Regal Partners (RPL) Investor Presentation summary

Offer overview and structure

• Placement and Unit Purchase Plan (UPP) aim to raise up to $125.3m, with $95.3m via Placement and $30m via UPP, at an offer price of $3.41 per unit, a 5.3% discount to the closing price on 18 Nov 2024.

• New units will rank equally with existing units and the offer is not underwritten.

• Placement is open to wholesale investors, while UPP is available to eligible unitholders registered as of 18 Nov 2024, allowing up to $30,000 per unitholder without brokerage costs.

• All offer costs are borne by Regal Funds Management, not the fund.

• Key dates include Placement closing on 20 Nov 2024, UPP opening on 25 Nov 2024, and UPP closing on 12 Dec 2024.

Fund profile and investment strategy

• Regal Funds Management manages $17.2bn in capital across diverse alternative strategies, with a team of 185 staff and significant founder/staff investment.

• RF1 is an ASX-listed trust since June 2019, targeting attractive risk-adjusted absolute returns over five years with low equity market correlation.

• The fund invests across eight alternative strategies, including market neutral, global alpha, long/short equities, private credit, water, and resources royalties.

• RF1 aims to be the leading ASX-listed multi-strategy alternatives fund, with a diversified portfolio and increasing allocation to non-equity strategies.

• Pro-forma post-Placement allocations show significant exposure to market neutral, private credit, resources royalties, and small/emerging companies.

Performance highlights

• Since inception in June 2019, RF1 has delivered a total return of +164% (net of fees), with annualised net returns of +19.6% p.a. and cash distributions of $2.1357 per unit.

• The fund has outperformed the S&P/ASX 300 Total Return Index (+53%) over the same period.

• 72% of months have been positive, with annualised volatility of 19% and a Sharpe ratio of 1.03.

• Sub-strategy gross returns since inception range from +12% to +64% p.a. for key strategies.

• The fund maintains a correlation of 0.61 to the S&P/ASX200, supporting its diversification claims.