Wall Street investment bank JPMorgan is set to secure a role advising Brookfield on a potential sale or float of its $3bn-plus La Trobe Financial, sources say.
A handful of investment banks last week pitched for the mandate, which could see the financial group Brookfield bought from Blackstone for $1.7bn in 2022 change hands or become a public company.
It follows JPMorgan winning a role on Goodman’s mammoth $4bn-plus equity raising last month to fund data centres.
Brookfield did not comment on the speculation, but it is understood that the North American private equity firm is exploring options for the business, including the right timing and process for any eventual sale.
Recently, La Trobe Financial has undertaken a couple of non-deal roadshows to educate potential investors in the business.
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 company compares itself to companies like Qualitas, MA Financial and Pinnacle.
La Trobe Financial has more than $20bn of assets under management, including about $12bn in its Australian credit fund.
The latest accounts lodged with the corporate regulator show earnings before interest, tax, interest, depreciation and amortisation amounted to $277.4m in the year ended June 30, 2024, up from $231.9m in the previous corresponding year.
La Trobe’s investment arm includes an Australian credit fund and a US private credit trust.
Financial companies like La Trobe Financial may find themselves back in favour with investors this year now that the Reserve Bank is cutting interest rates.
The beauty parade for La Trobe Financial is one of several now being held as players including private equity firms consider dual-track processes, where they weigh IPO and sale options.
Floats are gathering momentum this year now that reporting season for half-year accounts is out of the way.
Among those making a run for the boards this year is pet care business Greencross, owned by TPG Capital.
Elsewhere, sources are hosing down the prospect of an equity raising by mining giant Rio Tinto, despite the company publicly flagging it.
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