HMC Capital nears $6b in FUM with 3 Growth Platforms

HMC Capital edges closer to $6bn in funds under management pushing FFO by 321% in FY22.

HMC Managing Director and CEO, David Di Pilla, said “Our strategy and ambition to create Australia’s leading ASX-listed diversified alternative asset manager is now well underway following a period of transformational growth in FY22.”

“As a manager we also demonstrated strong discipline and alignment through our proactive response to the rising interest rate environment and market volatility this year. We strengthened the capital position of our funds through opportunistic asset sales which took advantage of the disconnect between property and global capital markets.”

“The successful listing of our HealthCo Healthcare and Wellness REIT in September 2021 marked the largest real estate IPO since 2014 and demonstrated the significant investor demand for a diversified healthcare REIT in Australia. HCW exceeded its FY22 PDS FFO per unit forecast and is well capitalised for growth with no debt and significant liquidity to take advantage of attractive investment opportunities including its $500m development pipeline.”

“We also invested in our funds management platform and capability with a number of strategic hires which have expanded our in-house investment and distribution teams. In August 2022 we established our third investment vehicle – HMC Capital Partners Fund I – and our first unlisted product after successfully raising ~$300m in challenging market conditions.”

“HMC Capital Partners Fund I will target undervalued asset rich companies where we can influence positive change. The fund expands our platform into new alternative sectors including private equity and gives us greater flexibility to deploy capital during times of market volatility and dislocation. The fund recently made its first investment in Sigma Healthcare which has seen a ~22% appreciation in its share price since we acquired a ~14% strategic stake,” Mr Di Pilla said.

In FY22 HMC Capital delivered FFO of 31.0 cps pre-tax (+126%) which included material transactional income (including trading profits).

• We believe this is repeatable as we continue to scale our existing platform and execute on transformational opportunities
• The unpredictable nature of the timing of transactional income makes it challenging to provide an FY23 FFO forecast at this time
• FY23 DPS guidance of 12.0 cents is in-line with FY22

HMC Capital is well positioned moving into FY23 with strong momentum and a more established and diversified platform.

• HMC Capital Partners expands our platform into new alternative sectors including private equity and gives us greater flexibility to deploy capital during times of market volatility and dislocation
• Our two REITs have strong balance sheets to take advantage of compelling investment opportunities including their value enhancing development pipelines

• Today we are announcing two new unlisted real estate fund strategies targeting daily needs and healthcare sectors

“We are currently tracking 6-12 months ahead of our previously stated AUM growth target of $10bn by the end of 2024 and we believe the current market environment is creating compelling and strategic opportunities which could accelerate our growth,” Mr Di Pilla said.