Ladies and gentlemen, thank you for standing by. Welcome to Petria's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star 11 on your telephone. You will then hear an automated message advised and your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Andrea Medina, Investor Relations Director. Please go ahead.

Good morning, everyone. Welcome to Pátria's second quarter 2026 earnings call. Speaking today, our Chief Executive Officer, Alex Saig, and our Chief Financial Officer, Rafael Denadai. This morning, we issued a press release and earnings presentation available on our investor relations website and on Form 6K furniture to the SEC. A replay will be available on our IR website. As a reminder, today's call contains forward-looking statements, including statements relating to our guidance and targets, which are subject to risks and uncertainties, do not guarantee future performance, and undue reliance should not be placed on them. Please refer to the forward-looking statements, disclaimer, and risk factors in our most recent Form 20F. Pater reports on the IFRS and will reference certain non-IFRS measures. Definitions and reconciliations to the most direct comparable IFRS measures are in the earnings presentation. With that, I'll hand it over to Alex.

Thank you, Andrea. Good morning, everyone. Our second quarter results reflect continued strong fundraising momentum, supported by consistent investment performance across our diversified platform. Fundraising in the quarter totaled $2.3 billion, bringing the year-to-date total to $4.5 billion and keeping us on track to exceed our full-year fundraising target of $7 billion. Given the strong momentum in investor demand, we continue to believe fundraising can surpass our 2025 all-time record of $7.7 billion, and we are on pace to exceed our three-year fundraising target of $21 billion from 2025 through 2027. Fee-earning AUM reached $48.9 billion, up approximately 7% from first quarter 26 and 32% from one year ago, reflecting year-over-year organic growth, the closing of three acquisitions and positive investment performance, primarily in credit real estate public equities and gpms the growth in fee earning aum drove fee related earnings of 57.1 million dollars for the quarter up 13 percent sequentially and 24% year-over-year, and we remain on track to achieve our full-year FRE guidance of $225 million to $245 million. Finally, distributable earnings per share of $0.32 rose 19% sequentially and 31% year-over-year. Rafael will take you through our financials in more detail. Investment performance. Our investment performance remains consistent and continues to support fundraising across the platform. Over 85% of our current fee-earning AUM, excluding SMAs and third-party managed funds, which are not reported, are invested in funds performing at or above their benchmarks since inception. In credit, our flagship LATAM high-yield strategy, with over $5.5 billion in fee-earning AUM, has generated 11% annualized net returns in U.S. dollars since its inception 26 years ago, outperforming its benchmark by more than 360 basis points. As you can see in our earnings presentation, this strategy is outperforming its benchmark for all periods presented, including year-to-date, one, three, and five years. In infrastructure, the pooled return of our latest three vintages, which are our active funds, exceeds the benchmark by more than 750 basis points. In global private market solutions, our two active and more mature commingled secondary funds, SOFT3 and SOFT4, are outperforming their benchmarks by 650 and 560 basis points, respectively. For further information on our investment performance, please refer to pages 17 to 21 of our second quarter 26 earnings presentation. Now, in private equity, two of our older active vintages, our buyout funds four and five, which together represent under $2 billion of AUM or under $1.3 billion of fee-earning AUM, have, as previously disclosed, not performed well. And we have marked these funds down in the quarter. Among other things, these funds have been seeking divestments through an atypically long period of high interest rates in Brazil, and several of their investments were severely affected by long-standing macroeconomic adversities in the aftermath of COVID, as well as by sector-specific shocks. These challenges and our focus on accelerating divestments from these funds to expedite the return of capital to investors are now reflected in their marks. Importantly, the management fees for our private equity drawdown funds, funds in which committed capital is deployed gradually in two investments, are not impacted by portfolio markdowns or markups as fees are charged on invested costs. In addition, Fund 4 has not generated management fees for the last two years and both Funds 4 and 5 have no accrued performance fees since the fourth quarter of 2025. So, these markdowns do not impact our net accrued performance fees. These two older private active vintages do not describe our private active franchise today. We have made significant changes to our private active team and strategy over the past few years and funds 6 and 7 were invested in a different macro environment. Of note, portfolio companies in Funds 6 and 7 have little to no leverage and have been performing well, growing EBITDA by approximately 10.5% on average over the past two years. It is important to note that while approximately 30% of our fee-earning AUM, which are mainly in drawdown funds and earn fees predominantly on invested capital at cost, approximately 70% of our fee-earning AUM are in funds, mostly in credit, real estate, and public activities, that charge fees on the market value of traded securities, and where, therefore, investment performance directly translates into revenue growth fundraising now now let me provide some additional color on fundraising a key highlight of the quarter was a new one billion dollar commitment from an existing sovereign wealth fund client to a multi-asset separately managed accounts. This mandate significantly expands our relationship with the client and reflects the growing demand for Patria's solutions-oriented approach, allowing capital to be deployed flexibly across asset classes and strategies. We believe this type of mandate is particularly attractive given its stable, long-duration capital profile and its ability to deepen strategic partnerships with investors. Now on credit. Focusing more specifically on our asset classes, credit remained a strong contributor to fundraising with over $650 million dollars raised in the quarter, bringing the year-to-date total to approximately $1.6 billion. Demand momentum continues, driven by the aforementioned strong performance across our public credit strategies. The growing interest in dollar-denominated private credit funds and the multiple structural growth drivers, namely banking disintermediation and the broader financial deepening, which are supporting the growth of Solis, our recently acquired CLO business in Brazil. Solis has raised over $500 million since we closed the transaction at the start of the Now on global private market solutions. For Global Private Market Solutions, the fundraising highlight of the quarter was the final close of Soft5, our fifth vintage flagship secondary scommingled fund. total commitments to this fund reached 676 million dollars exceeding our original fundraising targets of 500 million dollars by approximately 35 percent re-up investors represented approximately 36 percent of commitments, with the balance comprising a combination of existing and new investor relationships. The fund attracted capital from five regions, with North America representing over 50% of capital commitments, followed by Europe at approximately 40%, together with additional commitments from investors across Latin America, the Middle East, and APAC. Of course, a key focus for GPMS during the quarter was the closing on April 1st and onboarding of our WP Global Partners acquisition, which expands our lower middle market private equity solutions platform in the U.S. We are pleased with the progress we have made to date, with the WP team successfully integrated into our New York office and already contributing to investment activity across the GPMS platform, now on infrastructure. In infrastructure, we are excited about our InfraCore strategy and are targeting a first closing later this year alongside its inaugural deal. This strategy focuses on a pipeline of mature infrastructure assets in Latin America with contracted U.S. dollar revenues, mainly in Chile, Colombia, and Brazil, and seeks an attractive return premium versus similar global funds. Infrastructure also represents one of the primary areas of interest within our SMAs, and we expect a significant portion of the capital associated with our recently secured $1 billion multi-asset mandate to be allocated to this asset class. Of note, during the first half of the year, through the deployment of capital source from a variety of fee-paying SMAs and co-investments, Infrastructure added $5 million of annual recurring net revenues to Patron. We continue to see significant opportunities to deploy our growing base of dry powder over the coming years into sizable projects, such as our data center initiative, and we have visible line of sight to deploy its approximate $1 billion of pending fee earning AUM. now on AOM quality. Our fundraising success continues to reflect the evolution of Patria's platform. Since our IPO, we have expanded from two flagship strategies with the capacity to raise more than $1 billion per vintage to at least 10 flagship strategies. This diversification has strengthened both the quality and resilience of earnings base, with approximately 90% of fee-earning AUM invested in vehicles with limited or no redemption rights, and approximately $11 billion of permanent capital, representing roughly 22% of total fee-earning AUM. Pending fee-earning AUM increased approximately 20% in the quarter to $4 billion, supported in part by our new multi-asset SMA mandate, providing meaningful visibility into future fee growth. Now on macro context. With respect to the broader operating environment, our view remains unchanged. The geopolitical backdrop continues to be supportive of Latin America, and particularly of South America, where we are seeing a meaningful shift toward more market-friendly governments. Institutional investors across Asia and Europe continue to engage with us across a wider range of strategies than historically, while existing clients are further deepening their relationships with the firm, as evidenced by the recently closed $1 billion multi-asset mandate. In summary, our execution remains very consistent. Fundraising momentum continues, and with $4.5 billion raised year-to-date, we see a clear pathway to potentially yet another record year of fundraising. With our capital formation and asset growth increasingly driven by long-duration vehicles, we conclude the quarter with even greater confidence in our ability to achieve both our 2026 financial objectives and the longer-term goals outlined in our 2027 vision. For example, our year-to-date FRE totaled $108 million. If we simply annualize this figure and include the same incentive fees we reported in 2025, our FRE would be more than $225 million, already at our target range, even before accounting for incremental growth in fee-earning AUM and fees we are seeing quarter over quarter. With that, I will hand the call to Rafael.

Thank you, Alex. Good morning, everyone. I will now take you through the second quarter results. Fee revenue and expenses. Total fee revenues for the quarter were approximately $105.8 million, up 30% year-over-year and 14% sequentially. fee revenues in the quarter include 1.5 million dollars of catch-up fees related to the final closing of soft five growth in fee revenues was driven by fee earning aum growth of 32 percent year over year and seven percent sequentially supported by net organic inflows positive investment performance and the three acquisitions completed this year incentive fees of 2.5 million dollars in the second quarter were attributable to real estate and solis which earns incentive fees semi-annually solis also contributed 0.4 million dollars of structuring fees which are included in other fee revenues. These fees are a regular feature of our private credit business and although the specific timing and size of structuring fees are difficult to forecast, we expect that over time they will be an attractive source of incremental fee revenues. Our last 12 months average management fee rate in the quarter was approximately 86 base points, reflecting the impact of WP transaction as well as the continued growth in credit, real estate, GPMS and various co-investments and SMAs over the recent quarters, FRE and margin. Our fee related earnings in the second quarter of 2026 were approximately 57.1 million dollars up 24 percent year over year and 13 percent sequentially driven by the strong growth in our net fee revenues partially offset by 16 percent equation grows inexpensive. Our FRE margin came in at 54% compared to 54.6% in the prior quarter. Among other things, our FRE margin reflects the short-term impact of acquisitions, which occurred at a faster pace and larger AUM volume than expected, as of our original guidance. and also the impact of FX, normal expense growth, including annual promotions, and ongoing investment in our platform. Indeed, given the evident success we have been having in our fundraising initiatives, we have been steadily focused on continuing to invest in our platform as we expand our global marketing distribution and product capabilities in light of these factors we now expect our FRE margin for the full year 2026 to fall modestly below our 58 to 60 percent target although we remain confident in our 58 to 60 percent target for 2027 and onwards now while the FRE margin is a key byproduct of our financial results, it's important to highlight that our focus is primarily on FRE, not simply the FRE margin. And in that regard, as Alex noted, we remain confident that we are on track to meet our 2026 FRE objective of $225 to $245 or $1.42 to $1.54 per share, representing approximately 11% to 21% growth from last year's $202.5 million. We are also maintaining our 2027 FRE target of $260 to $290 million, or $1.60 to $1.8 per share. Distributable earnings. Total distributable earnings for the quarter were $50.7 million or $0.32 per share, up 31% year-over-year and 19% sequentially on a per-share basis. This growth was driven primarily by the increase in FRE as we generate no performance-related earnings in the quarter. In addition, our net financial expense of $1.5 million benefited from $2.9 million of contributions from TRIA, our trading platform, as well as higher investment income, which was partially offset by higher interest expenses related to the $350 million bond offering we successfully completed early in the quarter. While the contribution from TRIA is difficult to forecast and can vary sharply quarter to quarter, over the past six quarters, the contribution from TRIA has averaged about $1.4 million per quarter. Over time, we expect the contribution from TRIA to grow as the business continues to expand its capabilities. Stock-based compensation. Stock-based compensation in the quarter was $13.5 million, totaling $23.6 million year-to-date, or 12% of total fee revenues, consistent with our recent guidance. Now, with regard to taxes, the second quarter 2026 effective rate was approximately 9%, reflecting our evolving business mix and also consistent with our guidance, balance sheet and capital management. Regarding the balance sheet, as previously mentioned, we completed our $350 million bond offering early in the quarter. the proceeds from which we pay our outstanding credit facility, with the remaining cash available to fund various M&A-related payments, share repurchases, and growth initiatives. Also, as previously reported, we completed a second TRS facility in which we represented a total of 1.5 million shares for a total cost of 18.3 million dollars. This facility matures in the second quarter of 2027. We also are in the process of refinancing and slightly increase the size of our first TRS facility by an additional 1.3 million shares to 2.8 million shares which we expect will total approximately 31 million and mature in the third quarter of 2027. We updated the slide we introduced last quarter in the reconciliation and disclosure section of our earnings presentation, which highlights our incurred liabilities through 2028, so you can continue to have a clear picture of our future obligations. Supported by the debt offering proceeds, expected cash generation in our available on-draw credit facility, we believe we have ample liquidity to meet all obligations, fund dividends, reinvest in the business, and repurchase shares while maintaining a conservative balance sheet. In this context, share count for the quarter was 159.5 million shares, and it remains our long-term goal to maintain the share count in the 158 to 160 million range. To summarize, we believe our financial position remains strong. We continue to generate growing durable cash flows from a highly diversified and long-duration asset base. Strong fund raising momentum and growing fee-related earnings reinforce our confidence in achieving our growth objectives, while our balance sheet remains well-positioned to support future growth. We look forward to your questions.

Q, as a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. And to withdraw your question, please press star 11 again. And our first question is going to come from Tito Labarda with Goldman Sachs. Your line is open.

Hi, good morning. thanks for the call and taking my question and congratulations on the on the results uh my question uh on the on the fees you know very strong performance on on fees in general uh first on the management fees as a percent of the AUM has come down a little bit just given the changing mix a little bit do you expect any further pressure uh on that how do you think about the mix and how that will impact sort of the management fees at the percent of the fee-earning AUM. And then also you had a good quarter on the other fees. I guess any other advisory fees? Anything there to highlight? How should we think about that going forward from here?

Hi, Tito. This is Alex here. Thanks for your question. Thanks, of course, for participating in our call. No pressure on fees on a product-by-product basis. So I don't see any pressure on that side. Of course, when our management fees over revenues, our change is more related to mix than to pressure on a specific product, fees on a specific product or strategy. As we did buy and incorporate solids in the beginning of 2026, we were expecting to do it by the end of 2026 in our projections and guidance, together with WP, the GPMS extension in the US, plus the RBR, which is a real estate investment trust here in Brazil, these fee acquisitions they come in with a lower fee base they they have a lower uh fre in the in the sense in that sense but they also have a lower a lower uh roa or uh in the case and that actually then because of mix that pushes our uh lower slightly down uh but the 90 92 uh that's what we're no getting to should not change it's it's minor minor changes okay so I don't see again no pressure on a on fees on a product specific or strategy specific fees are as a percentage of net revenues are changing because of mix we did introduce we did incorporate solids and the other acquisitions that I mentioned in the beginning of the year, they have a lower ROA, and that's why fees have changed a little bit, but we don't see going forward any significant change. On the M&A advisory fees, part of the Solace business, which is a CLO business here in Brazil, is a structuring advisory service that they do to their clients. So when Solace is structuring a CLO for one of their clients, they charge a structuring fee or sometimes also a consulting fee. So this line, other revenues that has advisory fees embedded, it's not M&A fees. It will come from these structuring-slash-consulting fees that saw this charges that is now part of our business. It's part of their business model. They do originate these CLOs with several originators. They have around 100 originators. Of course, the 80-20 rule, you have around the 20 originators that are significant for SOLIS. These 100 originators, they bring the opportunities to SOLIS in order to, of course, buy receivables, asset-backed receivables, or structure a new CLO. And when SOLIS is structured as new CLO, it charges these structural fees that I mentioned to you. So going forward, I think we have, normally we have other fees of around one and a half to two and a half million dollars. I think we're going to add to that moving forward another two million dollars coming from the solid structuring fees per quarter going forward. But it's parts of solid business model. Okay, so it's going to be a recurrent fee for us. I hope I answered your question.

Yeah, no, very helpful, Alex. Thanks for that. I guess, so we should think of this new level, around $7 million as a more recurring, particularly with the Solus business now going forward. And then also, just with the incorporation of Solus and all the other businesses, right, the FRE margin was lower. It'll be a little bit lower for the year, but should normalize maybe in the future years back to the 58% to 60%. How are the margins on, I guess, the incentive fees, and was it also just mixed impacting the margin or anything else? Like, what's it going to take to get the margin back up to, like, that 58% to 60% in future years?

Yeah, yes, straight answer here. We see it coming back to the 58% to 60%, and I don't see any major issues there. is just a timing issue now we we did incorporate these two acquisitions in the beginning of 26 versus in our budget guidance with the end of 26 positive points that these acquisitions came in before so revenues and and of course fee-related earnings etc but these acquisitions have no they they were operating at a lower margin than us we we operate a 58 60 percent of our e-margin They were operating at close to 30% FRE margin, very, very similar to the other acquisitions that we have already done, the GPMS business, the real estate investment trust in Brazil, et cetera, et cetera. So what we do after we, you know, integrate these businesses, you know, we start managing on their costs, you know, we gain, you know, of course, synergies, scale also, of course, and, you know, driving the margins back to 58, 60. So it's just a timing issue. No, I don't see any blip on the way. You're going to probably see margins going up quarter over quarter as we reach the end of 26. But the overall yearly margin will be slightly down to 58.60 because we incorporated this lower margin business in the beginning of 26. But you're going to see quarter over quarter the margins heading up to the 58.60. So we go into 2027 already in a good pace, in a good margin pace increase. And that's why our comfort level at 27 will be in the 58 to 60% FRE margin arena. The incentive fees also that you mentioned is just mixed. There's nothing that I would comment besides a mix that sometimes you have an incentive fees that fund performance performs a little better in the second quarter versus another one in the third quarter. So there's very slight changes, two to a million dollars here or there from one quarter to the other versus $111 million total revenue. So I'm talking about one and a half, 2% changing from one quarter to the other because a strategy performed better in the second quarter, the other strategy performed a little better in the third quarter versus a benchmark. And then we do accrue the fees that I mentioned. So nothing, nothing structural is just slight changes here or there because of what I just mentioned. So very, no structural changes, very confident with a 58, 60% margin, a very margin for us, timing issue for the acquisitions. Actually, we see the business, you know, very, very solid, to be honest, Tito. As we diversify the business to other asset classes and other countries, extremely solid, as we see the fundraising in a solid grounds, $4.5 billion versus $7, which is a guidance for the whole year. So if we do another quarter of $2.5, we're basically there already, you know, so it's $7 billion. And the fundraising comes from diverse strategies, diverse asset classes, credit, infrastructure, real estate. So, no, I think the business that we build, the diversification of product and countries. I was in Chile this week, came back last night. Amazing upbeat there. The whole momentum in Chile is really, really, really, really positive. We had our seminar with clients on Wednesday, 1,000 people showed up and seating 1,000 people, another 1,000 people online, an amazing finance seminar that our Chilean partners actually put up every year. The Minister of Finance of Chile was presented, Pablo Gedges, the ex-Minister of Finance of Brazil, the Vice Minister of Finance of Argentina, José Luis Daza. So great momentum for the country. I think we're going to see the same great momentum in Colombia. Early signs that comes from the government change there to Abejardo and talking to the future government officials of the Abejardo government. Strong momentum there as well. Positivism coming from Colombia. I think the Colombia economy has greater challenges to tackle versus the Chilean ones, mainly the deficit, but also great, great momentum coming there. And we see the same in Peru. And we have, for these three countries, they're very important for us today and continue to perform very, very well. The funds, the strategies, the asset classes, the countries. So, very solid business that we're managing here and I think nothing really is structural to reports. Thank you, Tito.

Okay, great. Thanks so much, Alex.

Thank you. And the next question will come from Ricardo Busch-Pagil with BTG. Your line is open.

Good morning, everyone, and thanks for the opportunity of making questions. Could you please comment to which regions and clients are this increased fundraising coming from, and are there mainly new clients or are there existing ones? And for my second question, could you comment on what we should expect in terms of part of the M&A agenda for the next 12 months. Following the acceleration on deal closing during the first half of the year, we saw also an increase in the transaction cost. So should we expect this cost to decline and, if so, to what levels? Thank you very much.

Thanks, Ricardo, and thank you for participating in the call. Thanks for the question again. On the fundraising side, I think we see the three asset classes, credit, infrastructure, GPMS, performing the best of the five that we have, or the six that we have, sorry. So credit, looking at the numbers there, again, solid performance that drives solid fundraising. We know very, very positive what we can achieve there. We are on the road to raise our private credit, LATAM, dollar-denominated Fund 2, and I think it's going to surprise us on the upside. On the infra side, again, very, very solid fundraising, on the road fundraising, our dollar-denominated LATAM, Pan-Regional core, funding for a core. Again, very strong momentum there. GPMS as well, we closed Soft 5 at around $700 million. The cover was $500 million, so 40% up versus the cover. And the latest fund that was raised through the Aberdeen franchise was around $500 million there. So we, you know, under our, you know, leadership fund, the secondary opportunities fund five within the GPMS asset class, raising 40% over or more than the cover. So again, and the other three asset classes, you know, real estate, public and private equities also, you know, performing, as you can see, they're reasonably well in fundraising. In the case of public equity, the returns of our funds, mainly the Chilean ones, are really, really, really solid. And I mentioned about Chile a couple of minutes ago, how bullish I am with Chile for the next two to four years, and even after that. And we see that in real estate, I think the second quarter, I think we can see strong fund raising momentum, mainly coming from exchanging shares to quotas of our Brazilian real estate investment trusts, a lot of interest from investors to do that. And finally, private equity, I think we raised money for a big deal, which is a healthcare deal that we did acquire in Colombia and Chile. through an investment through our private active Fund 7 and a co-investment vehicle with several investors there. A lot of re-ups in the case of the GPMS secondary opportunities fund 5, around 35%, 40% of re-ups, and that's more or less has been in general. a third to a half of our fundraising comes from re-ups but as we are increasing fundraising significantly we raised 7.7 billion last year the guidance is 7 this year we already raised 4.5 if you go five years back in 2021 when we IPO'd we were raising 2 to 3 billion so we increased significantly now our fundraising so of course we need re-ups but also we need new clients and new clients coming from different regions I think we would mainly Asia we is the top performing region and Latam second top-performing region for us Asia more on the SMA side big tickets SMAs Latam clients more on the day-to-day investing in our no credit strategies public equity strategies. And we're back fundraising in North America. I have mentioned for so many quarters years that we have been underperforming North America, underperforming fundraising in private equity. I mentioned this quarter after quarter after quarter. And now we see some light in the end of the tunnel there in North America. We raised a significant amount of money for Secondary is Opportunity Fund No. 5. Of course, what is kind of obvious, of course, you need to have the right product to sell to the clients. Clients don't buy what you want to sell. Clients buy what they want to buy, right? Not what you want to sell. So I think we have now, we're starting to have now a menu of products that is guided to the North American clients. North American clients willing to get exposed to mid-market private equity in Europe and globally. And we have the best performing team and assets and strategies there to offer. They are looking again into infrastructure, LATAM, dollar denominated. So our infrastructure, Penn Regional LATAM, dollar denominated core is doing very well in that sense. They're also looking for private credit dollar denominated LATAM, great inlays in North America with that private credit Penn Regional LATAM dollar denominated fund number two with North American clients. So we see North America back, and I think hopefully that's going to be the beginning of us trending up to start raising more money in North America. So, again, I couldn't ask for the commercial team to do a better job, no raising $4.5 billion out of a $7 billion annual guidance. Now, if we do, as I mentioned, to cheat to another $2.5 billion fundraising quarter, we basically beat the guidance in the third quarter. We still have a whole full quarter to go, which would be the upside of the fundraising. So that's why we mentioned that we are confident that we're going to beat the record fundraising year, which was 2025. when we raised $7.7 billion. On the M&A side, I think we're going to be very selective, Ricardo. We have already, I think, acquired the asset classes that we wanted to go into expand. We were basically a private equity infrastructure company at our IPO. We expanded with the Moneda Association into credit big time, public equities, and then through acquisitions mostly of real estate investment trusts. And in Brazil and Colombia, we expanded in the real estate side and then the GPMS business in Europe. So all the asset classes that we want to have, we're already there. Now we are looking into specific strategies, sub-strategies within the asset class, but is a lot more selective and represents so much less of our future growth we see future growth coming mostly from organic as we have explained here and less so from acquisitions so I think you will see acquisitions growing forward represents a much lesser part of our growth strategy as we have already established ourselves as I mentioned the countries that we want to get exposed to the asset class that we want to get exposed to. I think the last button here in Latin America for us is Mexico. We did buy a small real estate investment trust in Mexico earlier this year, a Fibra, as they call them there, as you know. But I think also in Mexico will be more acqui-hires, which is acquisition of teams and cautiously expanding into the Mexican arena versus a large Mexican market versus a large acquisition. We don't even see a large acquisition available, actually, to be done in Mexico. So very selective M&A going forward. Most of our growth coming from organic, already well-established in the asset classes that we wanted to go into at the IPO. Very solid fundraising from the credit infrastructure, GPMS mainly coming from different regions, Asia and Latam being the two most important and absolute value but very positive that North America is back and as it was five years for us ago for was one of the most important fundraising regions for us and with the right products we're back fundraising in North America in a significant way thank you very much because I hope I answered your question that's that's super clear and very helpful yeah just just one follow-up like I understand that most of the M&A agenda is behind there, then you should see some deceleration and so in

terms of the timing for the line of the transaction costs going down, if you could clarify what you could expect here, please, thank you.

Yes, I think yes, I think I'll turn over to Danadai, Rafael Danadai, our CFO to comment but answer is yes. As we now go on and just pursue selective NM&As in a smaller scale, the transaction costs should actually come down. But Rafael?

Yeah. Hello. How are you? Okay. Transaction and restructuring costs were around 11 million in the second quarter of 2026. And of course, Assuming no incremental M&A, we expect a small decline in 2026, with the third quarter and the fourth quarter running around $7 to $8 million per quarter, followed by a significant decline in 2027 and beyond. yeah so it's again it's a it's a result Ricardo of us actually no hat no having done the big M&A that we wanted to do now being more selective than a demon a this fine this expense fine just comes down during 26 being no a very tamed

blind and subdued line in 27 that's clear thank you very much in both thank you thank you and the next question will come from gilherme grispan with jp morgan your lines open hey good morning alex and team uh congrats on fundraising pretty solid uh most of my questions were answered just a a quick one maybe even to to rafael here on the balance sheet uh call my attention the shareholders equity uh it declined 40 million this quarter it was 600 million last quarter this quarter 560 and doing a very rough map here what i was struggling is uh net income

was 10 million you paid out as dividends 25 roughly right so it was supposed to go down in this map only 15 but it went down 40 so there is something else that is 25 million there against equity i just want to to understand what what exactly is is this point i would imagine effects is something that sometimes goes against equity.

But this quarter, I don't recall having a lot of FX movement. So I just want to understand if there's anything else on the OCI here on the equity book.

Yeah, thank you for your question. Yes, there is another reason, okay? And it's in other reserves. So other reserves is impacted by the account recognition of gross obligations related to good options over minority interest in certain subsidiaries. So following the closing of Solis in January, the company recognized for the first time the gross obligation associated with the potential future acquisition of the remaining 49% minority interest. so this is the explanation for for the additional impact okay that's clear super clear thank you no thank you you let me thanks for participating in the call thank you and the next question will come from Nicholas Basileer with BNP

your line is open hi good afternoon just three questions on my side the first one I just wanted to check this multi-asset line you know disclosing the fundraising bridge which I understand is SMAs. I want to see if you can give more color on the fee margin, the management fee margin on this line. Then my second question is on the over-income in the fee-related revenues line. I do understand the point on the solid structuring fees. Yet, if I'm correct, they are represented only around half a million dollars this quarter. So that doesn't really get us to the quarter-on-quarter increase to $7 million that we've seen. So I wanted to know a bit more what goes into this line. And then finally, if I look at the accrued carry pool across your plant, It's been going down this quarter, mostly due to Private Equity Fund 6, and I understand from your statement, it's mostly related to negative market movement over the quarter. So I wanted to understand if this changes your view on the PRA guidance for the year 2026 and 2027.

Okay. Thank you very much, Nipolas. thanks for the questions and participating here in our call. SMA margins 1 in 10, 1% management fees, 10% performance on average. We have some of the SMAs with 1 in 15, 1% management fees and 15% performance fees. That has been the case for the last 20 years, 25 years. Now normally The funds that we raise, the drawdown funds, natures funds are 1.5% to 2% management fees and performance fees 15% to 20%. Infrastructure funds being closer to the 1.5% to 15%. Private active funds close to the 2% with 20% performance fees. And the SMAs or co-investments where we charge in general has been 1% management fees and 10 percent performance fees so this is no and it hasn't been the case for the last 20 years 25 years it hasn't really changed much just to be clear sometimes we do give co-investment rights no fee no carry in our infrastructure drawdown funds and private active drawdown funds that has to do with the you know that's the big size tickets of the big clients that come into the fund On the solid structuring fees, when solid raises $500 million, it's not really correlated with the structuring fees, because sometimes we get the structuring fees and we're going to raise money for that specific fund that we structure over the next quarters, not the past quarters. So, one thing, I think it's difficult to relate one with the other, correlate one with the So, for example, if we do, if SOLIDIS does raise $500 million, the structuring fees of these funds were probably three, four quarters ago, because then we structure and then we go out to fundraise, we charge the structuring fees and then we go out to fundraise, and fundraising is two to four quarters later than the structuring itself, the quarter that we did structure a specific CLO. So Solis charges structuring fees in most of their CLOs that they structure. Sometimes they charge also consulting fees, as I mentioned, which is more or less the same idea of consulting a client of how to structure a CLO or a structuring fee. it's more or less the same. As mentioned during my answer to Tito's question, we should see another $2 million per quarter on average of structuring fees going forward. Private Active 6 Markdown was one specific company that we really marked down. And again, Yeah, I think the whole private active universe have these issues today of how do you value a company that is a private company, should you compare directly with public peers, but our company is not public, it's private, blah, blah, blah, blah. So we decided to, again, we always try to be as conservative as possible in our valuations, show exactly, again, what is the value of the company. Over the last 10 exits, seven of them were at mark. One was 5% of mark, and then two of them were not close, were more than 5% of the mark. So 70, 80% of the cases we sell companies at mark or 5% above or below the mark, 80% of the cases. And this was the case of the last 10 exits, which was the case, if I go back 10, 15, 20 years ago, that's more or less the case. So for private equity fund six, it was a markdown of one specific company that we felt that was not, we saw that was not performing as planned. Going forward, the private active companies that are also in Fund 5, Fund 6, and Fund 7, we have two healthcare companies, three healthcare companies in Fund 5. We see two of them performing very well and aligned with our expectations, and the companies in Fund 6 and Fund 7 as well are performing aligned with our expectations. They don't carry any leverage. We deleverage these companies. They are cash generators, so they have, I think, the right capital structure for this moment of Brazil, which is a moment of very, very high interest rates in Brazil, very high interest rates in Brazil. And we're, again, preparing ourselves for the next four years' mandates of the next president, which will have to, at least in Brazil, have to tackle the inflation, the high interest. So we're coming in, getting out of 26, coming into 2027, with all these private equity companies completely deleveraged with a very, very solid capital structure to be able to, you know, face a high interest rate environment that we already face. So, we are not changing the FRE guidance because of any of the private active markdowns. We have, private active fund 4 and fund 5 have not been contributing to net unrealized performance fees since the end of 25. Private Active Fund 4 has not been contributing to net unrealized performance fees since 23, 24. We did not incorporate in our guidance or budgets that we were going to raise significant amount of monies from the private equity side. Our high growth private active funds are doing very well. The growth fund is doing extremely well and we should be in the market raising for that fund sometime late this year or early next year. Our venture funds are doing very well. We are top quartile DPI. Actually, our growth fund is a top quartile fund. We have in the investment performance page there, it's a top quartile fund. Our venture capital funds are second quartile of top quartile. as far as DPI is concerned our venture funds are top quartile with one or times or over DPI for venture funds in LATAM it's extremely, extremely, extremely solid performance so I don't see anything different there than that we foresee no very, very good future years for venture and growth which we call the high growth areas we were not and we are not We were not and we are not projecting fundraising on the private equity side in a significant manner over the next years, more the SMAs, because we still have to invest in Private Equity Fund 7, so before actually raising or thinking about raising Private Equity Fund 8. And Private Active Fund 7 has a significant amount of dry powder. I think there's another two to three deals that we should do there, you know, $100 million tickets per deal for Private Active Fund 7, plus I think raising co-investments in SMAs to co-invest with Private Active Fund 7. So there's still a lot of work to do to finish investing in Private Active Fund 7, even thinking before Private Active Fund 8. And again, no changes in our FRE guidance for 26, for 27, because of the private active I hope I answered your questions, Nicolas.

Thank you very much.

Thank you. And the next question is going to come from William Berenjard with Atua BBA. Your line is open.

Thank you for the presentation. I have a couple here on my side. First, about the multi-asset SMA you disclosed this quarter, just wondering how should we estimate when it becomes the fee AUM, right? For now, it's considered pending. And regard to it, what is the expected management fee charge there, if it's below or above the blended of 0.86% we see here? Also, regarding multi-assets, this new segment, how do you see the pipeline here? Do you have any new fundraisings come to this new line soon? What kind of fundraising, what kind of SMA is there? And a second one, maybe it's a long shot, but regarding the redemptions on credit, I saw that this quarter amounted to almost half of the redemptions we saw through the last 12 months. So I was wondering if this is maybe related to Brazil because we saw some sizable outflows during the second quarter. And now in July, we've seen some net inflows increasing again on fixed income funds here in Brazil. So if this is correlated, we should expect maybe improvements on net intakes in this credit front.

Thank you, William. Thanks for your questions. And again, thanks for participating here in the call. Now, the multi-asset SMA, I think it's really positive news. I think it shows our relationship with clients of us actually having the prerogative to invest in several different asset classes. So client looking into LATAM, alternative assets, saying, look, you know, Patra is my service provider, my trusted partner, and I would like to allocate to asset class A, B, and C, and let's work together into a multi-asset mandate. So, extremely positive in that sense, because it really shows that we have been able to develop a trust, a partner of choice relationship with this specific client in several different asset classes in in our four asset classes to be to be honest and these are chunky in nature of course because the clients that are able to do that and make sense economically for us are a billion dollar billion dollar plus we do of course work with significant large size of SMAs in our GPMS business mostly for English pension schemes, UK pension schemes. This specific client is Asian, is not European, but extremely, extremely interesting. Which asset class are we going to deploy? It's hard to say, but I would say that it would be mostly infrastructure and credit because of the opportunities and the risk profile of this client and the dollar-denominated view on the revenue side of the specific asset class that they require, probably deploy this over the next four to six quarters, becoming then, of course, fee earnings AUM. Also, I think on your question on the redemption of the credit fund, around $100 million of the redemption on the credit fund actually was a client that redeemed from one fund and invested in another fund of ours. So technically it is a redemption, but then he wanted to change from one strategy, one of our credit strategies to another one of our credit strategies. So $100 million were redeemed from one fund and that same $100 million was invested in another fund in our within our credit menu of products uh so it's uh absolutely normal it's positive they wanted to to change the the the the fund that they were invested in so nothing actually structural nothing to do with higher delinquencies or higher or issues here issue there's absolutely zero structural issues uh whatsoever uh sometimes clients do that which is absolutely fine Within their global credit allocation, they change the fund that they're exposed to in LATAM and with us, whatever. So completely normal. In our credit funds, I think our portfolios are very, very healthy. now our private credit fund and of course the public's as well but whatever a very healthy portfolios now our credit private credit fund one dollar denominated pan-regional latam is performing extremely well uh no it's really uh beating our expectations you can see there from from our uh investment performance pages we're expecting a 10 to 12 percent net ir the fund is posting 16% net IRs in U.S. dollars. And actually that performance gave us a very good track record for us to go back to the road and raise private credit and regional dollar denominated fund number two. And I think that fund is going to be very sizable, a multiple of the first fund, which was close to $200 million. So very positive on the credit side. I don't see anything structural on the quality of our securities in the funds. On the contrary, funds performed very well. And I think this asset class will continue to be a major fundraising asset class for us in the near future. I hope I answered your questions, William. Perfectly. Thank you, Alex.

Thank you. And I'm showing no more questions in the queue at this time. I will now turn the call back over to Alex for closing remarks.

Well, thank you very much for participating. I know it's a very busy agenda for everyone. A lot of our peers reporting earnings. I can see that the whole industry is more upbeat than it was a couple of quarters ago from the earnings of peers that already came out. On our side, very solid performance, fundraising, FRE, FRE per share, DE, DE per share, most of the metrics, very positive that we're going to continue to hit and deliver our guidance for 2026, that you guys know why now. and beating on the fundraising side, delivering the FRE that we mentioned, $225 to $245 million for 26, positioning us in a very good position to also deliver our 27 guidance. So very confident here, confident, solid business, performing very well. Thanks for your patience. Thanks for participating. I hope to see you in person soon, and have a great Friday and a great weekend.

This concludes today's conference call. Thank you for participating, and you may now disconnect.