La Trobe Financial operates as one of Australia’s leading credit specialists, dedicated to providing financial solutions for borrowers and investors whose financial needs are under-served by traditional institutions. The company specialises in originating, underwriting and managing granular assets, being both traditional residential- and commercial-mortgage loans. It tailors lending products to clients who require personalised service from a dedicated and highly trained workforce.

The modern-day, corporate La Trobe Financial builds on the heritage of one of Australia’s oldest credit-specialist enterprises. The business has grown to be one of the largest Australian nonbank financial institutions since its establishment in 1952. It manages A$5.5 billion and has more than 280 staff. During this time, La Trobe Financial has helped more than 140,000 individuals obtain mortgage finance and has cumulatively managed investment funds from wholesale and retail sources in excess of A$14.7 billion. This has been carried out without loss to any institutional or pooled retail investors.

La Trobe Financial currently generates asset origination exceeding A$8.7 billion per year and growing. Group net equity exceeded A$149 million at 30 June 2018.

La Trobe Financial offers Australia’s broadest mortgage product suite, with a focus on specialist lending. Loan products cater for a wide range of borrower and credit situations with a group maximum LVR of 80 per cent.

Private equity firm Blackstone LP acquired 80% of La Trobe Financial in December 2017, with the remaining 20% remaining privately owned. La Trobe Financial is overseen and governed by a board of directors which meets quarterly to review business activities. The board has a diverse set of skills and experience relevant to the underlying business.

La Trobe Financial’s assets perform in line with the broader nonconforming market and average loss experience is less than its peer group. The company believes this is a function of conservative underwriting and LVR maxima.

La Trobe Financial has among the most diversified funding programmes of all nonbanks operating in Australia. It incorporates large term-debt facilities from local and international financiers, a A$2.5 billion independently rated retail credit fund featuring 12-month term account and peer-to-peer investment options, and a complementary and growing publicly rated RMBS capital-market programme.

La Trobe Financial first accessed debt capital markets in 2014, with a goal of broadening its funding capabilities with an RMBS programme as a component of the group’s overall funding strategy. The company expects continued growth in all its funding sources. It has a desire to increase the RMBS proportion, markets permitting.

La Trobe Financial’s business has consistently performed well. In recent years, it has accelerated growth through targeted initiatives such as broker awareness, increasing staff and developing a direct consumer channel. The company expects operating conditions to be favourable in the medium term as regulatory pressures result in banks withdrawing from certain niche mortgage products.