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”) along with Institutionals Partners (collectively “Brookfield”) today announced an agreement to acquire La Trobe Financial (“La Trobe”), a leading Australian non-bank lender and wealth manager, for approximately $1.1 billion, including a contingent payment that Milestones are linked to the achievement of a specific performance by the company.
Established in 1952, La Trobe Financial is a prominent Australian diversified credit asset manager with over A$13 billion in assets under management. La Trobe manages fixed income debt funds on behalf of more than 50,000 qualified retail investors, primarily in residential real estate backed loans. It also plays a crucial role in Australia’s home loan market, funding loans to prime borrowers.
“We are pleased to expand our presence in Australia with the acquisition of La Trobe Financial, one of Australia’s leading mortgage lenders and wealth 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 of continued growth and profitability.”
Investment highlights
- track record established. La Trobe has over A$13 billion in assets under management and has a 70 year history 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 channel results in stable long-term income and consistently high returns on investments.
- Favorable market opportunities. La Trobe plays an important role in providing credit to a growing proportion of high quality borrowers such as B. Business owners, recent immigrants and others who need specialized underwriting know-how. The company’s integrated wealth management model offers a structural capital advantage in being able to serve these clients.
- value creation potential. La Trobe’s large distribution footprint and repeat investor inflows provide opportunities to further scale and diversify its product platform.
financing
Brookfield’s initial investment will be funded with approximately $765 million in equity, of which Brookfield Business Partners intends to invest approximately $250 million and the remainder from institutional partners. Prior to or after closing, a portion of Brookfield Business Partners’ investment may be syndicated to other institutional investors.
transaction process
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 services and industrials company focused on owning and operating quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility in investing in our company through either Brookfield Business Partners LP (NYSE: BBU; TSX: BBU.UN), a limited partnership, or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. Visit https://bbu.brookfield.com for more information.
Brookfield Business Partners is the publicly traded flagship of Brookfield Asset Management’s private equity group. Brookfield Asset Management is a leading global alternative wealth manager with approximately $690 billion in assets under management. Visit www.brookfield.com for more information.
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