Patria Boosts Credit Arm with $3.5B Solis Investimentos Deal
The Latin American investment firm acquired a 51% stake in the Brazilian asset manager, significantly expanding its footprint in the region's structured credit market.
Patria Investments, a leading private market firm focused on Latin America, has acquired a 51% controlling stake in Solis Investimentos, a prominent Brazilian asset manager specializing in asset-backed securities. The deal, announced Wednesday, adds approximately $3.5 billion in assets under management to Patria's burgeoning credit division.
The transaction significantly scales Patria's presence in the private credit space, a key growth area for the firm. The addition of Solis's portfolio increases Patria's Credit Fee-Earning Assets Under Management (FEAUM) by over 40%, pushing the pro-forma total to more than $11.7 billion. Following the acquisition, Patria's credit franchise will represent over a quarter of the firm's total fee-earning assets, underscoring a strategic pivot towards the asset class.
Solis Investimentos has established itself as a leader in the Brazilian structured credit market, focusing on Collateralized Loan Obligations (CLOs). The firm has demonstrated impressive growth, with its funds expanding at a compound annual growth rate of approximately 45% since 2021, according to a company statement. This rapid expansion highlights the growing demand for sophisticated credit instruments in Brazil's evolving financial landscape.
For Patria, a NASDAQ-listed company with a market capitalization of approximately $2.3 billion, the acquisition is a strategic move to deepen its access to local markets and address what it sees as a significant financing gap in Latin America. Private credit has become an increasingly important source of capital for companies in the region, offering an alternative to traditional bank lending and public markets.
“This partnership with Solis is a key step in our strategy to build the leading private credit platform in Latin America,” said Marcelo Saints, Partner and Head of the Credit platform at Patria. “Solis’s expertise in structured credit and CLOs is highly complementary to our existing capabilities and will allow us to offer a more comprehensive range of solutions to both our investors and the companies we serve.”
The deal comes as investors globally are allocating more capital to private credit in search of higher yields and diversification. By acquiring a majority stake in Solis, Patria not only gains scale but also integrates a team with a specialized and successful track record. The partnership is expected to support Solis's next phase of growth while providing Patria with a robust platform to capitalize on favorable market dynamics in Brazil.
Patria Investments (PAX) has been a consistent performer, with shares trading around $14.42 on Wednesday. Analysts hold a consensus price target of $16.29 on the stock, suggesting potential upside as the firm continues to execute its expansion strategy. The company reported quarterly revenue growth of over 10% year-over-year in its most recent quarter, and this acquisition is poised to create new revenue streams.
The financial terms of the transaction were not disclosed. The existing partners of Solis will continue to manage the business, ensuring continuity for its clients and investment strategies. The combination aims to leverage Patria’s institutional backbone and global distribution network to further accelerate Solis’s growth trajectory.