Regal Partners Limited · ASX:RPL
Regal Partners — Shareholder Meeting (May 2023)
27 slides from Regal Partners's shareholder meeting presentation, May 23, 2023
Slide 1: 2023 Annual General Meeting Chairman and CEO Address and Presentation Slides
Regal Partners Limited ABN 33 129 188 450 Level 47 Gateway, 1 Macquarie Place Sydney NSW 2000 Australia T. +61 2 8197 4350 www.regalpartners.com 23 May 2023 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 2023 Annual General Meeting Chairman and CEO Addre
Slide 2: Chairman's Address
Chairman’s Address On behalf of the Board of Regal Partners (or RPL), I would like to warmly welcome all shareholders today and we very much thank you for your support. Today’s meeting is a notable milestone for us, given it is the inaugural AGM of the company following the merger of Regal Funds Man
Slide 3: Chairman's Address: Key Highlights
I should also add that David was not a member of Regal’s Audit or Remuneration committees and, as such, there is no need to replace him there. Earlier this month I joined Regal’s Audit and Risk Committee, taking the total number of members to four. At today’s meeting, Ian Gibson is seeking re-electi
Slide 4: CEO's Address
CEO’s Address As you’ve just heard, the Regal Partners group has had a transformative year since the merger completed and I would like to thank shareholders and our clients who have shown their support during this time. In my presentation today, I’d like to provide a brief overview of the last 12 mo
Slide 5: CEO's Address: Client Base and Achievements
strategy). Our client base remains heavily skewed to higher-value wholesale high-net-worth and ultra high net worth families and their advisors and family offices, complemented by three ASX-listed funds that provide an entry point for retail investors to access a selection of Regal’s strategies. The
Slide 6: CEO's Address: Alternative Strategies
availability of certain investment strategies to ensure our performance, investment processes and available capacity can be best rewarded. As previously mentioned, while long/short equity strategies currently represent approximately two-thirds of Regal’s FUM, the Group has continued to evolve in rec
Slide 7: Kilter Rural: Water
KILTER RURAL: WATER The Kilter Rural Water strategy perhaps provides one of the best examples of a true alternative, given the return drivers for a portfolio of water assets are significantly different to those that typically move global equity and fixed income markets every day. Established in 2014
Slide 8: Performance Fees and Costs Commentary
change quickly. We will provide an update on our 1H23 performance fee expectations in mid-July when we announce our June FUM and net flows. Perhaps for some additional context around the variability of performance fee outcomes, this slide also shows that pro forma performance fees in 2021 were $164m
Slide 9: Chairman's Address
Chairman’s Address Michael Cole AM
Slide 10: Board of Directors
Board of Directors Michael Cole AM Brendan O’Connor Independent Chairman CEO and Managing Director Sarah Dulhunty Jaye Gardner Ian Gibson Independent Non-Executive Director Independent Non-Executive Director Executive Director
Slide 11: Highlights
Highlights 2022 WAS A TRANSFORMATIVE YEAR • Regal Partners (RPL) formed on 3 June 2022 following the merger between Regal Funds Management Pty Limited (RFM) and VGI Partners Limited (VGI Partners). “Regal Partners aims • Net inflows of +$0.7bn for the six months to 31 December 2022. Total funds unde
Slide 12: CEO's Presentation
CEO’s Presentation Brendan O’Connor
Slide 13: Our behaviours
Our behaviours Client first 1 Never lose sight of our clients and always act with integrity. Seek to constantly exceed expectations, both in investment performance and client experience. Delighted clients are our best advocates. We are custodians of client capital 2 Everyday we remind ourselves of t
Slide 14: Regal Partners Limited (RPL)
Regal Partners Limited (ASX:RPL)1 Regal Partners Limited is an ASX-listed, specialist alternative investment manager with >$5 billion in funds under management. RPL $5.5bn $760m+ • Regal Partners (ASX:RPL) was formed on 3 June 2022, ASX ticker Funds Under Market capitalisation2 following the merger
Slide 15: Recent business unit highlights
Recent business unit highlights Long / Short Equities Real & Capital & Private Markets Natural Assets Solutions • Secured institutional mandate from large • Large US-based institutional investor doubles • Launch of Regal Private Credit Opportunities domestic superannuation fund in Australian investm
Slide 16: Sustained growth in net inflows across the group
Sustained growth in net inflows across the group REGAL FUNDS MANAGEMENT REGAL PARTNERS LIMITED (Pre-merger net flows) (Post merger actual and target net flows) +$1,000m +$936m Net client inflows 1 July – 1 May $732m $241 $197 Targeting +$1bn net flows for the 8 12mths to June New institutional inves
Slide 17: Private Credit
Private Credit Regal Private Credit Opportunities Fund is targeting 8-12% annualised returns with limited volatility in NAV WHY REGAL AND WHY PRIVATE CREDIT ANNUALISED RETURN VS VOLATILITY ACROSS ASSET CLASSES1 14% 1 Private credit in Australia is an emerging asset class Credit markets in Australia
Slide 18: Resources Royalties
Resources Royalties Regal Resources Royalties Fund provides exposure to rising commodity prices, without exposure to rising cost inflation ASSET CLASS OPPORTUNITY WHY REGAL AND WHY RESOURCES ROYALTIES Security and rights 1 Uncorrelated asset class Debt • Royalties sit between debt and equity in the
Slide 19: Kilter Rural
Kilter Rural A specialist water, ecosystems and regenerative agriculture manager founded in 2004 ANNUALISED RETURNS ACROSS ASSET CLASSES SINCE WHY KILTER AND WHY WATER INCEPTION OF KILTER WATER FUND 1 Unique asset class – uncorrelated returns 16% Water is a unique asset class that exhibits the same
Slide 20: Attunga Capital
Attunga Capital A specialist power and carbon manager WHY ATTUNGA AND WHY CARBON CARBON PRICE GROWTH EXPECTATIONS FROM NOW UNTIL 2030 ARE SIGNIFICANTLY HIGHER THAN TODAY’S CARBON PRICE 14% 1 Demand for carbon increasing 12% IEA, $120 (13%) NZ CCC, Limited opportunities for investors to gain 10% $100
Slide 21: Listed vehicles provide retail investors access to alternatives
Listed vehicles provide retail investors access to alternatives $1.7bn1 in listed investment vehicles across the group Regal Investment Fund Regal Asian Investments Limited VGI Partners Global Investments (ASX:RF1) – LIT (ASX:RG8) – LIC Limited (ASX:VG1) – LIC • Portfolio FUM: $586m1 • Portfolio FUM
Slide 22: Pro forma normalised profit or loss statement
Pro forma normalised profit or loss statement 6 months to 6 months to Year to Year to Jun 2022 Dec 2022 Dec 2022 Dec 20211 (1H22) (2H22) $m Average FUM ($bn)2 5.6 5.1 5.4 5.9 • The statutory results have been accounted for under the Average management fee (%) 1.20% 1.15% 1.17% 1.23% principles of re
Slide 23: Strong balance sheet
Strong balance sheet 31 Dec 2022 30 Jun 2022 $m Group Group Cash and cash equivalents 39.8 47.2 • Robust and liquid balance sheet; no debt; $214m of cash and investments (which primarily comprises Trade and other receivables 23.3 35.9 holdings in listed funds (VG1 and RG8) and Regal Funds Management
Slide 24: Recent entitlement offer has bolstered seed capital
Recent entitlement offer has bolstered seed capital GROWTH OF SEED CAPITAL BETWEEN 30 JUNE 2022 AND 31 DECEMBER 2022 • On 5 September 2022, RPL announced a 1-for-5 accelerated non-renounceable entitlement offer. The raising completed on 3 October 2022, raising approximately $110m in gross $250m proc
Slide 25: Well positioned for growth through the cycle
Well positioned for growth through the cycle With multiple opportunities for expansion Diversified, scalable and Attractive market Strong business Multiple opportunities growing platform tailwinds economics for growth • Limited concentration risk with no • Increasing investor appetite for • Attracti
Slide 26: Inorganic growth opportunities & considerations
Inorganic growth opportunities & considerations Further consolidation of asset management industry remains highly likely, both domestically and offshore 1 • Traditional asset managers are seeking new avenues for growth; • Maturation of “first generation” boutiques; and • Smaller and independent asse
Slide 27: Disclaimer
Disclaimer The information in this presentation (Information) has been prepared by Regal Partners Limited (ABN 33 129 188 450) (Regal Partners) and is current as at the date of this presentation. All currency data in this presentation is in Australian dollars (A$) unless stated otherwise. No solicit