Patria Private Company Research (PPET)

Patria Private Equity Trust’s (PPET’s) recent capital markets day (CMD) was an opportunity to reiterate the trust’s main attractions. First, its focus on the private equity (PE) mid-market (and increasingly its lower end), which has historically outperformed large-cap funds and offers a vast opportunity set of primary buyouts (acquisitions from founders and families), more value creation opportunities, better exit options beyond IPOs and often more limited use of leverage. Second, PPET’s emphasis on the European market, which is a fertile hunting ground given its fragmentation and complexity. Third, PPET’s high-conviction approach based on long-term relationships with top European PE managers (which are increasingly becoming sector specialists), allowing it to pursue a blend of complementary strategies. Finally, the high diversification of its portfolio of over 650 underlying private companies across sectors, geographies, stages of maturity and managers.