L1 Group FUM Surges 12.4 Percent to $19.1 Billion with Strong Performance Fees
L1 Group’s funds under management climbed 12.4% in Q4 2026, buoyed by inflows into its Gold Fund IPO and Long Short strategies, while FY26 performance fees are set to reach up to $167 million.
- Funds under management rose to $19.1 billion in June quarter
- L1 Gold Fund IPO contributed $428 million in net inflows
- Performance fees for FY26 forecast between $162 million and $167 million
- Platinum strategies saw consistent $308 million net outflows
- One-off costs of $33 million to $36 million expected in H2 FY26
Robust Fund Growth Driven by Gold and Long Short Strategies
L1 Group’s funds under management (FUM) jumped 12.4% in the June 2026 quarter, reaching a total of $19.1 billion. This surge was propelled by a $428 million net inflow from the April IPO of the L1 Gold Fund (ASX:LGF), alongside positive client flows into the L1 Long Short strategies and its Affiliates segment. The latter grew to $3.3 billion, reflecting steady investor appetite.
Meanwhile, the Platinum segment, encompassing Platinum Asia and other specialist funds, continued to experience net outflows of $308 million, mirroring the prior quarter’s trend. Despite these outflows, the overall FUM growth underscores L1’s ability to attract capital across its diversified investment platforms.
Performance Fees Bolstered by One-Off and Exceptional Fund Returns
Realised performance fees for the six months ended 30 June 2026 are expected to range between $122 million and $127 million. This includes a previously disclosed one-off fee of approximately $79 million tied to the closure of the L1 Wholesale Gold Fund. Beyond this, strong returns from the L1 Capital Catalyst Fund and contributions from the L1 Global Opportunities Fund and other strategies have driven the remaining fees.
For the full FY26 year, L1 projects performance fees between $162 million and $167 million. This elevated fee income is anticipated to increase the Non-Controlling Interest expense to an estimated $11 million to $13 million on a pro-forma, after-tax basis.
Integration and IPO Costs to Impact Second Half Earnings
L1 Group flagged expected after-tax one-off costs of $33 million to $36 million in the second half of FY26. These expenses primarily relate to the ongoing integration of the Platinum business and the recent IPO of the L1 Gold Fund. While these costs are non-recurring, they will weigh on near-term profitability.
Investors will be keenly awaiting the detailed FY26 results scheduled for 17 August 2026, which will provide audited figures and further clarity on segment performance and the financial impact of the integration.
Bottom Line?
L1 Group’s strong fund inflows and performance fees paint a positive growth trajectory, but one-off integration and IPO costs will test earnings in the near term.
Questions in the middle?
- How will sustained outflows from Platinum strategies affect L1’s future FUM growth?
- Can L1 Gold Fund maintain momentum beyond its IPO-driven inflows?
- What impact will one-off costs have on L1’s profitability and cash flow in FY27?
