Patria Investments Limited

Good day, and thank you for standing by. Welcome to the Apache Investment Second Quarter Earnings Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded, and if you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Josh Wood, Head of Shareholder Relations. Please go ahead.

Thank you. Good morning, everyone, and welcome to PATRIA's second quarter 2021 earnings call. Joining on the call today are our Chief Executive Officer, Alex Saig, and our Chief Financial Officer, Marco DiFalito. Earlier this morning, we issued a press release and earnings presentation detailing our second quarter 2021 results, which you can find posted on our investor relations website at ir.patria.com. are on Form 6K filed with the Securities and Exchange Commission. Any forward-looking statements made on this call 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. Such statements are based on current management expectations and involve inherent risks, including those discussed in the risk factor section of our Form 20F Annual Report filed earlier this year. As a foreign private issuer, PATRAO reports financial results using International Financial Reporting Standards, or IFRS, as opposed to U.S. GAAP. Additionally, we will report and refer to certain non-GAAP industry measures 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 measures calculated in accordance with IFRS are included in our earnings presentation. As a quick overview of the results, PATRIA generated $73.4 million in IFRS net income in Q221. On key non-GAAP measures for the second quarter, we generated fee-related earnings of $17.6 million and performance-related earnings of $56.4 million, driving distributable earnings of $74.2 million, or 54.5 cents per share. In alignment with our policy, we declared a dividend of 46.3 cents per share payable on September 16th to shareholders of record as of September 2nd. With that, I'll now turn the call over to our Chief Executive Officer, Alex Saig.

Thank you, Josh. We appreciate all of you joining the call this morning to discuss our excellent second quarter results and outlook. We are very excited with our progress since the IPO. and we have generated distributable earnings of 67 cents per share year to date. Now, with good visibility on fee-related earnings for the second half of the year, we have a clear line of sight to near $1 per share of distributable earnings for the full year. And not only are we delivering strong results here in 2021, but our key growth drivers for the coming years are well intact and running ahead of our expectations from the beginning of the year. We are deploying capital faster, with nearly $1.8 billion invested or reserved in the first half of 2021, equating to an annualized pace well above our historical average. This deployment acceleration means faster fee earning AUM growth, which is driving 31% fee revenue growth and 19% fee-related earnings growth compared to the second quarter of last year. Faster deployment also means that we are accelerating our fundraising timelines. and we expect to have a first closing for our next generation private active fund in the second half of this year. Our funds are performing even better, with more than $2 billion of valuation growth across the platform over the last year, and our net accrued performance fee is rising to $325 million. We are now delivering an attractive yield to our shareholders, as evidenced by our realization of $56 million in performance-related earnings in the second quarter. I'll now cover some key highlights across our businesses. The strong deployment environment is again evident in our second quarter activity. as we invested or reserved more than $1.2 billion in our closed-end funds. That is on top of $550 million in the first quarter, bringing the year-to-date total already to almost $1.8 billion. In terms of strategies, more than $1.2 billion was deployed in our flagship private active fund, and $450 million in our flagship infrastructure fund year-to-date. In private equity, recent investment activity included new commitments in our thesis areas of cybersecurity, grocery retail, and code logistics, where we have conviction in our ability to build market-leading businesses in Latin America. Our current vintage private equity fund is almost fully committed as of June 30, and well above the threshold that allows us to go back to the market. As noted, we expect to begin raising the next generation private equity fund during the second half of this year, and continue to be optimistic on the opportunity to scale this fund again by up to 50%. The timing acceleration is positive for our fee-related earnings growth in 2022 and beyond, and this new revenue stream pulls forward. Investment performance here continues to be outstanding, with Private Active Fund 5, a 2015 vintage fund, generating a net IIR of 36% in U.S. dollars, which has stopped the style by vintage, not just on a Latin America or emerging market basis, but on a global basis. Private Active Fund 6, a 2019 vintage fund, which is still in its investment period, is already generating an impressive 28% net IIR in US dollars. We are excited about the value creation our world-class investment team is delivering, which will also accrue to shareholders over time as these funds mature. Our latest flagship infrastructure fund continues to actively commit capital to new projects. You may have seen our press release highlighting our growing toll road portfolio, and specifically our success expanding into Colombia in this space, making PATRIA now the third largest toll road operator in Latin America. We take pride in not only generating returns for our limited partners with these investments, but also in delivering projects that will fill critical needs for our communities and society. We believe there is an incredibly large and diverse infrastructure opportunity to address in the region. And PATRA's scale and expertise allows us to be selective with an ability to tackle complex development projects where few other firms have the necessary resources. While we expect to bring the Next Generation Flagship Infrastructure Fund back to market sometime next year, also ahead of schedule, we are excited to announce plans to launch a new dedicated Renewable Energy Fund in the second half of this year. This will also be a closed-end fund targeted to our global institutional LPs, which we believe fills an important sleeve of demand from investors who want more targeted mandates focused on renewables and the accelerating global energy transition. Fundraising in our country-specific strategies should also pick up in the second half of this year, with opportunities to raise money in credit, as well as our real estate investment trusts and infrastructure core vehicles. These vehicles are denominated in local currency, and we see a path to raise about R4 billion this year, including R800 million raised for our infrastructure fund in the first quarter. About 80% of that would be in permanent capital type vehicles, which further contributes to the duration and stickiness of our fee earnings AUM. On the realization front, our major news for the quarter is the crystallization of $56 million in realized performance fees from Private Active Fund 3. We are nearing a great outcome for a 2007 vintage fund that has generated nearly a 2X, two times return, and top quartile Latin America and emerging markets performance while investing through a very challenging time period. Marco will provide more detail on this realization in a moment, but I want to congratulate the team who has worked diligently to deliver value both to the limited partners and now shareholders with this fund. Since the quarter end, we also completed the initial public offering of portfolio company SmartFit, a great example of PATRA's approach to value creation and building market-leading businesses through consolidation and geographical expansion. SmartFit is now the largest fitness club operated in Latin America and is one of the nine investments in our outstanding Private Active Fund 5 portfolios. This initial public offering is another step towards creating liquidity in this fund and being able to realize gains for our limited partners and performance fees for our shareholders. To put it simply, PATRA is executing on all fronts, and these examples are only the highlights, just scratching the surface of an excellent work our investment teams and portfolio companies are doing. Let me turn the call over to Marco to take you through the detailed results, and then I'll come back for some final words. Marco, the floor is yours.

Thank you, Alex, and good morning to everyone on the call. Our results for the second quarter reflect continued progress on our FRE growth drivers and an attractive yield for our shareholders. We generated fee-related earnings of $17.6 million in Q2-21, up 19% from $14.9 million in Q2-20, driven by fee revenue growth of 31% over the same period. We have now generated $34.9 million of fee-related earnings on a year-to-date basis, and continue to be very confident in our FRE growth trajectory for the full year 21. Fee earnings AUM was $8.3 billion during Q2 21, up 17% from Q2 20. Remember that for our flagship funds, management fees are charged twice per year, and our reported fee earnings AUM reflects the basis that is generating management fee in the current reporting quarter. For funds where management fees are charged as capital is deployed or reserved, the Q2 fee earnings AUM will not yet include the impact of deployment in the first half of the year. which will begin to generate management fees in the second half of the year. Therefore, you can expect less movement in fee earnings AUM and management fees from Q1 to Q2, but a more substantial change from Q2 to Q3 as the second half management fees are charged and recognized. Based on the significant flagship fund deployment in the first half of the year, we expect our effective fee earnings AUM for the third quarter to rise substantially to $9.4 to $9.6 billion, depending on where some of our country-specific strategies land. That should give you a good indication for the uplift in our second half fee revenues. Our pending fee earnings AUM is expected to move from $2.8 billion to about $1.5 billion next quarter, given the heavy deployment from Private Equity Fund 6. But this amount will be replenished to even higher levels than before as we begin to raise our next-generation private equity fund. Total asset under management rose to $15.8 billion, up approximately $3 billion, or 24%, from $12.8 billion one year ago. About $2.2 billion of that increase or 17 of the 24%, was driven by the appreciation in our underlying investments before accounting for the improvements in the Latin American currencies. Just further highlighting the significant value creation happening in our portfolio. On that note, net accrued performance fees increased to $325 million, up 29% from $263 million last quarter, and that is after accounting for the realization from Private Equity Fund 3. The accrual for Private Equity Fund 5 rose to $244 million, and that does not yet account for the successful IPO of SmartFee, which was completed in July. Also of note, the accrual for Infrastructure Fund 3 rose to $48 million as the fund moved through the 100% catch-up phase of the accrual waterfall. The continued strength of the accrual should be a positive sign to shareholders as it underscores the accumulated value that can contribute to distributable earnings in future periods. We recognize $56 million of net realized performance fees in Q2 from Private Equity Fund 3 as we return full capital and hurdles to the limited partners. and the fund transitions to a liquidation status as we near the fund's termination date. This particular scenario is somewhat unusual, so let me quickly explain what this means and how this impacts the P&L. As we have noted, the remaining assets in this fund consist of shares from one remaining portfolio company, the Brazilian medical diagnostics company Aliar, as well as escrows and receivables from prior exits. With the full return of capital and hurdle, we effectively fulfilled our obligations to LPs, leaving the remaining far value of the fund equivalent to our performance fees earned as of June 30th. While the monetization of the underlying assets and escrows will occur in future periods, the performance fee crystallizes as a liability to the fund and as a revenue and an asset to PATREON. Given the end of the life cycle status of the fund, we are recognizing as realized performance fees and distributable earnings in Q2. Future amounts received upon monetization may vary from the amount being recognized this quarter, and any difference would be recognized throughout distributable earnings at this point in time. Underscoring the active nature of the divestment process for LER, just earlier this week, there was an unsolicited public tender offer by a third party to acquire Aliar's shares at the price consistent with the June 30th valuation. Putting that all together for the quarter, distributable earnings were $74 million, or 54.5 cents per share. And as noted, we will pay a dividend of 46.3 cents per share. Combined with the first quarter dividend, This amounts to a yield of more than 3% just year-to-date based on our IPO price. Now, let me give some perspective looking forward on how our current momentum is shaping the road ahead. As noted, we expect to begin raising our next-generation private equity fund in the second half of the year. along with launching the new Renewable Energy Fund and raising more capital in certain country-specific strategies, all of which will have little impact on the 2021, but are positive drivers for the 2022 earnings and beyond. Our net accrued performance fees continue to build, and Private Equity Fund 5 is poised to be the next major driver of realizations. While the timing is always difficult to predict, we're making key steps toward liquidity. And our expectation for this fund's future contribution continues to grow. On the M&A front, while there's nothing to be announced at this time, we continue to be very active in our efforts and pleased with our progress toward putting our IPO capital to work. For fee-related earnings, we expect An uplift in the second half of the year as first half deployment drives the effective fee earnings AUM to near the $9.5 billion level. With this greater visibility on the second half, we feel confident that fee-related earnings will exceed $75 million for the full year 2021, with a margin in the mid-50% range. Combined with performance earnings generated in Q2, that outcome would already lend us close to the $1 per share of distributable earnings for 2021, which Alex highlighted at the beginning of these remarks. With that, I will turn back over to him for some closing thoughts.

Thank you, Marco. Just to put that outlook in perspective, a distributable earnings outcome near $1 per share would generate a dividend yield of approximately 5% to an investor in our IPO. And that is nearly four times the current dividend yield on the S&P 500. When you consider PATRA's overall growth opportunity and the growth rates for revenue and fee-related earnings that we are already demonstrating, we believe our stock sits at an attractive valuation today. Looking across our industry at the second quarter results, you just have to be impressed with the momentum across the board. The secular trends driving capital to alternative investments and private markets in particular are strong, and we believe PATRIA is harnessing these trends just the same. While we are nearer to the list of publicly traded names and still introducing ourselves to the market in many ways, We are certainly not new to the business. We have grown our AUM at 18% per annum since 2009, and since our inception have raised six fund vintages in private equity and four in infrastructure, with the next generation soon on the way. Even with our established track record, I want to stress that our growth story is still in its early chapters. We believe private capital and alternatives are under-penetrated in Latin America compared to developed markets around the world, and PATRE is better positioned than anyone to meet the rising demand and deliver world-class investment expertise in our market. We see a compelling growth and expansion opportunity for our platform in the coming years, and we are confident that we have the resources and leadership in place to capitalize. As significant shareholders ourselves, rest assured that we are highly aligned, and we look forward to sharing this journey with you. We are now happy to take your questions. Thank you.

Ladies and gentlemen, as a reminder, to ask a question, you will need to press star 1 on your telephone. And to withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question will come from the line of Robert Lee from KBW. You may begin.

Good morning. This is Margo. I'm filling in for Rob. Thank you for taking my question. My first question is on performance fees and where might we expect that performance fees come from? next year as well as the outlook for the second half of this year. I know that PE Fund 5 is just entering harvesting. Should we expect some of those fees in 2022 or not until 2023? Any color you might be able to provide on that and pace would be great.

Okay. Margo, thank you very much. This is Alex here. And thanks for also participating in this call. We are very excited with the performance of our Project E-Fund 5, as you can see from the presentation here given today. We are able to exit from some companies. We were able to IPO a major asset of Fund 5, which is the health club chain SmartFit. And I think we believe that we are building exits in Fund 5 to start delivering performance fees in 2022, not 2023. So our projections here are for performance fees for a private equity fund in 2022. Of course, some of that performance fee will be realized in 2022, some in 2023, but they're going to start in our projections to affect positively our distributable earnings in 2022. I hope I answered your question.

Great. Thank you, Alex. If I could ask one on fundraising as well. I know that infrastructure fund four is largely deployed right now. How close are you to fundraising infrastructure fund five?

Thank you, Margot, again for the question. I think we are very, very positive in starting our fundraising for Infrastructure Fund 5 sometime next year. We did commit to several projects, as you just mentioned, but the way that our infrastructure fund works, we do commit to a project like when we win a concession of a privatization project We then deploy the capsule over time. So we would like to deploy more capsule before I officially start our fundraising. Right now, we are close to 75%, 80% committed, but approximately 20% deployed because of the mechanics that I just explained. You win a concession, and then you're going to build up CapEx, so you deploy capsule over the next quarters after you win the concessions. So again, we would like to push that number higher than the current 20%, which is exactly what will happen until year end, because we won the concessions. Now we're going to have to deploy the CapEx, as I mentioned. So that puts us in a better position to start fundraising next year, as limited partners do look at the also deployment percentage, not only the committed percentage in our funds. However, What we did in the meantime, if you heard Marcos and my comments here during the presentation, we decided then to raise a renewable energy fund this year, which we are having a reasonable big success in that fundraising process as investors are looking to more targeted mandates in this space, in the renewable energy space, in the energy transition space. So we're going to focus in raising that fund this year while we then deploy more capital in our flagship infrastructure fund four and then start raising infrastructure fund five next year. I hope I answered your question.

Great. That makes a lot of sense. Thank you. If I could just squeeze one more in on margin. I know that our forecast was light on GNA and it was also up from last quarter. Were there any one-time items in the quarter, or is this the right run rate to use going forward?

Yeah, I can take that one, Margot, and thank you. This is Marco. So, FRE margins, you should expect us having around 55% FRE margins for the entire year. There has not been any one-off for the quarter. If you're comparing to the previous year, I just want you to remind you that versus the previous year, there is actually a change in compensation structure relative to 2020 that accounts for the dividends that now transition to be part of our personal expenses. But all in all, overall expenses have been very positive. aligned with what we have last year, and there's nothing that's really worth an attention here.

Great. Thank you so much for taking my questions.

Our next question comes from Tito Labarda from Goldman Sachs. You may begin.

Hi. Good morning, guys. Thank you for the call. Congratulations on the strong results. A couple of questions also. I guess first on the fee-related earnings, you know, I understand as you've deployed more capital there, you know, we should get a nice uplift in the second half of the year. Just to think about, I guess, the management fees as a percentage of that fee earning AUM, should we expect sort of a similar ratio as we saw in the first half of the year? Any changes to sort of, you know, the fees that you learn on the fee earning AUM that you've deployed? just to get a sense on how that should look. And then second question also on the performance fees. Just to clarify, so the realized performance fees this quarter sound like mostly from Aliar, but, you know, with that sender offer from Redditor, I mean, is there more that you can potentially realize this year? Just want to clarify in terms of the second half of the year, any performance fees that we might be able to expect. Thank you.

Hi, Tito. This is Marco again. So, on the management fee, what I would encourage you to pay attention to is on the expected fee earnings AUM for the second half of the year. If you look at the presentation that we shared with you earlier today on page 13, what we show is that we have a 9.4 to 9.6 fee earnings AUM, and that should be the driver for the management fee for the second half of the year, which is a substantial increase versus the first half of the year, or actually the second Q for 21, which was 8.3. So, those dynamics will be driving most of the management fee for the second half of the year. And relative to the performance fee, as Alex indicated before, The next fund to be generating performance fee for us would be mostly private equity fund five, which I note that there has been a substantial increase in net accrual from last quarter when we had $182 million and now posing 244, so 34 percent increase, and that's the result of the massive appreciation of the portfolio. But besides that, it's interesting to note that there has been also a substantial increase coming from Infrastructure Fund 3. Last quarter, we had $9 billion, and this quarter, we are presenting $48 million, and this quarter, $48 million, and also on Private Equity Fund 6 that came all the way from $15 to $31. So Private Equity Fund 5 has, you know, as Alex indicated, completed an IPO of SmartFeed. We have divested from another company. So there's been very good traction in terms of activities and with different possibilities within the fund. This is a fund that has nine companies now. And when I look through the assets of this fund, I see, you know, multiple possibilities. We don't think that we're going to realize performance fees from Fund 5 this year, so it's mostly concentrated next year. So that means that there's a greater amount, but slightly delayed to the next year.

Thanks, Marco. That's helpful. That's clear. Just one follow-up on the fee earning. I understand the pickup in the second half of the year. I guess the question was more related to the management fee. It's like 1.6% annualized this quarter. Should we expect that percentage to remain similar in the second half of the year? So right as you have that 9.4% to 9.6%, a management fee around 1.6% is a reasonable number to expect as well?

Hey, Rob, this is Josh. Just one thing to add there to think about is on the infrastructure fund, the fee rate is actually a blend where a portion of the fee is charged on commitments and a portion of the fee is charged on deployment. So you will get some increase in the effective rate for that fund as it deploys capital. But generally, it's going to be close to the rate you've seen over the past few quarters. But that's one additional thing to consider that could cause it to bump up just a bit.

But all in all, you shouldn't expect any relevant change in the pattern of the management fees.

Gotcha. Okay, great. Thanks, Josh. Thanks, Marco.

Once again, that's star one for questions, star one. Our next question will come from Ricardo Buchuel from BPG Pactual. You may begin.

Good morning, everyone, and congrats on the results. First, I want you to understand a little bit better. You explained a little bit in our presentation on the realization of the fund tree in terms of PR, performance-related earnings, right? So I understand, correct me if I'm wrong, you still have the IR and some receivables in this fund. But basically, you expect this monetization to expect in the future and was already committed from the LPs, right? I just wanted to understand what is the difference from that to the accruated performance fee in the balance sheet. And also, for my second question, I wanted to understand a little bit better that... As far as I understand, one of the goals that you had in your IPO was to search for some M&A opportunities to add to the franchise, and particularly outside Brazil. So I want to know if you have any update on that and if there's any ongoing negotiations and what kind of assets would make sense for us to expect for this year or perhaps for the following years. Thank you.

Thank you. Maybe I can help you on the first question here. And thanks for your question and nice to talk to you. This is Alex again here. Our FUG3 is going into a liquidation mode, as we call it here in our industry, which means that as of June 30 of this year, we did give back distributes to investors. All of the principal invested, the hurdle and the costs of the fund. From that moment on, that was June of this year, from that moment on, as this fund has a full catch-up, all of the money that comes into the fund and is distributed now up to $86 million in this case for private equity fund three goes to the general partner, goes to Patria. So it's 100% a full catch-up terms in this fund. After that, we distribute the money on an 80-20 basis. In addition to this full distribution mode, which is different than the other funds, the other funds are still being invested, so we are accruing the performances. We were working very actively to sell the main asset of the fund, which is the shares of Aliar, the medical diagnostics company traded in our Brazilian stock exchange. As you can see that this has been a very active divestment process from the tender offer that was that was made public early this week from a third party to buy IER shares at a price per share very much aligned with the price per share that we accounted for the performance fees in June 30 of this year. So we expect to see realizations coming from the IER shares And then the remaining of the assets of this firm is already given because it's basically receivables, earnouts, from prior exits, from sales of companies that were in private active fund duty. So that has already been signed, fully committed. It's just a question of receiving that money which will probably come in the first quarter of 2022. So with that very concrete moment of this fund, of liquidation mode, as we explained during the call, we then accounted for these fees in our second quarter results. The other unrealized performance fees that you mentioned they are not in that same stage on a fund-by-fund basis. We were talking about, for example, private equity fund five during the call here today in our Q&A session. We're building that unrealized performances. But, for example, in private equity fund five, we have not returned the capital yet. So we have to sell companies and we have to return the capital. Then we have to return the hurdle and costs and then we start then charging performances. Because of that very different nature and moments that one fund stands versus the other, that's why we then accounted for these realized performances in addition to the clear view that we have in actually realizing resources from the sale of the IDR shares. Then your second question on the M&A front, and Marco also can help me here as he has this effort, we're very, very active and we are looking to expand our product offering and our geographic footprints. We don't have anything to announce at this moment, but we're extremely active in those two fronts. Product offering meaning not only products in the Brazil-centric strategy for the Brazil-centric strategies, but also products that will also have a Latin American exposure. And, of course, on the geographic footprint expansion, it's not only Brazil, but ex-Brazil, of course, outside of Brazil. Anything to comment there, Marco?

Yeah, I would just add that what you should expect is consistency with what we have announced during the IPO and what we're looking for bringing into the PATRIA with our acquisition program, which would be geographical competences, distribution channels, and new products. As Alex indicated, we've been actively working on this, and we've been active in signing MOUs and working through negotiations, but there is nothing to be announced at this stage.

Thank you. Very clear.

And our next question comes from Domingos Flavarina from JP Morgan. You may begin.

Thank you. Good morning, guys. And thank you, Alessandro, for the very thorough question. Actually, I was going to ask the $86 million sort of recap on the performance and if you delivered above that. So let me add to the answer another question or two. The performance you booked, Now on the liquidation of the fund, I'm super clear. It came, I mean, you know, very close to a tender offer being done for the asset. So my question here is, is there any, you know, discussions on any potential premium for the control? You know, have you guys coordinated a little bit this divestment? So, you know, is this contemplated in this performance recognition as well? Now you're seeing the standard. And the second one is we're obviously seeing a rise in interest rates in Brazil, right? And I mean, you know, as prices come down, which is better for acquisition, but it might, I'm guessing it might change a little bit your perception on sectors, which, you know, might become more or less compelling as you unwind your next role of investment strategy. So my question is on that. Basically, this, you know, changing environment in Brazil, what makes the sectors more compelling and the sectors less compelling.

Thank you very much, Domenico. Nice to talk to you again. We continue to be very excited with the sectors that are the core focus of PATRIA. And even as we move along, into the year and now we see what's going on with our country and other countries in Latin America, economically and politically. Healthcare continues to be a very, very area, a very important area of focus for us. And I think with the pandemic, that even more, even more so stressed, you know, all of the countries have to invest more in healthcare. and this very exciting strategy that we're looking in Brazil and outside of Brazil in this sector, in this industry. Also, I think on the infrastructure side, we have been very active on the logistics front, as you probably know. Several governments around the region are diversifying from public assets mainly an area of focus for us, which is logistics. Logistics is a main area of focus for us. And we are now the third largest toll operator in Latin America. We just won two concessions, actually one concession, and we did acquire another asset in Colombia. So logistics is a major area of focus for us. And I think going forward, as you mentioned, with the rising interest rates, you know that these logistics assets are the toll road fees and some also logistics, some assets in the energy sectors, the revenues are linked to inflation. So that also gives us a very interesting natural hedge in our investments in these two sectors. So going back to private equity, I think we're also extremely and continue to be very excited with logistics on the private equity side. We have been investing in coal logistics, for example, around the region, which is a major issue of cost increases because we see energy prices going up and coal logistics is very dependent on the price of energy. Again, I think we haven't changed our focus and I think as we see these countries progressing, coming back very strongly from the pandemic, all of the Most of the countries in Latin America are now reviewing their GDP growth up for 2021, including Brazil, from what we expected in the beginning of this year. So, again, it's an exciting moment to be investing in Latin America, to be honest, with a lot of gaps and not a lot of capital chasing the deals, which puts us in a very privileged position, to be honest. I would say even more so on the infrastructure side, in which there's now less competition for us, Patria. So I hope I answered your question here, Ben.

No, you did very clear the name, Sakis. Thank you. And congrats on finishing the cycle on P3.

Yeah, thank you very much. It's a 2007 vintage fund, and I really would like to praise the team for an amazing effort 2007 vintage funds, they faced a tough moment, which was the 2008 crisis, as you know. And we managed to deliver a top-quartile fund, not only in Latin America, but in the emerging markets ranking. So extremely proud, and 2x net in U.S. dollars for our investors, which is something that makes us very, very proud, given the vintage of the fund. Thank you.

Thank you. I see no further questions in the queue. I'd like to turn the call back over to Alex for any closing remarks.

Thank you very much for your patience and participating in our call. As we mentioned here, we're extremely excited with our results. We are now with 67 cents of earnings per share here for the year to date, which puts us in a very, very good position here to deliver what we mentioned here in several different occasions during this call, a $1 per share for 2021, which represents approximately 5% of dividend yields to our investors in our IPO. So extremely proud of the results, and as we move forward into the year, actually we're more and more looking into 2022, given our business, which is very predictable, very reliable, revenue sources, as you guys know, the dynamics of the industry. So our second half of the year, as far as fee-related earnings, is basically there, because as we charge fees in the beginning of the semester, which was a couple of weeks ago, and I look into 2022, I'm very excited. We're anticipating the fundraising for Private Equity Fund 7, raising a renewable energy fund, anticipating for next year our fundraising for Infrastructure Fund 5. Our Brazilian-centric strategy is doing extremely well and raising capital above our expectations. So that puts us in a good position to finish the year on a dollar per share of distributable earnings and looking to 2022 with an optimistic view. So thanks again, and I hope all of you and your families are well and safe, and have a good day. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.