Platinum Asset Management Agrees to Merge with L1 Capital for $16.5B Fund

Australian investment firms Platinum Asset Management and L1 Capital have agreed to merge, forming a combined entity with approximately A$16.5 billion in funds under management. Under the terms, L1 Capital shareholders will own 74% of the merged company, while existing Platinum shareholders will hold 26%, reflecting a significant ownership split that raises governance considerations. The merger aims to create a market-leading provider of listed and alternative investment strategies, leveraging cost synergies expected to generate around A$20 million in annual pre-tax savings and enhancing diversification and growth prospects. The deal includes revised performance fee arrangements, with existing Platinum shareholders receiving fees on the first 3.5% of absolute returns from L1’s funds, and L1 shareholders retaining fees on returns beyond that threshold. Leadership will continue under CEO Jeff Peters, with a seven-member board that balances representation from both groups, although L1 founders will take investment-focused roles rather than board positions. Despite the strategic benefits, stakeholders remain cautious about potential liquidity pressures and conflicts of interest, especially regarding governance and fee structures.