L1 Global Long Short Fund (GLS) investor relations material

Offer terms

• Non-underwritten, 1-for-2 accelerated non-renounceable entitlement offer to raise up to A$482.7m; proceeds to fund investments under the Global Long Short Strategy.

• Offer price A$1.76 per share, approximately equal to pre-tax NTA at 2 October 2026; 10.5% discount to 5-day VWAP and 5.9% to the 5 October closing price.

• Eligible Australian and New Zealand retail shareholders may apply for additional shares through a discretionary, scale-back-prone top-up facility; unallocated shares may be offered to wholesale investors.

• New shares rank equally with existing shares and qualify for future distributions; L1 Capital bears offer costs, and founders and co-CIOs intend to take up their full entitlements.

• Record date is 8 October 2026; retail offer runs 13–23 October, with retail shares expected to commence normal trading on 2 November, subject to timetable changes.

Performance and share price

• Since the investment manager’s appointment, returns to 30 September 2026 were 19.4% net for the listed fund versus 12.7% for MSCI World; strategy returns since 1 January 2025 were 108.3% versus 35.3%.

• Strategy returns since inception included 52.2% p.a. net versus 18.9% p.a. for MSCI World; 65 stocks each contributed more than 1% to returns through 31 August 2026.

• Share price rose 55% from L1’s initial investment in June 2025 to 30 September 2026; shares were trading at a premium to NTA, versus an average 12% discount from 2021 to 2025.

Strategy and portfolio

• Global strategy uses the Long Short Fund research approach, with a long-term objective of 10% net annual returns and better downside protection than the market; typical net long exposure is 30–100%.

• Market volatility and sharp September-quarter moves across sectors were presented as creating stock-picking opportunities, with some areas considered oversold or mispriced on normalized earnings.

• Long portfolio median FY27 metrics: 11.1x P/E, 14.9% YoY EPS growth and 6.7% free cash flow yield; positioning emphasizes earnings growth, cash generation and diversification.

• Maximum permitted portfolio exposure is 150% net and 350% gross of NAV; the presentation characterizes this as a meaningful leverage strategy with potentially higher but more volatile returns.