Scoop: Patria’s Fourth Fund Comes in at $1 Bln-$1.25 Bln

Patria Investimentos SA, which is partly owned by the Blackstone Group, has been out fundraising for its fourth fund which is red hot, sources say.

The pool, Patria Private Equity Fund IV LP, recently hit a first close, three persons say. Two sources say the size of the pool ranges from $1 billion to $1.25 billion. In April, peHUB reported that the fund was pegged at $900 million but could easily smash that target.

One source says that Patria’s fourth fund hit a first and final close of $1.25 billion in May. “Patria is blowing through the market,” another person tells peHUB.

Sao Paulo-based Patria is a Brazilian buyout shop. Last year, Blackstone acquired a 40% stake in Patria for $200 million.

Park Hill, which is also owned by Blackstone, is the placement agent for Patria’s fourth fund. The PE firm’s last pool, Patria Private Equity Fund III LP, raised around $630 million in 2008. That pool has a net IRR of 29.1%, according to Dec. 31 data from CalPERS.

Brazil is getting a lot of attention from PE firms. Earlier this year, Advent International, which has been investing in Brazil since 1997, said that there could be some $10 billion to invest in the region by year end. The Carlyle Group is also raising a $950 million fund to invest in South America while Banco de Brasil has committed $220 million to a related partnership that will target investment in Brazil, according to Bloomberg.