Pollen Street (POLN) investor relations material

Executive summary

• Fundraising for Private Equity Fund V closed at €1.5 billion, exceeding the €1 billion target, and Private Credit Fund IV is on track to surpass its £1 billion target, with £600 million raised by June and a strong investor pipeline.

• Total AUM grew 35% year-over-year to £6.1 billion, with fee-paying AUM up 37% to £4.7 billion, driven by strong deployment in both private equity and credit strategies.

• Asset manager revenues now account for 76% of group revenues, up from 58% in H1 2023, reflecting a shift to higher quality, recurring management fees.

• Management fees rose 79% year-over-year to £37.9 million, and group EBITDA increased 28% to £31.0 million.

• The group returned £70.6 million to shareholders since January 2024 through dividends and buybacks.

Financial highlights

• Fund management income rose 55% to £41.4 million, including £8.4 million of catch-up fees.

• Fund management EBITDA more than doubled, up 112% to £17.7 million, with EBITDA margin increasing to 43% from 31% year-over-year.

• EPS grew 25% to 46.0p, supported by an 18% increase in profit after tax and share buybacks.

• Interim dividend of 27.0p per share declared, totaling £16.3 million.

• Operating profit rose 28% to £30.9 million, and total income increased by 17% to £63.8 million.

Outlook and guidance

• Fee-paying AUM expected to continue growing in H2, with management fees normalizing as catch-up fees subside.

• Performance fees anticipated to be at the lower end of long-term guidance, with investment company returns in line with FY24.

• Medium-term AUM growth target of £10 billion reaffirmed, with ongoing share buybacks and a progressive dividend policy of at least 55p per share.

• Long-term average management fee rate guided at 1.25%-1.50%, with EBITDA margin expected to exceed 50%.

• Strategic priorities include continued fundraising, active deployment, progressing realisation pipeline, and ongoing share buybacks.