Regal Partners’ funds under management rose to $12.1 billion in the last quarter, an increase of some 10 per cent compared to $11 billion in FUM as at 31 December 2023.
In an ASX announcement on Monday, the firm said net flows over the three months stood at $400 million. It attributed this to growing demands for its new multi-strategy investment vehicle, the Regal Partners Private Fund, as well as two new mandates received across its long/short equities strategies.
“Positive investment performance contributed 7 per cent or $0.8 billion of the FUM growth for the quarter and was particularly strong across the long/short strategies,” Regal said.
The long/short equities strategy grew to $6.7 billion over the quarter, which included “favourable” performances across global equities, PM Capital and VGI Partners, and a range of its management strategies including Australia small caps, tactical opportunities, absolute return, and market neutral.
Credit and royalties strategies rose to $3.3 billion while private markets and real and natural assets rose to $566 million and $751 million, respectively.
Multi-strategies stood at $669 million at the end of March 2024.
Regals’ growth in FUM followed an announcement earlier this year that the rebate on management and performance fees for staff capital managed in respect of Regal Funds Management was reduced from 100 per cent to 50 per cent, effective 1 January 2024.
“The relevant capital was approximately $0.6 billion at 31 December 2023 and was a similar amount at the end of March,” it stated.
“At this level, the rebate change could generate a further $5 million in management fees per annum, as well as the opportunity for regal to earn performance fees.”
In the ASX announcement, Regal also reported growth in FUM over the quarter was also impacted by the decision to shutter East Point Asset Management, a Hong-Kong based alternative investment manager it acquired in February 2023.
At the time, the acquisition was attributed towards providing investors with strong, risk-adjusted absolute returns through exposure to companies in the Asia-Pacific, with East Point Asset Management’s chief investment officer, Simon Walsh, and a small team joining Regal as employees upon completing the acquisition.
According to Regal, the decision followed a “period of challenging performance” along with the departure of a seed investor and accounted for a reduction of approximately $135 million FUM within its long/short equities.
