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Blackstone-backed Patria could reach $1.6 billion valuation in IPO - BTG

Patria has $13 billion under management in private equity, real estate, credit and infrastructure funds

Photo: REUTERS/Lucas Jackson/File Photo/File Photo
  • The document does not disclose the offering size or potential sellers;
  • Patria, in which Blackstone acquired a 40% stake in 2010, posted revenues of $83.3 million and net income of $45.5 million in the first nine months of 2020.

Brazilian asset manager Patria Investments, which is backed by Blackstone Group, is likely to reach a valuation of between $1 billion and $1.6 billion in its planned initial public offering on Nasdaq, Banco BTG Pactual said in a note to clients.

Patria, which has $13 billion under management in private equity, real estate, credit and infrastructure funds, filed for an IPO with the Securities and Exchange Commission on Dec. 30.

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The document does not disclose the offering size or potential sellers, but Patria said it plans to raise money to invest in its funds and expand its operations through buying asset managers, portfolios and distribution channels.

BTG said the up to $1.6 billion valuation does not include proceeds raised in the offering and is based on Patria’s peers, such as Blackstone and Carlyle Group.

Patria, in which Blackstone acquired a 40% stake in 2010, posted revenues of $83.3 million and net income of $45.5 million in the first nine months of 2020.

“We see plenty of room for investments to grow in Brazil, and with more money going toward independent players (ex-banks) like Patria, there are strong tailwinds for alternative investments to grow as well,” BTG said.

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J.P. Morgan, Bank of America and Credit Suisse will manage the offering.

Brazilian asset managers are attracting billions from investors seeking higher returns at a time when the benchmark interest rate in Latin American’s largest economy is at a record low of 2%.

On Monday, Vinci Partners, another Brazilian asset manager, also filed for an IPO on Nasdaq.

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