Phil King to Retire from Regal Partners After 20 Years, Leaving a Legacy in Australian Markets
Phil King, the co-founder and chief investment officer of Regal Partners, announced his retirement on Monday, ending a four-decade career in investing that included 20 years at the helm of the firm he founded. The 57-year-old will step down in June next year, according to reports from The Australian Financial Review and The Sydney Morning Herald.
King, who started investing before he grew facial hair and "became hooked," has been a dominant figure in Australian capital markets. When he founded Regal in 2004, the firm managed a couple of million dollars; today, it oversees more than $21 billion.
His influence has been such that the Australian Financial Review described him as "the market's plumbing," and he has been called pivotal to successful block trades, capital raisings, and floats in Australia. His departure has been likened to the end of an era for active fund managers who rely on valuation skills and deep company analysis to pick winners.
Market Reaction and Legacy
Regal Partners' share price dived 9 per cent at the market open on the day of the announcement, though it slowly recovered as the day wore on. King himself acknowledged the decline with characteristic wry humor: "At least it's not up. That would have been embarrassing."
The market's jitters reflect King's central role in the financial ecosystem, particularly for investment bankers at firms like Morgan Stanley, Goldman Sachs, Macquarie Capital, and Barrenjoey, who have long relied on his firm to support major transactions.
King's career began as a chartered accountant at KPMG, followed by stints as a broker at Macquarie and at a hedge fund in London. He often credited these experiences for his investment philosophy: "Working for a broker [is] how you learn how to make money, and working for a fund manager, that's how you learn not to lose money."
His catchphrases have become part of market lore: "If in doubt, ship it out," "It's better to short something going down than short something going up," and "The day you stop learning is the day you stop being a good investor."
Views on Markets and the AI Boom
King has long argued that the Australian market is inefficient, pointing to the capital gains tax regime that discourages selling shares and contributes to a market dominated by low-growth companies such as the big four banks and the two supermarket chains. "We have a lot of capital trapped in old low growth companies ... and a lot of these companies get very, very expensive," he said.
One of his most notable recent bets was shorting Commonwealth Bank shares, a position he took last year. The stock has dipped 3.9 per cent this year, but King remains unapologetic: "It's not over yet; it's still playing out." He attributes the bank's high valuation to massive inflows from passive funds and Australia's tax system discouraging selling.
Looking globally, King sees the artificial intelligence boom as a major force, noting that Wall Street giants like OpenAI and Anthropic are seeing "incredible" month-on-month revenue growth. He cautioned against calling it a bubble prematurely: "It's way too early to call it a bubble." However, he admitted that AI's ability to build models more quickly than his analysts raises concerns, including whether his kids will find jobs in an AI-driven future.
Succession and Personal Notes
King has been thinking about succession since he started the business and handed over day-to-day running of Regal many years ago. Despite his stature, he remains humble, still on the waiting list to join the local Manly Golf Club.
His departure marks a significant transition for Regal Partners and the broader Australian investment community, which will have to adjust to life without one of its most prominent and influential figures.