Capital Allocators – Inside the Institutional Investment Industry Brendan O'Connor – Alpha Opportunities in Australia at Regal Partners (EP.485)
Feb 5, 2026
Brendan O'Connor, CEO of Regal Partners — a leader who grew a long‑short shop into a A$21B multi‑strategy alternatives manager. He discusses why Australia matters for resources and AI demand. Conversation covers Regal's shift to diversified strategies, cross‑asset origination as an alpha source, and their four‑step investment and risk process.
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Australia's Unique Diversifying Return Profile
- Australia offers a highly idiosyncratic, diversifying return profile dominated by financials and materials.
- Offshore investors gain unique alpha by accessing sectors like resources and small/mid caps where local expertise matters.
Superannuation Shaped Australia's Market Structure
- Australia's superannuation system created a huge domestic capital pool and a different asset-management structure.
- That structure favored internal management and passive adoption, slowing alternatives uptake and creating active-opportunity gaps.
Resources As A Strategic Alpha Engine
- Australia's resource and critical-minerals base aligns with rising energy and AI-related capex.
- Deep technical expertise (geologists, mining engineers) creates a durable edge in identifying winners across capital structures.