Regal Partners Limited · ASX:RPL
Regal Partners — Bell Potter Emerging Leaders Conference 2023
23 slides from Regal Partners's conference presentation, Sep 12, 2023
Slide 1: Bell Potter Emerging Leaders Conference 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 12 September 2023 ASX Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Bell Potter Emerging Leaders Conference Pres
Slide 2: Regal Partners Limited - Bell Potter Emerging Leaders Conference
For personal use only Regal Partners Limited (ASX:RPL) Bell Potter Emerging Leaders Conference 12 September 2023
Slide 3: 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. For person
Slide 4: Regal Partners Limited overview
Regal Partners Limited (ASX:RPL) For personal use only Regal Partners Limited is an ASX-listed, specialist alternative investment manager with $5.8 billion in funds under management. $5.8bn $580m+ >50 Funds Under Market capitalisation2 Investment professionals3 Management (FUM) 1 • Regal Partners (A
Slide 5: 1H23 result highlights
1H23 result highlights 1H23 PROFIT AND DIVIDEND For personal use only • 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 $
Slide 6: Strong FUM growth in challenging market environment
Strong FUM growth in challenging market environment FUM up +23% over the 12 months to June 20231 For personal use only $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 Ju
Slide 7: Strength in month net flow numbers reflects diversification of the business
Strength in 12 month net flow numbers reflects diversification of the business +$1.1bn For personal use only 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 de
Slide 8: Improved fund performance
Improved fund performance Proportion of fee-earning FUM close to, or above, high-water mark (HWM) has increased since December 2022 For personal use only 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%
Slide 9: 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% For personal use only Regal Resources Royalties 37.7% Regal Aust Small Companies 20.1% Regal Investment Fund (ASX:RF1) 19.5% Regal Tasman M
Slide 10: Product innovation and performance drives FUM growth
Product innovation and performance drives FUM growth Examples of Regal funds launched since 2015 $2,500m For personal use only $2,000m These Regal strategies represent FUM ($m) $1,500m over 40% of group FUM today $1,000m And provide over $8bn $500m of FUM capacity $0m Small Companies Fund Emerging C
Slide 11: Long/Short Equities update and outlook
Long/Short Equities Update and outlook 250% For personal use only SUPERIOR EQUITIES EXPOSURE THROUGH LONG/SHORT EQUITIES • Regal's flagship Australian Long Short Equity Fund, launched in August 2009, 200% has significantly outperformed Global ELS Hedge Fund returns as well as Australian and US equit
Slide 12: Private Markets update and outlook
Private Markets Update and outlook AUSTRALIAN IPO MARKET VOLUME BY YEAR ($bn) vs REGAL EMERGING COMPANIES FUND RETURNS1 For personal use only REGAL EMERGING COMPANIES FUND SERIES REC I 19.1% IRR $20bn REC II 9.7% IRR • Regal launched the first of four Pre-IPO Funds in 2016 and is 18.1 one of the mos
Slide 13: Real & Natural Assets update and outlook
Real & Natural Assets Update and outlook KILTER RURAL For personal use only • 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 i
Slide 14: Capital Solutions update and outlook
Capital Solutions Update and outlook CAPITAL SOLUTIONS REGAL GROWTH IN FUM1 REGAL PRIVATE CREDIT OPPORTUNITIES FUND For personal use only $500m $460m • Fund launched October 2022, with seed investments from RPL balance sheet and external investors, alongside a binding $200m commitment from prominent
Slide 15: 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 For personal use only (ASX:RF1) – LIT (ASX:RG8) – LIC Limited (ASX:VG1) – LIC • Portfolio FUM:
Slide 16: Growth-focused strategy remains unchanged
Growth-focused strategy remains unchanged With multiple opportunities for expansion Multiple opportunities For personal use only for growth 1 Diversified, scalable and growing platform Maintain current fundraising momentum ✔ ✔ Seed new strategies / partnerships 2 Attractive market tailwinds ✔ Contin
Slide 17: Appendix
For personal use only Appendix 16
Slide 18: 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 For personal use only Diversification of FUM increasing into Diversification of fund liquidity profile provides Increasing exposure to institutional investors, Capital Solutions, Real and Natura
Slide 19: 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 For personal use only 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
Slide 20: 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 $m For personal use only FUM ($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
Slide 21: Reconciliation of statutory to normalised NPAT
Reconciliation of statutory to normalised NPAT1 6 months to 6 months to NOTABLE FOR 1H23 For personal use only 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% i
Slide 22: Strong balance sheet
Strong balance sheet 30 Jun 2023 31 Dec 20221 For personal use only $m • Robust and liquid balance sheet; $234m of cash and seed investments. Cash and cash equivalents 37.2 39.8 • Debt-free balance sheet at 30 June 2023, complemented by a $50m unsecured revolving corporate Trade and other receivable
Slide 23: For personal use only
For personal use only 22
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