Regal Partners flags NPAT doubling to $90m on record fund flows
Regal Partners Limited (ASX:RPL) expects preliminary normalised net profit after tax (NPAT) of at least $90 million for the six months to 30 June 2026 (1H26), up around 100% on the $44.8 million recorded in 1H25. The specialist alternative investment manager flagged the guidance in a preliminary, unaudited update issued ahead of its formal 1H26 results.
Twin drivers underpin the result: a surge in performance fees and record fund inflows. Funds under management (FUM) rose to approximately $21.4 billion, supported by record net flows for both the June quarter and the half year. Regal confirmed its full 1H26 results will be released on Monday, 24 August 2026.
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Preliminary 1H26 earnings: fees split reveals the performance engine
The preliminary guidance points to a fee mix in which performance fees nearly match recurring management fees, a signal of strong underlying fund returns during the half. Regal expects the following pre-tax revenue components for 1H26.
- Management fees (including loan management and establishment fees): at least $110 million
- Performance fees: at least $115 million
- Normalised NPAT: at least $90 million (versus $44.8 million in 1H25)
Performance fees were driven primarily by funds related to the PM Capital global strategy, alongside Regal Asian Investments, Regal Partners Global Investments, various Regal Resources hedge fund strategies and the Regal Resources Royalties Fund.
Performance fees are inherently variable, as they are tied to returns above benchmarks. As Regal noted, past performance is not a reliable indicator of future performance. Investors should also note that all figures are preliminary unaudited estimates, subject to the finalisation of distributions, period-end fund accounting and auditor review.
Record FUM flows push assets to $21.4 billion
FUM rose 6% over the June quarter to approximately $21.4 billion as at 30 June 2026. Net FUM inflows were approximately $0.9 billion for the June quarter, taking total net inflows for 1H26 to over $1.3 billion. Regal described this as both a record quarter and a record half year for its flows.
The FUM growth trajectory heading into 1H26 was already well established, with Regal closing calendar 2025 at $20.9 billion after generating $1.5 billion in net inflows and $3.15 billion in investment performance across the full year.
The table below sets out FUM movement by asset strategy over the June quarter.
| Asset Strategy | 31 Mar 2026 ($m) | Net Flows ($m) | 30 Jun 2026 ($m) |
|---|---|---|---|
| Hedge Funds | 10,167 | 372 | 10,707 |
| Credit & Royalties | 5,995 | 1,110 | 7,106 |
| Growth Equity | 800 | (26) | 796 |
| Real & Natural Assets | 1,844 | (551) | 1,385 |
| Multi-Strategy | 1,433 | 6 | 1,434 |
| Total FUM | 20,239 | 911 | 21,429 |
Several factors shaped the quarter’s flows:
- Taurus Mining Finance Fund III reached its first close in June, raising approximately US$0.7 billion (~A$1.0 billion).
- Continued strong interest in hedge fund strategies, spanning global and specialist equity.
- Positive inflows into resources royalties strategies.
- A partial offset from a reduction in water entitlement assets managed by Argyle on behalf of two institutional investors participating in the Commonwealth Government’s water buy-back programme, which realised approximately $0.5 billion for those investors.
Investment performance in the June quarter contributed approximately +$0.9 billion, while other factors, including distributions, buy-backs and foreign exchange movements, accounted for approximately -$0.6 billion.
What “alternative investment manager” means for investors
An alternative investment manager earns revenue through two main streams. Management fees are recurring charges tied to the size of FUM, while performance fees are variable and depend on returns generated above agreed benchmarks.
Understanding the distinction matters when assessing earnings quality:
- Management fees provide a recurring, relatively stable revenue base that scales with FUM.
- Performance fees can be lumpy, rising sharply in strong years and falling away when returns soften.
- Growing net flows expand the recurring management fee base, creating a more durable earnings foundation regardless of performance fee volatility.
In this preliminary result, the near balance between the two fee types illustrates both the recurring strength of the business and the upside that strong fund returns can deliver.
Investment case: recurring base plus performance upside
The projected NPAT doubling demonstrates the operating leverage that emerges when performance fees fire strongly. At the same time, record net inflows strengthen the recurring management fee base that supports earnings in future periods, regardless of how performance fees behave.
Regal is an ASX-listed specialist alternative investment manager with a track record dating back more than 20 years and over $21 billion in FUM. The group manages strategies across hedge funds, credit & royalties, growth equity and real & natural assets on behalf of institutions, family offices, charitable groups and private investors.
The governance succession at Regal, completed at the May 2026 AGM when Peter Yates AM assumed the Chair role from Michael Cole AM, reinforced the platform’s strategic continuity heading into a period of record inflows and earnings growth.
The scale and diversity of the platform provide multiple avenues for growth. Investors should weigh this against the preliminary and unaudited nature of the figures, which remain subject to finalisation and auditor review.
What’s next: formal results on 24 August
Regal confirmed it will release its formal 1H26 results on Monday, 24 August 2026, when investors will receive audited figures and fuller commentary on the half.
The announcement did not include a director or executive quote. The following statement from the release highlights the scale of the flows milestone.
Record Net Flows
“Net FUM inflows for the June quarter were approximately $0.9 billion, taking total net inflows for 1H26 to over $1.3 billion. This represents both a record quarter and a record half year for Regal FUM flows.”
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