Regal Partners Posts $97.5m Profit on $14.4bn Funds Under Management

Robust Growth and Strategic Expansion

Regal Partners Limited (ASX:RPL) unveiled a year of remarkable growth at its 2025 Annual General Meeting, showcasing a 141% increase in average funds under management (FUM) to $14.4 billion for 2024. This surge was driven by record net inflows of $1.9 billion and strong investment performance across its diversified portfolio. The company’s normalised net profit after tax soared 198% to $97.5 million, reflecting both organic growth and the impact of strategic acquisitions.

Key acquisitions in 2024 included Merricks Capital, a specialist in hard asset credit investments, and a 40% stake in Argyle Group, a pioneer in water entitlement portfolios. These moves have broadened Regal’s investment capabilities, geographic reach, and client base, while increasing the proportion of funds with low correlation to equity markets, an important factor in enhancing business resilience amid market volatility.

Diversification and Multi-Strategy Innovation

Regal’s portfolio now spans four main alternative asset classes: long/short equities, private markets, real and natural assets, and credit and royalties. The acquisition of Merricks Capital notably expanded the group’s credit capabilities, enabling new income-focused product offerings. Meanwhile, Argyle’s water fund has demonstrated strong performance, with a 12.5% annualised return since inception and recent market dynamics suggesting potential valuation uplifts.

The company’s multi-strategy approach is exemplified by the Regal Investment Fund (RF1), which has delivered over 15% annualised returns since 2019, and the recently launched Regal Partners Private Fund, which has amassed nearly $0.5 billion in FUM within 17 months, returning 10.6% annually. Plans are underway to introduce a multi-strategy income fund later this year, leveraging the group’s enhanced credit and royalties expertise.

Offshore Expansion and Market Positioning

Regal is actively growing its offshore presence, particularly in Asia, the Middle East, and North America. Offshore clients accounted for approximately $600 million in net FUM inflows in 2024 and now represent about 20% of total FUM. The firm has launched offshore versions of key strategies and is recruiting senior executives to deepen client relationships abroad. This international expansion complements a domestic market where Regal continues to be a significant capital provider to Australian corporates through equity, debt, and royalty financing.

Importantly, the company has made significant strides in improving its share register liquidity, with free float rising from around 9% at inception in 2022 to approximately 62% today. This enhanced liquidity, combined with increased market capitalisation and broker coverage, positions Regal for potential inclusion in key market indices, which could attract further investor interest.

Outlook and Strategic Focus

Looking ahead, Regal Partners remains confident in its growth prospects, supported by a diversified and scalable platform, favorable market tailwinds as investors seek alternative returns, and strong business economics with higher fee structures than traditional asset managers. Management highlighted ongoing organic growth opportunities, disciplined pursuit of inorganic acquisitions, and continued investment in talent and distribution capabilities. While fundraising momentum has softened slightly in early 2025 due to global trade uncertainties, positive net inflows and performance fee potential provide optimism for the year ahead.