L1 Group CEO steps down as fund manager looks to raise $330m
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The news: L1 Group chief executive Jeff Peters is stepping down from the role, effective today, and will be replaced by Julian Russell.
L1 said the decision to step down followed Peters' role in stabilising the Platinum Asset Management since his appointment in January 2024 which led to the merger with L1.
He will remain with L1 until mid-2026 to support Russell who was most recently CEO of FleetPartners, previously known as Eclipx Group. Prior to this, he was co-head of financial institutions at UBS investment bank in Australia.
L1 Group also announced a $330 million equity raising to support its Global Long Short strategy, a new strategy, new affiliates and joint venture partners, and acquisitions.
The numbers: The raise will comprise of a $286 million institutional placement, a $25 million share purchase plan, and a $19 million sale of existing L1 Group ordinary shares held by a subsidiary of L1 Group.
The raise will be conducted at 95 cents per share, a 7.8% discount to the last close price of $1.03.
L1 said there was $190 million in pre-commitments for the institutional placement, including $80 million from MFF Capital Investments.
The context: The proceeds of the raise will be used to:
- Fund co-investment in L1 Capital’s Global Long Short strategy;
- Provide co-investment for another new strategy due to be launched in the near term;
- Fund the group’s expansion through incremental new investment strategies, including investments in new affiliates and joint venture partners; and
- Support potential strategic opportunities including value accretive and complementary acquisitions.
The founders of L1 Capital will not participate in the raise. However, the group expects the raise to potentially move the stock into the ASX300.
What they said: MFF head of investment management, Gerald Stack said: “L1 Capital is a high quality and scalable business with significant growth potential. We are excited about the opportunities ahead for L1 and delighted to support this next phase of their growth”.
Stack was previously head of investments and infrastructure at Magellan Financial Group.
