There are rumblings that the lender – with a loan book of $12 billion – may be up for sale
Private equity players including Kohlberg Kravis Roberts, TPG Capital, Carlyle and BGH Capital are reportedly expressing interest in a potential acquisition of La Trobe Financial.
Goldman Sachs is working on a review of Blackstone’s $2 billion non-bank lender, and there are increasing rumblings that the business will be sold, according to a report by The Australian.
One private equity firm missing from the lineup of potential buyers is Cerberus, which recently snapped up Westpac’s auto dealer finance business. While Cerberus is reportedly itching to acquire more financial services assets in Australia, it does not seem to be in the mix for a potential La Trobe deal, The Australian reported.
While there had been talk of La Trobe listing on the ASX, those plans appear to have been scuttled.
The talk of selling La Trobe comes at a time when global buyout funds have a strong appetite for acquisitions of around $2 billion in the Australian financial services sector. In the last year, non-banks Pepper Money and Latitude Financial, which are both owned by KKR, Liberty Financial, Varde Partners and Deutsche Bank have all listed on the ASX, The Australian reported.
Private equity firm Blackstone owns 80% of La Trobe, which has a loan book of $12 billion. The company is considered well-run by industry experts. Blackstone acquired its stake in 2017 and has grown the non-bank substantially in the time since.
La Trobe projects profits of $145 million next financial year, up from an expected $120 million to $123 million for the year to June 30, according to The Australian.