotes local economic and societal benefits.

The sale aligns with Patria’s broader investment philosophy, which focuses on creating positive impacts through strategic partnerships and asset development. Patria Investments, with over 35 years of experience and managing more than $44 billion in assets, targets resilient sectors and aims to deliver consistent returns while fostering sustainable value.

The involvement of sovereign wealth funds and institutional investors in the transaction highlights the project’s appeal as a long-term investment. Patria’s approach to infrastructure investment in Latin America is characterized by the development and de-risking of high-quality assets, collaboration with global investors, and the pursuit of attractive investment returns.

This press release also contains forward-looking statements regarding the company’s expectations for the project’s performance and impact. However, these statements involve risks and uncertainties, and actual outcomes may differ materially.

The sale of Aguas Pacifico is part of Patria’s ongoing commitment to investing in infrastructure sectors that are essential for the growth and development of the communities they serve. The information reported here is based on a press release statement.

In other recent news, Patria has posted impressive Q3 results, demonstrating strong financial growth and strategic expansion. The company reported over $2 billion in organic fundraising for the quarter, bringing the year-to-date figures to over $4.2 billion, in line with their $5 billion target for the year. Patria’s management fees have risen by 26% year-over-year to approximately $78 million, with fee-related earnings and distributable earnings increasing to nearly $41 million and around $35 million, respectively.

The company’s diversified investment platforms, particularly in real estate and credit, have significantly contributed to this growth, with assets under management in these sectors reaching over $6 billion and $6.5 billion, respectively. Patria has also signed a $500 million memorandum of understanding with an Asian sovereign wealth fund, further strengthening its global position.

Despite the increase in operating expenses to $34.7 million due to acquisitions and higher personnel costs, Patria is focused on integrating recent acquisitions and expanding its investment platforms. It has announced plans to refrain from acquisitions for the next four quarters to concentrate on business integration and margin improvement.

In terms of future expectations, Patria projects fee-related earnings of $170 million for 2024, with a target increase to $225 million by 2025. It also anticipates maintaining a dividend of $0.15 per share through the end of 2024. These recent developments underscore Patria’s commitment to growth and its ability to capitalize on opportunities within the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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