L1 Global Long Short Fund Launches $415M Entitlement Offer with New Strategy
L1 Global Long Short Fund Limited has announced a $415 million non-renounceable entitlement offer alongside a strategic shift under new management. The capital raise supports the transition to the L1 Global Long Short Strategy following a portfolio monetisation.
- Non-renounceable entitlement offer to raise up to A$415 million
- L1 Capital appointed as new investment manager with fee waiver for 12 months
- Company rebranded from Platinum Capital Limited to L1 Global Long Short Fund Limited
- Cornerstone investors committed approximately A$162 million
- Proceeds to be invested in L1 Capital’s Global Long Short Strategy
Strategic Shift and Capital Raise
L1 Global Long Short Fund Limited, formerly known as Platinum Capital Limited, has announced a significant capital raising initiative through a non-renounceable entitlement offer aimed at raising up to A$415 million. This move coincides with a strategic overhaul following shareholder approval at the company’s recent annual general meeting.
The fund has appointed L1 Capital Pty Ltd as its new investment manager, marking a fresh chapter in its management and investment approach. Notably, L1 Capital has agreed to waive management fees for the first 12 months under the new investment management agreement, although performance fees will still apply during this period.
Rebranding and Market Positioning
Reflecting this strategic pivot, the company has rebranded itself from Platinum Capital Limited to L1 Global Long Short Fund Limited, with the ASX ticker set to change from PMC to GLS. This rebranding signals a clear departure from its previous identity and aligns the company’s market presence with its new investment philosophy.
The current portfolio has been fully monetised, with proceeds and the funds raised from the entitlement offer earmarked for deployment into L1 Capital’s Global Long Short Strategy. This transition is expected to be completed by the end of December 2025, subject to market conditions.
Investor Participation and Commitments
The entitlement offer is structured as a one-for-one issue at A$1.63 per new share and is open to eligible shareholders in Australia and New Zealand. Shareholders who fully subscribe may also apply for additional shares through a top-up facility, with allocations subject to scale-back at the company’s discretion.
Backing the offer are cornerstone commitments totaling approximately A$162 million, including around A$90 million from L1 Group and its founders alongside external cornerstone partners. This substantial backing underscores confidence in the new strategy and management team.
Offer Logistics and Market Implications
The offer is not underwritten but is supported by a syndicate of joint lead arrangers and managers, including Morgans Financial Limited and Taylor Collison Limited. The company also reserves the right to conduct an institutional placement concurrently or following the entitlement offer, subject to demand.
New shares issued will rank equally with existing shares, including entitlements to future distributions. The company’s franking credit balance stands at approximately A$27.5 million following the portfolio monetisation, potentially enhancing shareholder returns.
Overall, this capital raising and strategic repositioning represent a decisive step for the fund as it seeks to establish itself firmly under new management and investment direction.
Bottom Line?
L1 Global Long Short Fund’s capital raise and strategic reset set the stage for a pivotal transition, with market response and execution to be closely watched.
Questions in the middle?
- Will the entitlement offer achieve full subscription without underwriting support?
- How will the new Global Long Short Strategy perform amid current market volatility?
- What impact will the management fee waiver have on the fund’s profitability and investor returns?
