Phil King, co-founder and chief investment officer of Regal Partners, has retired after a distinguished 40-year career as an investor, including two decades at Regal. His departure, announced Monday, prompted a notable reaction in the market, with Regal shares initially falling as much as 9 per cent before stabilising around a 7 per cent decline. Regal Partners is one of Australia’s most active traders on the ASX, with extensive involvement across various deals, from pre-IPO investing to private credit, underscoring King’s substantial influence on the local market.
King stated his decision to retire was not driven by health issues or internal rifts, explaining it was a process initiated with Regal’s ASX listing in 2022. He intends to remain a shareholder in Regal’s various funds, retaining his 8 per cent stake in the head stock, and plans to continue investing on behalf of a charitable foundation. A keen observer of market evolution, King highlighted the “bubble in passive investing” as a significant shift, believing this trend is cyclical and will eventually create substantial opportunities for active managers.
He also pointed to Australian tax settings as a structural challenge, arguing they “trap a lot of capital in low-growth legacy businesses” by discouraging share sales. Looking ahead, King acknowledged artificial intelligence will transform funds management, but maintained that active managers can still prosper. Drawing parallels with the stockbroking industry, where human relationships remain critical for new share issues despite technological commoditisation of secondary trading, he anticipates similar dynamics will ensure opportunities in areas like small caps and equity capital markets for those prepared to do their own work.
Regal Chief Executive Brendan O’Connor affirmed that while there is “no replacement for Phil King,” the group is prepared for a post-King era with a strong team. The firm will transition from a sole Chief Investment Officer model to an investment committee, mirroring its multi-strategy products, to ensure robust governance. King’s retirement plans include more travel and cycling, though he expects to remain closely connected to financial markets, a passion he intends to pursue daily.
