Phil King’s Regal snaps up stake in Taurus

afr.com:

ASX-listed fund manager Regal Partners acquired a 50 per cent stake in global commodities financier Taurus Funds Management which will lift Regal’s assets under management to $8 billion.

Taurus, which provides funding to mid-tier and junior miners, oversees $2.3 billion mainly from US institutions and pension funds, Regal said.

Regal paid $28 million for the stake, plus adjustments for net debt and working capital, while up to 25 per cent of the after-tax share of future carry in certain funds will accrue to Taurus owners.

Taking ownership of Taurus would have lifted Regal’s full-year normalised net profit by $2.5 million to $33.8 million, the company said in a presentation, and the deal will be accretive to its profit, it said.

Shares in Regal, which has a market capitalisation just shy of $500 million, jumped 8.6 per cent to $1.90. It has slipped over 45 per cent so far this year.

Regal was founded in 2004 by trader Phil King and is one of Australia’s largest and most successful hedge funds. It has been tied to several potential acquisitions since it merged with VGI Partners in early 2022, giving it an ASX listing.

In November 2022, Regal teamed up with private equity fund BPEA EQT in an audacious bid for Perpetual when Perpetual was close to formalising its acquisition of Pendal.

In August, Regal bid for ASX-listed backer of boutique funds, Pacific Current, but withdrew its interest citing a lack of engagement with the company. Regal has also been speculated to have considered a move on embattled global equities manager Magellan.

On Monday, Regal confirmed a report inThe Australian Financial Review’s Street Talk column that it was on the verge of buying Sydney-based fund manager PM Capital. Discussions with PM Capital