"The global equity market rally that began at the end of October...

"The global equity market rally that began at the end of October has already been good to investors in Regal Partners, pushing the alternative asset manager’s stock up 56 per cent. But the prospect of lower interest rates and better conditions for the small- and mid-cap stocks that Regal specialises in picking should give the company extra momentum coming into 2024.

The group’s results for calendar 2023 showed funds under management surged 113 per cent to $11 billion, thanks in no small part to acquisitions late last year of specialist mining industry finance provider Taurus Funds Management and part of PM Capital.
Regal boss Brendan O’Connor says the early stages of both integrations are going well, and he and chief investment officer Phil King are on the lookout for other alternative managers that have an edge and would fit the Regal culture. Credit is a particular growth area of interest for the group.

Regal’s performance fees fell 33 per cent in 2023, which speaks mainly to the fact that 2022 was a better year for stocks at the smaller end of the market. While O’Connor is hoping the market environment improves, he says the fact that 45 per cent of Regal’s strategies are already trading at or above their high-water mark shows the firm’s fate can become less tied to market sentiment.