Regal Partners, an ASX-listed alternative investment manager, provides a diverse range of investment strategies across long/short equities, private markets, and credit for institutional and wholesale clients. The firm recently announced that its prominent lodestar investor, Phil King, is set to retire by mid-next year, news that immediately sent ripples through the market. Regal Partners’ share price experienced a sharp 9 per cent dip at the market open on Monday, reflecting investor apprehension, though the stock saw a slow recovery throughout the trading day.
King’s impending exit is expected to have broader implications for Australian equity markets, particularly among major investment banks. Figures from firms like Morgan Stanley, Goldman Sachs, Macquarie Capital, and Barrenjoey have frequently relied on King’s significant risk tolerance and willingness to deploy Regal’s balance sheet to facilitate large equity transactions and block trades on the ASX. Often described as the ‘plumbing’ of the ASX for his role in providing market liquidity, King’s departure raises questions about who might step into such an influential position, potentially causing concern among bankers reliant on his capacity.
Beyond the immediate market reaction, King’s departure has reignited speculation regarding Regal Partners as a potential takeover target. The firm currently manages $21.4 billion in funds, generating substantial management and performance fees. Major shareholders include Paul Moore’s Horizon Investments with almost 10 per cent, Robert Luciano’s RMPL Investments holding 5.49 per cent, and Adrian Redlich’s JRJJ Management with 4.92 per cent. Phil King’s own New Highland vehicle retains approximately 2.29 per cent. While internal compensation details show employee expenses of $105 million for roughly 190 staff, King himself has notably never been classified as key management personnel in the company’s accounts.
