Regal’s private fund leans into water bets as returns stay above 20%

Regal Partners’ private fund has made water one of its largest allocations, helping drive strong performance.

The private fund delivered 15.8% in 2025 and has now generated an annualised 20.1% return since launching in December 2023.

Around 10% of its $650 million portfolio is allocated to water assets through an investment in Kilter Rural’s water fund.

“In practical terms, 2026 looks like a year where volatility can be monetised rather than merely endured,” said Regal Partners in its investor update.

The Kilter fund returned 11.5% in 2025, supported by drought conditions and government water buybacks that lifted entitlement prices.

Regal increased its exposure in August, a move that proved timely after further Murray-Darling buybacks were announced in November.