PM Capital has agreed to an acquisition by Regal Partners for an upfront consideration of $20 million.
Established in 1998, PM Capital works with Australian retail investors and financial advisory groups and manages over $2.7 billion in funds under management (FUM) across three strategies.
The deal will bring the combined FUM of Regal post-acquisition to $10.8 billion.
The upfront consideration for the acquisition is $20 million in cash subject to net debt and working capital adjustments with a deferred and conditional consideration of $130 million of converting redeemable preference shares.
Regal 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.
Regal Partners chief executive, Brendan O’Connor, said: “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.
“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, said 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.
“It will also provide to PM Capital the best practice discipline of a non-executive board. I would also add that Regal, like PM Capital, invest alongside their clients and have a business owner mentality.
“Most importantly, this partnership will allow me to minimise my non-investment distractions and thereby allow the PM Capital investment team to focus on what matters most, investing. This has been the most important factor that I personally have considered. There will be no change to PM Capital’s investment philosophy and process.
“Over 35 years in the industry, I suspect my DNA is well-understood – investing and independence and willingness to stand firm irrespective of short-term market pressure.”
The deal is expected to complete in late December 2023.
This is the second deal announced this week as Regal also announced it will partner with Taurus Funds Management, a specialist provider of financing solutions to global mid-tier and junior mining companies.
Taurus Funds will continue to operate under the management of its existing investment team, but will look closely with Regal on potential opportunities and deal origination pipelines across both businesses.
