La Trobe Financial partners with Blackstone
Australian non-bank lender and manager, La Trobe Financial has announced a strategic partnership with Blackstone, an asset manager with over AUD$521 billion under management.
Under the terms of a deal, Blackstone would take an 80 per cent equity stake in the La Trobe group in partnership alongside the existing shareholder for an undisclosed sum.
The partnership would aim to accelerate La Trobe Financial’s recent growth in the Australian credit market focusing on the $1.7 trillion Australian mortgage loan market and servicing small to medium enterprises (SME) and business borrowers who had faced difficulties to obtain credit from the traditional bank sources.
Also, Balckstone would assist La Trobe Financial to develop its leading position by providing capital support and global networks.
The partnership would also enable La Trobe Financial to expand its base products and services going forward into new market segments, it said.
At the same time, La Trobe Financial would continue to focus on growing its offerings to its loan and wealth management customers, through its $2 billion retail Credit Fund, its $4.6 billion mortgage loan portfolio, its institutional mandates and facilities, and its $1.1 billion regular debt capital market issuance.
La Trobe Financial’s president and chief executive, Greg O’Neill said: “The specialist credit space is experiencing a defining period of change and growth around the world right now and it is critical that we continue to build on our strong capital position, expand our networks and draw on global best practice.”
“Blackstone is an outstanding counterparty for our business and we are delighted to partner with them.
“We look forward to working closely with them over the coming years to expand and substantially grow our retail and institutional investment programs and our specialist lending offering.”
Under the terms of the agreement, Greg O’Neill would continue as President and Chief Executive Officer, as would the existing management and executive team including Rowan Donohue Chief Operating Officer, Martin Barry Chief Group Treasurer, Chris Andrews Chief Investment Officer, Cory Bannister Chief Lending Officer, Rob Clough Chief Financial Officer, and Randal Williams Chief Risk Officer.
La Trobe Financial would also retain the existing Board and appoint two additional representatives from Blackstone.
Recommended for you
The role of alternative investments is to diversify a portfolio and capture differentiated sources of return, according to UBS Asset Management.
Private investment opportunities are moving up on the list of what investors want from their financial advisers, according to Natixis IM, and over half of firms say they are offering them more strategies.
Two asset managers have each expanded their product suite with the launch of new global equity funds for Australian investors.
Perpetual has confirmed it is in exclusive talks with global investment company KKR regarding an acquisition of its corporate trust and wealth management businesses.
