Key Takeaways
- • Patria Investments (NASDAQ: PAX), a global alternative asset manager with more than US$60.1 billion in AUM, is preparing the next vintage of its Latin America private credit strategy, targeting global institutional investors.
- • The predecessor fund closed in May 2025 with US$314 million in commitments, has deployed more than 70% of capital into 14 transactions, and generated a gross unlevered IRR of 15.6% with an average duration of 2.5 years as of 31 December 2025.
- • Patria argues structural scarcity in regional corporate lending, where private credit is less than 1% of a roughly US$2.3 trillion Latin American corporate credit system, can keep spreads elevated even with resilient borrower fundamentals.
- • Latin American high yield spreads remain approximately 100-150 basis points wider than US high yield, despite lower leverage (2.8x versus 5.5x net debt to EBITDA), per Patria's cited data.
- • Patria also acquired a 51% stake in Brazil's Solis Investimentos, adding approximately US$3.5 billion in fee-earning AUM and expanding its asset-backed and structured credit capabilities.
Summary
Patria Investments Limited announced on February 11, 2026, that it is preparing the next vintage of its Latin America private credit strategy, according to a Business Wire release datelined London. The strategy is designed to give global institutional investors access to what Patria describes as a large, structurally under-levered corporate credit market where reliable capital remains scarce. The proposed vehicle builds on Patria's 26-year, approximately US$12.3 billion credit platform in Latin America.
The planned fund follows the close of Patria's first dedicated private credit fund and related vehicles in May 2025, which raised US$314 million in commitments. As of 31 December 2025, the fund had deployed more than 70% of capital into 14 transactions, generating a gross unlevered IRR of 15.6% with an average duration of 2.5 years. The portfolio focuses on senior secured, US dollar-denominated loans with collateral, covenants and cash-flow protections for mid-market and family-owned borrowers.
Patria's thesis rests on a risk premium it characterizes as perception-based. The release cites Latin American high yield corporate leverage of around 2.8x net debt to EBITDA versus 5.5x in U.S. high yield, and interest coverage of 5.4x versus 4.5x. Long-term default rates in the hard currency public credit market are less than two-thirds of global high yield, yet spreads remain roughly 100-150 basis points wider than US high yield credits. Patria also points to sovereign rating ceilings, the so-called zip code effect, which can constrain issuers even when company-level fundamentals would support higher ratings. The firm states that private credit represents less than 1% of a roughly US$2.3 trillion Latin American corporate credit system, and that regional corporate bond markets generated cumulative net negative financing of approximately US$175 billion from 2017 through 2023, as maturities and buybacks exceeded new issuance.
Javier Montero, Partner and Head of Private Credit at Patria, said the firm is built to convert this structural inefficiency into repeatable alpha through proprietary origination at scale, structuring-first underwriting and a long-memory information edge under one risk framework. Patria's credit platform integrates public credit research, private credit underwriting and structured-credit analytics across six markets.
Patria also acquired a 51% stake in Brazil's Solis Investimentos, which adds approximately US$3.5 billion in fee-earning AUM and expands its capabilities in asset-backed and structured credit, including securitization and ongoing monitoring. The next private credit vehicle is expected to continue the focus on senior secured corporate lending and asset-backed structures. Patria reports pro-forma AUM of more than US$60.1 billion, including the WP Global Partners acquisition announced and the Solis and RBR acquisitions completed by February 3, 2026.
The planned fund follows the close of Patria's first dedicated private credit fund and related vehicles in May 2025, which raised US$314 million in commitments. As of 31 December 2025, the fund had deployed more than 70% of capital into 14 transactions, generating a gross unlevered IRR of 15.6% with an average duration of 2.5 years. The portfolio focuses on senior secured, US dollar-denominated loans with collateral, covenants and cash-flow protections for mid-market and family-owned borrowers.
Patria's thesis rests on a risk premium it characterizes as perception-based. The release cites Latin American high yield corporate leverage of around 2.8x net debt to EBITDA versus 5.5x in U.S. high yield, and interest coverage of 5.4x versus 4.5x. Long-term default rates in the hard currency public credit market are less than two-thirds of global high yield, yet spreads remain roughly 100-150 basis points wider than US high yield credits. Patria also points to sovereign rating ceilings, the so-called zip code effect, which can constrain issuers even when company-level fundamentals would support higher ratings. The firm states that private credit represents less than 1% of a roughly US$2.3 trillion Latin American corporate credit system, and that regional corporate bond markets generated cumulative net negative financing of approximately US$175 billion from 2017 through 2023, as maturities and buybacks exceeded new issuance.
Javier Montero, Partner and Head of Private Credit at Patria, said the firm is built to convert this structural inefficiency into repeatable alpha through proprietary origination at scale, structuring-first underwriting and a long-memory information edge under one risk framework. Patria's credit platform integrates public credit research, private credit underwriting and structured-credit analytics across six markets.
Patria also acquired a 51% stake in Brazil's Solis Investimentos, which adds approximately US$3.5 billion in fee-earning AUM and expands its capabilities in asset-backed and structured credit, including securitization and ongoing monitoring. The next private credit vehicle is expected to continue the focus on senior secured corporate lending and asset-backed structures. Patria reports pro-forma AUM of more than US$60.1 billion, including the WP Global Partners acquisition announced and the Solis and RBR acquisitions completed by February 3, 2026.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.