Company Interview / How Regal Partners is capitalising on the demand for Aussie alternatives

Key points:

Regal Partners (ASX:RPL) reports 97% rise in net profit to $139.5 million$6.8 billion funds under management and a 25% increase in fee revenueExpansion of offshore investor engagement delivers new fund flowsPrivate credit strategies, income products, and multi-strategy funds driving demand

Regal Partners (ASX:RPL) has reported a robust statutory net profit of $139.5 million for the past year, marking a 97% increase and reflecting resilient performance amid market volatility. Brendan O’Connor of Regal Partners attributes this strong outcome to the firm’s diversified funds under management, particularly across hedge fund and credit products. The company now commands $6.8 billion in funds under management, with management fee revenue climbing 25% to $203 million on a 1.09% margin. Investors are set to receive a fully franked dividend of $0.21 per security, benefiting from the solid financial results.

O’Connor points out that active asset managers with a clear market edge continue to find opportunity despite the headwinds from the rise in passive investing. He notes Regal Partners’ focus on offshore clients, recently expanding its dedicated team for international engagement, which has led to increased fund flows from major global investors. The firm’s multi-strategy capability in Australia and its offering of unique alternatives, such as private credit and water strategies, are attracting both domestic and overseas capital seeking diversification and differentiated returns.

O’Connor acknowledges challenges in private credit, particularly liquidity mismatches, but emphasises the continued strong performance of underlying loans. He remains confident that investors will realise returns as loans mature, particularly within subsidiary Merricks Capital.