Pollen Street (POLN) H1 2025 earnings summary

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 represent 76% of group revenues, up from 58% in H1 2023, reflecting a shift to higher quality, recurring management fees.

• The group returned over £70 million to shareholders since January 2024 through dividends and buybacks, including an interim dividend of 27p per share and £6.3 million in buybacks in H1.

• Full-year guidance maintained, with continued momentum in fundraising, deployment, and earnings growth.

Financial highlights

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

• Fund Management EBITDA grew 112% year-over-year to £17.7 million, with margin expanding to 43% from 31%.

• Profit after tax increased 18% year-over-year to £27.9 million.

• EPS rose 25% to 46.0p, and DPS increased 2% to 27.0p.

• Operating profit rose 28% to £30.9 million, and management fee income up 87% to £35.2 million.

Outlook and guidance

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

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

• Medium-term AUM growth target of £10 billion reaffirmed, with a progressive dividend policy of no less than 55p per share.

• Realization pipeline is incorporated into AUM guidance, with steady progression and no material impact expected from single events.

• Operating expenses are expected to grow at low double digits, supporting a path to 50%+ EBITDA margins by the end of the forecast period.