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PAX, Patria Investments Limited Class A
An asset manager, paid a fee on the money it runs for other people.
The business
What it sells, where the money comes from, the kind of company it is.
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Assets under management and the fee rate on them. What decides it: net flows in or out, the market's move on the assets already there (the firm rises and falls with the indices it invests in), the drift toward cheaper passive products, and the operating leverage on a largely fixed cost base. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has run at the high end of fee-business margins across the record (median 44%, above 25% in 7 of 7 years), the economics of a business that takes a cut without carrying the risk. It earns this on little capital, so return on equity has run near 22%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the assets stay (net flows, not last year's market) is what the flow disclosures and the 10-K settle, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Revenue spreads across 7 regions, the largest Cayman Islands at 54%.
- Cayman Islands54%$203M
- Brazil17%$64M
- Chile14%$51M
- United Kingdom10%$36M
- Colombia4%$15M
- United States1%$3M
- Other1%$3M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2018–2024
realized figures from each filing · older years to the left| 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | TTMTTMDec 2024 | |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| $106M | $123M | $115M | $236M | $259M | $328M | $374M | $374M | RevenueRevenue |
| 44.0% | 52.4% | 56.7% | 51.7% | 41.0% | 38.5% | 32.2% | 32.6% | Operating marginOp. mgn |
| 41.3% | 47.5% | 54.1% | 52.0% | 35.9% | 36.1% | 19.2% | 19.2% | Net marginNet mgn |
| $44M | $59M | $62M | $122M | $93M | $118M | $72M | $72M | Net incomeNet inc. |
| 4% | 6% | 5% | 0% | 8% | -2% | 13% | 13% | Effective tax rateTax rate |
| Cash flow & returns | ||||||||
| $39M | $44M | $53M | $106M | $77M | $151M | $142M | $142M | Owner earningsOwner earn. |
| 56% | 72% | 109% | 22% | 17% | 22% | 15% | 15% | Return on equityROE |
| 7% | 14% | −4% | 0% | −2% | −5% | −13% | −7% | Retained to equityRetained/eq |
| Balance sheet | ||||||||
| — | $115M | $107M | $761M | $976M | $1.0B | $1.2B | $1.2B | Total assetsAssets |
| $2M | $24M | $24M | $167M | $312M | $221M | $92M | $92M | Cash & investmentsCash+inv |
| $78M | $81M | $57M | $564M | $553M | $542M | $481M | $481M | Shareholders’ equityEquity |
| Per share | ||||||||
| 117M | 117M | 117M | 136M | 147M | 148M | 153M | 289K | Shares out (diluted)Shares |
| $0.90 | $1.05 | $0.98 | $1.73 | $1.76 | $2.21 | $2.44 | $1294.00 | Revenue / shareRev/sh |
| $0.37 | $0.50 | $0.53 | $0.90 | $0.63 | $0.80 | $0.47 | $248.55 | EPS (diluted)EPS |
| $0.33 | $0.38 | $0.45 | $0.78 | $0.52 | $1.02 | $0.93 | $492.22 | Owner earnings / shareOE/sh |
| $0.32 | $0.40 | $0.55 | $0.88 | $0.70 | $0.98 | $0.86 | $357.31 | Dividends / shareDiv/sh |
| $0.67 | $0.69 | $0.49 | $4.15 | $3.75 | $3.66 | $3.14 | $1663.58 | Book value / shareBVPS |
The diluted share count moved ×1/530.09 into TTM — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
| 6-yr | 5-yr | |
|---|---|---|
| Revenue / share | +18.0%/yr | +18.3%/yr |
| Owner earnings / share | +18.9%/yr | +19.6%/yr |
| EPS | +3.9%/yr | −1.3%/yr |
| Dividends / share | +17.7%/yr | +16.6%/yr |
| Capital spending / share | +18.2%/yr | +79.7%/yr |
| Book value / share | +29.4%/yr | +35.2%/yr |
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Is it a good business?
- Operating margin 32.6%Wide fee margin (≥30%)Operating income $122M ÷ revenue $374MIndustry peers: median 28%
What this means
The heart of a asset manager: how much of each fee dollar survives the cost of running the business. Fees ride on assets under management, so the swing factors are net flows in or out and the market's move on the assets already there; the cost base is largely fixed, which lifts margins in a bull market and squeezes them in a bear one. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 19.2%WideNet income $72M ÷ revenue $374M
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Return on equity 15%SolidNet income $72M ÷ equity $481MIndustry peers: median 11%
What this means
Because the business ties up little capital, a healthy fee stream throws off a high return on the equity behind it. Read it with the buyback record: returning capital lifts this ratio honestly, but heavy debt taken to do so can flatter it.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2024Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
- Cash & short-term investments$92M
- Receivables$217M
- Other current assets$63M
- Other current liabilities$397M
From the company's latest filing.
Peers, Capital Markets & Asset Management
The same industry, side by side on fee margins. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | Op. marginmedian over the record | Net marginmedian over the record | ROEmedian over the record |
|---|---|---|---|---|
| HLNEHamilton Lane | $759M | 33.2% | 23.8% | 29% |
| GCMGGCM Grosvenor Inc. | $558M | 18.9% | 3.3% | 168%1y |
| CNSCohen & Steers | $556M | 38.3% | 28.4% | 39% |
| NOAHNoah Holdings Limited | $387M | 28.0% | 24.9% | 11% |
| PAXPatria Investments Limited Class A | $374M | 44.0% | 41.3% | 22% |
| RPCRidgepost Capital Inc. | $297M | 21.9% | 6.6% | 5% |
| ALTIAlTi Global Inc. | $255M | -21.8% | -46.9% | -27% |
| ABXAbacus Global Management Inc. | $235M | 37.0% | 14.9% | 6% |
| Group median | — | 30.6% | 19.4% | 17% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. Patria Investments Limited Class A reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Patria Investments Limited Class A has delivered.
Through the cycle, Patria Investments Limited Class A earns about $142M on its 38.0% median owner-earnings margin. This year’s 38.0% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
—
9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner earnings $142M on 153M shares outstanding (a weighted average, the only count this filer tags); net cash $92M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
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