Regal Partners charts US expansion

Regal Partners is planning a push into North America, as it also prepares to launch a multi-strategy income fund locally.

Providing an update at the company's annual general meeting yesterday, Regal Partners chief executive Brendan O'Connor spoke of the desire to expand further offshore.

In 2023, Regal Partners acquired a stake in mining financer Taurus Funds Management. In doing so, it gained over 20 North American institutional clients.

As a result, and with its offshore funds under management (FUM) growing quickly, O'Connor said Regal is in the final stages of recruiting for a senior executive in North America, who would focus on servicing and growing the fund manager's client base in the US and Canada.

It comes as Regal expects further growth in its offshore activities; it currently has representation in Singapore, is building relationships throughout Asia and the Middle East, and has launched Cayman and other offshore versions of its funds.

In 2024, offshore clients accounted for about $600 million or 30% of Regal's net FUM flows. Now, they represent some $3.3 billion or 20% of its total FUM.

"... and we are optimistic this could grow materially in the coming years based on our expanding product range and current due diligence discussions," O'Connor said.

Regal also sees great potential for organically growing its local business, he added, which will in part come through the launch of a new strategy.

"... later this year we are targeting the launch of a multi-strategy income fund, which will draw on the Credit & Royalties capabilities across the group. We expect high demand for such a product, given demographic changes, the phasing out of bank hybrids and the federal government's plans to tax unrealised gains within high superannuation balances," O'Connor said.

"Importantly, this type of multi-strategy product has only been made possible because of the acquisitions of Merricks and PM Capital that Regal has made in the last couple of years, which has materially bolstered our credit expertise."

The product innovation is being led by Adrian Redlich, the founder of Merricks Capital, who has taken over as chief investment officer of Regal's income strategies.

Regal currently has $16.5 billion in FUM across equities, credit and royalties, real and natural assets, and private markets.