L1 Group Launches $900 Million Gold Fund IPO on ASX
Investment manager L1 Group has officially launched the Initial Public Offering (IPO) for its new L1 Gold Fund, securing significant commitments totalling $900 million. This move signals a substantial injection of capital into the Australian gold and precious metals sector, with the new investment company slated to commence trading on the Australian Securities Exchange (ASX) on 24 April under the ticker code ‘LGF’.
The establishment of the L1 Gold Fund represents a strategic expansion for L1 Group, leveraging its established expertise in the wholesale gold market. The fund’s strategy will closely mirror that of L1 Group’s existing, unlisted Wholesale Gold Fund, which was launched in March 2025 and has demonstrated success in navigating the complexities of the gold and precious metals investment landscape.
Founders of L1 Capital, Mark Landau and Raphael Lamm, have demonstrated strong conviction in the new venture by personally committing a minimum of $120 million to the L1 Gold Fund. Further bolstering confidence in the IPO, the majority of unitholders in the existing Wholesale Gold Fund have elected to roll over their investments into the newly listed entity. This transition is expected to be seamless, providing continuity and a solid base for the fund’s operations.
L1 Group anticipates earning a performance fee upon the closure of its Wholesale Gold Fund, a move designed to significantly offset the approximately $20 million in costs associated with the current offering. This financial structure highlights the group’s confidence in its ability to generate returns for investors.
Fund Structure and Investment Strategy
From its commencement on 24 April, the L1 Gold Fund will operate under a clear fee structure designed to align the interests of the management with those of its investors. The fund will be entitled to receive:
- Management Fee: An annual fee of 1% calculated on the total value of the L1 Gold Fund’s portfolio.
- Performance Fee: A more dynamic fee structure of 20% of the portfolio’s outperformance, assessed over each six-month period. This incentivises the fund managers to actively seek and achieve superior returns for investors.
The core investment mandate of the L1 Gold Fund is to focus on securities within the domestic and international gold sector. Beyond its primary focus on gold, the fund will also maintain a secondary allocation in other precious metals, offering a diversified exposure to the broader precious metals market. This strategy aims to capture opportunities across various segments of the precious metals value chain, from exploration and mining to processing and refining.
Underwriting and Advisory Team
The successful launch of the L1 Gold Fund IPO has been facilitated by a robust syndicate of financial institutions and legal advisors. The offering was spearheaded by E&P Capital and Canaccord Genuity, who served as joint lead arrangers and joint lead managers. Their expertise in bringing complex financial instruments to market was instrumental in securing the substantial capital raise.
Supporting this core team were several other prominent financial entities acting as joint lead managers, including Morgans Financial, NAB, Ord Minnett, Taylor Collison, and Commonwealth Securities. Further strengthening the distribution network, Bell Potter, Euroz Hartleys, and Shaw and Partners acted as co-managers, ensuring broad investor reach.
On the legal front, Corrs Chambers Westgarth provided crucial advisory services to L1 Group, ensuring compliance and navigating the intricate regulatory landscape associated with IPOs. The collective efforts of these professionals underscore the significant planning and execution involved in bringing a fund of this scale to the public market.
