Regal’s Earnings Upgrade Raises Questions on Future Fee Sustainability
Regal Partners anticipates a strong 2025 with normalised NPAT reaching $145 million, propelled by a significant jump in performance fees and funds under management climbing to $20.8 billion.
- 2025 normalised NPAT guidance of approximately $145 million
- Second half 2025 performance fees estimated at $130 million
- Funds under management increased to $20.8 billion as of December 2025
- Net inflows for 2025 total $1.5 billion
- Preliminary figures pending final audit and fund accounting
Strong Performance Fees Drive Earnings Upgrade
Regal Partners Limited has revealed an optimistic outlook for calendar year 2025, forecasting a normalised net profit after tax (NPAT) of approximately $145 million. This represents a substantial increase from the $97.5 million recorded in 2024, largely fueled by a surge in performance fees during the second half of 2025, which are preliminarily estimated at $130 million. This jump underscores the success of Regal’s diversified investment strategies across its alternative asset management platforms.
Funds Under Management Reach New Heights
Alongside the earnings upgrade, Regal’s funds under management (FUM) have climbed to an estimated $20.8 billion as of 31 December 2025. This growth reflects steady net inflows of approximately $80 million in the December quarter alone, contributing to a total net inflow of $1.5 billion for the full year. These figures highlight continued investor confidence in Regal’s multi-strategy approach, which spans hedge funds, growth equity, real and natural assets, and credit and royalties.
A Diverse Platform with Broad Reach
Regal’s portfolio is managed through eight dedicated alternative investment brands, including Regal Funds Management, PM Capital, and Merricks Capital, among others. Employing around 190 staff, with nearly half focused on investment management, the group operates both domestically and offshore. This broad footprint and depth of expertise have been instrumental in delivering the performance that underpins the recent upgrade in earnings guidance.
Looking Ahead, Audits and Detailed Updates
While the current figures are preliminary and unaudited, subject to finalisation of distributions and fund accounting, Regal plans to provide more comprehensive details in its upcoming quarterly FUM update and the full-year results scheduled for 24 February 2026. Investors will be keen to see how sustainable the elevated performance fees are and whether the momentum in net inflows can be maintained amid evolving market conditions.
Bottom Line?
Regal’s upgraded guidance signals robust momentum, but investors await audited results to confirm sustainability.
Questions in the middle?
- Will Regal sustain its elevated performance fees beyond 2025?
- How will market volatility impact future net inflows and FUM growth?
- What strategies are driving the strongest performance within Regal’s diverse portfolio?
