Alternative asset manager Regal Partners and its former target Platinum Investment Management have revealed a contrast in funds flows, about a month after their takeover talks ended.
Regal Partners said funds under management (FUM) rose 4.6% to A$18 billion (net of distributions and reinvestments) at 31 December 2024, compared with $17.2 billion at 30 September 2024.
Regal said an ASX announcement that it received about $700 million of net inflows in the December quarter in addition to securing a binding commitment of $200 million from an offshore investor, which is undrawn and not included in the balance.
This took total net inflows and commitments to records of $900 million for the December quarter and about $2.1 million for 2024.
In the quarter, FUM increased by $200 million due to investment performance and by another $300 million due to factors including distributions, buy-backs and positive foreign exchange movements.
Meanwhile, Platinum Investment Management experienced net outflows of $289 million in December, including net outflows from Platinum Trust Funds of about $247 million.
Platinum said in ASX announcement that FUM rose to $11.05 billion at 31 December from $10.957 billion at 30 November.
Performance fees for the six months ended 31 December 2024 were “insignificant” and would fluctuate significantly from year to year.
In September 2024 Regal made a $617 million bid for Platinum, but this was rejected and both parties agreed to end discussions after Regal failed to improve its offer.
At 2.30pm Regal Partners (ASX: RPL) shares were trading at $3.74, up four cents (1.22%) after ranging between $3.68 and $3.78, and capitalising the company at $1.26 billion.
Platinum (ASX: PTM) shares were trading at 70 cents, down 0.5 cents (0.71%), just up from a record low of 61 cents last month, capitalising the company at $407.5 million.
Platinum shares have lost 93% of their value since they reached a high of $9.50 in February 2015, a time when FUM was $27.7 billion, due to factors including fund outflows and poor investment performance.