Pollen Street Group (LON:POLN) Posts Quarterly Earnings Results

Key Points

• Pollen Street grew total AUM to £7.1 billion (30% YoY) with Fee‑Paying AUM of £5.2bn (+£1.3bn), driving revenue to £114m and expanded fund management EBITDA.
• Management highlights a predictable recurring fee base — including PE Fund V (~€1.5bn at 2% ≈ €30m pa) and ~£800 million of uninvested credit capital — which underpins near‑term fee growth and a £10bn AUM target.
• Performance fees are likely to stay subdued because of an IFRS recognition lag, and the board has reduced the group's house carried interest for Credit IV to 17% (from 25%), transferring some future upside to employees.

Pollen Street Group (LON:POLN - Get Free Report) issued its quarterly earnings data on Thursday. The company reported GBX 93.70 EPS for the quarter, Digital Look Earnings reports. Pollen Street Group had a net margin of 50.55% and a return on equity of 9.28%.

Here are the key takeaways from Pollen Street Group's conference call:

• Strong fundraising and AUM momentum — total AUM rose to £7.1 billion (30% YoY) with Fee‑Paying AUM £5.2bn (+£1.3bn), driving revenue to £114m and expanding fund management EBITDA.
• Highly predictable, recurring fee base — management fees (e.g., PE Fund V EUR 1.5bn at 2% fee = ~€30m pa) plus ~£800 million of uninvested credit capital give clear visibility of near‑term fee growth and support the £10bn AUM target.
• Recognition lag for performance fees — carry from recent funds (notably Fund V and Accelerator II) is expected to be material but will not be recognised in profit for several years under current IFRS treatment, keeping performance fees subdued for now.
• Change to carried interest allocation — the board has increased flexibility and for Credit IV has reduced the group's house share to 17% (from 25%) to reward certain team members, which will transfer some future upside from shareholders to employees.
• Investing to scale — fund management costs rose ~25% as the firm builds sales/IR and investment teams, but management says this is deliberate investment and fund management EBITDA also grew (~+17%), reflecting operational gearing.

Pollen Street Group Price Performance

Shares of POLN traded up GBX 66 during midday trading on Thursday, hitting GBX 806. The stock had a trading volume of 1,272,062 shares, compared to its average volume of 335,893. The firm has a market cap of £480.80 million, a price-to-earnings ratio of 9.17 and a beta of 0.05. The company has a 50 day simple moving average of GBX 841.34 and a two-hundred day simple moving average of GBX 889.71. Pollen Street Group has a twelve month low of GBX 633.98 and a twelve month high of GBX 972.

Pollen Street Group Company Profile

Pollen Street was founded in 2013. It is a listed alternative asset manager dedicated to the financial and business services sectors. Pollen Street has complementary activities in managing third-party assets (as an asset manager) and on-balance sheet investments (as an investment company), delivering growth through dedicated private equity and credit strategies.

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