Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 182

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 182
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 be paid to key employees until 2030. This expense continues to be recognized as a compensation expense as the employees render services.

Amortization of intangible assets

Amortization of intangible assets are composed of the following components:

• Placement agent fees are composed of costs related to the capital raising processes, comprising a percentage of the amount raised, or a fixed amount paid upfront and amortized over the duration of the fund’s existence;

• Contractual rights are recognized through asset acquisition and business combination transactions. The recognition is at fair value and subsequently amortized on a straight-line basis over the estimated life of the contractual right. Contractual rights include asset acquisitions of Bari, Move and Blue Macaw and business combinations with Patria Asset Management, GPMS, CSHG and Nexus.

• Brands and non-contractual customer relationships acquired through business combination are recognized at fair value at the acquisition date. The cost of the intangible asset is then amortized over its estimated useful life using the straight-line method. A brand represents an acquired company’s reputation, investment approach, track record, ability to innovate and overall value proposition. Brands of acquired companies can provide us with a competitive advantage in new markets or regions where we are expanding market share and to generate new revenue streams.

  Patria Investments Limited      119  

  Table of Contents  

General and administrative expenses

General and administrative expenses mainly consist of professional services, IT and telecom services, depreciation of right-of-use assets and property and equipment, travel expenses, marketing and events expenses, occupancy expenses, expenses on utilities, materials and supplies, rebate fees (comprising a percentage of the management fee paid to the placement agent during the life of the fund), taxes and contributions and certain other administrative expenses.

Other income/(expenses)

Other income/(expenses) mainly consist of non-operating or non-recurring provisions and transactions related to merger and acquisition activity, initial public offering expenses related to the SPAC, gains or losses from energy trading and certain other income or expenses.

Share of equity accounted earnings

Share of equity-accounted earnings consist of the portion of earnings of an associated company where we hold a significant influence but not a controlling stake. The investment is accounted for using the equity method where we recognize our share of the associated company’s earnings for the same financial period. The share of earnings is based on our ownership percentage of the associated company and may include the amortization of identifiable intangible assets (brands and non-contractual customer relationships) that were acquired as part of the investment in the associated