Regal Partners to buy PM Capital for up to $150m

The news: Hedge fund Regal Partners has agreed to buy rival investment manager PM Capital, expanding its presence in global equities and fixed income strategies.

The numbers: Regal will pay up to $150 million to buy out PM Capital’s existing shareholders, consisting of a $20 million upfront cash payment and up to $130 million in the form of conditional preference shares in Regal. The deal will boost Regal’s funds under management to $10.8 billion.

The context: The latest deal further expands the market presence of Regal Partners, which was formed last year through the merger of rival hedge funds Regal Funds Management and VGI Partners. It comes a day after the investment manager announced it had acquired a 50% stake in Taurus Funds Management, a specialist provider of financing solutions to global mid-tier and junior mining companies. Regal expects the PM Capital acquisition to be accretive to its earnings per share in 2024, prior to any synergies. The transaction is expected to be completed in December.