The wealth of LaTrobe Financial is at the center of the concerns of bidders


“Lending volumes are also expected to benefit from a growing cohort of ‘major complex’ borrowers, who are expected to develop the addressable non-bank market, as well as a recovery in more traditional non-bank cohorts, such as investors,” said Sproules said in a statement. note to customers.

But it’s the asset management division that now makes up the biggest part of LaTrobe and generates strong earnings growth. Figures seen by The Australian Financial Review suggest net profit will hit $ 126 million in the year through June 30, above forecasts provided in April and up from the $ 99.7 million in profit posted last year.

Assets under management reached $ 13 billion, including $ 6 billion in wealth management assets invested on behalf of 55,000 clients, primarily in LaTrobe’s Australian credit fund.

It is understood that the asset management arm, which is overseen by CIO and new CEO Chris Andrews, has seen investor inflows return to pre-COVID-19 levels, with net inflows in the wealth management industry averaging $ 185 million per year. months in the June quarter.

The loan fund is sold through a distribution network, which has been compared to that of the international equity powerhouse Magellan Financial Group, and it is this footprint that has caught the attention of potential buyers. Expanding LaTrobe’s product line is an obvious growth channel and could be particularly attractive to overseas players looking to introduce their own products in Australia’s increasingly fragmented wealth management industry.

Finding a partner capable of exporting LaTrobe’s Australian credit products to Asia is another growth option, while LaTrobe has also explored options such as starting an ASX-listed investment trust or developing of an ETF product to provide quasi-capital gains in addition to income.

Non-binding offers are due in the first week of July. LaTrobe expects bidders to use asset manager multiples (which tend to be greater than 20 times) and not non-bank lender multiples (closer to 10 times).

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