Navigator Global Investments (NGI) H2 2024 earnings summary

Executive summary

• Fiscal 2024 was transformative, marked by significant financial outperformance, robust investment performance, and a successful transaction and equity raise that solidified the balance sheet and increased free cash flow for future growth.

• Adjusted EBITDA rose 85% year-over-year to $90.5m, exceeding upgraded guidance, driven by higher distributions from partner firms and increased management and performance fees.

• Navigator manages $75 billion in AUM, up 5% year-over-year, across 11 partner firms and 42 strategies, focusing on alternative asset management.

• The business model centers on acquiring minority interests in high-quality alternative asset managers, providing capital and strategic support, and leveraging partnerships like Blue Owl for value creation.

• Strengthened leadership with a new CEO and completed a transformative transaction, settling a major redemption liability and increasing share of partner firm cash flows.

Financial highlights

• Revenue (non-IFRS) increased 46% year-over-year to $172.3m; statutory revenue up 49% to $268.8m.

• Adjusted EBITDA reached $90.5m, up 85% year-over-year; statutory NPAT rose 87% to $66.3m.

• Pro forma adjusted EPS increased 9% to 15.0 cps; statutory EPS up 16% to 16.6 cps.

• Ownership-adjusted AUM increased 3% to $26.2bn, driven by strong investment performance despite a challenging fundraising environment.

• Operating net cash flow of $58m, with net assets up 57% to $663.2m after liability reduction.

Outlook and guidance

• Management is optimistic about continued AUM and profit growth, supported by strong investment performance and a robust acquisition pipeline.

• Industry tailwinds expected to benefit global alternatives, with alternative AUM projected to reach $60–65tn by 2032.

• Focus remains on disciplined capital allocation, product innovation, and leveraging Blue Owl partnership for sourcing and operational support.

• Fundraising conditions were challenging in the second half of 2024, but the pipeline remains robust and management expects improvement in FY 2025.

• Positioned for long-term value creation through investment in high-quality, growing partner firms and active evaluation of new opportunities.