Platinum Asset Management released its 2025 full-year results, showing a sharp financial downturn. Funds under management (FUM) collapsed to AUD 7.9 billion by 30 June 2025, down from AUD 13.0 billion in 2024. This represents a 39% annual decline, driven by sustained investor withdrawals and weak performance.
Revenue fell dramatically. Management fees dropped from AUD 174.3 million in FY24 to AUD 125.8 million in FY25. Performance fees, once a key revenue source, were virtually eliminated. The company’s statutory net profit after tax crashed from AUD 45.1 million to just AUD 6.26 million.
Earnings per share (basic) fell from 8.0 cents to 1.1 cents. EBIT margins slipped from 48% to 44%, reflecting rising costs against a decline in income.
Platinum Asset Management FUM plunges 39% in FY25.
What Does the Platinum Asset Management Merger 2025 Mean?
The 2025 Platinum Asset Management merger is centred around the L1 Capital merger. In July, a binding agreement was signed by the two entities to combine their business. Post the merger, the management of funds will be around AUD 16.5 billion.
L1 Capital shareholders will hold 74% of the new group under this agreement, while Platinum shareholders will retain 26%. The new business will be renamed and, presumably, listed under new ASX codes to reflect the broader strategy.
The Platinum Asset Management L1 Capital merger is designed to offset shrinking funds, provide scale, and diversify income streams.
How Will the Merger Impact Investors?
The merger was given near-unanimous support by the Platinum shareholders. More than 99% voted for the deal and for renaming the company L1 Group. Such a high percentage of votes is a loud testament to the investor confidence in the merger’s strategic benefits.
This merger is estimated to produce an annual AUD 20 million in cost synergies. Additional internal savings plans from Platinum will further streamline operations. The deal is projected to be EPS accretive within 12 months after the transaction is consummated. Analysts view double-digit EPS growth in the first year, climbing over a 30% accretion by FY27, for the future.
Investors will need to watch for integration risks of operations, retention of human resources, and changes to fee structures.
PTM Yearly Report
Can This Merger Reverse Platinum’s Long Decline?
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Platinum Asset Management has been impacted by sustained outflows and erosion of competitiveness. The 2025 report details that as scale was eroded, profitability was also undermined. The Platinum Asset Management L1 Capital merger aims to turn around the decline by combining Platinum’s international equities capabilities with L1’s alternative strategies.
What Are the Key Risks and Challenges?
There are a number of risks that could affect the future. First, the disappearance of Platinum as a stand-alone organization may upset some investment purists. Second, the two different investment cultures may sometimes lead to management conflicts. Delivering the synergies will be a disciplined integration exercise.
There are upside-down fee structures. L1 Capital has long-short strategies that carry performance fees. Meanwhile, Platinum’s fee base is shrinking and increasingly reliant on scale. A balance must be struck between this and keeping the clients happy.
Then there is the usual bit of investor sentiment, which could turn downwards if expectations of performance are not met. While the 2025 merger promises growth to the Platinum Asset Management Association, markets are still very much unpredictable.
Platinum Asset Management Share Trend
What Should Investors Watch Next?
The closing of the merger is scheduled for 1 October 2025. Some factors for investors to keep track of are as follows:
- Delivery of the estimated AUD 20 million in annual synergies.
- Execution of Platinum’s pre-merger cost-saving measures.
- The stability of fund inflows after the merger.
- Retention of portfolio managers and staff alignment across the new group.
- Earnings evolution in FY26 and FY27 versus accretion forecasts.
The Platinum Asset Management 2025 report depicts a fading picture, while the L1 merger would be a point of change. Success in integration would mean growth in restoration, and failure spells acceleration in decline.
FAQs
1.What is the merger of Platinum Asset Management for 2025?
It is the merger of Platinum Asset Management with L1 Capital to form a much larger ASX-listed group with a management portfolio of 16.5 billion AUD.
2.Why were Platinum profits wiped off in 2025?
On account of large fund withdrawals, lower management fees, and almost no performance fees throughout the year.
3.How much will L1 Capital retain post-merger?
L1 Capital shareholders will own and therefore control 74%, and Platinum shareholders will retain only 26% of the new company.
4.What risks may affect a successful merger?
Failures of realizing synergy, cultural clashes, loss of brand recognition, and underperformance of in-core strategies.
