We’re delighted to announce that Equity Trustees Limited (EQT), as Responsible Entity of the Regal Investment Fund (RF1 or the Fund), has today informed the ASX that it is conducting a placement of units to certain wholesale investors¹ (Placement) and a follow-on unit purchase plan (UPP) (collectively, the Offer) to eligible existing unitholders of RF1² (Eligible Investors) at an offer price of $3.41.

The Offer price is equal to the estimated Net Asset Value per unit of the Fund on Friday, 15 November 2024 and represents a discount of 5.3% to the $3.60 ASX closing price of RF1 on Monday, 18 November 2024. 

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

“We’ve been very pleased with the continued strong performance of RF1, with the Fund achieving its five-year anniversary since launch this year, having generated a total net return of 19.6% per annum and delivering $2.1357 per unit in distributions to investors since its inception.³

"RF1 provides investors with a singular access point to a diversified portfolio of Regal’s alternative investment strategies, covering the entirety of Regal’s growing alternative investment platform. We’re delighted to offer new and existing investors with the ability to invest in the Fund at a discount to the current unit price and look forward to further extending the Fund’s excellent track record of delivering strong risk-adjusted returns for our unitholders.”

In the Placement, EQT is proposing to issue up to approximately 27.9 million new ordinary units in the Fund (New Units). The New Units issued under the Offer will be priced at $3.41 per new unit and rank equally with existing ordinary units in the Fund with effect from their respective date of issue, including in respect of entitlements to distributions. 

You can find further information about the Offer including the Investor Presentation (here) lodged with the ASX on 19th November 2024. 

UNIT PURCHASE PLAN FOR ELIGIBLE RF1 UNITHOLDERS

In addition, EQT is pleased to offer Eligible Unitholders in RF1 the opportunity to increase their investment in the Fund via the UPP at a price of $3.41 per new unit (being the same price per New Unit to be paid by wholesale investors in the Placement). In the UPP, EQT is proposing to issue up to approximately 8.8 million New Units.⁴

The UPP offer booklet (UPP Offer Booklet) containing further details of the UPP will be released separately and is expected to be dispatched or made available to all Eligible Unitholders on 25 November 2024. The UPP is scheduled to open on 25 November 2024 and expected to close at 5.00pm (Sydney Australia time) on 12 December 2024.  

Participation in the UPP is optional and open to Eligible Unitholders of the Fund with a registered address in Australia or New Zealand as at 7.00pm (Sydney, Australia time) on 18 November 2024. Eligible Unitholders who participate in the UPP will be able to purchase their New Units without incurring any brokerage costs.

More information on the ASX release, which can be found here. 

 

1. This term is defined in the Corporations Act 2001 (Cth) (Corporations Act) and includes individuals with net assets of at least $2.5m, those who have earned a gross income of $250,000 or more for the last two financial years, and the trustee of Superannuation Funds with net assets of at least $10m.
2. All unitholders with registered addresses in Australia and New Zealand on the RF1 register as at the Record Date (7.00pm (Sydney time) on 18 November 2024).
3. Total return is net of fees, before tax, and assumes reinvestment of all distributions at Net Asset Value (NAV) . Since inception 17 June 2019 to 31 October 2024. Past performance is not a reliable indicator of future performance. Performance figures are net of fees and costs and assume reinvestment of distributions. 
4. EQT has the ability, in its absolute discretion, to accept applications for New Units in excess of this amount under the UPP. The maximum amount of New Units which may be issued under the UPP if EQT accepted all applications from all Eligible Unitholders for the maximum amount which may be applied for by Eligible Unitholders under the UPP is 55,890,610 New Units.