Raphael Lamm and Mark Landau, the high-profile stockpickers behind L1 Capital, are set to receive over $500 million in performance fees after a stellar year and their merger with Platinum Asset Management. The $567.1 million payment to z-class shareholders was disclosed by L1 Group, formed by the October merger, with Lamm and Landau owning the vast majority of these shares. L1 Capital is an investment management firm that specialises in various investment strategies, including long-short funds and activist positions, aiming to generate strong returns for its investors.
These significant fees for Lamm and Landau stem from the Platinum deal, which stipulated sharing performance fees linked to the initial 3.5 per cent of absolute returns from L1 Capital’s Long Short strategies. Beyond this, L1 Group independently generated $165.7 million in performance fees for the 12 months to June 30, more than tripling the prior year’s $45.1 million. This included a one-off $79.3 million fee from its wholesale gold fund closure. The robust performance was supported by exceptional returns across L1’s flagship strategies, notably the Long Short fund and Global Long Short strategy.
The combined L1 Group experienced a 17 per cent jump in funds under management (FUM) to $19.1 billion in its first post-merger financial year. Underlying net profit almost doubled to $188.8 million, with revenue increasing 49 per cent to $385.9 million, driven by strong fund performance and cost-cutting efforts. L1 Chief Executive Julian Russell hailed it as an “exceptional first year,” noting successful integration and $31.7 million in cost savings. The company declared a final dividend of 2¢ a share, contributing to a total of 3¢ for the year, and its shares rose 9 per cent to $1.20. L1 also announced strategic launches for PXC Advisors and a new Australia small caps strategy.
