A newly simplified, ASX50 “permanent capital” compounder using Brickworks’ merger to scale private credit and real assets—while still carrying cyclical coal and housing sensitivity.
Overview
Soul Patts (SOL.AX) is one of Australia’s longest-standing listed investment companies (ASX-listed since 1903) and now operates as a diversified, permanent-capital investment house managing a multi-asset portfolio worth ~A$13.8bn (Jan 2026). A defining event was the 23 Sept 2025 merger with Brickworks, which unwound a 56-year cross-shareholding, created a cleaner ASX50 structure, and materially enhanced strategic and funding flexibility. The group allocates across Listed Companies, Private Companies, Emerging Companies, Credit, and Real Assets, generating value via fully franked dividends, interest income from a growing private credit book, and operating cash flows from unlisted businesses and tangible assets. 1H26 results showcased merger-driven accounting gains (statutory NPAT ~$2.3bn, +604%), but also steady underlying performance (regular NPAT ~$304m, +6.7%) and stronger cash generation (NCFI ~$334m, +15.4%), supporting a 48c fully franked interim dividend (+9.1%). The investment appeal rests on disciplined capital allocation, a long history of dividend increases (28 consecutive interim increases), and strong long-term TSR (~12.9% p.a. over 25 years), though investors must weigh premium valuation and cyclical exposures (coal, building products) against the benefits of diversification and permanent capital.