BROOKFIELD, NEWS, March 18, 2022 (GLOBE NEWSWIRE) — Brookfield Business Partners LP (NYSE: BBU; TSX: BBU.UN) and Brookfield Business Corporation (NYSE, TSX: BBUC) (collectively “Brookfield Business Partners”) with institutional partners (collectively “Brookfield”) today announced an agreement to acquire La Trobe Financial (“La Trobe”), a leading Australian non-bank lender and asset manager, for approximately $1.1 billion, including including a conditional payment linked to the achievement of certain performance milestones by the company.
Founded in 1952, La Trobe Financial is a leading Australian diversified credit asset manager with over A$13 billion in assets under management. La Trobe manages fixed income credit funds on behalf of over 50,000 qualified retail investors, primarily in residential property-backed loans. It also plays a vital role in the Australian mortgage market by funding loans to high quality borrowers.
“We are delighted to expand our presence in Australia with the acquisition of La Trobe Financial, one of Australia’s leading mortgage originators and asset managers,” said Len Chersky, Managing Partner, Brookfield Business Partners. . “We intend to invest in La Trobe Financial to support its growth and look forward to building on the company’s foundation for continued growth and profitability.”
Investment Highlights
- An established track record. La Trobe has over A$13 billion in assets under management and a track record of 70 years of growth and profitability that has proven highly resilient to economic and real estate cycles.
- Strong competitive advantage. The company’s integrated residential mortgage lending and high net worth distribution network results in stable long-term earnings and consistently high returns on capital.
- Favorable market opportunity. La Trobe plays an important role in providing credit to a growing proportion of high-quality borrowers, such as business owners, recent immigrants and others who need specialized underwriting expertise. The company’s integrated asset management model provides a structural capital advantage to serve these customers.
- Value creation potential. La Trobe’s large distribution footprint and recurring investor inflows provide opportunities to further expand and diversify its product platform.
Funding
Brookfield’s initial investment will be funded by approximately $765 million in equity, of which Brookfield Business Partners intends to invest approximately $250 million, and the balance by institutional partners. Before or after closing, a portion of Brookfield Business Partners’ engagement may be syndicated to other institutional investors.
Transactional process
The transaction is subject to customary closing conditions and regulatory approvals, including approval from Australia’s Foreign Investment Review Board. Closing is expected in the second quarter of 2022.
Brookfield Business Partners is a global business services and industries company focused on owning and operating high-quality businesses that provide essential products and services and enjoy a strong competitive position. Investors have the option of investing in our company either through Brookfield Business Partners LP (NYSE: BBU; TSX: BBU.UN), a limited partnership, or through Brookfield Business Corporation (NYSE, TSX: BBUC) , a society. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the publicly traded flagship vehicle of Brookfield Asset Management’s private equity group. Brookfield Asset Management is a leading global alternative asset manager with approximately $690 billion in assets under management. More information is available at www.brookfield.com.
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