Regal Partners ‘match-fit’ for M&A amid 349% profit rise
Regal Partners CEO Brendon O’Connor says the firm is “match-fit” for future acquisitions as the firm reports a net profit after tax (NPAT) increase of 349 per cent.
In its results for the first-half of 2024, the firm reported a normalised NPAT of $59 million, up 349 per cent on the prior corresponding period. Statutory NPAT was $50.2 million.
This was attributed to increased revenue and the results of PM Capital and Taurus, which were acquired by Regal during the financial year.
Performance fees on Regal’s funds were $59.6 million, with 70 per cent of funds at or above their high watermark, and it noted the investment performance had driven net inflows and growth. Its product range includes long/short equities, credit and royalties, real and natural assets and private markets.
Funds under management (FUM) were $12.3 billion, up 112 per cent on 30 June 2023, and net inflows during the period were $0.7 billion. This was combined with $1.2 billion of growth coming from investment performance, and $4.3 billion coming from the acquisitions of Merricks Capital, and a 40 per cent stake of Argyle Group.
At the end of 2023, Regal acquired PM Capital and later took a 50 per cent stake in Taurus Funds Management, a specialist provider of mining finance and royalties.
In June, Regal announced it would acquire private capital and alternative investment specialist Merricks Capital in a bid to become a leading provider of private credit, then in July it announced it had entered into an agreement to acquire a minority interest in Queensland-based specialist asset manager Argyle Group which has $1.4 billion in funds under management.
Asked on a shareholder call whether the firm had capacity for any more M&A activity, O’Connor said: “The possibility of further acquisitions is very real, we are looking at other possibilities. We take a disciplined approach to executing on those and only so when they are culturally aligned and accretive to Regal shareholders.
“The investment capability that we have got, the complementary management team, I like to think we are match-fit to look at further acquisitions and to bed down what we currently have.”
The firm declared a first-half dividend of 8¢ per share, 100 per cent franked.
AUTHOR
Laura Dew
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