Brookfield Asset Management will acquire Melbourne, Australia-based credit boutique La Trobe Financial from Blackstone and La Trobe CEO Greg O'Neill for A$1.5 billion ($1.1 billion).
Brookfield, a Toronto-based private markets investor with $690 billion in assets under management, said in a news release that the purchase price includes a contingent payment tied to La Trobe achieving certain performance milestones.
The transaction is expected to close in the second quarter of 2022.
La Trobe, with A$13 billion in AUM, manages fixed-income credit funds as well as financing loans to "high-quality borrowers such as business owners, recent immigrants and others who require specialized underwriting expertise," according to the news release.
In 2017, Blackstone bought an 80% stake in La Trobe from Mr. O'Neill.
Following the close of the deal, Mr. O'Neill will retire from the firm. His role as CEO will be assumed by Chris Andrews, the firm's chief investment officer.
Len Chersky, Brookfield private equity managing partner, said in the news release Brookfield will "invest in La Trobe Financial to support its growth."
