Belt tightening Platinum merges with L1 Capital

Mike Taylor

Managing Editor/Publisher, Financial Newswire

9 July 2025

Just a day after confirming further belt-tightening measures, Platinum Asset Management yesterday announced that it had entered into binding merger terms with L1 Capital.

Under the merger, Platinum will acquire 100% of the issued capital in L1 Capital but with L1 Capital shareholders ending up holding 74% of the merged group.

Announcing the merger, the two companies said the combination of Platinum and L1 Capital is expected to create a market-leading provider of listed and alternative investment strategies with total funds under management of approximately $16.5 billion with Platinum being renamed.

Platinum chair, Guy Strapp said the board was unanimous in its view that the transaction is in the best interests of shareholders, while the firm’s chief executive, Jeff Peters, said the combined business would enable the delivery on strategic goals sooner while providing a pathway to significantly increase and diversify funds under management.

L1 Capital co-founders Mark Landau and Raphael Lamm both welcomed the transaction pointing to the potential for a decisive turnaround in the outlook for the Platinum business.

Strapp will continue as independent chair of the merged business with Peters continuing as chief executive with the board having a majority of independent directors but with L1 Capital holding two board seats,

Confirmation of the transaction came just 24 hours after Platinum told the Australian Securities Exchange (ASX) that it did not earn any performance fees in the second half of last financial year and added another $10 million to the cost of its turnaround program after it admitted that it had undershot the cost of the turnaround program a day earlier.

It said the turnaround program implementation costs for the full year, including non-cash acceleration of share-based payment amortisation, are approximately $40 million, as opposed to the $30 million announced a day earlier.

Platinum on Monday announced that it had experienced net outflows of approximately $428 million in June alongside delivering a market update.

It said Platinum Asset Management continued to make good progress in reducing expenses with full year operating costs (excluding turnaround) expected to be circa $75 million and turnaround program implementation costs, including non-cash acceleration of share-based payment amortisation, of approximately $30 million (the figure subsequently revised upwards).

Platinum said that, as previously advised, the company is taking steps to generate further FY26 cost savings to help offset any future revenue declines.

“The FY26 savings target has now been increased from circa $5 million to between $10 million and $15 million,” it said on Monday.

The company yesterday also announced to the ASX that Peters will be entitled to an additional “work effort payment” of $670,000 in recognition of the extra effort required by the merger.