Global investors have backed La Trobe Financial in a $1.5 billion residential mortgage-backed securities (RMBS) transaction, its largest to date. The deal was increased from $1 billion in response to investor demand, with international investors taking nearly 60 per cent of the notes.
The highest-rated notes were taken up by three major banks: a leading Japanese global bank, a UK-headquartered international bank and one of Australia’s major banks.
It is La Trobe Financial’s fourth RMBS transaction this year, bringing its 2026 issuance to $5.0 billion and total issuance since 2014 to more than $22 billion.
“This transaction attracted strong support from key investors, both locally and offshore,” said Treasurer Paul Brown. “Our RMBS program is one of a number of funding avenues that, when combined, position the business for long-term AUM growth, which in turn delivers for our investors. We thank our RMBS investors for their ongoing support.”
A consistent approach to credit
Investors in these notes are backing the quality of the loans behind them. La Trobe Financial applies the same credit standards in every market and is careful about which loans it makes. In FY2026 it reviewed $28.7 billion of lending opportunities and settled approximately $15.0 billion.
Assets under management have grown to $27 billion, from $22 billion at the end of 2025, with quality as the gatekeeper for that growth. For borrowers and their brokers, that consistency means clarity about which loans La Trobe Financial will fund, whatever the market.
“We have seen periods of market stress before, and we will see them again,” said chief executive officer Chris Andrews. “There is no quick fix. There is only discipline and patience to build quality into a portfolio long before it is needed. That is why we have been able to keep delivering outstanding returns for investors through market turbulence.”
For investors, liquidity is managed with the same care. Since it began offering pooled investment products in 1989, La Trobe Financial has never frozen, gated or restricted a valid maturing withdrawal because of insufficient liquidity.
Long-term shareholders
Earlier this week, OMERS agreed to acquire an indirect minority interest in the business from Brookfield, subject to customary regulatory approvals.
OMERS is one of Canada’s largest defined benefit pension plans, with C$151.5 billion in net assets and around 665,000 members. Brookfield, a global alternative asset manager with more than US$1 trillion in assets under management, has owned La Trobe Financial since 2022 and remains the majority shareholder. Axight, an Abu Dhabi-based private equity manager established by Lunate, a global investment firm with more than US$115 billion in assets under management, became a minority shareholder in April 2026.
Each is a long-term investor that looked closely at the business before choosing to invest.
“Global investors are looking closely at Australia, and we have worked to show them what we have built,” Mr Andrews said. “Three highly regarded global investors are now backing our strategy, which is to pay our investors their income every month and return their capital when they expect it.”
