Patria’s appetite for FIIs is far from satisfied. The firm led by Rodrigo Abbud is moving at full speed toward consolidating its position as Brazil’s largest manager of real estate investment funds. Most recently, Patria announced the completion of its acquisition of RBR Gestão de Recursos. 

The manager has been advancing steadily across FIIs and smaller investment houses, absorbing teams, mandates and portfolios that, on their own, are no longer able to compete for liquidity, fundraising capacity and relevance in the secondary market. This is neither an isolated nor a defensive move. 

That expansion, however, comes at a time when scrutiny from investors and analysts over Patria itself is intensifying. In late January, a report by UK-based Snowcap Advisors raised concerns over the manager’s liquidity profile and asset valuation criteria, describing its structure as a “house of cards.” 

The report points to potential multi-billion-real overvaluations across funds managed by the group and raises suspicions about practices such as circular transactions between in-house vehicles, which could generate performance fees and a form of “synthetic liquidity” to support fundraising efforts. 

The document also revisits earlier episodes that shook investor confidence. In 2023, Patria Special Opportunities II, a fund focused on shopping centers in secondary cities, saw its units revalued and begin to post a negative net asset value, effectively turning the investment into a liability for unit holders. 

Before that, Patria Special Opportunities I, also focused on shopping malls, suffered a nearly 100% devaluation following the impacts of the pandemic. At the time, Patria downplayed the effects, describing one of the episodes as a “minor error” relative to total assets under management. The firm did not comment on the Snowcap report prior to its publication.