Pollen Street FY 2025 results: AUM up 30% to £7.1 billion and fee income firing
Pollen Street Group Limited (POLN) has posted a strong set of full year numbers for 2025, powered by a step-up in fundraising across both Private Equity and Private Credit. Total assets under management (AUM) rose 30% to £7.1 billion, while the more valuable fee-paying AUM climbed 32% to £5.2 billion.
The earnings mix continues to tilt toward recurring fees. Fund Management Income grew 21% to £81.1 million, with management fees specifically up 26% to £69.9 million. Profit after tax increased 14% to £56.6 million, earnings per share (EPS) jumped 19% to 93.7p, and the total dividend was lifted 8% to 58.0p.
Key numbers investors should know
| Metric | FY 2025 | FY 2024 | YoY |
|---|---|---|---|
| Total AUM | £7.1bn | £5.4bn | +30% |
| Fee-paying AUM | £5.2bn | £4.0bn | +32% |
| Fund Management Income | £81.1m | £66.8m | +21% |
| Group EBITDA | £64.6m | £59.0m | +10% |
| Profit after tax | £56.6m | £49.6m | +14% |
| EPS | 93.7p | 78.8p | +19% |
| Total dividend (DPS) | 58.0p | 53.6p | +8% |
Fundraising beat: flagship funds surpassed targets
The headline drivers were clear. Private Equity Fund V closed at €1.5 billion in July 2025, well ahead of its initial target, and associated co-investment vehicles take the total raised for the strategy to more than €2.0 billion. On the credit side, Private Credit Fund IV reached £1.8 billion of commitments by the accounts signing date, with further commitments expected ahead of an imminent final close.
Why that matters: fee-paying AUM is the engine of recurring earnings. Pollen Street ended the year with £0.8 billion of “dry powder” (undeployed capital) in Private Credit that should convert to fee-paying AUM once invested, supporting 2026 and beyond.
Recurring fees are rising, with a small caveat
Management fees rose to £69.9 million, boosted by £8.4 million of catch-up fees linked to Private Equity Fund V’s final close. The blended management fee rate printed at 1.52% of average fee-paying AUM, or 1.34% excluding catch-up fees. That’s a useful reminder that part of the 2025 fee uplift was non-recurring.
Even so, the quality of earnings is heading the right way: the Asset Manager’s share of net revenues rose to 71% (2024: 68%). Fund Management EBITDA increased 17% to £31.7 million, with a 39% margin (down slightly from 41% as the firm invested in business development and investment teams).
Deployment, exits and portfolio returns
The Group deployed £1.6 billion across strategies in the year – £0.5 billion in Private Equity and £1.1 billion in Private Credit – and completed three disposals, including Shawbrook’s IPO in London. The Investment Company delivered Income on Net Investment Assets of £32.9 million, equivalent to a 9.9% reported return and a 10.6% underlying return before equalisation effects related to the strong fundraises.
In Private Credit, Pollen Street continues to focus on asset-based lending – predominantly senior secured loans backed by granular, tangible collateral. In a market where some investors are nervous about looser structures elsewhere, this positioning looks prudent.
Dividend up and buybacks ongoing
The Board declared a second interim dividend of 31.0p per share, taking the total for the year to 58.0p. Payment is due on 1 May 2026 to shareholders on the register on 7 April 2026 (ex-dividend 2 April 2026). The company also continued buying back shares, with 833,844 ordinary shares repurchased during 2025, and a further 526,806 bought after the year end under the programme.
Carried interest tweak: what changed and why it’s not a guidance issue
Carried interest is the share of fund profits the manager and team receive once investors have achieved a minimum return (the “hurdle”). For Private Credit Fund IV, the Board allocated a further 8% of carried interest to certain individuals, reducing the Group’s share for that fund from 25% to 17%. For future flagship funds, the Group’s carry share will be set between 15% and 25% at or before final close.
My view: rewarding teams who materially outperform fundraising targets makes sense for platform growth, though it modestly dilutes the Group’s share of long-term carry on that fund. Crucially, management states there is no change to financial guidance because the fund size significantly exceeded its target.
What looks good, and what to keep an eye on
Positives
- Fundraising momentum: both flagship strategies exceeded targets, broadening the global LP base and improving visibility to the £10 billion medium-term AUM target.
- Fee quality: rising contribution from management fees and a growing share of group revenues from the Asset Manager.
- Healthy cash returns: dividend up 8%, plus an active buyback programme, underpinned by a confident capital allocation framework.
- Resilient investment returns: 10.6% underlying return on Net Investment Assets, alongside steady deployment and exits.
Watchpoints
- Catch-up fee tailwind fades: 2026 Fund Management Income is guided to be “stable” as new fundraising and deployment offset the non-recurrence of 2025 Private Equity catch-up fees.
- Deployment pace: converting £0.8 billion of Private Credit dry powder into invested, fee-paying AUM is key to sustaining fee growth.
- Carry timing and mix: performance fee and carry contributed 14% of Fund Management Income (2024: 17%). The bigger generators – PE Fund V and Accelerator II – are still early and will season over time.
- Sector optics: broader market nerves around private credit persist, even as Pollen Street’s asset-backed, senior-secured approach has outperformed.
Strategy and 2026 priorities
The to-do list is clear: continue deploying PE Fund V, keep building Private Credit AUM, prepare marketing for Private Equity VI, and maintain a progressive dividend while weighing further buybacks. Management reiterates confidence in reaching £10 billion of total AUM in the medium term.
For those who want to dive deeper into the numbers and slides, the Annual Report and investor materials are available on the company’s site at ir.pollenstreetgroup.com/investors/financial-information/ and www.pollenstreetgroup.com.
Bottom line: strong execution, sensible positioning, valuation debate ongoing
By any measure, 2025 was a step-change year for Pollen Street. Bigger funds, more fee-paying AUM, and solid returns across the book provide a sturdier earnings base. The tweak to carried interest sharing is a fair trade for platform scale if it keeps talent motivated and fundraising momentum intact.
Management is vocal that the share price does not fully reflect progress and has kept the buyback running. If deployment stays on track and fees convert as expected, 2026 should see the benefits of 2025’s fundraising flow through – without the catch-up fee sugar high. For long-term investors seeking a growing, fee-rich alternative asset manager with a conservative credit bias, this is a results update worth noting.
