HSF guides Brookfield on $1.5bn proposed acquisition of La Trobe Financial

Herbert Smith Freehills (HSF) has helped private equity firm Brookfield Business Partners seal a deal to acquire Australian credit asset manager La Trobe Financial for approximately $1.5bn, including a contingent payment linked to the business achieving certain performance milestones.

According to Brookfield, it plans to fund the initial investment with approximately $765m worth of equity, while the remainder will be backed by its institutional partners. The transaction is expected to be completed in the second quarter of 2022.

“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,” said Brookfield managing partner Len Chersky. “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.”

Founded in 1952, La Trobe Financial manages fixed income credit funds on behalf of over 50,000 retail investors, particularly in residential property-backed loans. It plays a vital role in the Australian real estate credit market by providing loans to high-quality borrowers.

Partners Nicole Pedler and Philippa Stone led the HSF team on the transaction. They were assisted by regulatory partners Charlotte Henry and Fiona Smedley, finance partner Nikki Smythe, employment partner Michael Gonski, IT partner Peter Jones, IP special counsel Amalia Stone, corporate senior associate David Kim, senior associates Yorick Ng, David Curley, Lauren Jeffries and Rommo Pandit, and solicitors Hudson Archer, Raul Vellani and Raymond Sun.

 “We’re proud to have been able to deploy the breadth of HSF’s financial services sector expertise in advising Brookfield on this important acquisition,” Pedler said.