Brookfield approaches buyers for $3bn La Trobe Financial sale

Sources close to Brookfield say it has fielded inbound offers for the La Trobe Financial business

Brookfield has started moving forward with sale plans for its La Trobe Financial business, reaching out to a select group of potential buyers.

Sources close to Brookfield say it has fielded inbound offers for the business, but other market experts say while La Trobe is an attractive proposition, it’s likely to be expensive, with sources tipping a $3bn-plus price tag.

Working on the sale are Morgan Stanley and UBS.

La Trobe Financial has previously undertaken a series of roadshows in Australia and through Asia in which large global investors have expressed interest in investing in the company. It manages more than $20bn on behalf of 110,000 investors, predominantly high net worth investors over 55.

Brookfield sources suggest the business has grown assets under management at about 28 per cent on a compound annual growth rate.

La Trobe hopes to grow its assets under management by $50bn in five years on the back of Australia’s ageing population and growth in superannuation assets through mandatory contributions.

La Trobe promotes itself as a category leader in real estate private credit.

Brookfield sources maintain its retail funds are liquid and enhanced by committed bank facilities, it has never had a delay on redemptions and its risk profile is well managed.

Brookfield bought La Trobe from Blackstone for $1.7bn in 2022.

While some consider La Trobe Financial to be a non-bank lender, it describes itself as an alternative asset manager.

Unlike traditional non-bank lenders, over 65 per cent of the business’s assets are funded through its asset management arm, which earns a fixed management fee.

The firm compares itself to companies like Qualitas, MA Financial and Pinnacle.