Regal Partners shares dip despite gains in FUM
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The news: Investment manager Regal Partners doubled its funds under management (FUM) in 2023, boosted by the acquisition of rival PM Capital and a 50% stake in Taurus Funds Management in November.
The numbers: Regal reported total FUM at 31 December 2023 of $11 billion, a 113% increase from a year earlier, and a 91% half-year rise. This included a combined $5 billion FUM from the purchases of Taurus Funds Management and PM Capital late last year.
Revenue grew 17% to $112 million year on year, however, statutory NPAT declined from $12.4 million to $1.6 million, owing to one-off expenses relating to strategic initiatives. These included around $4 million deferred contingent consideration for the acquisition of the group's 51% interest in Attunga Capital, and costs relating to the purchase of Taurus Funds Management and PM Capital acquisitions.
Regal's final dividend was 10 cents per share, up from 4 cents per share in FY22.
Regal shares were 2.5% lower to $2.70 at 2:10pm AEDT.
The context: Regal, which was formed in June 2022 after the merger of Regal Funds Management and VGI Partners, houses six alternative investment management businesses, with offices in Australia, Asia, Europe and North America. The company said it has secured $400 million in new fund commitments in the 2024 calendar year to date.
The source: ASX announcement
