Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 190

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 190
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 tax expenses of US$11.2 million from US$8.3 million expense in 2023. This decrease was primarily attributable to a decrease of US$14.9 million in deferred income tax expenses due to an increase in deferred tax assets as a result of unrealized losses on option arrangements to acquire the remaining non-controlling interest in VBI Real Estate. The impact from the movements in fair value due to changes in unobservable inputs to the VBI option arrangements resulting in deferred tax income are derived from the subsidiary of the group holding both VBI call and put option arrangements measured at fair value (total deferred tax income in 2023 of US$10.6 million). This was partially offset by an increase in current income tax expenses by US$3.7 million as result of taxes in jurisdictions of acquired companies. Our effective income tax rate was -2.4% in 2023 and 8.1% in 2022.

Net Income for the Year

As a result of the foregoing, net income of our group in 2023 was US$120.8 million, an increase of US$15.6 million, or 28.4%, from US$94.1 million in 2022.

B. Liquidity and Capital Resources

General

Our business model derives revenue primarily from third-party assets under management. Patria is not a capital or balance sheet intensive business and targets operating expense levels such that total management and advisory fees exceed total operating expenses each period. As of December 2024, we had four credit facilities with total available credit of US$226 million. Two facilities were term loans which were disbursed and used to support the acquisitions of Abrdn and Credit Suisse’s real estate business in Brazil. The other two are revolving facilities used for working capital needs, which have been partially disbursed. We otherwise draw primarily on the committed capital of our LPs to fund the investment requirements of our funds, use our own realizations and cash flows to make commitments to our own funds and pay dividends to shareholders. See “ - Capital Expenditures.” For additional information on our initial public offering, see “ Item 4. Information on the Company - A. History and Development of the Company - Our History.”

Sources and Uses of Liquidity

As of December 31, 2024, 2023 and 2022, we had US$92.4 million, US$220.6 million and US$312.4 million in cash, cash equivalents and short-term investments