L1 Group’s plan to stabilise falling Platinum FUM

The newly combined L1 Group is expectant of stabilising Platinum’s falling funds under management (FUM) within the next 18 months. 

The merger between L1 Capital and Platinum Asset Management was enacted in October 2025, and the combined firm was renamed as L1 Group.

In an investor presentation, it said FUM stood at $16.9 billion across both businesses, with a diversified client base across retail, listed investment companies, wholesale, and staff, with 92 per cent of revenue coming from non-institutional clients.

However, Platinum has experienced persistent outflows and mandate redemptions, which have caused FUM to substantially fall from $15.1 billion at the start of 2024 to $7.5 billion as of September 2025. In the worst-affected months, it lost $1.6 billion in April 2024 and May 2025.

“L1 Capital to apply step-change in Platinum’s investment and service capabilities with a focus on Platinum FUM stabilisation over the next 18 months,” it said.

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“Platinum FUM stabilisation expected over the next 18 months through L1 Group support including across investment performance and client service.”

There will be a “significant focus on supporting performance and distribution to stem outflows and return to growth”, including the appointment of L1 chief investment officer David Steinthal to lead the flagship Platinum International Funds.

It said it expected to see $20 million in synergies from the merger, plus incremental in-flight Platinum target cost savings of $10–$15 million. 

In terms of new product launches, an L1 Capital Global Long Short Fund (Cayman) is expected to be launched in October 2025, as well as adding its first presence in North America and EMEA. 

Four growth pathways were unveiled as part of the firm’s transformation: growth of existing funds through performance and flows, joint ventures to attract talented new teams to launch new products, extension strategies from existing teams, and acquisition of investment managers.

Regarding the acquisition of managers, L1 said there are opportunities to deploy capital into “very compelling, accretive situations” and that it will be selective in pursuing opportunities.

In a separate announcement, the firm stated it will launch a $330 million equity raising transaction to support growth initiatives. This will comprise of an institutional placement to raise $286 million, a share purchase plan to target up to $25 million and a $19 million sale of existing L1 Group shares.

This will be conducted at $0.95 per share, representing a 7.8 per cent discount to last close price on 28 October.

Some $190 million of pre-commitments have already been received for the placement from institutional investors. 

Proceeds from this will be used to fund co-investment in L1 Capital’s Global Long Short strategy, provide co-investment support for another new strategy, expansion of new investment strategies with new affiliates, and joint venture partners and potential strategic acquisitions. 

Earlier that day (29 October), it also stated CEO and managing director, Jeff Peters, will step down effective immediately and be replaced by Julian Russell. 

“After ongoing discussions, Jeff Peters is stepping down from his position as managing director and chief executive, effective today. Mr Peters’ decision to step down as managing director and chief executive follows his central role in stabilising the business since his appointment to the role in January 2024, ultimately culminating in the merger with L1 Capital, which completed on 1 October 2025,” it said.

Peters was appointed in December 2023 to succeed Andrew Clifford, who stepped down as CEO after five years. He had previously been based in the US, working at firms such as Putnam Investments and Columbia Threadneedle and ran the asset management practice at McKinsey.

In his place, L1 Group has appointed Russell, formerly CEO of vehicle management company FleetPartners and was formerly co-head of financial institutions at UBS Investment Bank.