Regal Partners Limited · ASX:RPL
Regal Partners — Merger or Acquisition (November 2023)
20 slides from Regal Partners's merger presentation, Nov 3, 2023
Slide 1: Acquisition of PM Capital; Regal Partners' Group FUM to Increase to $10.8bn
Regal Partners Limited (ASX:RPL) Acquisition of PM Capital; Regal Partners' Group FUM to Increase to $10.8bn 3 November 2023
Slide 2: Disclaimer
Disclaimer The information in this presentation (Information) has been prepared by Regal Partners Limited (ABN 33 129 188 450) (Regal Partners) and is current as at the date of this presentation. All currency data in this presentation is in Australian dollars (A$) unless stated otherwise. No solicit
Slide 3: Overview
Overview ACQUISITION OF PM CAPITAL LIMITED, REGAL PARTNERS GROUP FUM TO INCREASE TO $10.8 BILLION1 • Acquisition of 100% of PM Capital Limited (PM Capital or PMC), a multi-award-winning specialist long / short equities and fixed income asset manager 1 founded in 1998 by Chair and Chief Investment Of
Slide 4: Regal Partners' FUM to increase to $10.8bn post-acquisitions
Regal Partners’ FUM to increase to $10.8bn1 post-acquisitions $2.7bn1 $10.8bn1 OVERVIEW TAURUS PM CAPITAL $10,000m Founded 2006 1998 FUM1 $2.3bn $2.7bn $2.3bn1 Employees 23 22 $8,000m Investment 9 + 7 technical 8 Professionals directors Australia, $6,000m $5.8bn1 Offices Europe, UK, Sydney Cayman $4
Slide 5: FUM increasingly diversified across asset class and channel
FUM increasingly diversified across asset class and channel1 PRO FORMA FUM BY ASSET CLASS, INCLUDING TAURUS & PM CAPITAL PRO FORMA FUM BY CLIENT CHANNEL, INCLUDING TAURUS & PM CAPITAL 6% Long/short equities LICs/LITs 22% Private markets 31% Retail unlisted unit trusts 31% Real & natural assets Inter
Slide 6: Acquisitions increase term and closed-end FUM
Acquisitions increase term and closed-end FUM PRO FORMA FUM BY ASSET CLASS PRO FORMA FUM BY LIQUIDITY PRO FORMA FUM BY CLIENT CHANNEL1 Material increase in exposure to Increased term and closed-end capital Increased exposure to Australian retail Credit & Royalties and US institutional investors Rega
Slide 7: Pro forma financials for acquisition of Taurus & PM Capital
Pro forma financials for acquisition of Taurus & PM Capital Pre-synergies METRICS SHOWN PRE-SYNERGIES REGAL PARTNERS1 TAURUS2 PM CAPITAL3 PRO FORMA Funds Under Management (as at 30 September 2023) FUM $5.8bn $2.3bn $2.7bn $10.8bn Fee-earning FUM $5.0bn $2.3bn $2.3bn $9.7bn Key Normalised P&L Metrics
Slide 8: PM Capital Limited
PM Capital Limited Business & Transaction Summary
Slide 9: PM Capital business overview
PM Capital business overview Multi-award winning specialist long / short equity and fixed income manager HIGHLIGHTS OVERVIEW • Founded in 1998 by current Chairman and Chief Investment Officer Paul Moore, the business services a diverse range of Australian wholesale and retail clients and manages >$2
Slide 10: Transaction summary
Transaction summary • RPL has entered into an agreement to acquire 100% of PM Capital, a multi-award-winning investment management company with a core focus on OVERVIEW global long/short equities and fixed income strategies. Established in 1998 and headquartered in Sydney, Australia, PM Capital serv
Slide 11: Transaction rationale
Transaction rationale 1 Deeply experienced, multi- award-winning investment capability 2 Highly complementary and well-diversified investor base 3 Scale benefits & access to enhanced corporate and operational platform 4 Strong alignment of interests, financially accretive • PM Capital, under CIO Pau
Slide 12: Global Long/Short Equities strategy
Global Long/Short Equities strategy Including the PM Capital Global Companies Fund STRATEGY OVERVIEW PM CAPITAL GLOBAL COMPANIES FUND ANNUALISED NET RETURNS TO 30 SEP 2023 (P.A.)1 Universe: Global equities (long/short): concentrated portfolio of typically 25-45 global companies; 0% 5% 10% 15% 20% 25
Slide 13: Australian Long/Short Equities strategy
Australian Long/Short Equities strategy PM Capital Australian Companies Fund STRATEGY FACTS PM CAPITAL ASUTRALIAN COMPANIES FUND ANNUALISED NET RETURNS TO 30 SEP 2023 (P.A.)1 Universe: Australian equities (long/short): concentrated portfolio of typically 15-25 companies -5% 0% 5% 10% 15% 20% largely
Slide 14: Enhanced Yield Fixed Income strategy
Enhanced Yield Fixed Income strategy Including the PM Capital Enhanced Yield Fund STRATEGY FACTS PM CAPITAL ENHANCED YIELD FUND ANNUALISED NET RETURNS TO 30 SEP 2023 (P.A.)1 Universe: Short duration fixed income: typically 30-50 securities; 100% hedged back to A$ 0% 1% 2% 3% 4% 5% 6% 7% Approach: Fu
Slide 15: Appendix: Taurus Business & Transaction Summary
Appendix Taurus Business & Transaction Summary
Slide 16: Taurus business overview
Taurus business overview A specialist provider of finance solutions to global mid-tier and junior mining companies HIGHLIGHTS OVERVIEW 2006 23 3 • Headquartered in Australia, with satellite offices in the UK, Europe and the Cayman Islands, servicing institutional investors in North America. Founded
Slide 17: Transaction summary
Transaction summary • Regal Partners has agreed to acquire 50% of the issued ordinary shares of Taurus SM Holdings Pty Limited (“Taurus Funds Management” or “Taurus”), a specialist provider of financing solutions to global mid-tier and junior mining companies, including private credit (“mining finan
Slide 18: Transaction rationale
Transaction rationale 1 Significant expansion of resources investment capability 2 Access to institutional US investors, leveraging distribution hubs 3 Increased exposure to structurally attractive sector thematics 4 Value creation for RPL shareholders • Taurus is a well recognised industry leader i
Slide 19: Strong relationships with "blue chip" clients
Strong relationships with “blue chip” clients Attractive mix of returning clients and new business TAURUS COMMITTED CAPITAL FROM PRIVATE CREDIT AND ROYALTIES RAISINGS1 3% 1% Investor base primarily 1% US institutional investors 4 of top 5 investors in TMFF2 invested across all with growing presence
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