BROOKFIELD, NEWS, March 18, 2022 (GLOBE NEWSWIRE) — Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN) and Brookfield Business Corporation (NYSE, TSX: BBUC) (collectively “Brookfield Business Partners”) together 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 a contingent payment tied to the business achieving certain performance milestones.
Founded in 1952, La Trobe Financial is a prominent Australian diversified credit asset manager with more than A$13 billion in assets under management. La Trobe manages fixed income credit funds on behalf of more than 50,000 qualified retail investors, primarily in residential property-backed loans. It also plays a critical role in the Australian real estate credit market by financing loans to high-quality borrowers.
“We are pleased 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 business’ foundation of continuous growth and profitability.”
Established track record. La Trobe has over A$13 billion in assets under management and a 70-year track record of growth and profitability which has proven to be highly resilient to economic and housing cycles.
Strong competitive advantage. The company’s integrated residential mortgage lending and high net worth retail distribution channel 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 require specialized underwriting expertise. The business’ integrated asset management model provides a structural capital advantage in being able to service these customers.
Value creation potential. La Trobe’s large distribution footprint and recurring investor inflows provide opportunities to further scale and diversify its product platform.
Brookfield’s initial investment will be funded with approximately $765 million of equity, of which Brookfield Business Partners intends to invest approximately $250 million, and the balance from institutional partners. Prior to or following closing, a portion of Brookfield Business Partners’ commitment may be syndicated to other institutional investors.
The transaction is subject to customary closing conditions and regulatory approvals, including approval by Australia’s Foreign Investment Review Board. Closing is expected in the second quarter of 2022.
Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership, or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. For more information, please visit https://bbu.brookfield.com.
Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with approximately $690 billion of assets under management. More information is available at www.brookfield.com.
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