Regal Partners to acquire PM Capital, reaching $10.8 billion in group funds
SYDNEY, AUSTRALIA: Regal Partners (ASX:RPL) has announced its acquisition of PM Capital Limited, a renowned investment management company with a focus on global long/short equities and fixed income strategies.
Founded by Chairman and Chief Investment Officer Paul Moore in 1998, PM Capital manages over $2.7 billion in funds under management as of September 30, 2023.
The upfront payment for the acquisition is $20 million in cash, with additional consideration of around $130 million in converting redeemable preference shares in RPL, subject to RPL shareholder approval.
Following the completion of this acquisition, Regal Partners’ total group funds under management will increase to $10.8 billion, taking into account their recent partnership with Taurus Funds Management.
Brendan O’Connor, CEO of Regal Partners, expressed excitement about the partnership, citing the extension of Regal’s global equities and credit investment capabilities and the strong track record of PM Capital in managing capital for investors. Paul Moore, Chairman and CIO of PM Capital, highlighted the benefits of leveraging Regal’s corporate support and distribution capabilities and the alignment of their investment philosophies.
The acquisition is expected to enhance Regal Partners’ earnings per share in 2024 and will be funded through a combination of existing cash sources and investments on Regal Partners’ balance sheet.
PM Capital currently manages over $2.7 billion in funds, with a focus on global long/short equities, Australian long/short equities, and enhanced yield fixed income strategies. These strategies have consistently outperformed their benchmarks.
Regal Partners’ CEO, Brendan O’Connor, said “The addition of PM Capital to the Regal Partners group will provide a further extension to Regal’s existing global equities and credit investment capabilities. Paul Moore and his highly experienced investment team are well-recognised as one of Australia’s leading long / short equity and fixed income managers, with a strong track record of successfully managing capital for investors for over 25 years. We are delighted that Paul and his team have chosen to partner with Regal and we look forward to meaningfully contributing to the growth of their business over the years ahead.”
The acquisition is seen as a strategic move to enhance Regal Partners’ global investment capabilities, expand its investor base, and leverage the strengths of both organizations. The transaction is expected to complete in late December 2023, pending shareholder approval at an Extraordinary General Meeting in December.
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