Pacific Current Group (ASX:PAC) outlined a first-half FY2026 result marked by lower underlying profit but continued capital management and portfolio simplification, according to management’s update covering the six months ended Dec. 31, 2025.
First-half profit down; dividend increased
The company reported underlying net profit after tax (NPAT) of AUD 6.7 million, down from AUD 15.3 million in the prior corresponding period. Management said the decline was driven by lower distributions from boutiques and lower interest income following an off-market buyback, partially offset by cost actions including debt reduction and corporate cost reduction.
Pacific Current declared an interim dividend of AUD 0.20 per share, fully franked, with a record date of March 5, 2026. The company described the dividend as a 33% increase versus the previous corresponding period and said the higher payout aligns with capital management initiatives over the past two years aimed at returning surplus capital to shareholders.
Statutory profit declined by AUD 11.7 million during the period, which management attributed to fair value adjustments.
Costs reduced and debt repaid
Management said additional initiatives delivered a 31% reduction in corporate costs compared with the prior period. Chief Financial Officer Ron also noted that the repayment of the senior debt facility reduced interest expense, and with the balance sheet now debt-free, he said there would be no interest expense in the second half.
The company repaid its senior secured debt facility with Washington H. Soul Pattinson in October 2025. Management said the repayment included an AUD 0.8 million early retirement premium and AUD 0.3 million of interest for October, and that the facility was settled using a restricted deposit account.
NAV and fair value metrics
Pacific Current highlighted an increase in its fair value estimate of net asset value (NAV) per share. Management said that due to capital management initiatives, asset sales during the period, and fair value movements, fair value NAV per share increased to AUD 16.30 as at Dec. 31, 2025 (with Ron later citing AUD 16.34 per share in the presentation discussion). The company said this compared with a fair value estimate of AUD 14.32 per share as at Dec. 31, 2024, representing a 14% increase over the previous corresponding period.
Ron said that as at Dec. 31, 2025, statutory NAV was AUD 13.92 per share, while fair value NAV was AUD 16.34 per share, a difference of AUD 2.42 per share. He attributed the uplift to factors including market gains on financial assets, higher valuations for some portfolio holdings, and the ongoing impact of portfolio simplification. The company also stated that fair value NAV has grown at 14% per annum over the past five years, from AUD 8.40 per share to approximately AUD 16.34 per share.
Portfolio activity: sales, buybacks, and new lending
Management described the half as “another busy period” for transaction activity and pointed to several significant portfolio moves:
- Victory Park Capital: In September 2025, PAC sold a portion of its interest—described as 2% and 0.8% interests in Victory Park’s Holdco—for $5.5 million, in exchange for future carried interest entitlements. Management said the transaction reduced PAC’s Victory Park equity interest to 9.2%.
- On-market share buyback: PAC commenced an on-market buyback in October covering 1 million shares (about 6.8% of issued capital), fully funded from existing reserves, with Wilsons appointed as execution-only broker. As at Dec. 31, 2025, PAC had repurchased just under 200,000 shares for around $2 million. Management said the buyback would recommence after the results announcement, subject to board confirmation of no material information.
- Janus Henderson exit: PAC sold its entire stake in Janus Henderson, generating $9.4 million in proceeds.
- Roc Partners facility: As of December 2025, PAC had deployed growth capital through a lending facility with an affiliate of Roc Partners, bearing a 10% interest rate and maturing on Nov. 30, 2028.
- Northern Lights Alternative Advisors: Management said PAC also completed lending facilities intended to accelerate growth for this business.
Discussing revenue drivers, Ron said management fee revenue declined due to Carlyle and a partial exit from Pennybacker and Victory Park. He said current-period fees were “modest” and “largely from Roc.” He also noted that revenue from financial assets reflected items such as deferred consideration and dividends from Abacus and Janus Henderson shares, while interest income declined due to lower cash balances following capital management actions and debt repayment.
Strategic priorities for the remainder of FY2026
Looking ahead, management said it intends to maintain momentum and execute a disciplined plan centered on five initiatives:
- Accelerating growth by pursuing potential opportunity partners and selectively assessing new investments
- Unlocking shareholder value through targeted capital initiatives
- Controlling operating costs through disciplined cost management
- Strengthening the balance sheet through continued optimization
- Enhancing organizational efficiency by embedding structural and governance changes
Management also provided an example of working with boutique partners through a senior loan facility to IFP, described as a Florida-based registered investment advisor platform business. The company said IFP has $16 billion on its platform, and PAC provided a $25 million debt facility on commercial terms to refinance existing debt and provide growth capital for advisor book acquisitions and retention packages.
No questions were taken during the call. Management closed by thanking employees and the board and reiterated its focus on achieving outcomes for shareholders in the second half of the financial year and beyond.
About Pacific Current Group (ASX:PAC)
Pacific Current Group Limited engages in multi-boutique asset management business worldwide. It manages assets for institutional and individual clients. The company was formerly known as Treasury Group Ltd and changed its name to Pacific Current Group Limited in October 2015. Pacific Current Group Limited is based in Melbourne, Australia.
