Navigator Global Investments (NGI) H2 2024 earnings summary

Executive summary

• Fiscal 2024 was transformative, marked by strong financial outperformance, robust investment performance, and a successful transaction and equity raise that solidified the balance sheet and increased free cash flow for future growth.

• Adjusted EBITDA rose 85% year-over-year to USD 90.5 million, exceeding upgraded guidance, driven by higher distributions from partner firms and increased management and performance fees.

• Statutory net profit after tax (NPAT) increased 87% to USD 66.3 million.

• Navigator manages USD 75 billion in AUM, up 3% year-over-year, across 11 partner firms and 42 strategies, with a focus on alternative asset management.

• Strengthened executive team with new CEO and CIO appointments and completed a transformative transaction, settling a major redemption liability and increasing share of partner firm cash flows.

Financial highlights

• Revenue (non-IFRS) increased 46% year-over-year to USD 172.3 million; statutory revenue up 49% to USD 268.8 million.

• Adjusted EBITDA reached USD 90.5 million, up 85% year-over-year; statutory NPAT rose 87% to USD 66.3 million.

• Pro forma adjusted EPS increased 9% year-over-year to 15.0 cps; statutory EPS up 16% to 16.6 cps.

• Operating net cash flow of USD 58 million, with net assets up 57% to USD 663.2 million after liability reduction.

• Lighthouse management fees and performance fees increased 10% and 72% respectively, driving an 18% rise in Lighthouse adjusted EBITDA.

Outlook and guidance

• Management is optimistic about continued AUM and profit growth, supported by strong investment performance, robust acquisition pipeline, and sector tailwinds.

• The alternatives industry is expected to reach USD 60–65 trillion AUM by 2032, with the company well-positioned to benefit from secular growth trends.

• Fundraising conditions were challenging in the second half of 2024, but the pipeline remains robust and management expects improvement in FY 2025.

• Focus remains on disciplined capital allocation, product innovation, and leveraging Blue Owl partnership for sourcing and operational support.

• Actively evaluating investments in new partner firms, leveraging strong balance sheet and flexible credit facility.