Patria Private Equity Trust

High liquidity and solid long-term track record

20 December 2024

Patria Private Equity Trust’s (PPET’s) distributions from its primary fund investments have increased recently, supported by a revival in private equity (PE) deal activity. Its portfolio valuations continue to be validated by uplifts upon exits, which in the nine months to end-June 2024 averaged 23.3% (in line with the long-term average of 25%). Valuations and liquidity were also assisted by the successful £180m secondary sale in October 2024 at a limited 5% discount to carrying value. While PPET’s 12-month NAV total return (TR) to end-October 2024 (based largely on end-June 2024 valuations) was muted at c 2% (broadly in line with peers), it posted five-year and 10-year NAV TRs of 15.0% and 14.6% pa, respectively. This was well ahead of listed equities in the UK and continental Europe and also above the MSCI World Index’s TR of c 13% pa in sterling terms. However, PPET’s current discount to NAV is 28% (above the 10-year average of 24%). MORE »

Completes a successful £180m secondary sale

24 October 2024

Patria Private Equity Trust (PPET) has announced that it has completed a secondary sale of a portfolio of 14 older vintage and non-core investments for c €216m (c £180m or 13% of PPET’s end-August 2024 NAV). This represents a minor 5% discount to the carrying value of the sold assets at end-March 2024 (H124) and translates into a robust 1.9x multiple on invested capital and a 16% internal rate of return (IRR). We consider this good news for PPET for several reasons. The sale should allow the trust to repay part, or all, of the currently drawn portion of its credit facility within the next 12 months. It should also provide PPET with additional dry powder for new investments and dividends or buybacks and streamline its portfolio to increase its focus on the private equity (PE) mid-market. MORE »

H124 NAV TR of 2% amid still muted markets

25 June 2024

Patria Private Equity Trust (PPET) reported a modest 2.0% NAV per share total return in H124 (ending March 2024) as exit activity in private equity markets remained subdued, suggesting continued buyer cautiousness. Meanwhile, PPET’s share price total return was a strong 22.9% in H124, with the narrowing discount to NAV assisted by, among other things, PPET’s buyback programme (see our March 2024 note for details). Given the trust’s current balance sheet headroom, the board targets an annual dividend of 16.8p for FY24, up 5% versus FY23. MORE »