Simpson Thacher is representing Patria Investments Ltd. (NASDAQ: PAX) (“Patria”) in connection with its announced business combination with Moneda Asset Management (“Moneda”), a Latin American asset manager headquartered in Chile. The transaction is expected to close by the end of 2021, subject to regulatory approvals and certain other customary conditions.
When completed, the transaction will create the leading alternative asset investment platform in Latin America, with $25.9 billion in assets under management and a leader in Private Equity, Infrastructure and Credit Investments in the region. Under the agreement, Moneda partners will receive an upfront consideration of $315 million, a combination of $128 million in cash and $187 million in Patria Class B common stock, with additional consideration payable two and three years following the closing, subject to certain retention metrics for Moneda’s partners. The Moneda partners may also receive earnout compensation after 2023, subject to certain revenue and profitability targets.
Patria is one of the leading investment companies in private markets in LatAm in terms of capital raised, and one of the largest managers focused on investments in LatAm, with more than 30 years of experience investing in the region. With $15.8 billion of assets under management and a portfolio of more than 55 companies and assets, Patria has ten offices spanning the world's major financial centers.
Moneda Asset Management is one of the leading LatAm focused asset managers, with over 25 years investing in LatAm companies across their capital structure, implementing a long-term, fundamental research investment philosophy. With more than $10 billion of assets under management and a portfolio of credit and equities, Moneda has offices in Santiago, New York and Buenos Aires.
The Simpson Thacher team includes S. Todd Crider, Juan Naveira, Joshua Bernard, Enrique Guijosa and Laura Ribero (M&A – Latin America); Amanda McGovern, Samuel Francis, Manny Halberstam and Radhika Kshatriya (Funds – Regulatory); Beate Krieger, Charles Xu and Maya Reeves (Funds); Andrew Purcell, Jodi Schneider and Stefan Golubovic (Tax); Brian Robbins (Executive Compensation and Benefits); Jonathan Pall and Caitlin Wood (Corporate); and Peter Guryan and Daniel Owsley (Antitrust).