Global investment manager L1 Capital has entered into a binding merger implementation deed (MID) with Platinum Asset Management (ASX:PTM).
The combination of Platinum and L1 Capital is expected to create a provider of listed equities and alternative investment strategies with total funds under management of roughly $16.5 billion.
Once inked, Platinum will be renamed and the merged company will remain listed on the Australian Securities Exchange (ASX) after completion of the merger with a new undisclosed ticker.
Platinum shareholders will be invited to approve the merger at a September 2025 meeting.
L1 Capital has appointed Macquarie Capital as financial advisor and Corrs Chambers Westgarth as legal advisor. Jefferies Australia has been retained as financial advisor and Allens as legal advisor to Platinum.
The deal requires certain conditions to be satisfied, including Platinum shareholder approval.
Under the terms of the merger, it is expected that immediately following completion, the existing L1 Capital shareholders will hold 74% of the issued share capital in the merged group, and existing Platinum shareholders will hold 26%.
Platinum shareholders will receive ‘in-perimeter’ performance fees related to the first 3.5% of absolute returns (gross performance net of management fees) generated by L1 Capital’s long short funds and mandates.
Existing L1 Capital shareholders will retain performance fees on L1 Capital’s long short funds and mandates in excess of the first 3.5% of absolute returns (gross performance net of management fees).
There will not be any changes to L1 Capital investment products, approach or teams, and clients’ investments will reportedly remain wholly intact.
L1 Capital co-founder Mark Landau says the firm can see major benefits for both Platinum clients and shareholders from combining the capabilities.
“We believe this merger enables a decisive turnaround in the outlook for the Platinum business,” Landau says.
Platinum’s Chair Guy Strapp adds that the board is unanimous in its view that this transaction is in the best interests of shareholders.
“After careful consideration, we believe the combination with L1 Capital provides a catalyst to deliver strong outcomes for shareholders and investors, creating a high-quality manager with a strong heritage, world-class investment talent and scale,” Strapp says.
L1 Capital is a global investment manager with offices in Melbourne, Sydney, Miami and London. The business was established in 2007 and is owned by its senior staff, led by founders Raphael Lamm and Mark Landau.
Platinum Asset Management is the parent company of Platinum Investment Management, an Australian-based global equities manager with approximately A$10 billion under management (as of 31 March 2025). Founded in 1994, Platinum focuses on one core asset class (international shares), serving retail and wholesale investors through a broad range of investment products.
Write to Adam Orlando at Mining.com.au
Images: Unsplash
