Regal Partners (RPL) H2 2024 earnings summary

Executive summary

• 2024 marked a transformational year with FUM reaching $18.0bn, up 64% year-over-year, driven by organic growth, record net inflows of $1.9bn, and strategic acquisitions including Merricks Capital and Argyle Group.

• Net FUM inflows increased 310% over the previous year, with 30% from offshore investors and most flows performance fee eligible.

• Normalised NPAT for 2024 was $97.5m, up 198% year-over-year; statutory NPAT was $66.2m.

• Revenue rose 151% to $281m, supported by strong fund performance and $84.5m in performance fees.

• The business remains well positioned with strong investment performance and increasing engagement from large offshore institutional investors.

Financial highlights

• Average FUM increased 141% to $14.4bn; average management fee for 2024 was 1.13%.

• Management fees and loan management fees totaled $162m; performance fees were $84.5m.

• Employee benefits expense was $88.5m; other expenses were $34.5m, reflecting acquisition activity.

• Fully franked dividends totaled $0.18 per share for 2024, with a 2H24 dividend of $0.10 per share.

• Net cash, receivables, and financial assets at year-end were approximately $200m; no debt at year-end.

Outlook and guidance

• Strong momentum in net flows and offshore fundraising expected to continue into 2025.

• Continued investment in product innovation, distribution, and offshore fundraising expected to drive future inflows.

• Multi-strategy and bespoke mandates, especially from offshore clients, are expected to drive future growth.

• Robust balance sheet and new $100m undrawn credit facility position the group for further expansion.

• Business aims to further solidify its position as a leading provider of alternative investment solutions in Australia and Asia.