Slides
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Regal Partners Limited (ASX:RPL) 2025 Annual General Meeting 29 May 2025 For personal use only
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Chairman’s Address Michael Cole AM For personal use only
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6.0 14.4 - $5bn $10bn $15bn 2023 2024 AVERAGE FUM1 +141% 1. Management estimate of average funds under management (FUM) for the relevant calendar year (where FUM of Taurus Funds Management and Argyle Group is included on a 100% ownership basis from the date of the relevant acquisition by RPL). FUM (including 100% of Taurus Funds Management, Attunga Capital, Kilter Rural and, where applicable, Argyle Group) is rounded, unaudited and includes non-fee-earning FUM. 2. Revenue on a normalised basis, as defined in RPL’s 2024 results presentation that was released to the ASX on 26 February 2025. 3. NPAT refers to NPAT attributable to RPL shareholders. Normalised NPAT has been calculated by adding back certain non-cash items (e.g. amortisation of intangible assets, long-term variable remuneration) and one-off transaction and integration costs (all tax-effected where appropriate). Normalised NPAT includes fair value movements on seed investments. 4. See slide 11 of RPL’s 2024 results presentation for further details. 5. Dividends determined in relation to that financial year for RPL. Key RPL metrics grew strongly in 2024 0.5 1.9 - $0.5bn $1.0bn $1.5bn $2.0bn 2023 2024 NET FUM INFLOWS +310% 11.5 26.0 - 5c 10c 15c 20c 25c 30c 2023 2024 NORMALISED DILUTED EPS4 +126% 10.0 18.0 - 5c 10c 15c 20c 2023 2024 +80% 32.7 97.5 - $25m $50m $75m $100m 2023 2024 NORMALISED NPAT3 +198% DIVIDENDS (100% FRANKED) PER SHARE5 111.9 281.1 - $50m $100m $150m $200m $250m $300m 2023 2024 NORMALISED REVENUE2 +151% For personal use only
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CEO’s Presentation Brendan O’Connor For personal use only
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Regal Partners Limited overview $16.5bn FUM 1 Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $16.5 billion1 in funds under management. 1. Management estimate of funds under management (FUM) for 31 March 2025. FUM (including 100% of Taurus Funds Management, Attunga Capital, Kilter Rural and Argyle Group) is rounded, unaudited and includes non-fee-earning FUM but excludes non-fee- earning commitments. 2. As at market close on 28 May 2025. 3. Includes full-time and part-time staff in all Group entities except Argyle Group (where RPL’s stake is a minority interest). Headcount includes active, permanent and fixed term employees only (i.e. excludes employees on parental leave, extended leave, casuals, contractors and consultants). Staff numbers have historically included all staff, contractors and consultants. Market capitalisation2 $722m Investment professionals3 >80 LONG/SHORT EQUITIES PRIVATE MARKETS REAL AND NATURAL ASSETS CREDIT AND ROYALTIES • The Group manages a broad range of investment strategies covering long/short equities, private markets, real & natural assets and credit & royalties on behalf of institutions, family offices, charitable groups and private investors. • Housing eight dedicated alternative investment management businesses, the Group employs approximately 180 staff, including over 80 investment professionals, in offices across Australia and offshore. 3 • Combining deep industry experience and extensive networks, Regal Partners seeks to be a leading provider of alternative investment strategies in Australia and Asia. • Market Neutral • Absolute Return • Active Extension • High Conviction • Pre-IPO• Structured Finance • Mining Finance • Agri Debt • CRE Lending • Listed Credit • Water • Agriculture • Power • Carbon For personal use only
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$50m $150m $250m $350m $450m $550m $650m $750m 1Q25 net flows +$90m PM Capital case study - acquired Dec 2023 - strong performance & capital raising momentum 1. Fund performance is to 31 March 2025, net of fees and costs and assumes reinvestment of distributions since inception date of 28 October 1998; strategy size as at 31 March 2025. 2. As ranked in the Morningstar Equity World Large Blend funds in Australia. 3. ‘Acquisition Date’ for PM Capital was 20 December 2023, however, net flows in this chart are shown for calendar 2023 vs. calendar 2024 as an approximation for the 12 months pre and post acquisition. FUM is rounded, unaudited and includes non-fee- earning FUM. Past performance is not a reliable indicator of future performance. PM Capital cumulative net FUM flows, pre and post acquisition by RPL ($m)3 2023 net flows +$114m 2024 net flows +$533m RPL acquisition 2.8 0.6 0.7 (0.2) 4.1 $0bn $1bn $2bn $3bn $4bn $5bn Acquisition 20-Dec-2023 Net flows Performance Other 31-Mar-25 PM Capital FUM since acquisition by RPL in Dec 2023 ($m) +10.6% p.a. Performance since inception in Oct 1998 1 Strategy size 1: $3.0bn Global Companies Fund #2 of 131 funds Over 10 years per Morningstar peer analysis to 31 March 2025 2 For personal use only
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Long/Short - Phil King Long/Short - Other Private Markets Water Power, Carbon, Other Real & Natural Royalties Multi-Strategy $4.7bn Long/Short - Phil King Long/Short - Paul Moore Long/Short - Other Private MarketsWater Power, Carbon, Other Real & Natural Credit Royalties Multi-Strategy $16.5bn Material FUM growth and diversification since June 2022 1. FUM (including 100% of Taurus Funds Management, Attunga Capital, Kilter Rural and Argyle Group where applicable) is rounded, unaudited and includes non-fee-earning FUM but excludes non-fee-earning commitments. FUM segments are consistent with the definitions used in RPL’s quarterly FUM announcements. Long/short FUM allocations are based on net equity exposure (i.e. Net Asset Value), not gross equity exposure. Size of FUM charts not to scale. JUNE 2022 FUM1 MARCH 2025 FUM1 Long/Short Equities Real & Natural Assets Credit & Royalties For personal use only
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Expansion Capital Pre-IPO Capital Listed Australian Microcap Equities Listed Australian Small-Cap Companies Listed Australian Large-Cap Companies Global Large-Cap Equities Royalty Streams Investment Grade Corporate Bonds Asset Backed Debt Senior Secured Debt Agricultural Debt Mezzanine Debt Preferred Equity Water Entitlements Structured Credit Specialised Industrial & Infrastructure Debt Commercial Real Estate Debt RPL is a significant provider of capital to Australian companies EQUITY ROY ALTIES DEBT Greater relevance Water Leasing Cashflow Lending Global Small and Mid-Cap Global Equities Better deal origination Superior performance Agriculture Real Estate Equity Power and Energy Infrastructure Equity For personal use only
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Alternative Growth Strategies Uncorrelated Strategies Alternative Income Strategies Aus Small Companies 11% Global Long Short 2% Resources High Conviction 5% Emerging Companies 14% Tactical Opportunities 11% Resources Long Short 5% Market Neutral 8% Power 8% Water 11% Private Credit 16% Resources Royalties 9% RPL is a leading provider of multi-strategy investment solutions in Australia 1. FUM and performance as at 30 April 2025. FUM is consistent with the definition used in RPL’s quarterly FUM ASX announcements. Past performance is not a reliable indicator of future performance and should not be relied upon. Performance is net of fees and costs and assumes reinvestment of distributions. STRONG PERFORMANCE TRACK RECORD ACROSS MULTI -STRATEGY 1 REGAL PARTNERS PRIVATE FUND Sub-Strategy Allocations as at 30 April 20251 REGAL PARTNERS PRIVATE FUND: STRATEGY PORTFOLIO CONSTRUCTION +15.2% p.a. Regal Investment Fund (ASX:RF1) annualised return since inception in June 2019 +10.6% p.a. Regal Partners Private Fund annualised return since inception in Dec 2023 • The Regal Partners Private Fund provides a singular access point to Regal’s best- performing alternative investment strategies, covering 11 underlying strategies. • Fund seeks to generate a consistent and uncorrelated return profile, with low volatility and minimal correlation to traditional asset classes. • Portfolio allocations are dynamically managed by a highly experienced Investment Committee, leveraging the full capabilities and scale of Regal’s extensive alternative investment platform and 95+ person investment team. • Fund is offered to investors as an evergreen, fully-funded structure with regular liquidity windows and no capital calls. CLIENT INTEREST • Initial client inflows have been strong – from launch in December 2023, FUM has risen to $473m at 30 April 2025. 1 Well supported by domestic APL additions, widespread platform inclusions and favourable research coverage. • Launch of Cayman feeder fund in September 2024, in response to growing offshore demand. • Total multi-strategy FUM (including ASX:RF1) now >$1.1 billion For personal use only
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Normalised profit or loss statement 1. FUM (including 100% of Taurus Funds Management, Attunga Capital and Kilter Rural) includes non-fee-earning FUM. 2. Excludes lease-related finance costs. 3. This is a non-IFRS measure. Earnings per share (EPS) has been calculated using Normalised NPAT and weighted average shares for the period. Normalised diluted EPS above includes the impact of all Performance Share Rights (PSRs), Converting Shares and Regal Options from their respective issue/grant dates. 2024 fully diluted Normalised EPS of 26.0c assumes $97.5m of NPAT and weighted average shares, converting shares, options and rights. See slide 40 of RPL’s 2024 results presentation for more information on the securities. This treatment differs to statutory diluted EPS (which only includes PSRs and unconditional securities in weighted average shares, as described in Note 7 to the Consolidated Financial Statements of RPL’s 2024 Annual Report). $m Year to Dec 2023 Year to Dec 2024 2024 vs 2023 FUM (including non-fee-earning) ($bn)1 11.0 18.0 +64% Average FUM (including non-fee-earning) ($bn)1 6.0 14.4 +141% Average management fee (%) 1.09% 1.13% +4bp Management fees & loan management fees (net of rebates) 65.5 162.0 +147% Fund performance fees (net of rebates) 24.9 84.5 +239% Other income 21.5 34.6 +61% Total net income 111.9 281.1 +151% Employee benefits expense (38.3) (88.5) +131% Deferred compensation grant (9.8) (10.3) +5% Depreciation (0.7) (0.3) (56%) Interest expense2 (0.6) (1.6) +159% Other expenses (15.7) (34.5) +119% Total expenses (65.0) (135.2) +108% Profit before income tax 46.9 146.0 +211% Income tax expense (12.2) (41.1) +238% Profit after tax pre non-controlling interests 34.7 104.9 +202% Non-controlling interests (2.0) (7.3) +268% Normalised NPAT 32.7 97.5 +198% Pre-tax profit margin (%) 42% 52% +10% pts Basic earnings per share (cents)3 12.8 33.0 +157% Fully potentially dilutive earnings per share (cents)3 11.5 26.0 +126% Revenue (net income) $281.1m +151% on 2023 Average FUM in 2024 $14.4bn +141% on 2023 Normalised NPAT $97 .5m +198% on 2023 Fully franked dividends in 2024 18cps ~72% payout Acquisition treatment Results include earnings of the following post their respective acquisition dates: • Taurus Funds Management on 4 November 2023 • PM Capital on 20 December 2023 • Merricks Capital on 9 July 2024 • Argyle Group on 26 July 2024 For personal use only
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Material progress on free float and register composition since June 2022; should assist with index inclusion over time RPL REGISTER: 30 JUNE 20221 Free float 62% Non-free float 38% RPL REGISTER: 27 MAY 20251 Free float 9% Non-free float 91% Brokers covering: 0 Brokers covering: 6 Direct shareholders: 3,690 Direct shareholders: 5,370 1. The free float percentage is based on RPL’s internal analysis of its ordinary shares using the principles of key index providers, noting that there can be different approaches between the providers. RPL’s estimates are based on the register mix at the date shown, noting that index providers only review and revise their calculations periodically, so their published free float data may not reflect spot information. Non-free float generally includes any individual listed as a 5% or greater stakeholder in regulatory filings, officers and directors whose holdings are publicly disclosed, holders of restricted shares, company sponsored employee share trusts and a number of other categories. 2. Investor conferences relate to major events where multiple corporates are presenting and the focus of the presentation is RPL, as opposed to its funds. This data does not include result briefings and other smaller events. Investor conferences last 12 months (LTM)2: 0 Investor conferences LTM2: 7 For personal use only
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Growth-focused strategy of RPL remains unchanged With multiple opportunities for expansion Maintain current fundraising momentum Seed new strategies / partnerships Continue investment in distribution Inorganic growth opportunities Attract & retain the best talent Multiple opportunities for growth Diversified, scalable and growing platform Attractive market tailwinds Strong business economics 1 3 2 For personal use only
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Disclaimer The information in this presentation (Information) has been prepared by Regal Partners Limited (ABN 33 129 188 450) (Regal Partners) and is current as at the date of this presentation. All currency data in this presentation is in Australian dollars (A$) unless stated otherwise. No solicitation or investment advice The Information has been prepared for general information purposes only and without taking into account any recipient’s investment objectives, financial situation or particular circumstances (including financial and taxation position). The Information does not (and does not intend to) contain a recommendation or statement of opinion intended to be investment advice or to influence a decision to deal with any financial product nor does it constitute an offer, solicitation or commitment by Regal Partners. Past performance and forward-looking statements Investing involves risk. Past performance and forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance or events. The Information may contain forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements include statements regarding Regal Partners intent, belief, current expectations and projections about future events, based on the information currently available. The Information is given in summary form and does not purport to be complete. Normalisation adjustments Financial Information is prepared on both a statutory basis (in accordance with Australian accounting standards which include Australian equivalent to International Financial Reporting Standards (IFRS)) as well as on a non-IFRS basis. Regal Partners considers that the non-IFRS financial information is important to assist in evaluating Regal Partners’ performance. The information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. For a reconciliation of the non-IFRS financial information contained in this document, refer to slides 37 and 38 of Regal Partners’ 2024 Results Presentation released to the ASX on 26 February 2025. No liability It is the sole responsibility of the recipient to consider the risks connected with any investment strategy contained in the Information. Neither Regal Partners, its affiliates nor any of their respective directors, employees, officers or agents accepts any liability for any loss or damage arising directly or indirectly from the use of all or any part of the Information. While the Information has been prepared in good faith and due care, neither Regal Partners, its affiliates nor any of their respective directors, employees, officers or agents represents or warrants that the Information in this document is accurate, complete or up to date and accepts no liability if it is not. Regal Partners is under no obligation to update the Information and does not undertake to do so. Regal Partners strongly suggests that investors obtain professional advice prior to making an investment decision. Information dissemination The Information may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of Regal Partners. Ownership Regal Partners and their associates have interests in financial products mentioned in this presentation. For personal use only
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For personal use only