Alternative investment manager Regal Partners has set a target of doubling offshore funds under management (FUM) within three years amid strong inflows from offshore investors in the first half of 2025.
Regal Partners has flagged offshore distribution as a top priority for the year ahead after recording $1.1 billion in net inflows from offshore investors in the three-year period to 30 June 2025.
In its financial results for the half-year ended 30 June 2025, Regal Partners reported $230 million in net inflows from offshore investors for 1H25. This has accelerated further into the new financial year, with the firm reporting $300 million in net inflows from offshore investment so far.
As of 30 June 2025, the firm held a total of $3.6 billion in offshore FUM and is aiming to double this in three years.
Overall net inflows for the firm were also strong for the first half of 2025, reaching $0.7 billion. Net inflows for the year to 30 June 2025 reached a record $1.9 billion, representing an increase of 120 per cent on the prior corresponding period.
Regal Partners chief executive and managing director Brendan O’Connor said offshore distribution was a key priority for the firm as offshore capital typically allocates in a large size.
“[They are] also typically less constrained by the fee disclosure rules which dominate Australia’s superannuation capital allocators,” O’Connor said.
O’Connor said the firm’s investment capabilities were in increasing demand as the world seeks diversification, particularly within alternative investment strategies.
“Australia is seen as an increasingly sought-after destination for global capital allocators due to our stable democracy, low sovereign risk, and large pool investment product and talent,” he said.
Regal Partners said it has been able to capitalise on growing demand through new vehicle launches such as the Tactical Opportunities Cayman Fund on 1 July, which was seeded by a significant global allocator.
The firm plans to launch further offshore vehicles over the next six months.
While Regal Partners has sought to build its offshore client base for some time, this has historically been in Singapore, with the firm now looking to expand its footprint in North America.
“We now have around 25 institutional clients in North America today,” O’Connor said.
Regal Partners also appointed a head of distribution for the North American region to better service those clients.
While Regal Partners recorded strong fund inflows in the first half of 2025, profits were down.
The alternative investment manager reported statutory net profit after tax of $26.3 million for the six months to 30 June 2025, a 47.6 per cent decline from the $50.2 million reported for the prior corresponding period.
Performance fees also saw a slight dip, declining from $59.6 million for the first half of 2024, to $42.4 million for the first half of 2025.
Looking ahead, O’Connor said Regal Partners was benefiting from several positive tailwinds, with the firm confident in its prospects for continued growth.
“Our commitment is clear: to deliver strong performance for our clients, to broaden and strengthen our investment platform and to create sustainable long-term value for our shareholders,” he said.
