Lunate takes a stake in Aussie private credit player

Lunate buys into Australia’s La Trobe Financial: Axight, the private equity investment arm of Abu Dhabi’s Lunate, agreed to acquire a significant minority position in Australian private credit platform La Trobe Financial for an undisclosed sum, according to a press release (pdf).

What we know: Axight is buying the stake from New York-based Brookfield — La Trobe’s majority owner — in a transaction valuing the platform at roughly USD 2.1 bn. Closing is expected in 3Q, pending approvals, with Brookfield retaining a majority stake.

The move puts Axight’s Asia-Pacific mandate into overdrive. Launched by Lunate last year to scale its USD 115 bn AUM, Axight is getting access to a ready-made international credit platform. This could give it access to high-yield Australian mortgages, against the backdrop of a slate of “structural tailwinds,” including an aging population, growing superannuation balances and some USD 5.3 tn in household financial assets, Shiv Gupta, head of Australia for Brookfield’s Private Equity Group, said.

About La Trobe: Founded in 1952, La Trobe manages about AUD 23 bn in assets for a broad base of 130k retail and institutional investors, focusing on private credit, particularly residential mortgage lending. Its AUM stands at USD 16.3 bn, while its flagship AUD 14 bn Australian Credit Fund ranks among the country’s largest retail credit funds.

The pattern

Emirati capital is leaning further into yield plays outside its home markets. The acquisition follows the same playbook Lunate used last year in its USD 2 bn play for Brevan Howard. In both cases, Abu Dhabi is moving from a passive LP role to an active GP stake, buying into the firms that manage the money instead of the funds they run.

The move also mirrors Mubadala’s ongoing consolidation of North American finance. Since taking CI Financial private, Mubadala has used the platform to aggressively acquire assets, including the USD 18.7 bn Canadian fund business from Invesco and the USD 3 bn takeover of Fortress.

An economic shield in action

More signs outbound deployment is holding up despite the geopolitics: Just last week, EIIC took a minority stake in Copenhagen-born Joe & The Juice at a USD 1.8 bn valuation. Together, the moves point to an M&A market still operating on a business-as-usual footing, with outbound investment windows remaining open.