Regal Partners Limited · ASX:RPL
Regal Partners — Merger or Acquisition (June 2024)
23 slides from Regal Partners's merger presentation, Jun 3, 2024
Slide 1: Acquisition of Merricks Capital – Presentation and Investor Briefing
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 3 June 2024 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Acquisition of Merricks Capital – Presentation and
Slide 2: Acquisition of Merricks Capital
Regal Partners Limited (ASX:RPL) Acquisition of Merricks Capital 3 June 2024
Slide 3: 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. Certain In
Slide 4: Overview
Overview ACQUISITION OF MERRICKS CAPITAL, REGAL PARTNERS GROUP FUM TO INCREASE 24% TO A$15.1 BILLION1 • Acquisition of 100% of the issued share capital of JRJJ Capital Pty Limited (trading as “Merricks Capital”) (the “Transaction”), a hard asset investment specialist 1 focused on private credit inve
Slide 5: Regal Partners’ FUM to increase to A$15.1bn
Regal Partners’ FUM to increase to A$15.1bn1, 2 post-acquisition $16,000m OVERVIEW MERRICKS A$2.9bn1 A$15.1bn2 Founded 2007 $14,000m A$12.2bn FUM1 A$2.9bn $12,000m Staff 44 $10,000m Investment 20 Professionals Offices Melbourne, Sydney $8,000m Private Credit investments across $6,000m commercial rea
Slide 6: Acquisition significantly expands Regal’s credit platform
Acquisition significantly expands Regal’s credit platform 1 Significant expansion of Regal’s scale and capability in private credit 2 Highly complementary range of investment strategies • Regal remains highly positive on the outlook for private credit in Australia, with demand for • The addition of
Slide 7: Deeply experienced team; aligned transaction structure
Deeply experienced team; aligned transaction structure 3 Deeply experienced investment team and capability 4 Strong alignment of interests; financially accretive • Merricks Capital has established a highly successful track record in managing investor capital • The Transaction structure reflects Adri
Slide 8: Diversification of Regal Partners FUM increasing
Diversification of Regal Partners FUM increasing PRO FORMA FUM BY ASSET CLASS PRO FORMA FUM BY LIQUIDITY PRO FORMA FUM BY CLIENT CHANNEL2 Material increase in exposure to Credit & Increased capital held in term or longer-dated Increased exposure to wholesale advisory & Royalties, from 27% to 41% of
Slide 9: Merricks Capital Limited
Merricks Capital Limited Transaction Summary & Business Overview
Slide 10: Transaction summary
Transaction summary • RPL has entered into a share sale deed (SSD) to acquire 100% of Merricks Capital, a leading alternative investment manager focused on private credit investments across commercial real estate, agriculture, and specialised industrial and infrastructure assets. Established in 2007
Slide 11: Merricks Capital business overview
Merricks Capital business overview HIGHLIGHTS OVERVIEW 2007 44 20 • A leading alternative investment manager and hard-asset investment specialist focused on private credit investments across commercial real estate, agriculture, and specialised industrial and infrastructure assets. Founded Staff Inve
Slide 12: Spotlight on Merricks Capital Funds
Spotlight on Merricks Capital Funds
Slide 13: Merricks Capital Partners Fund
Merricks Capital Partners Fund Overview, performance and loan book as at 30 April 2024 FUND OVERVIEW1 MONTHLY NET PERFORMANCE SINCE INCEPTION1 FULL Launched in January 2017, the Merricks Capital Partners Fund aims to deliver JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YEAR consistent returns by
Slide 14: Merricks Capital Agriculture Credit Fund
Merricks Capital Agriculture Credit Fund Overview, performance and loan book as at 30 April 2024 FUND OVERVIEW1 MONTHLY NET PERFORMANCE SINCE INCEPTION1 Launched in June 2021 the Merricks Capital Agriculture Credit Fund aims to JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC FULL deliver consistent
Slide 15: Delivered strong risk-adjusted returns since inception
Delivered strong risk-adjusted returns since inception1; highly complementary to Regal’s existing investment strategies MERRICKS CAPITAL PARTNERS FUND RISK RETURN PROFILE: 2017-20241 25% NASDAQ 100 TR (AUD) 20% 15% S&P 500 TR (AUD) MERRICKS CAPITAL PARTNERS FUND Annualised Return 10% S&P ASX 200 TR
Slide 16: Normalised Financials
Normalised Financials
Slide 17: Normalised financials for Merricks Capital
Normalised financials for Merricks Capital Pre-synergies MERRICKS A$m unless otherwise stated Year to MERRICKS CAPITAL REVENUE AND NPBT (A$M) 31 December 20231 80 FUM at 31 December 2023 ($bn) 2 2.7 62.0 59.7 Fee-earning FUM at 31 December 2023 ($bn) 2 2.7 60 47.5 41.0 35.7 Average FUM (including no
Slide 18: Strategy and Outlook
Strategy and Outlook
Slide 19: Regal Partners strategy and outlook
Regal Partners strategy and outlook Multiple opportunities for expansion Growth focused strategy remains • 30 April 2024: RPL FUM (excluding Merricks) increased to $12.2bn.1 unchanged • Investment performance continues to trend well year-to-date. Maintain current fundraising • At 30 April 2024, prop
Slide 20: Appendix
Appendix
Slide 21: Merricks Capital company history
Merricks Capital company history Merricks Capital Buys A$50m of Merricks Capital Merricks Launched Merricks Launched Launched Merricks Deloitte Best Managed founded and AFSL Australian bank attains SEC Capital is one Capital Partners Fund Merricks Capital Capital Agriculture Company Award 2022 2 lic
Slide 22: Portfolio loan examples
Portfolio loan examples Merricks Capital Funds and SPVs PORTFOLIO EXAMPLE PORTFOLIO EXAMPLE PORTFOLIO EXAMPLE Type Development finance Type Acquisition finance Type Development finance Sector Residential Sector Horticulture Sector Infrastructure Location South Australia Location New Zealand Location
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