How Regal Partners Grew Funds to $17.7B and Raised Earnings Forecast
Regal Partners Limited reported a 7% increase in funds under management to $17.7 billion for the June quarter, driven by strong inflows and investment gains. The company also upgraded its performance fee and profit forecasts for the first half of 2025.
- Funds under management rose 7% to $17.7 billion in June quarter
- Total FUM and commitments increased 5.5% to $18.9 billion
- Net inflows of approximately $600 million supported growth
- Performance fee estimate upgraded to at least $40 million for 1H25
- Acquisition of 50% stake in Ark Capital Partners to impact future results
Strong Quarter for Regal Partners
Regal Partners Limited (ASX, RPL) has delivered a robust update for the June 2025 quarter, with funds under management (FUM) climbing 7% to $17.7 billion. This growth reflects a combination of sustained net client inflows and positive investment returns across a diversified portfolio of asset strategies.
The company’s total FUM and non-fee-earning commitments rose 5.5% to $18.9 billion, underscoring the breadth of Regal’s capital base. Net inflows of around $600 million were driven by multiple funds and asset classes, including PM Capital’s global long/short and enhanced yield strategies, Taurus Funds Management’s mining finance fund, Merricks Capital’s credit strategies, and the unlisted Regal Partners Private Fund.
Investment Performance and Strategy Highlights
Investment performance contributed nearly $1 billion in growth, or 5.8%, with particularly strong returns in the Long/Short Equities and Multi-strategy asset classes. This performance was bolstered by contributions from affiliated businesses such as Attunga Capital and Taurus Funds Management, highlighting the strength of Regal’s diversified alternative investment platform.
Notably, the recent acquisition of a 50% stake in Ark Capital Partners, completed in June, did not impact the June quarter’s FUM or net flows but is expected to contribute to future growth as funds are raised through this partnership.
Upgraded Earnings Guidance for 1H25
Alongside the FUM update, Regal Partners upgraded its performance fee revenue estimate for the first half of 2025 to at least $40 million, up from the previous guidance of $35 million. This upgrade reflects strong fee generation primarily from global long/short equity strategies, including the recently launched Regal Global Small Companies Fund, as well as credit and royalties funds.
The company also expects normalised net profit after tax (NPAT) of at least $40 million for the period, signaling solid profitability. However, Regal cautions that performance fees are inherently variable and subject to fluctuations, meaning future periods may see differing results.
Looking Ahead
With an estimated average FUM of $17.5 billion for the first half of 2025, Regal Partners appears well-positioned to capitalize on its diversified investment strategies and recent strategic acquisitions. Investors will be watching closely for the official 1H25 results release scheduled for 25 August 2025, which will provide audited confirmation of these preliminary figures.
Bottom Line?
Regal’s solid FUM growth and upgraded earnings guidance set the stage for a pivotal 1H25 results announcement.
Questions in the middle?
- How will the Ark Capital Partners acquisition influence Regal’s future inflows and earnings?
- What risks could cause performance fees to fluctuate significantly in upcoming periods?
- Can Regal sustain its momentum across diverse asset classes amid changing market conditions?