NGI’s Dividend Policy Review Signals Possible Shift Amid Rapid Expansion

Strong Financial Performance Amid Diversified Growth

Navigator Global Investments Limited (NGI) has delivered a standout financial performance for the fiscal year ending June 2025, posting record earnings supported by an 18% increase in revenue to USD 203.7 million and a 26% rise in adjusted EBITDA to USD 113.6 million. The company’s statutory net profit after tax surged 80% to USD 119.4 million, reflecting strong performance fees and unrealised gains on its investment portfolio.

NGI’s ownership-adjusted assets under management (AUM) grew by 6% to USD 27.7 billion, underpinned by strategic inflows and solid investment returns across its diversified portfolio of 12 Partner Firms and 46 alternative investment strategies. This growth underscores NGI’s unique positioning as the only ASX-listed company focused exclusively on partnering with leading alternative asset managers globally.

Strategic Partnerships and Portfolio Expansion

During FY25, NGI continued to execute its growth strategy by expanding its portfolio with a strategic minority investment in 1315 Capital, a US-based healthcare private equity firm, further diversifying its exposure to private equity. The company also benefits from its partnership with Blue Owl’s GP Strategic Capital platform, which provides access to a broad business services platform and supports NGI’s growth initiatives.

NGI’s portfolio includes a broad range of asset classes and strategies, from private credit and real estate to hedge funds and commodities, with a strong focus on private markets. The company’s Lighthouse segment contributed significantly to performance fees, which increased substantially year-on-year, driving margin expansion and earnings growth.

Robust Balance Sheet and Capital Management

NGI maintains a strong balance sheet with net assets rising 20% to USD 794 million and a conservative net debt to adjusted EBITDA ratio of 0.6x, well below its target ceiling of 1.5x. The company declared a final dividend of USD 3.0 cents per share, reflecting confidence in its cash flow generation and financial position. However, the board has signaled a forthcoming review of the dividend policy to ensure optimal capital allocation during this growth phase.

Operating expenses increased modestly, primarily due to higher employee bonuses linked to performance fees and increased investment in technology and distribution. Despite this, NGI’s operating margins improved, benefiting from the scalable nature of its business model and diversified revenue streams.

Outlook and Growth Prospects

Looking ahead, NGI aims to continue its acquisitive growth strategy, targeting one to two new Partner Firm investments annually that meet its stringent criteria for scale, diversification, and growth potential. The company’s strong operating cash flow and flexible credit facility position it well to fund these opportunities. NGI expects ongoing core growth from its existing Partner Firms, supported by sustained investment performance and new product launches.

With a well-diversified portfolio and strategic partnerships, NGI is positioned to capitalize on structural tailwinds in the alternative asset management industry, particularly in private markets. The company’s focus on delivering resilient, recurring earnings and expanding its footprint globally remains central to its long-term value creation for shareholders.