Fund Manager Summary
The fund managers believe that the outlook for L1 Group Ltd presents a significant opportunity, particularly after the recent merger with Platinum. In their opinion, substantial cost synergies are easily obtainable, enhancing the quality of the combined entity. They note that while revenue benefits are more uncertain, there is potential for improved distribution capabilities and cross-sell opportunities through existing client relationships. However, the fund has recently exited its position, as the sharp increase in the share price has fully incorporated these benefits, with the current valuation reaching a forward PE of approximately 23x 2026 earnings at a share price of $1.05.
Source: Trading View
Commentary From The Managers
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Tyndall Asset Management
14 Nov 2025
$1.05
Summary
- Tyndall Asset Management initiated a position in L1 Group Ltd due to a recent equity raising opportunity.
- The fund manager views L1 Group as a quality business with potential for growth.
- Recent quarterly updates indicate improving investment performance, showcasing green shoots.
- L1 Capital's performance is strong both in the short-term and long-term perspectives.
- Investment performance at Platinum is showing signs of significant short-term improvement.
- The fund manager believes the announced synergies of $20 million and an additional $15 million cost-out at Platinum are achievable.
- Platinum's cost base is notably higher than L1 Capital's, despite lower funds under management (FUM).
- The cost-out strategy is seen as a means to provide time for operational improvements.
- Tyndall Asset Management emphasizes that funds management is fundamentally a people business.
- Backing experienced operators like Raph and Mark is seen as key to enhancing investment performance at Platinum.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Tyndall Asset Management
14 Nov 2025
$1.05
- Tyndall Asset Management initiated a position in L1 Group Ltd due to a recent equity raising opportunity.
- The fund manager views L1 Group as a quality business with potential for growth.
- Recent quarterly updates indicate improving investment performance, showcasing green shoots.
- L1 Capital's performance is strong both in the short-term and long-term perspectives.
- Investment performance at Platinum is showing signs of significant short-term improvement.
- The fund manager believes the announced synergies of $20 million and an additional $15 million cost-out at Platinum are achievable.
- Platinum's cost base is notably higher than L1 Capital's, despite lower funds under management (FUM).
- The cost-out strategy is seen as a means to provide time for operational improvements.
- Tyndall Asset Management emphasizes that funds management is fundamentally a people business.
- Backing experienced operators like Raph and Mark is seen as key to enhancing investment performance at Platinum.
Summary
Wilson Asset Management
14 Nov 2025
$1.05
- Wilson Asset Management believes L1 Group Ltd is a strong investment opportunity.
- Proven track record: The management team has demonstrated their ability to generate profits as fund managers.
- Leadership change: Julian Russell has joined from Eclipx, bringing valuable experience in business turnaround.
- Financial strength: L1 Group has a war chest of over $300 million for earnings accretive acquisitions.
- Market positioning: The company has the potential to leverage its multiple for growth.
- Index inclusion: Remaining in the index is crucial, especially with significant short interest against the stock.
- Overall sentiment: Wilson Asset Management expresses a positive outlook on the stock.
Summary
Blackwattle Investment Partners
31 Oct 2025
$1.13
- Blackwattle Investment Partners held shares in L1 (L1G) after the conversion of Platinum (PTM) shares through a reverse takeover.
- L1 was a top contributor to the fund's performance in October.
- There are substantial and easily obtainable cost synergies expected from the transaction.
- The transaction is believed to improve the longer-term quality of the enlarged company.
- Potential revenue benefits may arise from combining distribution capabilities and leveraging existing client relationships.
- The fund has since exited the position due to a sharp increase in share price.
- The recent valuation has become full, with a forward PE of approximately 23x 2026 at a current share price of $1.05.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"As the dust settles post-reverse takeover, L1 Group Ltd seems poised for potential synergies, yet the recent surge in its share price may have already factored in the upside. Investors might want to tread carefully before diving in at these valuations."
Last Updated: 14 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in L1 Group Ltd (ASX:L1G)?
Fund managers including Blackwattle Investment Partners have invested in L1 Group Ltd (ASX:L1G).
Why do fund managers invest in L1 Group Ltd?
Fund managers have invested in L1 Group Ltd due to its potential for substantial cost synergies following a recent merger, which enhances the company's quality. They see opportunities for revenue growth through improved distribution capabilities and cross-selling to existing clients. However, the fund has exited its position as the share price has risen sharply, reflecting these benefits and resulting in a full valuation.
What happened to L1 Group Ltd (ASX:L1G)?
Fund managers have invested in L1 Group Ltd due to anticipated significant cost synergies and potential revenue growth from enhanced distribution capabilities and cross-selling opportunities following its merger with Platinum. However, recent sharp increases in share price have led to concerns about valuation, prompting some funds to exit their positions.