Pepper Group (Pepper) is a specialist residential-mortgage and consumer lender and loan servicer, operating in targeted market segments in Australia and internationally. Many of these segments are underserviced by traditional bank and other prime lenders. Pepper was established in 2000 and commenced operation as a specialist residential-mortgage lender in the Australian market in March 2001.

Pepper offers a broad range of lending products including residential mortgages, auto and equipment finance, point-of-sale finance and personal loans. Pepper also provides loan servicing for its own products as well as for third parties across residential mortgages, unsecured and secured consumer loans, and commercial real-estate-backed loans. Pepper has become a specialist-lending and loan-servicing group through a combination of organic growth and targeted global acquisitions.

At 30 June 2018, Pepper had A$59.9 billion of assets under management.

Pepper is majority owned by leading global investment firm KKR & Company and management, and its capital structure consists of fully paid ordinary shares.

Pepper’s lending businesses have adopted a diversified approach to funding strategy, ranging from on-balance-sheet wholesale capacity through retail deposits in its South Korean mutual savings bank to traditional securitisation technology.

Pepper’s approach to securitised debt funding is to be a frequent issuer, in benchmark size, into a globally diversified investor base, across a number of asset classes and geographies. As part of this strategy, Pepper issues in a variety of tenors, currencies and repayment formats. Pepper began issuing in 2003 and the company has a 100% track record of calling every deal at the first available call date.

Pepper operates a proactive engagement model with its global investor base, undertaking two debt-investor update roadshows during the course of the year, aiming to meet each existing investor at least once per year. Typically, these meetings will provide investors with an update on corporate strategy, an indication of the issuance pipeline for the next 12-18 months, and any new asset classes or platforms that will be coming to market. This work is also augmented with deal-specific roadshows when required.

Today, Pepper issues Australian RMBS off three public platforms: Pepper Prime, Pepper I-Prime and Pepper Residential Securities (PRS). Additional international public platforms are expected to come online during 2019.