Pollen Street (POLN) H2 2024 earnings summary

Executive summary

• Achieved 29% growth in AUM to GBP 5.4 billion in 2024, with fund management now 68% of total revenue.

• Fund management revenue increased 36% year-over-year to GBP 66.8 million.

• Fund management EBITDA margin expanded to 39% (from 30%), with EBITDA up 72% to GBP 25.7 million.

• Net investment return rose to 9.6%, generating GBP 31.8 million in net investment income.

• GBP 47.7 million returned to shareholders via dividends and buybacks.

Financial highlights

• Total revenue rose 24% to GBP 98.6 million, driven by a 62% increase in management fees.

• Profit after tax increased 24% to GBP 49.6 million; dividends declared of GBP 33 million for 2024.

• Management fees now 56% of total revenue, up from 43% in 2023.

• Fee-related earnings grew to GBP 21.7 million, an 89% annualized growth rate.

• Fund management EBITDA up 27% to GBP 57.5 million.

Outlook and guidance

• AUM is forecast to reach GBP 5.8 billion in Q1 2025, with a medium-term target of GBP 10 billion.

• Focus for 2025 on completing fundraising for Private Equity Fund V and Credit Fund IV.

• Management fees expected to remain between 1.25%-1.5% of fee-paying AUM.

• Performance fees projected to contribute 15%-25% of fund management income.

• Dividend of no less than GBP 0.55 declared for 2025, maintaining a progressive policy.