Australia’s top-performing hedge fund firm, Regal Partners, led by Co-Founder and Chief Investment Officer Phil King, is looking to capitalise on its impressive returns to expand into a broader investment powerhouse, modelled on PE giants Blackstone and Apollo, according to a report by Bloomberg.

The report cites data from Preqin as revealing that Regal Partners’ subsidiaries are behind four of Australia’s six best-performing funds, including two that posted over 37% returns in the first eight months of this year, far outpacing Australia’s benchmark index gain of 6.6%.

The firm's oldest fund boasts an annualised return of more than 23% since 2004, placing it among the top global hedge funds.

With AUD17bn ($11.4bn) in assets under management, Regal is now leveraging its success to diversify, and is aiming to acquire competitors as it looks to expand into private equity and credit.

In a bold move, Regal is in advanced talks to acquire rival Platinum Asset Management, with negotiations expected to conclude within three weeks, according to sources. Both companies have declined to comment on the timeline.

“We’re on a pathway to diversify the business beyond just a rockstar CIO,” said CEO Brendan O’Connor, referring to King. “We seek to emulate the success of the Blackstone's and the Apollo's of the world.”