In an ASX announcement on Tuesday, the fund manager reported the December quarter saw approximately $700 million of net inflows, in addition to securing a binding commitment of $200 million from an offshore investor, which was excluded from the $18 billion of funds under management (FUM).
This took total net inflows and commitments for the December quarter to $900 million.
In the last 12 months, it saw net inflows of $2.1 billion, driven by a combination of new investments and strategic growth across its various funds.
FUM grew 4.6 per cent over the quarter compared to $17.2 billion as at 30 September 2024.
According to Regal, investment performance detracted $200 million in the quarter while other factors including buybacks, positive foreign exchange movements, and distributions resulted in a gain of $300 million.
Looking at performance fees, it estimated it will recognise some $25 million in performance fee revenue (pre-tax and on a normalised basis) for the second half of 2024. With this, performance fees for the calendar year 2024 stand at around $85 million.
Regal attributed the 2H24 performance fees to a diversified range of mandates and strategies, primarily Regal Investment Fund, the unlisted multi-strategy Regal Partners Private Fund, the Regal Tactical Opportunities, Attunga Power & Enviro and PM Capital Enhanced Yield strategies, and Regal Australian Small Companies Fund.
Regal also said the 2H24 performance fee revenues exclude carry from any funds managed by Taurus Funds Management, with which it entered a strategic partnership in November 2023, which were above their target return hurdles at 31 December 2024.
It also excludes any funds or mandates which lack performance fee crystallisation periods within the six months to 31 December 2024, such as the PM Capital Global Companies Fund, which has an annual performance fee crystallisation date of 30 June.
The December quarter also saw Regal embark on a period of due diligence with Platinum Asset Management following an offer to acquire the company in September, which was unanimously rejected by the Platinum board that felt it undervalued the company.
On 9 December, the two firms confirmed those discussions had ceased.
The fund manager is set to release its 2024 results next month on Wednesday, 26 February 2025.
