Regal Partners Limited (ASX:RPL) has made a takeover bid for the $2.7 billion international fund manager PM Capital Limited as it continues to sweep the sector looking for a deal to bulk up. Regal Partners said discussions for a potential deal with PM Capital were "significantly progressed". "However, they remain incomplete and no agreement has been reached as at the date and time of this announcement, " the listed fund manager, advised by Allens, said in the statement to the stock exchange.

A deal with PM Capital could potentially deliver cost and revenue synergies to both funds, as they both operate long-short global equity strategies, as well as credit portfolios. This could see them cross-selling each other's products and sharing resources. A source familiar with the negotiations between Regal and PM Capital, which is headed by chief investment officer and founder Paul Moore, said the deal values PM at close to $140 million.

PM Capital said the potential acquisition would not impact its listed Global Opportunities Fund which is run by Mr. Moore and co-portfolio managers Kevin Bertoli and John Whelan.