Regal Partners shares shed 5% as performance fees slide
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The news: Regal Partners shares lowered even as the investment group lifted its full-year profit and dividend, after performance fee revenue dropped off during the tail end of the year.
The numbers: Regal shares were down 5% to $3.40 at 12:35pm AEDT.
Regal reported normalised net profit of $97.5 million for the 12 months to December 2024, nearly trebling its tally from the previous year, but falling just below consensus forecasts of $98.4 million.
The company declared a full-year dividend of 18 cents per share, up from 10 cents in FY23, and ahead of market estimates of 15 cents.
Funds under management (FUM) reached $18 billion as of 31 December, a 64% increase over the year.
The context: Regal said full-year profit was driven by a combination of higher management fees from organic FUM growth, improved performance fees and incremental earnings from acquired businesses.
The period saw Regal buy Merricks Capital and 40% of Argyle Group, while PM Capital, acquired in late 2023, was largely integrated during 2024.
However, Regal's investment performance softened during the final two months of 2024, leading to lower-than-expected performance fee revenue for the second-half period.
The sources: ASX, E&P research
