This article is from the Australian Property Journal archive
Specialist alternative investment manager Regal Partners posted a funds under management jump of 64% across 2024, driven by the acquisitions of hard asset lending specialist Merricks Capital.
Funds under management closed the year at $18 billion.
Statutory net profit came in at $66.2 million, a jump up from $1.6 million in 2023.
Performance fees of $84.5 million were driven by strong performance across a diversified range of strategies, it said.
Regal Partners acquired Merricks Capital, which managed $2.9 billion across its funds, in July. The flagship fund run by Merricks Capital turned in its first monthly negative return in almost five years in December, the Financial Review reported, impacted by once-off provisions across four loans, key amongst them a $465 million syndicated loan for the proposed 55-storey office building at the corner of Pitt and Hunter streets in the Sydney CBD.
In a note, Merricks Capital it said the impacted loans were to a Sydney CBD office asset, a Sydney CBD commercial development site, the Melbourne Place Hotel and an agricultural loan in Bundaberg.
The Melbourne Place Hotel opened in November and then sold for around $150 million more than two years after administrators were appointed when the developer defaulted on payments, with Merricks Capital taking over the project.
Regal Partners CEO and managing director Brendan O’Connor said, “We have been delighted with the continued business growth and strong investment”.
“Our increasingly diversified, specialist alternative investment offering has continued to earn strong client support, with the business attracting positive net inflows of $1.9 billion over the period, representing a record year of fundraising for the business.
“Attractive risk-adjusted investment returns across a variety of asset classes and investment strategies continues to provide opportunity to further diversify our existing capital base, including a continued increase in engagement and client wins from large offshore institutional investors, further validating Regal’s institutional grade investment, risk and operating platforms.”
It ended the year with around $200 million in cash and investments post the payment of its final dividend of 10c per security.
