Regal Partners’ funds under management (FUM) rose to $12.3 billion in the last quarter, an increase of some 1 per cent compared with $12.1 billion in FUM as at 31 March 2024.
According to the firm, its latest FUM posting was “slightly” higher than the preliminary estimate of $12.2 billion it had announced earlier this month.
In an ASX announcement on Friday, Regal Partners said it saw positive net inflows of $300 million over Q2, with positive contributions stemming from the establishment of its new long/short separately managed account and a top-up to an Attunga Capital mandate.
“In addition, ongoing demand for the multi-strategy Regal Partners Private Fund continues to remain firm, alongside additional client support for individual strategies such as Regal’s resources strategies and PM Capital’s global strategy,” it stated.
Namely, positive investment performance contributed $300 million of the FUM growth for the quarter, reflecting “favourable” returns across a range of long/short equities funds and the Regal Partners Private Fund.
The long/short equities strategy grew to $7 billion over the quarter, up from $6.8 billion as at 31 March.
Credit and royalties strategies saw a modest withdrawal of $74 million to $3.3 billion over the last three months, while private markets and real and natural assets shrank to $464 million and $739 million, respectively.
Multi-strategies, however, stood at $787 million at the end of June, a notable uptick from $669 million over the prior quarter.
However, inclusive of acquisitions, Regal’s pro forma group FUM was approximately $16.5 billion as at 30 June 2024 – equating to a 37 per cent surge over its FUM in Q1.
“Since 30 June 2024, Regal has completed its acquisition of Merricks Capital on 9 July 2024 and expects to complete its purchase of a 40 per cent stake in Argyle Group today, 26 July 2024,” it said on Friday.
According to the firm, Merricks Capital’s FUM was $2.9 billion at 30 June, and Argyle Group’s, $1.4 billion.
First announcing it has entered into a share sale deed to acquire Merricks last month, Regal said the acquisition would expand its existing offering within private credit, which currently exists across mining finance, direct corporate lending, and structured credit.
Moreover, ahead of its 1H24 results to be released in August, Regal has also upgraded its previous guidance to estimate that it will now recognise approximately $59 million in performance fee revenue – higher than its preliminary estimate of $55–56 million announced earlier in July.
“Performance fees have been driven primarily by a range of Regal Funds Management strategies, including Australian Small Companies, Resources Long Short, Tactical Opportunities, Resources Royalties and the Regal Investment Fund, as well as funds relating to the PM Capital global strategy,” the firm said.
