L1 Group profit jumps 97%, raises post-merger synergy target

L1 Group has reported an underlying profit of $189 million for the financial year 2026, up 97% from the previous year.

Funds Under Management (FUM) jumped 17% to $19.1 billion as of June 30. The board declared a final dividend of two cents per share, fully franked, bringing total dividends declared for FY26 to three cents per share.

L1 Group formed last year through the merger of L1 Capital and Platinum Asset Management. It aimed a cost reduction of $30 million to 35 million as it looked to capitalise on synergies created by the merger.

The group said integration of Platinum is nearing completion and cost synergies of $31.7 million have already been realised since the merger was announced. It has now increased its target cost synergies from $35 million to $43 million, with a further $11 million expected to be realised during FY27.

L1 Group chief executive and managing director Julian Russell said he is extremely happy with this result, the execution progress on the Platinum integration, and the broader performance momentum.

"It was an exceptional nine months for the group with the integration of Platinum progressing well ahead of schedule and our investment strategies delivering outstanding performance outcomes for our clients," Russell said.

"With the integration now largely complete, our attention now shifts to growth including new products and developing our pipeline of joint venture opportunities."

This week, it launched a new hedge fund venture, PXC Advisors, with the help of a former investment analyst at the helm. The joint venture with Andrew Lin, who is the portfolio manager and founder of PXC Advisors, will launch a flagship strategy to external investors in September.