Brookfield Business Partners has signed a deal to buy Australian non-bank lender and asset manager La Trobe Financial for approximately $1.1bn.
The deal price includes a contingent payment linked to the business meeting certain performance milestones.
Brookfield plans to fund the initial investment with approximately $765m worth equity, with Brookfield Business Partners investing around $250m, and the remainder from institutional partners.
The transaction is expected to close in the second quarter of this year.
Founded in 1952, La Trobe Financial manages fixed income credit funds on behalf of over 50,000 retail investors, majorly in residential property-backed loans.
It also maintains a presence in the Australian real estate credit market by financing loans to high-quality borrowers.
The firm manages A$13bn in assets.
La Trobe’s distribution footprint and recurring investor inflows are expected to offer opportunities to further scale up and diversify its product platform.
Brookfield Business Partners managing partner Len Chersky said: “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.
“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.”
Last month, Reuters reported that Brookfield’s is weighing a spin-off of its asset management arm into a separate public company.
The division, which invests on behalf of institutional customers, is said to oversee $690bn in assets across real estate, infrastructure, renewable power and transition, private equity, and credit.