SAO PAULO (Reuters) – Brazilian asset manager Patria Investments Ltd, which is backed by Blackstone Group Inc, is expected to reach a valuation of between $ 1 billion and $ 1.6 billion in its planned initial public offering on the Nasdaq, Banco BTG said. Pactual SA in a note to customers.
Patria, which has $ 13 billion under management in private equity, real estate, credit and infrastructure funds, filed for an IPO with the Securities and Exchange Commission on December 30.
The document does not disclose the size of the offering or potential sellers, but Patria said it intends to raise funds to invest in its funds and expand its operations through the purchase of asset managers, portfolios and distribution channels.
BTG said the valuation up to $ 1.6 billion does not include the proceeds raised in the offering and is based on colleagues from Patria, such as Blackstone and Carlyle Group Inc.
Patria, in which Blackstone acquired a 40% stake in 2010, reported revenues of $ 83.3 million and net income of $ 45.5 million in the first nine months of 2020.
“We see a lot of room for investment growth in Brazil, and with more money going to independent actors (former banks) like Patria, there are strong favorable winds for alternative also investments to grow, “said BTG.
JP Morgan, Bank of America and Credit Suisse will manage the offering.
Brazilian asset managers are attracting billions from investors seeking higher yields at a time when the benchmark interest rate in Latin America’s largest economy is at an all-time low of 2%.
Vinci Partners, another Brazilian asset manager, also filed for an IPO on Nasdaq on Monday.
Reporting by Carolina Mandl; Editing by Jan Harvey