Regal Partners Limited · ASX:RPL
Regal Partners — H1 2023 Earnings Presentation
31 slides from Regal Partners's earnings presentation, Aug 24, 2023
Slide 1: 1H23 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 August 2023 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 1H23 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: 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: Regal Partners Limited 1H23 Results Presentation
Regal Partners Limited (ASX:RPL) 1H23 Results Presentation 24 August 2023
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 10 Section 2: Financials Ian Cameron (CFO) Page 14 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 6: 1. Highlights and Corporate Update
1. Highlights and Corporate Update Brendan O’Connor (CEO)
Slide 7: Regal Partners Limited
Regal Partners Limited (ASX:RPL) Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $5.8 billion in funds under management. $5.8bn $600m+ >50 Funds Under Market capitalisation2 Investment professionals3 Management (FUM) 1 • Regal Partners (ASX:RPL) was formed on
Slide 8: 1H23 result highlights
1H23 result highlights 1H23 PROFIT AND DIVIDEND • Normalised Net Profit After Tax (NPAT)1 of $13.1m, up 98.5% on pcp • Interim dividend of 5c per share (100% franked), up on 2H22 dividend of 4c per share; Dividend Reinvestment Plan available • Statutory operating cashflows of $26.9m Regal Partners a
Slide 9: Strong FUM growth in challenging market environment
Strong FUM growth in challenging market environment FUM up +23% over the 12 months to June 20231 $6bn $0.3bn ($0.0bn) $5.8bn $0.4bn $0.7bn ($0.1bn) ($0.1bn) $5.2bn $5bn $4.7bn $4bn $3bn 2H22 1H23 $2bn $1bn - Jun-22 Net flows Investment Other Dec-22 Net flows Investment Other Jun-23 performance perfo
Slide 10: Strength in 12 month net flow numbers reflects diversification of the business
Strength in 12 month net flow numbers reflects diversification of the business +$1.1bn POSITIVE NET FLOWS DESPITE CHALLENGING CAPITAL RAISE ENVIRONMENT 1 • +$1.1bn net inflows in 12 months to June 2023, including +$0.4bn in 1H23 $205m Real & Natural Assets • 76% of all funds delivering positive or f
Slide 11: Group FUM
Group FUM FUM up +11% over the 6 months to June 2023 6 MONTHS TO 30 JUNE 2023 (1H23) 31 Dec Investment 30 Jun Net flows Other3 20221 performance2 20231 $m +$0.4bn of net flows in 1H23 Asset strategy Long/short equities 3,474 39 209 65 3,787 +$1.1bn of net flows Private markets 558 (31) (10) (46) 471
Slide 12: 2. Financials
2. Financials Ian Cameron (CFO)
Slide 13: Normalised profit or loss statement
Normalised profit or loss statement 6 months to 6 months to 1H23 vs Jun 2023 Jun 2022 2H22 (1H23) (1H22)2 $m FUM ($bn)1 5.8 4.7 22.7% Average FUM ($bn)1 5.4 5.6 (4.0%) • Normalised NPAT up 98.5% on pcp, driven by increased revenues and cost control. Average management fee (%) 1.10% 1.20% (8.3%) Mana
Slide 14: Improved fund performance
Improved fund performance Proportion of fee-earning FUM close to, or above, high-water mark (HWM) has increased since December 2022 100% 12% 90% 25% 7% 80% At or above HWM 13% 4% 70% 10% 0-5% below HWM 60% 26% 50% 5-10% below HWM 33% 40% 10-20% below HWM 30% >20% below HWM 20% 41% 28% 10% 100% 90% 8
Slide 15: Strong balance sheet
Strong balance sheet 30 Jun 2023 31 Dec 20221 $m • Robust and liquid balance sheet; $234m of cash and seed investments. Cash and cash equivalents 37.2 39.8 • Current debt-free balance sheet complemented by a $50m unsecured revolving corporate credit facility Trade and other receivables 23.1 23.3 wit
Slide 16: 3. Business Update
3. Business Update Brendan O’Connor (CEO)
Slide 17: FUM diversity increasing as the business grows
FUM diversity increasing as the business grows FUM BY ASSET CLASS FUM BY LIQUIDITY FUM BY CLIENT CHANNEL1 Diversification of FUM increasing into Diversification of fund liquidity profile provides Increasing exposure to institutional investors, Capital Solutions, Real and Natural Assets superior port
Slide 18: Long term performance track record remains highly attractive
Long term performance track record remains highly attractive 3 YEAR ANNUALISED NET RETURNS - REGAL FUNDS VS RELEVANT INDICES1 Regal Tactical Opportunities 50.1% Regal Resources Royalties 37.7% Regal Aust Small Companies 20.1% Regal Investment Fund (ASX:RF1) 19.5% Regal Tasman Market Neutral 15.2% S&
Slide 19: Product innovation and performance drives FUM growth
Product innovation and performance drives FUM growth Examples of Regal funds launched since 2015 $2,500m $2,000m These Regal strategies represent FUM ($m) $1,500m over 40% of group FUM today $1,000m And provide over $8bn $500m of FUM capacity $0m Small Companies Fund Emerging Companies Funds RF1 Res
Slide 20: Long/Short Equities
Long/Short Equities Update and outlook 250% SUPERIOR EQUITIES EXPOSURE THROUGH LONG/SHORT EQUITIES • Regal's flagship Australian Long Short Equity Fund, launched in August 2009, 200% has significantly outperformed Global ELS Hedge Fund returns as well as Australian and US equity market returns. • Re
Slide 21: Private Markets
Private Markets Update and outlook AUSTRALIAN IPO MARKET VOLUME BY YEAR ($bn) vs REGAL EMERGING COMPANIES FUND RETURNS1 REGAL EMERGING COMPANIES FUND SERIES REC I 19.1% IRR $20bn REC II 9.7% IRR • Regal launched first of four Pre-IPO Funds in 2016 and is 18.1 one of the most experienced pre-IPO inve
Slide 22: Real & Natural Assets
Real & Natural Assets Update and outlook KILTER RURAL • The Kilter Water Fund has delivered returns of 13.6% p.a. since inception1 with zero correlation to equity markets. • Water is an increasingly scare resource, underpinned by: − Demand from high value permanent tree crops increasing (exhibit ine
Slide 23: Capital Solutions
Capital Solutions Update and outlook CAPITAL SOLUTIONS REGAL GROWTH IN FUM1 REGAL PRIVATE CREDIT OPPORTUNITIES FUND $500m $460m • Fund launched October 2022, with seed investments from RPL balance sheet and external CURRENT investors, alongside a binding $200m commitment from prominent external fami
Slide 24: Listed vehicles provide retail investors access to alternatives
Listed vehicles provide retail investors access to alternatives $1.7bn1 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: $598m1 • Portfolio FUM
Slide 25: 4. Strategy and Outlook
4. Strategy and Outlook Brendan O’Connor (CEO)
Slide 26: Growth-focused strategy remains unchanged
Growth-focused strategy remains unchanged With multiple opportunities for expansion Multiple opportunities for growth 1 Diversified, scalable and growing platform Maintain current fundraising momentum ✔ ✔ Seed new strategies / partnerships 2 Attractive market tailwinds ✔ Continue investment in distr
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 6 months to 6 months to NOTABLE FOR 1H23 Jun 2023 Jun 20221 (1H23) (1H22) • One-off expenses related to strategic initiatives includes $m approximately $4m deferred contingent consideration for the acquisition of the Group’s 51% interest in Attunga Cap
Slide 30: Firmwide values and the community
Firmwide values and the community REGAL IN THE COMMUNITY >$70m $2.3m 5,000 is managed by Regal on behalf of Future generated from fund fees for the VGI megaliters of water is being donated by Generation (ASX:FGX) and Hearts and Minds Partners/Regal Partners Foundation since Kilter Rural to support w
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