Regal Partners Limited · ASX:RPL
Regal Partners — FY2022 Earnings Presentation
31 slides from Regal Partners's earnings presentation, Feb 24, 2023
Slide 1: 2022 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 24 February 2023 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 2022 Financial Results Briefing Presentation
Slide 2: Contact Information and About Regal Partners
CONTACT INFORMATION: Ingrid Groer, CFA Head of Corporate Affairs Regal Partners Limited Phone: 1800 571 917 (inside Australia) +61 2 8197 4350 (outside Australia) Email: investorrelations@regalpartners.com ABOUT REGAL PARTNERS LIMITED Regal Partners Limited is an ASX-listed, specialist alternatives
Slide 3: 2022 Results Presentation
Regal Partners Limited (ASX:RPL) 2022 Results Presentation 24 February 2023 1
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: Contents
Contents Page Section Speaker Text Page 4 Section 1: Highlights and Corporate Update Brendan O’Connor (CEO) Page 8 Section 2: Growth and Business Drivers Brendan O’Connor (CEO) Page 15 Section 3: Financials Ian Cameron (CFO) Page 19 Section 4: Strategy and Outlook Brendan O’Connor (CEO) Page 22 Sect
Slide 6: 1. Highlights and Corporate Update
1. Highlights and Corporate Update Brendan O’Connor (CEO)
Slide 7: Highlights
Highlights 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). • Net inflows of +$0.7bn for the six months to 31 December 2022. Total funds under management (FUM) increased by
Slide 8: Regal Partners Limited at a glance
Regal Partners Limited (ASX:RPL)1 Regal Partners Limited is an ASX-listed, specialist alternative investment manager RPL $800m+ with >$5 billion in funds under management. • Regal Partners (ASX:RPL) was formed on 3 June 2022, $5.4bn following the merger of ASX-listed VGI Partners Limited Funds Under
Slide 9: Five key takeaways
Five key takeaways Regal Partners Limited is a specialist, diversified alternatives investment management business: managing 1. $5.4 billion1 in FUM across Long/Short Equities, Private Markets, Real and Natural Assets and Capital Solutions, on behalf of institutional, family office, charitable and p
Slide 10: 2. Growth and Business Drivers
2. Growth and Business Drivers Brendan O’Connor (CEO)
Slide 11: Strong momentum in FUM growth
Strong momentum in FUM growth $6,500m REGAL FUNDS MANAGEMENT (Pre-merger FUM growth) 1.15% $5,500m $5.4bn Average management fee on total group FUM in 2H22 1 $4,500m +33% CAGR $3,500m $3.2bn 100% of products have performance fee earning capability $2,500m $1,500m $1.1bn $500m Jun-17 Jun-22 Jan-23 -$
Slide 12: Net inflows accelerating across the group
Net inflows accelerating across the group REGAL FUNDS MANAGEMENT REGAL PARTNERS LIMITED (Pre-merger net flows) (Post merger actual and target net flows) +$694m Net client inflows in half- +$1,000m year post merger completion $732m 73% of Funds1 experienced positive or flat net flows $197 in 6 mths t
Slide 13: Strong performance & client driven product innovation
Strong performance & client driven product innovation EXISTING FUNDS NEW INVESTMENT STRATEGIES STRONG LONG TERM PERFORMANCE1 PROVEN ABILITY TO INNOVATE AND GROW (annualised net returns for select Australian unit trusts with > 3 year track record) (new Australian unit trusts launched within previous
Slide 14: Business unit highlights for the half
Business unit highlights for the half Long / Short Equities Real Capital & Private Markets & Natural Assets Solutions • Regal Funds Management won Global • Large US-based institutional investor doubles • Launch of Regal Private Credit Opportunities Equities and Market Neutral categories at investmen
Slide 15: Established & diversified platform for continued growth
Established & diversified platform for continued growth FUM BY ASSET STRATEGY FUM BY FUND LIQUIDITY FUM BY CLIENT CHANNEL1 Regal Investment Fund (RF1), 12% Institutional & other, Capital solutions, Daily, 21% 17% 2% Term & closed- Closed end Real and natural assets, 9% end capital, capital/retail, 3
Slide 16: Listed vehicles provide retail investors access to alternatives
Listed vehicles provide retail investors access to alternatives $1.77bn1 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: $610m1 • Portfolio FU
Slide 17: 3. Financials
3. Financials Ian Cameron (CFO)
Slide 18: 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 19: Strong balance sheet
Strong balance sheet 31 Dec 2022 30 Jun 2022 • Robust and liquid balance sheet; no debt; $214m of cash and investments (which primarily comprises $m Group Group holdings in listed funds (VG1 and RG8) and Regal Funds Management (RFM) unlisted funds) Cash and cash equivalents 39.8 47.2 • Contract asse
Slide 20: 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 21: 4. Strategy and Outlook
4. Strategy and Outlook Brendan O’Connor (CEO)
Slide 22: 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 23: 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 ass
Slide 24: 5. Q&A
5. Q&A Brendan O’Connor (CEO) Ian Cameron (CFO)
Slide 25: Appendix
Appendix 23
Slide 26: Reconciliation of statutory to pro forma normalised NPAT
Reconciliation of statutory to pro forma normalised NPAT Year to Year to • The statutory results for the year ended 31 December 2022 Dec 2022 Dec 2021 have been presented to reflect Regal Funds Management for the period from 1 January 2022 to 3 June 2022, and the $m combined Regal Partners Limited c
Slide 27: Pro forma group FUM
Pro forma group FUM Movements over calendar 2022 and 2H22 YEAR TO 31 DECEMBER 2022 6 MONTHS TO 31 DECEMBER 2022 31 Dec Investment 31 Dec 30 Jun Investment 31 Dec Net flows Other3 Net flows Other3 20211 performance2 20221 20221 performance2 20221 $bn Asset strategy Long/short equities 4.3 0.2 (0.9) (
Slide 28: Spotlight on: Private Credit
Spotlight on: Private Credit REGAL PRIVATE CREDIT OPPORTUNITIES FUND WHAT IS PRIVATE CREDIT – Private Credit typically refers to directly originated, illiquid debt instruments that are not traded on an exchange and therefore are typically held-to-maturity. Investments are made both bilaterally or as
Slide 29: Spotlight on: Asian experience & portfolio exposures
Spotlight on: Asian experience & portfolio exposures RFM & VGI1 EAST POINT2 REGAL PARTNERS1,2 Other, 10% Tasman Market Neutral, 4% Other, 8% Tactical Opportunities, 5% Tasman Market Neutral, 3% $275m Healthcare, 9% Tactical Opportunities, 4% $922m RG8, 49% VGI Partners Healthcare, 7% including RG8,
Slide 30: Strong long term performance track record
Strong long term performance track record1 Fund (as at 31 January 2023) Launch year Since inception p.a.1 Manager Fund (as at 31 January 2023) Launch year Since inception p.a. 1 Manager Hedge Funds – Global Equities Private Markets Regal Atlantic Absolute Return Fund 2004 23.2% Regal Regal Emerging
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