Highlights

• Regal Partners has confirmed at least $122.7 million in Fund Performance Fee Revenue for CY26, comprising $118.7 million crystallised in 1H26 and $4 million in the July to October 2026 period.

• The company does not expect any additional material Fund Performance Fee Revenue for the remainder of 2H26 given current market conditions and recent fund performance.

• Regal generated positive net inflows for the 12th consecutive quarter in September 2026, with a further $0.1 billion in October bringing total 10-month net inflows to $2.2 billion.

• Other Income for 2H26 has been materially impacted by the decline in the share price of Regal Asian Investments Limited (ASX:RG8), in which Regal holds an Investment position.

Regal Partners Limited (ASX:RPL), an ASX-listed specialist alternative investment manager trading under the ticker RPL, provided an update to the market on 12 November 2026 covering the trajectory of its Fund Performance Fee Revenue for the 2026 calendar year and its ongoing net flows position. The company manages approximately $22 billion in funds under management across a range of alternative strategies including hedge funds, Credit and royalties, growth equity, and real and natural assets. Performance fees are a key variable component of Regal's revenue, crystallising periodically based on the investment performance of the underlying funds relative to their respective benchmarks and hurdles. The update provided the market with a clear picture of the total revenue already secured and the company's expectation for the remainder of the year.

Fund Performance Fee Revenue — Crystallisation and CY26 Outlook

The Fund Performance Fee Revenue update confirmed that the first half of calendar 2026 had been a materially positive period for Regal's funds in performance terms, with $118.7 million in performance fees crystallised and received in cash during 1H26. For the period from 1 July to 31 October 2026, a further $4 million in performance fee revenue crystallised and was received, bringing the year-to-date total to $122.7 million. The company indicated that in the context of current market conditions and the recent performance of its funds in the second half of the year, it does not currently expect any additional material performance fee revenue for 2H26 beyond the amount already received. This guidance reflects a more subdued investment environment in the second half of the year relative to the first half, consistent with the broader market Volatility that characterised Australian and global Equity markets through the period.

Positive Net Flows and Funds Under Management Trajectory

On the question of net flows, Regal confirmed that the September 2026 quarter represented its 12th consecutive quarter of positive net inflows — a sustained record that reflects the company's ability to attract and retain investor Capital across its strategies even in market conditions characterised by rate pressure and broader volatility. In October 2026, net inflows of $0.1 billion were recorded, bringing total net inflows for the first ten months of the year to $2.2 billion. Persistent positive net flows are strategically significant for an alternative Fund Manager because they indicate that the firm's investor relationships and product suite are generating organic growth in Assets under management independent of market returns, providing a more stable foundation for revenue generation across different investment environments.

Other Income and Balance Sheet Considerations

The Other Income component of Regal's financial results, which covers mark-to-market gains and losses, interest income, and dividends and distributions from the company's investments in its own funds, was noted as having been materially affected in 2H26 by the decline in the share price of Regal Asian Investments Limited, an ASX-listed vehicle in which Regal holds a seed investment. The company indicated that it currently expects Other Income to have no material positive impact on Normalised Net Profit After Tax for the full CY26 year. The combination of a strong first half in performance fees, subdued second-half fee generation, and the negative mark-to-market impact on Other Income provides a mixed but substantially positive overall picture for CY26, with the $122.7 million in performance fees underpinning a base level of revenue that reflects the scale of the company's fund management operations. The update also highlights the importance to investors of understanding the distinction between performance fee revenue — which crystallises based on absolute or relative investment returns and can vary substantially from period to period — and management fee revenue, which is more directly linked to the quantum of funds under management and tends to be more stable. Regal's strong performance fee outcome for 1H26 reflects the investment returns generated by its funds in that period, and the guidance that 2H26 will not deliver material additional performance fees reflects a period of more mixed or subdued fund performance in a challenging market. The 2H26 net flows of $0.1 billion in October 2026 demonstrate the ongoing health of the Business development function even in this environment. Regal's diversified alternatives platform — spanning strategies that have different performance drivers and return profiles — provides a degree of natural Diversification in performance fee generation that single-strategy managers lack. While no alternatives platform is entirely insulated from the effects of a broadly challenging market environment, the spread of investment mandates across equities, credit, real assets, and growth equity means that some strategies may continue to generate performance fees even in periods when others do not. This strategic diversification in revenue sources is a structural quality of the Regal business that distinguishes it from more concentrated alternative managers and supports a more resilient long-term revenue profile. For investors assessing Regal Partners as an investment, the CY26 performance fee update provides useful context for modelling the company's Earnings trajectory. The heavy concentration of performance fee crystallisation in 1H26 reflects the nature of the funds' measurement periods and the strong investment returns generated in the first half of the year, while the more subdued 2H26 performance fee environment is consistent with the broader market conditions described in the update. The sustained record of positive net flows — 12 consecutive quarters at the time of the announcement — is a business quality indicator that distinguishes Regal from peers whose fund raising is more episodic or market-dependent. As the company continues to expand its funds under management base through both market returns and new investor capital, the platform for future performance fee generation is being built progressively, even in periods where short-term market volatility limits the crystallisation of near-term fees.

Key Insights

The Other Income component of Regal's financial results, which covers mark-to-market gains and losses, interest income, and dividends and distributions from the company's investments in its own funds, was noted as having been materially affected in 2H26 by the decline in the share price of Regal Asian Investments Limited, an ASX-listed vehicle in which Regal holds a seed investment. The company indicated that it currently expects Other Income to have no material positive impact on Normalised Net Profit After Tax for the full CY26 year. The combination of a strong first half in performance fees, subdued second-half fee generation, and the negative mark-to-market impact on Other Income provides a mixed but substantially positive overall picture for CY26, with the $122.7 million in performance fees underpinning a base level of revenue that reflects the scale of the company's fund management operations. The update also highlights the importance to investors of understanding the distinction between performance fee revenue — which crystallises based on absolute or relative investment returns and can vary substantially from period to period — and management fee revenue, which is more directly linked to the quantum of funds under management and tends to be more stable. Regal's strong performance fee outcome for 1H26 reflects the investment returns generated by its funds in that period, and the guidance that 2H26 will not deliver material additional performance fees reflects a period of more mixed or subdued fund performance in a challenging market. The 2H26 net flows of $0.1 billion in October 2026 demonstrate the ongoing health of the business development function even in this environment. Regal's diversified alternatives platform — spanning strategies that have different performance drivers and return profiles — provides a degree of natural diversification in performance fee generation that single-strategy managers lack. While no alternatives platform is entirely insulated from the effects of a broadly challenging market environment, the spread of investment mandates across equities, credit, real assets, and growth equity means that some strategies may continue to generate performance fees even in periods when others do not. This strategic diversification in revenue sources is a structural quality of the Regal business that distinguishes it from more concentrated alternative managers and supports a more resilient long-term revenue profile. For investors assessing Regal Partners as an investment, the CY26 performance fee update provides useful context for modelling the company's earnings trajectory. The heavy concentration of performance fee crystallisation in 1H26 reflects the nature of the funds' measurement periods and the strong investment returns generated in the first half of the year, while the more subdued 2H26 performance fee environment is consistent with the broader market conditions described in the update. The sustained record of positive net flows — 12 consecutive quarters at the time of the announcement — is a business quality indicator that distinguishes Regal from peers whose fund raising is more episodic or market-dependent. As the company continues to expand its funds under management base through both market returns and new investor capital, the platform for future performance fee generation is being built progressively, even in periods where short-term market volatility limits the crystallisation of near-term fees.