Key Takeaways
- • Toronto-based pension fund OMERS has agreed to buy an indirect minority interest in La Trobe Financial, the $3 billion non-bank lender owned by Brookfield, according to the Australian Financial Review.
- • OMERS oversees C$151 billion (US$153 billion) in client assets, and the stake is being acquired via a Brookfield-managed fund.
- • The deal follows Brookfield's decision roughly six months earlier to shelve an initial public offering of La Trobe and seek private capital partners instead.
- • The transaction gives a large Canadian institutional investor a position in Australia's non-bank lending sector.
Summary
OMERS, the Toronto-based pensions group, has signed up to buy into La Trobe Financial, a $3 billion non-bank lender, the Australian Financial Review reported. OMERS, which manages C$151 billion ($153 billion) in client assets, has acquired an indirect minority interest in La Trobe through a fund managed by Brookfield, the owner of La Trobe.
The investment comes about six months after Brookfield shelved a planned initial public offering of La Trobe and chose to seek private capital partners. The move indicates Brookfield's preference for private placement of a minority stake over a public listing for the lender at this time.
The stake is indirect and minority in nature, and the article does not disclose the size of OMERS' holding or the purchase price. For institutional allocators tracking private credit and non-bank lending in Australia, the deal signals continued appetite from large global pension investors for exposure to Australian specialist lenders through manager-sponsored vehicles.
The investment comes about six months after Brookfield shelved a planned initial public offering of La Trobe and chose to seek private capital partners. The move indicates Brookfield's preference for private placement of a minority stake over a public listing for the lender at this time.
The stake is indirect and minority in nature, and the article does not disclose the size of OMERS' holding or the purchase price. For institutional allocators tracking private credit and non-bank lending in Australia, the deal signals continued appetite from large global pension investors for exposure to Australian specialist lenders through manager-sponsored vehicles.
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