In an ASX statement, it said net outflows during June were $428 million with this almost entirely coming from the Platinum Trust funds.
This brings total funds under management to $8 billion and means the firm has lost $5 billion during the FY25 financial year, having started the year at $13 billion.
However, June’s outflows are far smaller than the volume of outflows experienced in May when the termination of an institutional mandate saw outflows stand at $1.6 billion. This consisted of $958 million from the mandate, institutional redemptions of $360 million and outflows from the Platinum Trust funds of $293 million.
The firm will pay distribution (net of reinvestment) of $151 million in July but did not generate any performance fees for the second half of FY25.
Separately, the firm announced it has entered into a binding agreement to merge with global long/short fund manager L1 Capital.
The firm said this will create a “market-leading provider of listed and alternative investment strategies” with funds under management of $16.5 billion.
Subject to shareholder approval, Platinum will acquire 100 per cent of the issued share capital of L1 Capital in consideration for the issue of new Platinum ordinary shares to existing L1 shareholders. Following its completion, L1 Capital shareholders will hold 74 per cent of the issued capital in the merged group, while Platinum ones will hold 26 per cent.
Platinum said the deal is expected to achieve pro forma $20 million in annual pre-tax cost synergies and be double-digit earnings accretive in the 12 months following completion.
The benefits from the deal include:
- Exposure to a scalable, growing, and well-diversified platform of alternative investment strategies which are expected to significantly increase and diversify assets under management.
- Combining the deep expertise, investment experience, industry networks, and established track records of talented investment management teams.
- Leveraging complementary client relationships across the merged group, including existing long-term relationships with institutional, wholesale, high-net-worth, and retail investors in Australia and globally.
- Unlocking the potential of combined distribution capabilities.
A general meeting will be held in September 2025 to approve the merger.
