L1 Global Long Short Fund Launches $415M Entitlement Offer at $1.63 Per Share

Strategic Shift and Capital Raise

L1 Global Long Short Fund Limited, formerly known as Platinum Capital Limited, has announced a significant capital raising initiative aimed at supporting its strategic transition to a new investment approach. Following shareholder approval at the 2025 Annual General Meeting, L1 Capital Pty Ltd has taken over as the investment manager, marking a new chapter for the listed investment company.

The company is conducting a pro-rata non-renounceable entitlement offer to raise up to AUD 415 million by issuing one new share for every existing share at an offer price of AUD 1.63. This capital raise is designed to fund the deployment of the portfolio into L1 Capital's Global Long Short Strategy, an actively managed global equities long-short strategy that has delivered a remarkable 67.5% net return since its inception earlier this year.

Portfolio Transition and Management Changes

The transition involves monetising the existing portfolio and reallocating the proceeds alongside the new capital raised. The company’s name change to L1 Global Long Short Fund Limited and the ASX ticker update from PMC to GLS reflect this strategic repositioning. The portfolio transition is expected to be completed by the end of December 2025, subject to market conditions.

L1 Capital’s investment philosophy focuses on generating positive absolute returns while preserving capital over the long term. Notably, no management fees will be payable for 12 months from the effective date of the new investment management agreement, although performance fees will continue to apply.

Offer Structure and Investor Participation

The entitlement offer includes a top-up facility allowing eligible shareholders to apply for additional shares beyond their entitlement, subject to scale-back at the company's discretion. Additionally, a shortfall offer will be available to wholesale and institutional investors to subscribe for any shares not taken up under the entitlement offer or top-up facility.

Cornerstone investors, including L1 Group and the founders of L1 Capital, have committed approximately AUD 162 million to the offer, underscoring strong insider confidence. L1 Group’s holding is expected to increase from 14.24% to approximately 16.76% assuming full subscription.

Investment Team and Strategy Highlights

The Global Long Short Strategy leverages the proven research platform of L1 Capital’s Long Short Fund, extending its reach globally without the previous 30% geographic constraint. The strategy typically holds 40 to 80 positions with a net long exposure between 30% and 100%, focusing on high-quality, lower price-to-earnings stocks with strong cash flow and earnings growth.

The investment team, led by Co-Chief Investment Officers Mark Landau and Raphael Lamm, brings extensive experience and alignment of interests, with significant personal investments in the fund. The strategy has demonstrated resilience, protecting over 85% of capital during market downturns.

Risks and Market Considerations

The company outlines a comprehensive risk framework, including management risk, market volatility, liquidity, regulatory compliance, and operational risks associated with the new strategy and capital raising. The offer is not underwritten, introducing uncertainty about the total funds raised. Shareholders should also consider dilution risks if they do not participate fully in the entitlement offer.

Investors are advised to review the detailed offer booklet upon release and consider their personal financial circumstances and investment objectives before participating.