The alternative asset manager has announced it will be bringing on a specialist investment firm to take a stake in the business.
Alternative asset manager La Trobe Financial has welcomed a new shareholder, with specialist investment firm Axight taking a minority stake in the business.
In an ASX announcement released on Friday (17 April), the business also confirmed that Brookfield would remain La Trobe Financial’s “majority owner and long-term partner”, with no changes to directors or senior management.
La Trobe Financial currently has more than $23 billion in assets under management (AUM).
Based in Abu Dhabi, Axight is a private equity investment manager owned by global investment firm Lunate, with a focus on opportunities across the Asia-Pacific region.
Lunate reportedly has more than $160 billion (US$115 billion) in AUM.
La Trobe Financial said the investment would bring together “private markets experience across the businesses”, creating new opportunities to support the next phase of growth, deepen regional and global relationships, and strengthen capabilities across the business.
Speaking on the transaction, La Trobe Financial CEO Chris Andrews said it reflected the opportunities the business sees across real estate credit and investment.
“This transaction is a strong endorsement of La Trobe Financial’s position as one of Australia’s most recognised asset managers, with more than $23 billion in assets under management and a 70-year plus track record through multiple economic cycles,” he said.
“It reflects the quality and resilience of our platform, the depth of our investor base, and the significant growth opportunities we see across Australian real estate credit and investment markets.”
The transaction is subject to regulatory approval.
Evolving space
The investment comes at a time of heightened scrutiny in the private credit sector.
Last September, the Australian Securities and Investments Commission (ASIC) issued interim stop orders against La Trobe Financial Asset Management’s 12 Month Term Account and 2 Year Account products within its $11.6 billion La Trobe Australian Credit Fund, citing concerns related to the funds’ target market determinations (TMDs).
As a result, La Trobe Financial Asset Management was temporarily unable to promote or provide advice to retail clients on these products for 21 days.
In a statement, La Trobe Financial commented: “We take our legal duties and relationship with our regulator with the utmost of seriousness. We will, of course, comply with the Interim Stop Order and pause the receipt of new investments into the 12 Month Term Account while we work to promptly address these issues.”
Separately, La Trobe Financial also strengthened its leadership team, appointing David Tagg as head of investments and Catherine Donatiello as head of product support.
[Related: La Trobe Financial expands exec team with key appointments]
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