Pollen Street Group Reports H1 EBITDA Growth and AUM Expansion

Pollen Street Group reported that assets under management reached £8.5 billion by the end of June 2026, with fee-paying AUM rising 18% to £5.5 billion. The growth was supported by the completion of fundraising for Private Credit Fund IV, which exceeded targets, and the first close of the Hanover Square SCSp institutional open-ended credit fund. The company holds £1.8 billion in undeployed credit capital, providing a clear path for further fee income as these assets are invested.

Fund-management revenue increased 22% on a like-for-like basis, while performance fees rose 90% year over year, primarily due to contributions from the private equity portfolio. Management fee income stood at £33.9 million for the period. With costs increasing only 2%, the group achieved a fund-management EBITDA of £16.1 million, representing a 73% like-for-like increase and doubling the figure from two years earlier.

Fund Management Profitability Accelerates

CFO Crispin Goldsmith attributed the margin expansion to the combination of higher fee-paying assets and disciplined cost control. The company noted that reported figures for the same period in 2025 included £8.4 million in non-recurring catch-up fees related to Private Equity Fund V, which obscured underlying trends. Management emphasizes that the like-for-like comparison better reflects the operational trajectory of the asset management business.

The group stated it remains on track to meet full-year consensus expectations for the asset manager segment. This outlook is underpinned by the substantial pipeline of undeployed credit capital and a deployment schedule that typically weights performance fee generation toward the second half of the fiscal year, consistent with historical patterns.

Investment Company Returns Under Pressure

The investment company segment generated a 3.4% balance-sheet return in the first half, falling below the company’s internal target. Management identified two primary drivers for this shortfall: a 0.2% one-time equalization effect associated with the larger size of Credit Fund IV, and a 3.8% negative impact from the decline in the share price of Shawbrook.

Pollen Street acquired its stake in Shawbrook in late 2024, following its IPO. As a mark-to-market holding, the stock price volatility directly affected reported returns. Goldsmith stated that the company will exclude Shawbrook from future guidance commentary due to its inherent volatility. Excluding these specific mark-to-market and equalization effects, the underlying net investment return was 7.4%, which management considers on track for full-year expectations.

Portfolio Strategy Shifts Toward Funds

The group continued to shift its investment portfolio from direct investments toward fund investments. GP commitments accounted for 33% of investment assets at the end of June, up from 29% at the end of December. This shift is supported by £64 million in undrawn commitments. The private equity fund investments demonstrated resilience, supported by the operating performance of underlying portfolio companies, while private credit funds maintained consistent returns.

According to source material from GN markets/earnings (en-US), the private credit pipeline doubled during the first half. The company completed 20 upsizes with existing credit clients over the past year, embedding growth into the credit portfolio as deployment scales. Management indicated that the pipeline is stronger and higher quality than previous periods, positioning the firm for continued expansion in its credit strategy.