SAO PAULO - Patria Investments has significantly expanded its assets under management (AUM) by acquiring real estate funds from Credit Suisse, owned by UBS, for 650 million reais. The deal, which was finalized today, adds approximately 12 billion reais to Patria's portfolio, bringing its total AUM to 45.7 billion reais.
The acquisition includes eight funds overseen by Augusto Martins and his team, who have agreed to stay on board due to a successful alignment of long-term economic interests achieved during the negotiation process. This strategic move not only strengthens Patria's market standing but also ensures continuity and stability in fund management.
The structure of the acquisition comprises an upfront payment followed by another tranche after shareholder meetings.
In a competitive bidding war that involved nearly a dozen interested parties, Patria's final offer of $130 million surpassed that of Vinci. Despite a previous partnership with VBI Investimentos in July 2022, which outlined a phased acquisition over two to three years, the current agreement allows Credit Suisse's team to continue operating independently without merging into existing structures within Patria.
The completion of this deal is pending approval from CADE, the antitrust regulatory body.
A key asset in this acquisition is the CSHG Logística fund, which boasts nearly R$5.2 billion in AUM and about 400,000 investors. To facilitate a smooth transition and engage shareholders effectively, Patria is employing innovative voting mobilization strategies. These include leveraging technology platforms like XP (NASDAQ:XP) or BTG and conducting social media campaigns with influencers to overcome the challenge posed by disinterested shareholders whose active participation is essential for confirming new fund management under Patria's direction.
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