This report is an updated version of the report published on 13 May 2025 at 11:20 AM AEST.

Regal Partners Ltd (ASX: RPL) is an ASX-listed specialist alternatives investment manager with over 20 years of experience. The firm offers a diverse range of investment strategies, including long/short equities, private markets, real & natural assets, and credit & royalties. Regal Partners serves institutions, family offices, charitable groups, and private investors.

Recommendation Rationale – SELL at AUD 2.500

• Negative Financial Highlights: In FY24, the company's total expenses increased to AUD 154.5mn, up from AUD 93.0mn in FY23. Simultaneously, the company's total current liabilities saw a significant increase, rising to AUD 71.5mn as of 31 December 2024, compared to AUD 39.3mn as of 31 December 2023.
• Trading Near the Resistance: RPL stock has surpassed its R2 level recommended on 01 May 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales and Price/Earnings) are higher than the financials sector.
• Market Risk: RPL’s revenue is highly sensitive to market conditions and investment performance. Market volatility, economic downturns, or geopolitical events can reduce asset values and trigger investor redemptions. Additionally, regulatory changes or compliance failures across jurisdictions may impact operations and increase costs.

RPL’s Daily Price Chart

Valuation Methodology: Price/Book Value Approach (FY December'25E) (Illustrative)

Stock might trade at a slight premium to its peers considering the increase in funds under management (including non-fee-earning) to AUD 18mn, normalised NPAT to AUD 94.5mn, healthy balance sheet and no debt in FY24. For conducting the valuation, the following peers have been considered: Magellan Financial Group Ltd (ASX: MFG), Pacific Current Group Ltd (ASX: PAC), Navigator Global Investments Ltd (ASX: NGI), and others.

Considering that the stock has surpassed its R2 level, macroeconomic uncertainty, rally in share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 2.500 (as of 13 May 2025, at 10:06 AM AEST).

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 13 May 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.