Australia’s Regal Partners soars as stake buy takes assets to $5.1 billion

(Reuters) – Shares of Australia’s Regal Partners rose more than 11% on Wednesday, after the investment manager said it would buy a 50% stake in Taurus SM Holdings, bringing group funds under management to A$8 billion ($5.07 billion) on a pro forma basis.

Shares of the Sydney-based firm climbed as much as 11.4% to A$1.950 and were on track for their best day since July 1, 2022, if current gains held.

The stake buy in financing solutions provider Taurus, worth A$28 million, is expected to expand Regal Partners’ abilities across alternative investment strategies, the company said.

“The addition of Taurus further supports Regal Partners’ aim to be the leading provider of alternative investment strategies in Australia and Asia,” Chief Executive Officer Brendan O’Connor said in a statement.

Taurus, founded in 2006, currently manages about A$2.3 billion of fee-earning capital across mining finance, mining royalties and private equity.

Regal Partners expects the acquisition to be complete in early November this year and accretive to its earnings per share in 2024.

Separately, the company said its funds under management for the September quarter stood at A$5.8 billion.

($1 = 1.5778 Australian dollars)

(Reporting by Archishma Iyer in Bengaluru; Editing by Subhranshu Sahu)