SAO PAULO, Jan 22 (Reuters) - Brazilian asset manager Patria
Investments Ltd, whose shareholders include Blackstone
Group Inc, plans to use the proceeds of its $588 million
initial public offering partly to expand in new emerging
markets, executives said on Friday.
Patria raised $326 million in the IPO and shareholders
selling stakes will receive $262 million. Blackstone, which
acquired a 40% stake in Patria ten years ago, will reduce its
stake to 14%.
Shares of Patria - which manages more than $14 billion in
private equity, credit, real estate and infrastructure funds -
closed 17% higher in their trading debut on Friday.
Class A shares were priced at $17 each in the initial public
offering, $1 above the upper limit of its price range,
reflecting demand equivalent to 14 times the amount of shares
offered, Patria executives said in an interview.
The company was valued at $2.3 billion in the IPO, and its
market cap rose to $2.7 billion at market close.
Senior managing partner Olimpio Matarazzo said Patria is
happy with its new shareholder base, which includes long-term
Chief Executive Officer Alexandre Saigh said the firm is
eying acquisitions in Mexico, Colombia, Peru, Chile and Brazil
and may later pursue an expansion in Asia.
"We want to be the leading alternative investment fund
manager for emerging countries," he said. "Alternative assets
have attracted a lot of money with global low interest rates."
Proceeds will also be used to invest in its own funds and to
acquire portfolios and distribution channels.
Blackstone and Patria agreed to pursue the IPO to allow the
U.S. firm to trim its stake after Brazilian founders refused an
offer to sell control.
Patria's IPO comes as asset managers in Brazil are seeing
record inflows from investors, at a time when the benchmark
interest rate in Latin America's largest economy is at a record
low of 2%. Last year, net new money to the industry totaled
156.4 billion reais, according to industry group Anbima.
Another Brazilian asset manager, Vinci Partners,
has also filed for an IPO on the Nasdaq, which may value it at
(Reporting by Carolina Mandl and Tatiana Bautzer in Sao Paulo
Editing by Steve Orlofsky and Matthew Lewis)