Patria closes fourth fund on $1.25bn

The Blackstone-backed firm’s largest fundraising to date is one of several Brazilian funds to break $1bn this summer.

Patria Investimentos has closed on its fourth fund, hitting its $1.25 billion hard-cap only eight months after launching. The firm typically targets buy and build strategies focusing on post-secondary education and services outsourcing.

International investors accounted for around 75 percent of the fund’s investors, a source close to the firm said, and include pension funds, family offices, endowments, sovereign wealth funds, private banks and fund of funds.

Park Hill Group worked as a placement agent on Fund IV. Patria closed on its $700 million third fund in 2008.

The firm’s fourth fund is one of several billion-dollar fundraisings in the country to close in recent months. In July, Vinci Capital closed its debut Brazil fund on $1.4 billion, attracting both local and international investors. Gavea Investimentos closed on its $1.8 billion fund in June, the largest Brazilian fund raised to date.

In 2010, The Blackstone Group purchased a 40 percent stake in the firm for $200 million.

Patria was founded in 2003 and has about $5 billion under management. The firm, led by CEO and founding partner Luiz Otavio Magalhães, began its merchant banking activities in 1994 and started its private equity business in 1997 in association with Oppenheimer Investment Bank, which has since been acquired by the Canadian Imperial Bank of Commerce.