Patria Investments announces expansion into venture capital

Patria Investments announces expansion into venture capital

Published: 05-12-2022 11:18:00 | By: Pie Kamau | hits: 3554 | Tags:

Patria Investments (Patria), a global alternative asset manager in Latin America, announced the launch of a new Venture Capital strategy, anchored by the acquisition of Igah Ventures, one of the pioneers of the sector in Latin America.

By expanding its platform to include venture capital, Patria now offers products and solutions throughout the equity investment cycle to address all stages of growth. Igah’s business complements Patria’s existing Private Equity and Growth Equity strategies, which are focused on relatively mature companies, by adding investment expertise in startups and early-stage companies. For Igah, this move allows it to further accelerate growth, leveraging the scale of Patria's platform and client base, as well as deep industry knowledge in various areas of the economy.

In addition to combining market experience and expanding the platform, this transaction reflects an alignment of like-minded culture centered on entrepreneurial spirit. Igah demonstrates a track record of attractive investment performance in its first three fund vintages, resulting in consistent strong scaling of AUM over the last 10 years.

Ricardo Scavazza, Partner and CIO (Chief Investment Officer), Patria's Private Equity platform: “Patria’s goal is to be a complete platform for alternative investments in the region, delivering consistent strong returns to investors at scale. We see Igah as an ideal partner to explore the venture capital space, focused on seed and A/B series investments. This is the fastest growing segment of private investments in recent years in Latin America, and they are a leading player with one of the best track records. Success in our business is about attracting the best people, and with Igah we bring to Patria a very talented and seasoned VC team. I’m very excited to join forces with Pedro and his team as we look forward to our next phase of growth.”

Igah Ventures has been operating since 2013 with three funds raised from local and international investors, having contributed to startups such as Infracommerce, Contabilizei, Unico, Avenue and Conexa Saúde. Overall, the investment management company currently has $320 million in total assets under management and about $140 million in fee earning assets under management, as it prepares to launch its fourth fund.

Pedro Sirotsky Melzer, Founding Partner, Igah Ventures: “Now Igah is part of the largest alternative investment platform in Latin America. This means that our entrepreneurs join a group with extensive access to capital, expert professionals in different sectors and a broad portfolio of leading companies in different industries. With its expertise, Igah becomes Patria's Venture Capital nucleus, as Patria looks to participate across the full equity investment ecosystem.”

Márcio Tabatchnik Trigueiro, Partner, Igah Ventures: “We believe that we will become better investors by bringing to the table Patria's deep industry, regulatory and functional experience combined with Igah's extensive experience supporting entrepreneurs who seek, based on the use of technology, to increase the efficiency of the Brazilian economy.” 

Patria has acquired 100% of Igah Ventures, with the closing of the transaction also now completed. Consideration structure consists of an upfront cash payment, equity to be paid in the form of PAX Class A shares over the course of the next twelve months, as well as an earnout component contingent on meeting certain fundraising targets. Specific financial terms of the transaction are not being disclosed. Igah is expected to be profitable on an FRE basis looking forward, with the ability to scale with the raising of the upcoming fourth vintage fund.