Regal Partners Estimates Over $35 Million in 1H25 Performance Fees

Regal Partners Signals Robust Performance Fee Revenue

Regal Partners Limited (ASX – RPL) has provided a preliminary estimate indicating it will recognise at least $35 million in performance fee revenue for the first half of 2025. This figure, representing pre-tax and normalised earnings, underscores the company’s strong momentum across its alternative investment strategies.

Drivers Behind the Performance Fees

The performance fees were primarily driven by Regal’s global long/short equity strategies, notably PM Capital’s global equities strategy and the recently launched Regal Global Small Companies Fund. Additional contributions came from a diverse range of funds including the Regal Resources Royalties Fund, Regal Private Credit Opportunities Fund, Regal Emerging Companies Fund III, the Attunga Power strategy, and a mining finance fund managed by Taurus Funds Management.

Understanding Performance Fee Recognition

It’s important to note that performance fees are recognised on a crystallised basis, meaning only funds with crystallisation periods within the six-month window to 30 June 2025 are included. For example, the Regal Resources Long Short Cayman Fund, which crystallises annually on 31 December, is excluded from this estimate. This approach ensures the reported fees reflect realised performance rather than unrealised gains.

Next Steps and Market Implications

While this $35 million figure is preliminary and subject to final fund accounting and auditor review, it sets a positive tone ahead of the company’s full half-year results scheduled for release on 25 August 2025. Investors will also be watching for the forthcoming update on Funds Under Management (FUM) later this month, which will provide further insight into asset flows and the company’s growth trajectory.

Regal Partners, formed from the merger of Regal Funds Management and VGI Partners in 2022, manages a broad spectrum of alternative investment strategies across equities, private markets, real assets, and credit. With a team of approximately 180 staff and a multi-award-winning track record, the company is positioning itself as a leading player in the alternatives space.