Regal Partners Limited · ASX:RPL
Regal Partners — FY2023 Earnings Presentation
36 slides from Regal Partners's earnings presentation, Feb 22, 2024
Slide 1: 2023 Financial Results Briefing Presentation
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 22 February 2024 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 2023 Financial Results Briefing Presentation
Slide 2: Contact Information / About Regal Partners Limited
CONTACT INFORMATION: Ingrid Groer, CFA Head of Corporate Affairs Regal Partners Limited Phone: +61 2 8197 4350 Email: investorrelations@regalpartners.com ABOUT REGAL PARTNERS LIMITED Regal Partners Limited is an ASX-listed, specialist alternatives investment manager with approximately $11.0 billion
Slide 3: Regal Partners Limited (ASX:RPL) 2023 Results Presentation
Regal Partners Limited (ASX:RPL) 2023 Results Presentation 22 February 2024
Slide 4: Disclaimer
Disclaimer The information in this presentation (Information) has been prepared by Regal Partners Limited (ABN 33 129 188 450) (Regal Partners) and is current as at the date of this presentation. All currency data in this presentation is in Australian dollars (A$) unless stated otherwise. No solicit
Slide 5: 2023 was a year of accelerating growth & diversification
2023 was a year of accelerating growth & diversification Funds Under Management up +113% to $11.0bn1 Revenue up 17% to $112m 2; strong rebound in performance fees in 2H Momentum in net inflows, despite challenging capital raising environment Accelerating diversification of FUM by asset class
Slide 6: Regal Partners Limited at a glance
Regal Partners Limited (ASX:RPL) Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $11.0 billion1 in funds under management. $11.0bn $713m >70 Funds Under Market capitalisation2 Investment professionals3 Management (FUM) 1 • Combining deep industry experience, e
Slide 7: Contents
Contents Page Section Speaker Text Page 6 Section 1: Highlights and Corporate Update Brendan O’Connor (CEO) Page 11 Section 2: Financials Ian Cameron (CFO) Page 15 Section 3: Business Update Brendan O’Connor (CEO) Page 25 Section 4: Strategy and Outlook Brendan O’Connor (CEO) Page 27 Section 5: Q&A
Slide 8: 1. Highlights and Corporate Update
1. Highlights and Corporate Update Brendan O’Connor (CEO)
Slide 9: Calendar 2023 result highlights
Calendar 2023 result highlights 2023 PROFIT AND DIVIDEND • Normalised Net Profit After Tax (NPAT) 1 of $32.7m, up 31.9% on pcp • 2H23 dividend of 5c per share (100% franked), equating to 10c per share for 2023, Dividend Reinvestment Plan available • Statutory NPAT of $1.6m Regal Partners aims to KEY
Slide 10: FUM growth driven by flows, performance and acquisitions
FUM growth driven by flows, performance and acquisitions FUM up +113% over the 12 months to December 20231 $12bn $2.8bn ($0.2bn) $11.0bn $10bn $2.2bn $8bn $0.4bn $0.3bn ($0.0bn) $5.8bn $0.1bn $0.3bn $6bn $5.2bn $4bn $2bn 1H23 2H23 - Dec-22 Net flows Investment Other Jun-23 Net flows Investment Tauru
Slide 11: Group FUM
Group FUM FUM up +113% over the 12 months to December 2023 12 MONTHS TO DECEMBER 2023 31 Dec Investment 31 Dec $m Net flows Other3 20221 performance2 20231 +$0.5bn of net flows in 12 months to December 2023 Asset strategy Long /short equities 3,474 (14) 445 2,001 5,906 +$0.4bn of additional flow com
Slide 12: Improved fund performance
Improved fund performance Proportion of performance fee-eligible FUM close to, or above, high-water mark (HWM) has increased during 2023 FUM at or above HWM includes: 100% • Regal Resources Long/Short 12% 19% 29% 54% • Regal Tactical Opportunities 90% • Regal Private Credit 25% 7% • Attunga Power 80
Slide 13: 2. Financials
2. Financials Ian Cameron (CFO)
Slide 14: Normalised profit or loss statement
Normalised profit or loss statement Year to Year to 2023 vs $m 1H23 2H23 Dec 20221 Dec 20231 2022 FUM (including non-fee-earning) ($bn)2 5.2 5.8 11.0 11.0 +103.7% • Normalised NPAT up 31.9% on pcp, driven by increased Average FUM (including non-fee-earning) ($bn)2 5.4 5.4 6.6 6.0 +11.1% revenues and
Slide 15: Pro forma normalised financials for calendar 2023
Pro forma normalised financials for calendar 2023 Prepared on a pro forma normalised basis for each business (pre known expense initiatives and other synergies) REGAL PARTNERS $m TAURUS2 PM CAPITAL3 PRO FORMA (STANDALONE)1 FUM at 31 December 2023 ($bn)4 5.8 2.2 2.9 11.0 • Results are presented on a
Slide 16: Strong balance sheet
Strong balance sheet $m 31 Dec 20221 30 Jun 2023 31 Dec 2023 • Strong balance sheet at 31 December 2023 even after cash payments Cash and cash equivalents 39.8 37.2 17.2 related to acquisitions of PM Capital and Taurus Funds Management, plus dividend payments of ~$23m during 2023. Trade and other re
Slide 17: 3. Business Update
3. Business Update Brendan O’Connor (CEO)
Slide 18: Key business highlights
Key business highlights FUNDS UNDER MANAGEMENT UP +113% TO $11.0BN1 1 • FUM growth a combination of organic and inorganic growth opportunities. • Accretive acquisitions of PM Capital and Taurus Funds Management accelerating group diversification and scale. REVENUE UP 17% TO $112M 2; STRONG REBOUND I
Slide 19: Accelerating FUM growth across a diverse range of strategies and client channels
Accelerating FUM growth across a diverse range of strategies and client channels 5% +2.3x 1.5 years 29% 11% 2% $11.0bn 8% +30k investors 54% +4.3x 37 institutions $4.7bn 10% 5 years 14% +20k investors 3 institutions 7% RFM 65% $1.1bn 5% 90% June 2017 June 2022 (post-merger) December 2023 Long / Shor
Slide 20: Strong performance across a diverse range of strategies
Strong performance across a diverse range of strategies 3 YEAR ANNUALISED NET PORTFOLIO RETURNS TO 31 DECEMBER 20231 Regal Resources Royalties 37.6% Regal Tactical Opportunities 28.5% PM Capital Global Opportunities (ASX:PGF) 18.9% PM Capital Global Companies 18.6% PM Capital Australian Companies 13
Slide 21: Strong performance across suite of listed investment vehicles
Strong performance across suite of listed investment vehicles $2.4bn1 in listed investment vehicles across the group RF1 VG1 RG8 PGF Multi-Strategy Alternatives Global L/S High Conviction Asian L/S High Conviction Global L/S Equities The Best of Regal Partners Group The Best of Regal Global Equities
Slide 22: Momentum in net flows maintained despite challenging capital raise environment
Momentum in net flows maintained despite challenging capital raise environment 14mths to Feb 2024 +$0.9bn1 POSITIVE NET FLOWS OF +$0.5BN IN 2023 WITH STRONG START TO 2024 • Flows diversified across a range of strategies and asset classes, in both new and existing Funds. 1 • Additional +$0.4bn of inf
Slide 23: FUM diversity increasing as the business grows; revenue synergies expected over time
FUM diversity increasing as the business grows; revenue synergies expected over time FUM BY ASSET CLASS FUM BY LIQUIDITY FUM BY CLIENT CHANNEL1 Credit and Royalties driving further Diversification of fund liquidity profile provides Highly diversified by channel, with >30,000 diversification of FUM s
Slide 24: Integration of PM Capital and Taurus progressing well
Integration of PM Capital and Taurus progressing well PM Capital Limited Taurus Funds Management 20 December 2023 4 November 2023 • Multi-award-winning specialist long/short equities and fixed income • Specialist provider of financing solutions to global mid-tier and junior manager with $2.9bn of FU
Slide 25: Robust technology and operating platform underpins growth and scale
Robust technology and operating platform underpins growth and scale PROPRIETARY TECHNOLOGY & OPERATIONAL EXTENSIVE MARKET CONNECTIVITY INTEGRATED CONTROLS, INFRASTRUCTURE & RELATIONSHIPS RISK & COMPLIANCE FRAMEWORK Regal’s proprietary operational, risk and trading Regal’s accelerating size and scale
Slide 26: Client-centric approach to sales and product development
Client-centric approach to sales and product development MULTI-CHANNEL MULTI-ASSET CAPABILITY Sales and IR team servicing clients across institutional, family 6 1 Single strategy & multi-strategy capability, supporting single PM or multi-PM office, advisory and direct management across asset classes
Slide 27: 4. Strategy and Outlook
4. Strategy and Outlook Brendan O’Connor (CEO)
Slide 28: Growth-focused strategy of RPL remains unchanged
Growth-focused strategy of RPL remains unchanged With multiple opportunities for expansion 1 Diversified, scalable and growing platform 2 Attractive market tailwinds 3 Strong business economics 4 Multiple opportunities for growth 26
Slide 29: 5. Q&A
5. Q&A Brendan O’Connor (CEO) Ian Cameron (CFO)
Slide 30: Appendix
Appendix 28
Slide 31: Reconciliation of statutory to normalised NPAT
Reconciliation of statutory to normalised NPAT1 Year to Year to NOTABLE FOR 2023 $m Dec 20221 Dec 2023 • One-off expenses related to strategic initiatives include: ~$4m deferred Statutory NPAT attributable to RPL shareholders 12.4 1.6 contingent consideration for the initial acquisition of 51% of At
Slide 32: Line-by-line reconciliation
Line-by-line reconciliation A Year to Dec Adjustments Adjustments Year to Dec • These adjustments reclassify the ‘share of profit of associate’ that A 2023 2023 the Group earned since the acquisition of 50% of the ordinary $m Statutory Reclass of Taurus Other adjustments Normalised shares of Taurus
Slide 33: Amortisation schedule of non-cash share-based payments
Amortisation schedule of non-cash share-based payments 1H24 2H24 1H25 2H25 $m 1H22 2H22 1H23 2H23 Total (est.) (est.) (est.) (est.) • RPL’s normalised expenses includes the impact of any ‘short-term incentive Short-term incentive compensation compensation’. The amortisation expense 2022 annual grant
Slide 34: Strong long-term performance across the group
Strong long-term performance across the group Since Performance Since Performance Fund (as at 31 December 2023) Launch Manager Fund (as at 31 December 2023) Launch Manager inception p.a.1 fee period inception p.a.1 fee period Long/Short Equities – Global Equities Private Markets Regal Atlantic Absol
Slide 35: Firmwide values and the community
Firmwide values and the community OUR BEHAVIOURS 1 Client first 4 Entrepreneurial mindset 2 We are custodians of client capital 5 Collaborate 3 Accountability & reputation are everything 6 Be the benchmark in alignment REGAL IN THE COMMUNITY >$60m $2.3m >12,000 is managed by Regal on behalf of Futur
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