La Trobe Financial
About La Trobe Financial
La Trobe Financial has been in continuous operation for almost seven decades and is recognised as a good steward of investor capital. It operates as Australia’s premium nonbank, dedicated to providing financial solutions for borrowers and investors whose investment and borrowing needs are under-served by traditional institutions.
La Trobe Financial specialises in originating, underwriting and managing granular secured first-registered mortgage assets, including traditional residential and commercial mortgage loans. It has A$11 billion of assets under management and has offices in Melbourne, Sydney, Shanghai and Hong Kong.
La Trobe Financial has assisted more than 180,000 individuals obtain mortgage finance and has cumulatively managed investment funds for wholesale and retail global investors in excess of A$26 billion. This has been carried out without loss to any institutional or pooled retail investors.
La Trobe Financial has experienced net growth through the COVID-19 period, capturing market share as major banks and other lenders focus on vanilla credit. Loan products have a group maximum LVR of 80%.
Ownership and capital structure
Private equity firm Blackstone LP acquired 80% of La Trobe Financial in December 2017 from its president and CEO, 35-year industry veteran, Greg O’Neill OAM – who retained 20%.
La Trobe Financial is overseen and governed by an independent board of directors. The board has a diverse set of skills and experience relevant to the underlying business.
The business maintains a strong capital structure with A$457 million in regulatory and shock-absorber capital as at 30 June 2020, plus additional free capital.
| SIZE OF LOAN BOOK | A$11BN |
| MAKEUP OF LOAN BOOK |
SUPER PRIME MORTGAGES: 14.3% |
| GEOGRAPHIC DISTRIBUTION OF LOAN BOOK | AUSTRALIA: 100% |
| OUTSTANDING DEBT ISSUANCE |
RMBS: A$4BN |
Asset performance
La Trobe Financial’s assets perform in line with the nonbank nonconforming Australian market with a better-than-average loss experience among its peer group. The company believes this is a function of conservative underwriting and LVR maxima. As well as its credit analysts and underwriters, it has the largest nonbank underwriting team in Australia and a compliance, internal-audit and risk-management team exceeding 36 staff.
Funding strategy
La Trobe Financial has one of the most diversified funding programmes of all nonbanks operating in Australia. This comprises:
• A$4 billion of term-debt mandates and facilities from local and international banks and finance houses.
• A$4.8 billion of independently rated retail credit-fund investments featuring a range of investment terms and incorporating Australia’s largest peer-to-peer investment option.
• Approximately A$4 billion of complementary publicly rated RMBS transactions.
La Trobe Financial successfully reopened global RMBS markets for nonbanks in May 2020 with no direct government support. The business expects continued growth in all three of its funding sources. It has a targeted desire to grow the RMBS proportion, market cycles and timing permitting.
Business performance
La Trobe Financial’s business has consistently performed well. In recent years, it has experienced elevated but controlled growth through targeted initiatives such as broker awareness, adding experienced senior staff and developing a direct-to-consumer channel. Growth has continued in 2020 despite difficult market conditions caused by COVID-19.
FOR FURTHER INFORMATION PLEASE CONTACT:
Martin Barry
Chief Financial Officer
La Trobe Financial, Level 25, Chifley Tower, Sydney
+61 2 8046 1502 • This email address is being protected from spambots. You need JavaScript enabled to view it.
Richard Parry
Deputy Treasurer
La Trobe Financial, Level 25, 333 Collins Street, Melbourne
+61 3 8610 2847 • This email address is being protected from spambots. You need JavaScript enabled to view it.
Paul Brown
Head of Group Portfolio
La Trobe Financial, Level 25, 333 Collins Street, Melbourne
+61 3 8610 2397 • This email address is being protected from spambots. You need JavaScript enabled to view it.
www.latrobefinancial.com.au