Regal Partners completes PM Capital acquisition
Regal Partners has reached completion in its acquisition of PM Capital first announced last month.
On 3 November 2023, PM Capital agreed to an acquisition by Regal Partners for an upfront consideration of $20 million.
Following the completed acquisition on 21 December, the final consideration was slightly higher at $22.2 million in cash after an adjustment for net debt and working capital and a conditional consideration of $130 million of converting redeemable preference shares.
In addition to the PM Capital acquisition, Regal Partners also acquired 50 per cent of Taurus Funds Management as first announced on 1 November. These two deals brought Regal’s combined funds under management (FUM) to $10.8 billion.
Established in 1998, PM Capital works with Australian retail investors and financial advisory groups and manages over $2.7 billion in FUM across three strategies.
Regal previously said the deal will bring a multi-award-winning investment capability, well-diversified investor base, scale benefits and access to enhanced corporate, operational and distribution platform and a strong alignment of interest.
“The addition of PM Capital to the Regal Partners group will provide a further extension to Regal’s existing global equities and credit investment capabilities,” said Regal Partners chief executive, Brendan O’Connor, when the deal was first announced.
“We are delighted that Paul Moore and his team have chosen to partner with Regal and we look forward to meaningfully contributing to the growth of their business over the years ahead.”
PM Capital chairman and chief investment officer, Paul Moore, explained the deal will enable him to focus primarily on investing.
“This new partnership will facilitate our ability to leverage Regal’s exceptional corporate and business support infrastructure and distribution capabilities that have been developed under their leadership of CEO Brendan O’Connor,” Moore said.
On 30 October, Regal confirmed media speculation at the time that it was discussing a potential transaction with PM Capital.
“These discussions are significantly progressed, however they remain incomplete and no agreement has been reached as at the date and time of this announcement,” the ASX statement said.
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