Regal Partners Limited · ASX:RPL
Regal Partners — H1 2024 Earnings Presentation
36 slides from Regal Partners's earnings presentation, Aug 26, 2024
Slide 1: 1H24 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 26 August 2024 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 1H24 Financial Results Briefing Presentation Re
Slide 2: Contact Information and About Regal Partners
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 over $16.5 billion 1 in fund
Slide 3: 1H24 Results Presentation
Regal Partners Limited (ASX:RPL) 1H24 Results Presentation 26 August 2024
Slide 4: Disclaimer
Disclaimer The information in this presentation (“Information”) has been prepared by Regal Partners Limited (ABN 33 129 188 450) (“Regal Partners” or “RPL”) and is current as at the date of this presentation. All currency data in this presentation is in Australian dollars (A$) unless stated otherwis
Slide 5: First Half Result Highlights
First Half Result Highlights • Normalised 1H24 Net Profit After Tax (NPAT) 1 of $59.0m, up 349% on pcp NPAT Growth • Statutory NPAT of $50.2m +349% on pcp • Normalised EPS (full dilution)2 17.0c per share, up 254% on pcp • 1H24 dividend of 8c per share (100% franked), up 60% on pcp; Dividend Reinves
Slide 6: Regal Partners Limited (ASX:RPL) Overview
Regal Partners Limited (ASX:RPL) Overview Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $16.5 billion1 in pro forma funds under management. $16.5bn $1.1bn >90 Pro forma FUM 1 Market capitalisation 2 Investment professionals3 • The Group manages a broad range
Slide 7: Highly credentialled investment and management team
Highly credentialled investment and management team Brendan O’Connor Chief Executive Officer Chief Investment Officers (CIOs) Management team Philip King Paul Moore Adrian Redlich Ian Cameron James Persson Kathleen Liu CIO – Long/Short Equities CIO – Global Equities CIO – Income Strategies Chief Fin
Slide 8: Contents
Contents Page Section Speaker Text Page 7 Section 1: Highlights and Corporate Update Brendan O’Connor (CEO) Page 11 Section 2: Financials Ian Cameron (CFO) Page 16 Section 3: Business Update Brendan O’Connor (CEO) Page 23 Section 4: Strategy and Outlook Brendan O’Connor (CEO) Page 25 Section 5: Q&A
Slide 9: 1. Highlights and Corporate Update
1. Highlights and Corporate Update Brendan O’Connor (CEO)
Slide 10: FUM growth driven by flows, performance and acquisitions
FUM growth driven by flows, performance and acquisitions FUM up +186% on a pro forma basis over the 12 months to June 20241 $1.4bn $16.5bn $16bn $2.9bn $14bn $1.2bn ($0.6bn) $12.3bn $0.7bn $12bn $2.8bn ($0.2bn) $11.0bn $10bn $2.2bn $8bn $5.8bn $0.1bn $0.3bn $6bn $4bn 2H23 1H24 Acquisitions $2bn post
Slide 11: Group FUM
Group FUM FUM up +50% on a pro forma basis over the 6 months to June 20241 6 MONTHS TO JUNE 2024 (1H24) 31 Dec Investment 30 Jun Argyle & 30 Jun $m Net flows Other3 20231 performance2 20241 Merricks 20241 +$0.7bn of net flows in 1H24 Asset strategy Pro forma Long/short equities 5,906 622 964 (473) 7
Slide 12: FUM at or above high-water mark increasing
FUM at or above high-water mark increasing Proportion of performance fee-eligible FUM close to, or above, high-water mark (HWM) Funds/strategies at or above HWM include: • Regal Australian Small Companies 100% • Regal Tactical Opportunities • Regal Resources Long Short and High Conviction 12% 90% 19
Slide 13: 2. Financials
2. Financials Ian Cameron (CFO)
Slide 14: Normalised profit or loss statement
Normalised profit or loss statement 1H24 vs $m 1H231 1H24 1H23 FUM (including non-fee-earning) ($bn)2 5.8 12.3 +112% Average FUM (including non-fee-earning) ($bn)2 5.4 11.7 +116% • Results (including FUM) for 1H24 includes PM Capital and Taurus Funds Average management fee (%) 1.10% 1.04% (6.0bp) Ma
Slide 15: Pro forma normalised financials for 6 months to 30 June 2024
Pro forma normalised financials for 6 months to 30 June 2024 Prepared on a pro forma normalised basis for each business REGAL MERRICKS & $m PRO FORMA PARTNERS 1 ARGYLE 2 • Management fee margin is based on total FUM FUM at 30 June 2024 ($bn)3 12.3 4.3 16.5 including non-fee earning FUM. Management f
Slide 16: Balance sheet
Balance sheet $m 30 June 2023 31 Dec 2023 30 June 2024 • Strong balance sheet at 30 June 2024. A portion of the cash and seed capital at 30 June 2024 was utilised to fund the acquisitions of Merricks Cash and cash equivalents 37.2 17.2 78.1 Capital and Argyle Group post the end of the period. Trade
Slide 17: Strong net cash position
Strong net cash position (post transactions and dividend) Pro forma adjustments to cash, receivables and financial asset balances as at 30 June 2024 Net cash Other Receipt of Merricks and Financial Proposed from Financial (dividends fees (net of Argyle Pro forma $m 31 Dec 2023 assets – net 30 June 2
Slide 18: 3. Business Update
3. Business Update Brendan O’Connor (CEO)
Slide 19: Key business highlights
Key business highlights FUM UP +11% IN 1H24 TO $12.3BN; PRO FORMA FUM +50% to $16.5BN1 1 • Increase in FUM a combination of organic and inorganic growth. • Accretive acquisitions in July 2024 of Merricks Capital and 40% of Argyle Group, accelerating group capabilities, diversification and scale. REV
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 30 JUNE 20241 Regal Resources Royalties 36.7% Regal Tactical Opportunities 31.6% PM Capital Global Opportunities (ASX:PGF) 17.3% PM Capital Global Companies 17.1% Regal Australian Long Short 11.3% PM C
Slide 21: FUM has increased 3.5x since merger in June 2022
FUM has increased 3.5x since merger in June 2022 +3.5x including $1.9bn of 5% organic net flows (2 years) +4.3x 11% 37% $16.5bn 2% 42% (5 years) 8% 30k+ investors 50+ institutions $4.7bn 10% 14% 20k+ investors 3 institutions RFM 65% $1.1bn 13% 3% 90% June 2017 June 2022 (post-merger) June 2024 (pro
Slide 22: Positive flow momentum across diversified range of new and existing strategies
Positive flow momentum across diversified range of new and existing strategies 6mths to June 2024 +$745m POSITIVE NET FLOWS OF +$0.7BN IN 1H24, UP +106% ON PCP $30m • 1 Strong support received across a range of strategies and asset classes, into both new and existing funds • Demand for the Regal Par
Slide 23: RPL is a significant provider of capital to Australian companies
RPL is a significant provider of capital to Australian companies Expansion Capital Agriculture Real Estate Equity Power and Energy Infrastructure Equity Pre-IPO Capital Listed Australian Microcap Equities Listed Australian Small-Cap Companies Better deal Listed Australian Large-Cap Companies origina
Slide 24: PM Capital – strong performance and integration supporting accelerating inflows
PM Capital – strong performance and integration supporting accelerating inflows Key highlights: PM Capital growth in FUM1 • Strong performance across PM Capital’s funds supporting sales strategy $4.0 and growth in FUM. Net inflows accounted for ~48% of the increase in FUM since acquisition. $3.5 $3.
Slide 25: 4. Strategy and Outlook
4. Strategy and Outlook Brendan O’Connor (CEO)
Slide 26: 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 24
Slide 27: 5. Q&A
5. Q&A Brendan O’Connor (CEO) Ian Cameron (CFO)
Slide 28: Appendix
Appendix 26
Slide 29: Reconciliation of statutory to normalised NPAT
Reconciliation of statutory to normalised NPAT1 NOTABLE FOR 1H24 $m 1H23 1H24 Statutory NPAT attributable to RPL shareholders (3.9) 50.2 • Unrealised and realised gains on a strategic asset have been removed from the normalised results. Other fair value movements on seed capital Non-cash amortisatio
Slide 30: Line-by-line reconciliation
Line-by-line reconciliation A 1H24 Adjustments Adjustments 1H24 • These adjustments reclassify the ‘share of profit of associate’ that A the Group earned in 1H24 following the acquisition of 50% of $m Statutory Reclass of Taurus Other adjustments Normalised the ordinary shares of Taurus SM Holdings
Slide 31: Amortisation schedule of non-cash share-based payments
Amortisation schedule of non-cash share-based payments 2H24 1H25 2H25 1H26 2H26 1H27 2H27 $m CY22 CY23 1H24 Total • RPL’s normalised expenses include (est.) (est.) (est.) (est.) (est.) (est.) (est.) the impact of any ‘short-term Short-term incentive compensation incentive compensation’. The amortisa
Slide 32: Conversion of RPL securities into ordinary shares
Conversion of RPL securities into ordinary shares Estimated conversion of RPL Performance Share Rights, Converting Shares and Options into ordinary shares – assuming earliest conversion possible Fully dilutive securities (end of period) 2H24 1H25 2H25 1H26 2H26 1H27 2H27 At 30 Jun At 31 Dec No. of s
Slide 33: Capital base provides differentiated and resilient earnings
Capital base provides differentiated and resilient earnings RPL FUM BY LIQUIDITY1 RPL FUM BY INVESTMENT VEHICLE1 RPL FUM BY PERFORMANCE FEE DATE1 Diversification of fund liquidity profile provides Diversification of investment vehicles reflects 78% of FUM performance fee eligible, with 42% superior
Slide 34: $2.7bn in listed investment vehicles
$2.7bn in listed investment vehicles1 Represents ~15% of group FUM1 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 The Best of Regal Asian Equities The Best of PM
Slide 35: Strong long-term performance track record
Strong long-term performance track record Since Performance Since Performance Fund (as at 30 June 2024) Inception Manager5 Fund (as at 30 June 2024) Inception Manager5 inception p.a.1 fee period inception p.a.1 fee period Long/Short Equities – Global Equities Private Markets Regal Atlantic Absolute
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