Asia-focused private equity manager Axight has agreed to acquire a significant minority stake in Australian alternative asset manager La Trobe Financial from Brookfield’s private equity business, subject to regulatory approval.
The transaction valued La Trobe Financial at around US$2.1bn (£1.55bn). Brookfield has owned La Trobe Financial since May 2022 and will remain the majority shareholder following the transaction, while Abu Dhabi-based Axight acquired a minority stake through its managed vehicle. The deal is expected to close in Q3 this year.
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La Trobe has grown its assets under management (AUM) from US$9.9bn to US$16.3bn over the past four years and has launched several new products, including a listed investment trust on the Australian Securities Exchange (ASX), and continues to expand its product offering. It has also significantly invested in improving its systems.
“We have high conviction in La Trobe Financial’s long-term value. The business has added US$2.1bn in AUM during the last 12 months alone and with structural tailwinds – including an ageing population, growing superannuation balances and an estimated US$5.3tn in household financial assets – the opportunity ahead is significant,” said Shiv Gupta, head of Australia for Brookfield’s private equity group.
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“We are pleased to welcome Axight and together will work alongside management to help La Trobe Financial execute on its strategy of delivering consistent, risk aware returns to investors and reliable, specialist credit solutions to borrowers.”
