Patria Investments Limited

Q1 2021 Earnings Conference Call


spk_0: they and thank you for center by welcome to the patria first quarter two thousand twenty one earnings call at this time i'll put his hands on a with molly mode as of speak of presentation there be a question and answer session classic lesson on a session you and me depressed star one your telephone please be advised that today's confidence be recorded if you're horny further assistance please restart zero on allied the helicopters over here cigarette a day just would hit a shareholder relations with will head
spk_1: thank you for morning everyone the let the patriots first quarter twenty twenty one earnings call dwelling on the call today or chief executive officer alec side and our chief financial officer marco to volatile earlier this morning the issued a press release in earnings prevent asian detailing our first quarter twenty twenty one results which you can find posted on our investor relations website and i are dot patriot act calm or on for six cape out of the securities and exchange commission in it for looking statements made on this color uncertain do not guarantee teacher performance and undue reliance should not be placed on them battery it seems no obligation and does not intend to update any such for looking statements such statements are based on current management expectations and involve inherent risks including those disgusting the risk factor section of our form twentieth annual report filed last month as a foreign private issuer patio reports financial results using international financial reporting standards or i have for us as opposed to you as gap additionally we will report and refer to certain and gap industry measures which should not be considered in isolation from or as a substitute for measures prepared and accordance with i have or us reconciliations of these measures to the most comparable measures calculated in accordance with i have our answer included in earnings presentation the quick overview the results pachulia generated thirteen point one million dollars and i have our said and income and she won twenty one on keen on got measures for the first quarter the related earnings were seventeen point three million dollars and distributable earnings were seventeen million dollars or twelve point five cents per share an alignment with our policy we declared a dividend of ten point six cents per share people on june sixteenth to shareholders a record as of june second with that i'll turn the choleric our chief executive officer alec side alex
spk_2: thank you josh good morning everyone and thank you for joining us today
spk_3: we're very pleased with our first quarter results
spk_2: we would reflect solid the execution across our investment platform
spk_3: we're not only on track but also leveraging current opportunities to deploy and commit larger amounts of capital into new investments
spk_2: which accelerates our progress on t growth drivers for the for
spk_3: awkward for companies are performed very well demonstrating the resilience of our investment approach and our ability to deliver outstanding returns to our elkins through many different environment
spk_2: in private equity we're delivering seven hundred and fifty basis points about performance relatively to the emerging markets benchmark an awkward photocopies of capitalize on recent opportunities from consolidation completing a total of thirty four and money transactions in twenty twenty four itself in infrastructure our investment opportunity is vast and we have map above eighty billion dollars in long term development needs across latin america specially in brazil chile colombia and peru
spk_3: we're seeing a record levels of government concessions and is well positioned to be a selective bitter and wind projects with very attractive return profile
spk_2: now
spk_3: clearly the entire world is emerging from a health and economic crisis and latin america is emerging along with it the latest then it data shows encouraging friends suggesting that we may have turned a significant corner
spk_2: when new cases in they're both receding significantly from their highs in late april there has also been substantial progress in the musician programs
spk_3: with over a hundred and ten million vaccines given in the region there's no question the second wave unreason environment has been difficult for society and many businesses and reader or macro concerns of clearly waited on partial shares in the last few months alongside other countries with exposure to the reach while we cannot control these externalities what can we do we can continue to outperform i want to emphasize the fundamental resilience of factors business model and impressive investment performance we are deliver over three decades we have been for raising deploying capital and generating attractive and in most cases stop or tile returns for our lps
spk_2: while navigating through many different environments
spk_3: over that time we have faced dealt and learn to take advantage of the volatility in latin america
spk_2: i'll return for the naval service several vintages
spk_3: for example for our through flagship phones we are vintage number six for private equity and vintage number for for infrastructure and we have been able to scale these been significantly for let's focus on the key drivers of the invest in my psych on raising deployments and performance
spk_2: and convey why we have such high confidence in our ability to deliver value to our shelves in order to a larger and larger flagship phones every four years we had to effectively deploy the capital entrusted to us by best
spk_3: in our business periods of volatility can present better opportunities to good money to work and indeed we are seen that play out now for private equity in particular you can see an hour presentation that for six years now sixty eight percent deployed in desert and quickly closing in on the seventy five percent threshold that would allow us allows the fund raising of the next month
spk_2: with our investment pipelines and strong as ever we now see the finding of the private equity fund raising favorable accelerating
spk_3: and we expect to be back in the market later this year when you investment activity transitioning to the new fund some time in twenty twenty two the most critical elements of our long term success is of course investing performance and we get a potter's approach to meet investing in the region is really a differentiate in private ip we are mostly investing in smaller companies are attracted by the way to multiples and build a dummy to market leaders who consolidation and then we learn from this focus on fundamental value creation
spk_2: our to most recent private equity funds of reforming for norman
spk_3: with fun five of the thirty two percent net iii knew dollars i did begins his harvest the face and fun six at a nineteen percent met i knew as dollars while still in is an indefinite period
spk_2: in infrastructure we are not typically buying mature assets but rather building new platforms are companies from the ground up to feel critical needs for society which the government often does not have the means to address
spk_3: here we are see a vast range of opportunities to deploy capital into development projects
spk_2: and we are in a position of strength to be selected bit of
spk_3: across both strategies we focus on visit sectors of the economy that are linked to basic human needs like healthcare food transportation and energy
spk_2: which have lower correlations with gun on the cycles and gdp growth
spk_3: over time we believe all approach has led to more consistent returns and provided stability through market facts
spk_2: in our country specific strategies targeting local investors currently focus in brazil the question we here recently years
spk_4: with interest rates now reversing course
spk_2: is the theme of the financial deeply in danger
spk_3: here i think you have to step back and appreciate the magnitude in brazil for example needs a bank rate has raised from ten percent to twenty percent for most of the last twenty years since two thousand and sixteen we saw plunged from forty percent to two percent and now recently reversing back to the point five percent as the central bank looks to same rising inflation
spk_2: if anything a modest wise and rates should continue to stabilize local currency
spk_3: which we are currently see with eighteen trillion dollars of negative yielding death across the globe
spk_2: we don't see the longer term trend of low interest rates spending any time soon and we don't see modern the higher rates low in the flow of capital into all sorts of us
spk_3: indeed we think a financial degree in the region is well in fact
spk_2: and we'll be a long term trend that infects patrick of positively
spk_5: i'll wrap up by reiterating these very simple points
spk_2: number one
spk_3: our story for your term few related bernie's growth depends on our ability to deploy the remaining capital in our current flagship phones and go back to the markets raise view and larger funds
spk_6: we have extremely high confidence in our ability to do that and we are see that process accelerate
spk_3: number two we believe the expansion of our country specific strategies will be a steady go get a group engine for f r e as well
spk_4: as these strategies achieve a more material scale over the next few years
spk_2: number three we are actively exploring opportunity to use i feel kept the for strategic emanate
spk_3: which review as outside to an organic growth profile that is already very compelling no for and lastly and most importantly
spk_2: we are causing the aware that are groped ultimately depends on what think great infested performance
spk_3: if we continue to deliver strong returns lps will commit larger sums of capitalists and for shareholders investors performance can generate substantial levels of performances considering those factors it should be no surprise that legally patches stuck presents an attractive valuation of current levels and we believe our financial performance will make that clear over time
spk_7: on the called over to michael for deeper dive on the numbers michael please thank you alex and the morning financial performance was solid for the first quarter and very much in line with our expectation and our keep it that drivers are all progressing nicely see related earnings of seventeen point three million dollars a q one twenty one where at fourteen percent from fifteen point to me of in in que one twenty written by a twenty percent increase in total the revenue management fee of thirty one point three million dollars into one twenty one were up thirty one percent compared to thirty one twenty largely driven by the earning that you when inflow from private equity fund six and infrastructure been for personal expenses of ten point three million dollars worth up from seven million mostly due to the shift in compensation stretcher post i feel f r e margin was fifty seven percent from the fourth quarter reflecting very frank profitability buttress f r e margin is among the highest in our broader peer group and exceeds the margins of global managers many time our five on and the you un basis the earnings a un for the que one twenty one rose to more than eight billion dollars at four percent from the last quarter and fourteen percent from one year ago keep in mind that our report that see earning the land reflects the david that is generating management fee in the third quarter in our flagship phone call for management fee semite and will be at the beginning and needle of the year the increase in fielding the when from que for to que one for
spk_8: sample is most attributable to capital deployed or reserve in the second half of plenty twenty there is now two point eight billion dollars of pending see earning the when which is not yet generating management fee
spk_7: as up the first quarter and will drive that line growth over the next several quarters in our earnings presentation we have added some additional details to show you that approximately five hundred million dollars has already been completed in the first larger mostly from private equity fund six which will flow into the earning the land and begin to generate management he in the second half of when you want we're seeing attractive opportunities to invest in this environment and our pipelines are very active actual capital deployments to our portfolio companies in the first quarter was two hundred seventy seven million dollars which includes amount that work reserved in prior quarters we noted that private equity fund six was active in reserving capital for new investments in the first quarter they can that fan from fifty one percent to sixty eight percent committed and moving as much closer to the seventy five percent threshold for launching a new next and raising campaign the acceleration should allow us to go back to the market later this year sooner than expected and begin to a true new capital into our feet earnings a web and time next year infrastructure finn or remains at fifty six percent invested and reserve while we see that send taking a little longer than private equity to come back to the market we're also seeing a very active pipeline for deployment with record level of government the concessions expected in the region for this year fund raising in the first quarter of one hundred forty seven million dollars was driven by our first infrastructure for fun which is recognized as part of our fences specific strategies as it is a publicly traded evergreen vehicle focused on local investors in brazil this type of fun typically most are located capital quickly and we have high visibility on the pipeline for the initial that the race we will have the opportunity to grow the fun to follow on offerings once the initial capital is fully deployed demand for our country specific strategies remain strong and we'd expect to have opportunity to raise new capital and credit and we'll state legal as the your progress thirty now to perform see the net accrued performance the balance with two hundred and fifty three million dollars at the end of the first quarter compared to two hundred seventy six million last quarter the decrease with driven by local currency depreciation it friend with spanned last year and contain it into the first quarter of twenty twenty one while this movement was clearly a headwind for our us s denominated fun performance immodest impact to are a cool bells demonstrate an impressive residents a so it is important to recognize that the a crew is is match up in time and with the change of direction and interest rate in april and may we have now seen a significant stabilizing effect on local currency with the brazilian hell reversing course and appreciating i guess the us dollar at third level of other things being equal our march thirty one that's a good performance he would have been approximately three hundred million dollars if you accordingly adjusted the unrealized their value in us dollar terms while that is of course the theoretical estimate it does give you an indication of where the balance could go if the clearance he remains at the dave level or even improves for the we have knowledge that it's easier to be a buyer dennis seller in the third environment but we're seeing good progress toward monetizing or with rule as alex noted private equity fund five performance and penis to be outstanding with a net i are of thirty two percent and one hundred eighty two million dollars of met a group performance the this is a fun with nine investment one of which now has an exit agreement at some point four times invested capital the companies are mostly mature and to have filed for and i feel
spk_9: while we need more exit indifferent or we'll live performances
spk_7: there are multiple opportunities across the board for the in private equity three the net a cruel of forty five million is supported by bubble from fire exits and one unrealized publicly traded investment which we believe remains and they're bad it at it's there and share price with significant potential to improve in the and we're like reforms the will always be a product of the return to generate for our lp and this we will always sell investments when it is the right time for our lp so how does all different late to are earning outlook what we want to convey more than anything is the outlook for the related owning is completely intact irrespective of any macro perception about the week remember that our capital lock it up
spk_9: and we enjoyed the flexibility to be patient when necessary and also addresses when the time is appropriate
spk_7: near term fr re growth is substantially driven by the deployment of our pending see earning the you were alone if anything to the environment is accelerating our growth there and we deploy capital faster and bring forward fund raising we competed to expect nominal rules in every for twenty one compared to seventy one million dollars generated in twenty twenty of margin and of need fifty percent range the should be driven by very strong the revenue growth north of twenty percent year over year while exit transactions may be incrementally more difficult at the moment we continue to feel great about the quality and the performance of our portfolio were still in the first half of the year and see significant opportunity for the backdrop to improve especially if the economic reflation accelerate in the coming months
spk_8: well dead for jack three may have an impact on the level of performance he will realize that year versus next hour automate performance expectations are unchanged
spk_7: altogether you should take away the message that part with growth story is highly impact and exciting opportunities lie ahead as a newbie public company we recognize that the market is carefully evaluating our ability to execute we have high convention that weekend the lever and presuming we do with the considerable bad you in our shares at today's friday many thanks to all of our shareholders for your support
spk_10: and to potential shareholders we hope you will also considered joining us as partners on this journey will now happy to take your questions this is that require some points for scholar than one person has an answer a new life smoothness of mchugh cause the pokey
spk_11: upper class and council could see them go with through the one is open good morning our on hi marco hope your boat too unwell i'm i wanted to come back to slide eleven on we can see that forty one percent a private equity fund sex is now are for transactions and my question is is all of the binding and reserve capital and the
spk_12: forty one percent based on transactions that have already been announced and what are the major investments and get it in this forty one person and should we expect them to close over the next six months
spk_3: yes hi greg this is alex here thanks for your question
spk_13: yeah we we are honda forty one percent
spk_3: we are we have
spk_4: two thirds of those are already know not only committed but both are deployed
spk_3: well we have have moved on the beginning of the of of the fun we did take advantage of the up cool vid
spk_4: where are listed stock prices did suffer
spk_3: and we did did the play capital
spk_14: the buy the shares of to listed governments
spk_15: one with the
spk_4: gas distribution network
spk_3: the gas stations and the other one is a health club or health for help your tree
spk_16: so that they were no not only committed by deployed been
spk_3: we did commit capital to the health care initiative in latin america starting in colombia and it's an integrated healthcare company starting with not tunnels healthcare management organizations and columbia there we committed a substantial amount of money but we deployed a part of that and we also then committed to others a thesis along concerned with no second quarter
spk_4: one into lay in a he says in the fast moving consumer goods distribution business
spk_17: and the other pieces in the cyber security distance
spk_12: with that
spk_15: yes we are then
spk_3: no wifi up for our commitments by and the third quarter we should have known by the end of the actually this close second glitters surpass the seventy five percent percent threshold which enables us to market and actually have a first clothes on our next one by the from some and we should have about forty percent of the fun deployed
spk_11: the by the end of the year that forty percent from go to be closer to fifty sixty percent of like i hope i am your question
spk_3: right outsells very clear up to just from my follow up the interest rate backdrop as is costly changing and brazil and it's now looking like rates are going to move higher be faster than we thought three six months ago on i know most your clients are outside of brazil but how does this evolving and
spk_2: interest rate backdrop change the domestic migration to equities alternative these has which could impact flows in a products like your infrastructure core find inside herself
spk_3: no thanks for the question again i think very good question
spk_13: i think we have to take a look for some on on the magnitude of things right yeah
spk_3: to be on as a no two percent interest rate in brazil was way way too low now we do have
spk_4: some inflation in the country and of course and during the cold her months
spk_2: of were affected by google of course not the now no things coming back economies rebel the we do have some inflation which is good action for the economy
spk_4: and no central government's not only brazil hopefully up into rates to cope with that but we're talking about know inflation be know if you with you extract from from yeah none fish numbers the skin brazil the commodity prices increase that they did increase significantly over the last month he
spk_3: faces basically on target are we have a impatient targeting system in brazil and the point of that is four percent so we see that x commodity prices we see that know it's be much in in control
spk_2: and learn and central bank of in brazil another know countries in latin america are seen the same thing commodity prices pushing up in fisher numbers when you extracted commodity prices increase the other items that composed and play some numbers new disease okri much behave
spk_3: but nevertheless of course inflation vs last year the had no input because of the crisis
spk_15: so the hike up an interest rates is actually now have you positive given the magnitude that we're talking about now we see in brazil five to six my your hand
spk_3: in that vera now at the theater half and that also helps not to be honest great to for us to pass on to prices inflation on our costs on the private equity side we do invest in very resilient and in the last second nature businesses are industries and businesses like healthcare for example we also do have a lot of investment in the agribusiness that now do follow the commodity prices are we had to the hype up in places in these businesses because of the again decrease in commodities activism specifically on the infrastructure side even more so because i'm most of the revenues of we have a need for such of side our country
spk_4: wacky than corrected by inflation
spk_3: so some inflation flaws is actually good and most of our ones in brazil as you mentioned here the our core infrastructure flynn the are denominated in inflation plus returns why because the revenues of these businesses are contracted and corrected by inflation so our infrastructure poor theme such an inflation plus six liter and as so if inflation goes to for his around ten nominal is inflation is three is around nine a nominal saga the the six percent above inflation is what investors look for and normally the bruising and central bank actually in a no no same temperature the same pressure do position interest rates at a two percent above inflation inflation target so of inflation targeting around the and an hour for interest rates will be around five and a half six and that's what the market actually predicted to look at the for the ogre
spk_2: slashing actually hey pause pauses to be honest certain defeat it in this magnitude not in this magnitude as it is actually give some oxygen to the economy it means inflation also means of things are coming back that dad know businesses are coming back and we've been able to pass on to to prices some of these is now being stationed on our cause
spk_3: basically the increasing commodity prices to affect someone more materials in some industries other one that we are exposed to this healthcare and and and other items on the really exposed to have know what materials that that by know whatever commodities like a client or whatever but yes everything note and looks more natural more normal with a fox and inflation and a six percent interest rates and again our businesses in brazil in local school currency is inflation plus i forgot to mention i read sell real estate investment trusts they traded and also the same way that mean infrastructure investment trust trade that i just explain
spk_18: the book about you would at an inflation plus he would sell at my example for the in infrastructure investment actual was inflation for six let's say that it's an invasion to six again for out the real said invest interests trust a b c
spk_19: so if inflation goes up as as will that yields because in brazil and we have rains also collected by inflation
spk_10: so again now that it's a long answer to your question but for me and as i look into the businesses act that in the mag into that we're talking about now round not the flourish kind of level inflation and the sixes scan of level interest rate is actually positive for for our businesses and for the economy
spk_20: a gem
spk_15: i think you alex
spk_12: no and next question come from might carry out west bank of america airline is open
spk_3: hey guys this is the staff and on her my arm and i i know it's always difficult sir to forecast by can you provide some additional color around the performance the outlook for the remainder of twenty twenty one on you know if you accept any performance fees to be generated over the next couple quarters arm and maybe what percent of previously we expected performance he's could be delayed into next year
spk_4: no thank you very much in and thanks for on
spk_3: what dissipating are call this is alex again here all performance fees for at once or twice when he won his best he could pose by or derived from to funds or private ip fun to read and and by the from five as you know
spk_2: one private ip fun for the our main asset their which is ninety percent of the remaining net up and that net asset value of the any he of the fun
spk_3: is one listed company which is an imaging diagnostics company they had called on the are a l l i they are you can check that know if you want to as it does it as it is on this it can be in the booze in in stock exchange be fully and he had a great club not a great for squad of twenty twenty one and the results actually
spk_16: did please investors as the stock went up by twenty five cents
spk_21: the versus know how that stock closed by the end of twenty twenty
spk_3: so great performance there because this complete idiot and energy diagnostic company but it does the did that them
spk_2: negative funny
spk_3: in fact that he got negatively impacted by colbert because the elective surgeries were cancelled with a rebound in the fourth quarter in the fourth quarter you can see and the results of the company coming back up and you can known as the other results are great and the stock price were up so we you expected to see that's because of course
spk_4: we are a major shareholder of the company and we expect this can to actually continue to perform the extremely well this year as we see the vaccination programs in a in a region as mention over a hundred and ten minutes people are vaccinated it's a five hundred and something than and beach and people region so forty percent
spk_3: and a vaccination programmes on a daily basis speeding up so as as that happens and we see actually than a set a good second or third quarter for that specific company i'm at in addition to that as now i mentioned in my last question the with interest is going up a little bit in brazil another regions in in latin america we have a civilization or even a strengthening of the currencies in the region because investors international local international come back it and they want to invest in the local fixed income the market in order to find some yields which is no something hard to find around the world
spk_22: so the increase in interest rates actually helps to stabilize the economy currencies in the region or even strength and plus we have a record high
spk_3: increasing commodity prices as you know if you look at the data know from you can see one day to get a bit of a approximately a fifty percent increase in commodity prices on their laurels sometime last year and that benefits the region as well because that some of the economy's in the region do benefit from high commodity prices copper in chile agribusiness i line brazil oil in colombia seventy dollars a barrel as you know so all of that bush is pushing on one side on the michael side been well known to be bound in the region which we look very positively a commodity prices helping gdp growth bad that helps a major problem is in the region interest rates felt small hike which actually stabilizes the come that the current using the region and in addition actually strengthen the currency the region something better scum and investing these currencies in these markets to get some eels on a micro level and yard which is emerging that he can be perfectly perform the extremely well with a twenty five percent be bound on it's a share prices here so as we look into the year we're still here nate we see that sometime this year we want to divest from the company but i think it was great that we actually waited to set to see the
spk_2: rebound and i think we want to wait for the second wave to go through and in know third quarter fourth quarter to do that divestments in order to actually you write all of these positive things that i just mention on on the i stuck but even if we do sell the stock have the current prices
spk_3: is it is in and because as a a catch up and country which know we can go up offline explain it did that aren't known all of all of the are actually resources most of the resources from the sale of that stock actually goes for goes to pay our performance he'd because we have a to catch up on from three so even if we did sell the stock at that this moment he didn't know he won't affect much the now
spk_4: overall number of performance he's off while private equity fund for the on private equity fund five nights know not only the returns are just know stunning far as i'm concerned the thirty two percent that i'm us dollars as of the first quarter of this year
spk_3: but out of the nine company seven of them i think are ready to to up go to an exit nodes and two of them we filed for an ideal one on one of them is another healthcare company and hm oh integrated with hospitals and and the other one that we're actually just filed today or yesterday is a network of gyms or fitness centers nasa both of them i think will not look into a year and now using again i all of the upsides and good use and i see the region announcing over the next quarters and not only will wipe your guy pyo includes some secondary trade for fun five but also during the you couldn't follow ones and whatever so as i stand right now i think i'm pretty positive on on the front of the infant fives
spk_4: by by the like the country and by that could confide in generally that performance he
spk_3: it might be a case of them are knights no in south dakota fourth quarter of doesn't know another wave of cozy and of know something strange happens and by vs from the track that i am describing right now the has been that you know they they fall of filed in the last month's know thank god the second leading the region has not been that bad and a vaccination program had benson but who knows what can come up now another variants of the virus and whatever but given the same temperature and the same pressure here and positive on on generated he sees this year at and more so i'm very positive on frg if i am i know that there was a part of your question but if i i can use the answer here to comment on fri michael and i mention i think during your call today how we have been able to deploy more capital in our flagship phones which increases then out under the recharge while and also
spk_2: how we have been be able to control expenses are is a bit of discipline in a discipline manner so we see an increase in revenues we see an increase in f r e above our expectations and we see on it's city margins than the first quarter we posted fifty seven percent of
spk_3: forty miles south not only i see i'm not pre positive on the every side of i am on the performance see related side as well given one i just set the
spk_2: finishing up here i think when we look into the very short term which is twenty twenty two
spk_3: my i mentioned that but mike also mention that side to be redundant and and that as i say this but as we do deploy more capital and and with these kind of very very strong performance at are posing for private ip find some five amp and six months it eighty percent that i are in us dollars we are looking to have
spk_20: disappeared from raise the onslaught by they confront seven which now projections was way back in late twenty two and looking into having out that fundraising happens like this year beginning of next year so that also will generate now no fees for us to to charge
spk_2: in twenty two which was not expected not for us at least in our projections solve or all of this i think there's nothing of the group but a great sex and group on good news on and on the performance fees as well i hope i answered know your question your long answer he and cyber cup okay i live is able to answer
spk_4: yeah that was and i was very helpful thanks i'm and i guess just as a follow up know given one he peers announced to share buyback program know yesterday and your comments on the call today about the current staff valuation i'm just wondering if we can get your thoughts around capital priorities you know if you guys have thought about share
spk_3: repurchases arm and how your kind of balancing capital return vs and then a an investment in the business thanks yeah great question as well i think we had to address that well as we see our our our share price right now have no around fifteen dollars for share it is no it is disappointing of course could not gotten me a fifty percent drop from from the ideal place we all wanted it to be of course getaway tonight ah but i think it's too way to make the call on a on a share buyback program as of today we have so many amazing opportunities on yemeni front in addition to everything that i said on the are you in france and a p i refinanced the outperformance he only friends generating good a suitable earnings
spk_14: when see every help you know this year better than than our expectations we see our margins better than an hour and other than our expectations in the mid fifties me see our think i just mentioned on the performance he site
spk_3: so did know deploys some of the capital be raising to into these new of ventures year so as a no great momentum are full battery a group he will be a great momentum for the stock as as you guys follow us and and and actually see us perform the as i just mentioned so i think of the stock with the organic growth of what i just said should know reflect that in know sometime soon hopefully so i like to actually on reserve as of odds are out of now the capital that we raised the in a primary issuance
spk_4: for the reasons that we raise it which was primaries for acquisitions and we have so many interesting faith that we're talking and now and ammo use find that we are now analyze is such no great things again and but again i'm always
spk_14: where were they know very
spk_3: hands and they sensible too late
spk_20: to the chef twice know what the on sixty percent of the company six you know or some a share of visiting shareholders and found this year
spk_10: so any no uptick in that price is extremely extremely positive us and i will keep know people very open eye on on but as of today i think it's it's too early to say given how the momentum that we have a fracture on the organic site and given a great opportunity said we have on yemen a site
spk_23: but i i'm sensitive and l l l mcnulty well let's see what happens in the near the near future and we might come back to the sir to this now subject but not not as of now thank you got it sounds very helpful thanks again next question house on t l a bargain with goldman sachs your line is up and
spk_7: hi good morning they say the caliente my classes it it a cock i said is also i just met on on the accrued performance he's how much of that decline was related to simply to the effect and with effect sort of plane back then then she does a good for he couldn't just go back to where you left
spk_9: and and just get some color on that fact thousand me and the impact and then my second question am i guess yeah just you have given the and performance in the park and yeah
spk_24: that has anything changed from and your expectations since died yell and i sent from from what you've saying a causal five the out made yep are ahead of expectations and were possible outside you perform performing sees a little bit of uncertainty the average you of confirm that at present them with with high seeing with if anything has changed since the idea of giving of also lee and in the market and stock thank you
spk_7: i did on that ico and morning i'm self related to your first question about medically performance fee
spk_24: i made a comment on my initial remarks
spk_7: the number of the hypothetical number
spk_25: if you do not consider the effects of our that crew performers v with the at around three hundred but that's just a hypothetical number
spk_26: so the frequent the straight answer the question is around fifty million
spk_7: when you look plots are over clocked her you see the detail on by fun
spk_24: and when you see the ah the number of been basically mad that saw how much the any v went up and match to how much the currency depreciated that it's around ten percent in the quarter
spk_27: relative to your second question
spk_7: all the fundamentals and and
spk_24: and and key drivers of the business than tier to be very solid so if anything we've been able to deploy kept thought at a faster pace
spk_25: that it's that
spk_9: the resulting in up on a view
spk_24: that our fundraising prospective for death flagship fans will accelerate
spk_28: ah there's also the fact that
spk_9: the first the underlying portfolio performance
spk_7: it's been very solid
spk_24: i think in part
spk_7: of the fact that up
spk_24: we have exposure to sectors that are performing quite well over the pandemic name of the agribusiness and logistics
spk_25: and service add sub beef service related factors that are the ones that are receiving most of the cash at that have been coming
spk_24: through the garmin sad to help and up an amex and that of course give this a good perspective in terms of the performance v of on the on the fee related earning side
spk_7: we can expect
spk_24: an increasing amount of fee paying a when i indicated in my presentation that during the first quarter
spk_7: we have deployed or reserve the about five hundred million dollars
spk_24: but this amount will flow key to our yearning for you wham on the on the second half of the year
spk_2: because of the way we we we draw the line to charge our for yearning the u n
spk_3: that's a very positive news and if you die that to the information that last year with deployed one point five billion dollars it gives you an indication of how much more money we are deploying over this year that will turn into ravages on the second half hopefully i hope i have answered your question no and maybe i can get the a second the second part of the question here on on the know the general macro view that you mention i think know yes for the first follow think of your question i think we are optimistic on the f r e fronts now versus our expectations yes
spk_4: from all the reason by think we covered here known for to deployments and etc and no discipline control and expensive etc
spk_3: and on their performance the side note i think all of them data points important are and as after they are there no the a major performance he coming from our private equity fund three where one of the most important asset there is a is a image index knock his company that the stock traded twenty five percent up and that we also see that the mail strengthening no model as of they need five twenty five per your eyes vs feist sixty five sixty so
spk_4: so as love know twentieth of name i think how things are progressing in the in the right direction
spk_3: you know to realize sound that performance he for country well in in a in a in a good shepherd on the ice for for share and on of on from five the company's other for me extremely well yeah and don't know of course at it's it's also very important to say that the sec the selection which is key now you in my view
spk_4: had to do well in equities him in in the region in latin america infant five amazing thing only the coconut doing well but it's start with a sector selection healthcare agribusiness logistics all these actors were extremely benefited from corbett on the contrary one on negatively affected they were positively affected
spk_3: the hm oh this is that we have which has a major ass in the fun five was positively affected school we continue to receiving the payments for our a private thayer's know he does which asserts that that the private side of the market with also the government on of for this company as loudly with spain but there wouldn't
spk_14: like surgeries so on the margins of the business and he did out of business
spk_12: as excel extremely benefited or last year and continue to be this year we have a major van
spk_3: added this has been in a company in this on five which know is a distributor of our other agribusiness plavix we buy from syngenta from bow and whatever with sell to farmers look what happened with eight now commodity prices agribusiness fighters in brazil farmers i think never saw that kind of margin that they're seen in that business today know soybean bottles and in my eyes is three times the price of the was a years ago
spk_23: besides productivity gains
spk_10: and our business of course benefits from that's of the businesses know composed from five ugly extremely well so i delight time here we're going to be able to sell them at know david prices and also the twenty of the rails out
spk_29: i think reposition ourselves in a nightmare in a good place to be and as off twentieth of may things are working our way of course when i look at the f i mean i have a lot more certainty because it's know i know how much i'm decline the phones already raised and not and would be kind of know performance we haven't and see support for mile piece for trust or a are becky from seller and on the performance he sighed there is also want more uncertainties on when you going to sell it on whatever but until as of today thinks of good for the have some help answer your question of the yes as a how planets and martha think very much next question on some robert lane but kbw w e line is a french ah the morning thank you very much they take my questions and
spk_14: london and they asked and answered that one or two i had his
spk_29: and as cheers this relates to realizations but ah in clearly there's a growing
spk_3: a secondary market have to pay dissipation a known as you head and is cause that evidence and party the media which stated some type of them the sunset strip transaction on that your make could have i get sick accelerating some realization to make it may be updated systems and specials are i know they are is a distant right time to consider something like that jurors were that sense oh hi robert this is as this is alex now and thanks and affection my think it is the right time to consider it palin and i and of the secondary market as you know it's very very liquid now huge fines were raised by several are very important and and a player in that market and and i think we are great asset from him i was mentioning or productive and five and as a deputy now we have been at is something that we will consider something that we are considering we were approached by several of these players and as they look into our think i said no they they they look at the be bound or in the region they look at the strengthening of the currencies because of the commodity prices increase and you know the effect a commodity prices to having the economies of the region this is beneficial responsive we're out they also see the company that we have enough on i could confide exposed to the right sectors are they mentioned healthcare agribusiness logistics now we have also fun five firefly a last mile foods logistics business enough was did very well and it continues to the very well as people stay more home and order more food than etc come off and yes we were approached them and will definitely
spk_4: consider and we are committed
spk_29: and some of the some know the gp lad transactions in this market has been increasing
spk_12: more or over the years guess out know i think he was son that don't know don't thank me for this or data here but i think last quarter like we had more gp let transactions and lp that transactions in the secondary market
spk_10: so yes so i think we were close we are considering he looks i've got a good i think we should a person seriously in doing something for that and from tribes a good candidates given everything that i said and
spk_11: as far as lovely question thanks to thanks op again task of high so place that star than one
spk_2: i'm next question comes from crank he can follow with credit suisse your line it's often
spk_3: get our fault which is what a circle back on corporate emanate can you remind us your appetite to acquire private markets this is says outside brazilian jason markets
spk_15: that i'm thinking like shall i call me a mexico
spk_30: yeah hi thanks greg at the appetite is high think korea will see these economies said he suggested economies as he as you call them are going through very interesting moments different moments and
spk_3: adhd and
spk_12: each one any of these economies but yes
spk_3: by versa find some of the know all of the brazil risk
spk_4: other currencies
spk_3: well as or the nature of so on home of economies so that the answer's yes i think they're looking into expand our product offering and expand our geographic footprint in the region
spk_2: so we do we're looking at the same time to expand the product offering for our brazil centric products and also targeted to presidents
spk_3: in know in br l regime brl investing br l like the and burial second best interest like the infrastructure that interest and i mentioned but also looking to expand lousy at the region with other and general partners that do manage other products or similar of hours but in these countries that you mention
spk_4: they are no great managers are in the region that are doing extremely well and that would add
spk_3: i think extremely well tropical
spk_2: the so that the answer's yes and i think it's that it composers and now our portfolio is a diversified that country risk that forest fires currency risk
spk_3: it's not on music on wanted no by themselves they're not good call a with other economies of the world sophie
spk_15: let's so now we always do show to our our limited partners than investing in our funds not not known to expose that have exposure to the countries that you mentioned crack at the economies of the south
spk_3: on on the legion here are really correlated with the us economy your european economy so it's a it's a good ad for them oh they're buying returns with very little correlation so that that actually adds to their portfolio no no heightened know i shot gracious which everybody looks for right so having chile having columbia having other countries in the portfolio adds to that whole theme are like giving them exposure to the region not just to a country
spk_2: and the region has
spk_4: get our economies are not correlated with where most of our lps are based on you know us europe and and middle east and asia
spk_14: secondly diversify currency and he could the currencies of these countries that you mention
spk_3: did are less volatile than the br l
spk_14: which is the president currency
spk_3: so it knows and his old for know a lot of advantages lastly i think the brazilian market is more mature and advance and some shapes
spk_31: and we see going into this country that we have i'm generalizing now assets as more attractive valuations
spk_3: because me a native industries in the south economies have not ah no i'm not performed as well as the mellow or competed or said or added sophistication to these industries as as we see it in brazil so this and and no great opportunity that flew these local managers you can find business is a day of very attractive valuations that can add to the whole to a latin american consolidation so it's nice it's history possibly we have you know we already have as their next the exposure to these economies down give you one example private equity fund five
spk_10: it should be
spk_1: sixty sixty five brazil and thirty five forty percent other countries in in in south america which basically shows the math on the gdp
spk_32: the composition nice you know if you add the gdp of all of the countries in the region including lexical numbers around forty percent of that bit of the it's speak south america around sixty percent of the gdp some just way play last year and are fun is going to be more or less sixty sixty five and exposed to zoo
spk_33: and some of these companies had that i considered part of the sixty percent do have businesses in other latin american countries class a direct exposure of of thirty five forty percent of the on the fun to these other countries up and we saw a significant plus

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