Regal Partners secures $200m+ commitment into recently launched private credit strategy

30 Jan 2023

Regal Partners (ASX:RPL) has secured a binding commitment from a prominent Australian family office to invest $200m (with an option to invest a further $100m) in the Regal Private Credit Opportunities Fund, significantly accelerating the FUM and growth profile of the strategy.

Brendan O’Connor, Chief Executive Officer, Regal Partners said:

“We are seeing increasing interest in private credit from Australian family offices, high net worth individuals and institutions as investors search for ways to diversify their alternatives exposure.

“With a strong track record in pre-IPO and emerging companies investments, Regal has emerged as one of Australia’s largest providers of capital to Australian private companies over the past five years. Regal can now work with companies on their financing needs through equity or debt.

“Regal is uniquely placed to analyse the private credit deal opportunities other capital market participants may see as too complex, drawing on Regal’s large fundamental and sector-specific investment team and independent risk management capability.

“With the recent launch of the Regal Private Credit Opportunities Fund, we’re delighted to offer our clients institutional-grade access to the growing private credit market and we are very pleased with such strong early support.”

The Regal Private Credit Opportunities Fund launched in October 2022 to focus on opportunities in private credit, managed by portfolio managers Jacob Poke and Gavin George.

The strategy focuses on senior loans to small and medium sized public and private companies in Australia and New Zealand, as well as asset backed loans and other opportunistic credit opportunities.

Regal sees the private credit market as a rapidly evolving, increasingly sophisticated space.

Jacob Poke, Head of Private Credit, Regal Funds Management said:

“Though the credit fund only launched in late 2022, we are seeing significant demand for debt capital from high quality domestic companies who are interested in partnering with Regal. The credit fund allows Regal to offer capital solutions across the entire capital spectrum, from debt to equity, across all major industries.

“The credit fund is a flexible provider of debt capital. We are able to support companies through their life cycle and across changing market conditions, from refinancing existing lenders through to funding growth (including via M&A).

“We believe there is a substantial growth opportunity in the Australian and New Zealand private credit markets, and we look forward to being a major participant in these markets as they continue to evolve.”

The investment commitment follows the announcement that the Regal Investment Fund (ASX:RF1) will allocate to the private credit strategy on a measured and opportunistic basis in the coming months.

RF1 provides investors with exposure to a selection of alternative investment strategies managed within the Regal Partners group.