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Brazil’s Patria mulls listed continuation fund alternative

The GP is looking at ways to hold on to 'champions' for longer, according to CEO Alex Saigh.

Brazil’s largest private equity firm is looking outside the secondaries market for a way to hold on to its best assets, affiliate title Secondaries Investor reported.

Patria Investments is exploring the formation of listed “continuation-driven” vehicles for businesses it considers “champions”, its chief executive officer, Alex Saigh, said on a third-quarter earnings call last month.

“I can give you amazing examples from our private equity fund, from our infrastructure fund, one or two champions per fund,” Saigh said. “I would love to continue investing in these companies, given that they continue to deliver 20 percent-plus returns per year.”

Patria has considered the London and Brazilian stock exchanges as possible destinations because they have a “bucket” for such vehicles, Saigh said, adding that investors are very supportive of their efforts.

“We actually placed the management there [in the portfolio company], we de-risked the assets – we know exactly what to do,” he said.

Patria was founded in Sao Paulo in 2001 by managing partners Luiz Otavio Reis de Magalhães, Alexandre Saigh and Olímpio Matarazzo Neto. In 2010, Blackstone Group took a 40 percent stake in the firm, affiliate title PE Hub reported.

Patria did not respond to a request for more information on the plans and why it is pursuing the listed path.