PM Capital acquisition boosts retail flows at Regal

regal funds management Regal Partners Limited Acquisitions M&A GQG Partners

31 May 2024
| By Laura Dew |
image
image
expand image

Regal Partners has grown funds under management (FUM) to $12.2 billion and flagged it may consider smaller bolt-on acquisitions, having withdrawn a bid last year for Pacific Current Group.

In a shareholder presentation, the firm said FUM was $12.2 billion at the end of April, divided between long/short equities, private markets, real and natural assets and credit and royalties, and up from $11 billion at the end of 2023.

Since the start of the year, it has seen $400 million in net inflows.

Regal acquired PM Capital in late 2023 and also took a 50 per cent stake in Taurus Funds Management, a specialist provider of mining finance and royalties. 

The successful acquisition of PM Capital, it said, had boosted its global long/short capabilities and given Regal exposure to the retail investor channel which has diversified its client mix and relationship network. Prior to this, the firm was primarily concentrated in the institutional market.

It also noted it is able to command higher fees for these specialist products relative to traditional long-only equity managers or passive products.

Chief executive, Brendan O’Connor, said: “[Inflows] were largely driven by interest in our long/short equity strategies including a couple of significant institutional mandate wins.

“Over the years, we’ve continued to add to our strategies and that ability to design and tailor a product to meet client demand along with strong performance has been instrumental in driving net flows.”

Looking ahead into the next financial year, the CEO said the firm’s growth strategy is built on three pillars of having a diversified and scaleable growing platform, attractive market tailwinds and strong business economics.

It bid last year to acquire Pacific Current Group but later withdrew this in the face of competition from GQG Partners, however this has not deterred the business.

“We continue to monitor a range of opportunities to add additional scale or expertise to the business. This may include smaller bolt-ons as well as larger transactions. But whatever we explore must not hamper our existing runway for growth, which is substantial.

“We have multiple opportunities for growth organically and, if we were to do anything inorganically, we will be very disciplined to make sure it’s highly accretive to shareholders.” 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 1 hour ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

3 days 22 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

3 days 23 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

5 days 22 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND