L1 Group Secures $900M in Commitments for Gold Fund IPO Launch
L1 Group secures approximately $900 million in commitments for gold-focused investment vehicle
L1 Group (ASX: L1G) has announced the L1 Gold Fund IPO Launch has raised commitments of approximately $900 million upon opening, reflecting strong demand from the company’s existing network and clients of the appointed distribution syndicate. The new listed investment company, L1 Gold Fund Limited, is expected to commence trading on the ASX on 24 April 2026 under the ticker ASX: LGF, subject to final ASX approval.
The Broker Firm Offer period under the Offering closed early due to strong investor interest. The successful capital raise demonstrates L1 Group’s distribution capabilities and investor confidence in the fund’s strategy during current market conditions.
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What is L1 Gold Fund Limited?
L1 Gold Fund Limited is a new listed investment company focused on domestic and international gold sector securities, with a secondary allocation to other precious metals. The fund aims to deliver positive absolute returns for shareholders over the medium to long term, defined as more than three years.
LGF largely replicates the investment strategy used for the wholesale, unlisted L1 Capital Gold Fund launched in March 2025. As part of the closure of the Wholesale Gold Fund, LGF intends to initially acquire portfolio assets from that vehicle. Unitholders in the Wholesale Gold Fund were given the opportunity to elect to participate in the Offering.
What is a Listed Investment Company?
A listed investment company (LIC) is a closed-end fund structure that trades on the stock exchange like a regular share. Unlike exchange-traded funds (ETFs), LICs issue a fixed number of shares during their initial public offering and do not continuously create or redeem units. This structure allows fund managers to take a longer-term investment approach without needing to manage daily redemptions.
Why Gold Exposure Appeals to Investors
Gold investments serve multiple portfolio functions. The precious metal historically acts as an inflation hedge, maintaining purchasing power when currency values decline. Gold also provides portfolio diversification because its price movements often differ from shares and bonds. During periods of market stress or economic uncertainty, gold typically demonstrates safe-haven characteristics as investors seek stability.
The vast majority of existing Wholesale Gold Fund unitholders by funds under management elected to rollover their investment into LGF, indicating confidence in the strategy’s continuation under the listed structure.
Founder commitment signals alignment with shareholders
L1 Capital founders Mark Landau and Raphael Lamm have committed to a minimum investment of $120 million into LGF. This substantial personal capital allocation aligns the portfolio managers’ interests directly with those of other shareholders.
Founder Alignment
L1 Capital’s founders have committed a minimum of $120 million to LGF, demonstrating conviction in the fund’s investment strategy and ensuring their financial interests are tied to fund performance.
The founder commitment represents a significant proportion of the total capital raised and provides assurance that the portfolio managers have meaningful personal exposure to the fund’s investment outcomes. This alignment of interests reduces potential principal-agent conflicts and signals management confidence in the strategy.
Fee structure and revenue implications for L1 Group
From 24 April 2026, L1 Group is entitled to receive a management fee of 1.00% per annum (plus GST) of the portfolio value. Additionally, the company will earn a performance fee of 20% (plus GST) of the portfolio’s outperformance assessed over each six-month period, subject to a high water mark.
The high water mark provision ensures L1 Group only earns performance fees when the fund exceeds its previous peak value, protecting investors from paying performance fees on recovered losses.
| Fee Type | Rate | Basis |
|---|---|---|
| Management Fee | 1.00% p.a. (+ GST) | Portfolio value |
| Performance Fee | 20% (+ GST) | Outperformance per 6-month period |
L1 Group expects to earn a performance fee upon closure of the Wholesale Gold Fund, with the quantum determined by the fund’s performance up to and including 17 April 2026. The Offering costs are expected to be approximately $20 million, comprising distribution, legal and other issuance costs. These costs will be treated as one-off and recognised below the line in L1 Group’s accounts.
The performance fee from the Wholesale Gold Fund closure is anticipated to more than offset the Offering costs, resulting in a net positive financial impact for ASX: L1G. The new fee structure creates a recurring revenue stream for L1 Group through ongoing management fees, with additional upside from performance fees when the fund outperforms its benchmark.
L1 Group’s balance sheet exposure during transition
Some Wholesale Gold Fund unitholders elected to redeem their position on 31 March 2026 for cash rather than rolling into LGF. L1 Group will fund these redemptions from its balance sheet, effectively replacing those unitholders’ positions in the Wholesale Gold Fund.
L1 Group’s resulting exposure will run from 1 April 2026 to 22 April 2026. Any gain or loss during this period will be recognised in L1G’s income statement as a non-recurring item. Following this exposure window, L1 Group will roll an appropriate level of its holding in the Wholesale Gold Fund into LGF and become a shareholder of LGF.
This short-term balance sheet exposure carries market risk, as the value of the gold portfolio positions may fluctuate during the 22-day window. However, the defined timeframe limits the duration of this exposure. L1 Group’s resulting shareholding in LGF further aligns the parent company with the fund’s ongoing performance, creating an additional layer of interest alignment beyond the founder commitment.
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Distribution syndicate and next steps
The L1 Gold Fund IPO Launch was supported by a comprehensive distribution syndicate:
Joint Lead Arrangers and Joint Lead Managers:
- E&P Capital Pty Ltd
- Canaccord Genuity (Australia) Limited
Joint Lead Managers:
- Morgans Financial Limited
- National Australia Bank Limited
- Ord Minnett Limited
- Taylor Collison Limited
- Commonwealth Securities Limited
Co-Managers:
- Bell Potter Securities Limited
- Euroz Hartleys Limited
- Shaw and Partners Limited
Corrs Chambers Westgarth acted as legal adviser to L1 Group on the transaction.
The final size of the Offering, and the number of shares that L1 Group will hold in LGF, will be determined by reference to the net asset value of the Wholesale Gold Fund as at 17 April 2026, rollovers and the finalisation of demand by existing Wholesale Gold Fund unitholders.
The broad distribution syndicate indicates strong institutional distribution reach across major Australian financial institutions and broking houses. This network positions LGF for ongoing liquidity once trading commences.
Trading is expected to commence on 24 April 2026, subject to final ASX approval. Investors should monitor for confirmation of the final Offering size and L1 Group’s shareholding percentage following the 17 April 2026 net asset value determination.
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