Alternatives investment manager Regal Partners on Wednesday announced an agreement to buy 50% of the issued ordinary shares of Taurus SM Holdings, a provider of financing solutions to midtier and junior mining companies.
Headquartered in Sydney, Taurus currently manages $2.3-billion in committed and drawn capital from its client base of predominantly US institutional investors and pension funds.
The acquisition will further expand Regal’s existing capabilities across alternative investment strategies, specifically in credit and resources royalties.
On completion, Regal Partners’ group funds under management will increase to $8-billion on a proforma basis.
Regal Partners CEO Brendan O’Connor said Taurus represented an exciting opportunity to expand its investment capabilities across the global resources sector.
“The founders of Taurus have built a highly experienced 23-person team, with a strong performance track record and proven fund-raising capability across blue-chip, US-based institutional investors.
“While the Taurus funds will continue to operate under the management of its existing investment team, we look forward to exploring possible ways to collaborate in the future, leveraging the extensive networks and deal origination pipelines across both businesses,” he said.
Regal Partners will acquire the 50% interest in Taurus for $28-billion in cash upfront, plus net debt and working capital adjustments, as well as a deferred continent consideration equal to 25% of the aftertax share of any future carry that would have been received by FinStrat with respect to certain funds had it remained a shareholder of Taurus.