L1 Group’s AuM Jumps $700M as Performance Fees Near $39M
L1 Group Limited reported a $700 million increase in assets under management for the December quarter, driven by strong inflows and positive returns, while performance fees are expected to reach nearly $39 million.
- Assets under management rose by approximately $700 million in Q4 2025
- Growth driven by L1 Global Long Short strategies and positive investment returns
- Outflows from Platinum branded funds due to management transition
- Realised performance fees expected between $37 million and $39 million
- Early attribution of full-year in-perimeter performance fees due to strong H1 results
Robust Growth in Assets Under Management
L1 Group Limited has revealed a significant uplift in its assets under management (AuM), climbing by roughly $700 million over the December 2025 quarter to reach $17.6 billion. This growth was primarily fuelled by strong inflows into the L1 Global Long Short strategies, complemented by positive investment returns across the board.
While the overall AuM expanded, the report also highlighted a notable shift within the portfolio segments. The L1 International segment saw an increase, partly reflecting the transition of management responsibilities for the Platinum International Fund and Platinum Global Fund (Long Only) from Platinum Investment Management Limited to L1 Capital International Pty Ltd as of 1 October 2025. This transition caused a reduction in assets classified under Platinum branded strategies, as some outflows were recorded.
Performance Fees Reflect Strong Market Position
Alongside the AuM growth, L1 Group anticipates realised performance fees for the period ending 31 December 2025 to be in the range of $37 million to $39 million. A substantial portion of this, approximately $32 million, comprises in-perimeter performance fees attributed early due to the strong investment performance in the first half of the financial year.
These in-perimeter fees relate to the long short fund strategies, where L1 Group is entitled to performance fees on the first 3.5% of absolute returns, net of management fees. The early recognition of the full-year entitlement signals confidence in sustained fund performance and provides a positive outlook for fee income stability.
Strategic Implications and Market Outlook
The quarter’s results underscore L1 Group’s ability to attract capital into its long short strategies amid a competitive asset management landscape. However, the outflows from Platinum branded funds and the ongoing management transition introduce an element of uncertainty regarding future asset stability in that segment.
Investors will be watching closely to see how the integration of the Platinum funds under L1 International management unfolds and whether the firm can maintain momentum in both inflows and performance fees. The company’s strategic positioning in long short strategies appears to be a key driver of growth and profitability moving forward.
Bottom Line?
L1 Group’s strong quarter sets the stage for continued growth, but the Platinum fund transition remains a watchpoint.
Questions in the middle?
- How will the management transition impact future outflows from Platinum branded funds?
- Can L1 sustain or grow its performance fees beyond the early full-year attribution?
- What strategies will L1 employ to capitalise on inflows into its long short funds?
