Brookfield Asset Management has entered into an agreement to acquire a 25% strategic interest in Link Financial Group, which comprises LCM Partners, a European alternative credit investment manager and its sister companies, which operate a pan-European loan servicing platform under the Link Financial brand.
Brookfield has an option to acquire another 24.9% interest over time.
LCM and Link Financial Group CEO Paul Burdell said the strategic partnership with Brookfield would further develop the group’s business not only as one of Europe’s leading credit asset management and loan servicing firms but to become one of the pre-eminent firms globally.
He said: “With its highly complementary areas of investment expertise, global network spanning 100 offices in over 30 countries, strong distribution and capital strength, we are convinced that Brookfield is our ideal strategic partner.
“We are particularly excited at the prospect of working together to develop new investment opportunities for our clients, leveraging Brookfield’s global network, relationships and access to proprietary deal flow.”
For Brookfield Managing Partner Ralf Rank, LCM’s track record of strong performance and long-term client relationship would be a great asset for the firm.
“We look forward to working closely with LCM’s management team to support the growth of its platform via expansion into new markets, diversification of its product offering and through pursuing investment opportunities leveraging the capabilities of both firms,” Rank said.
The transaction, which is expected to close during the next quarter, is subject to customary regulatory approvals and closing conditions. The financial terms of the transaction have not been disclosed. Spencer House Partners LLP acted as financial advisor to Link Financial Group.
Following the transaction, Link Financial Group will continue to operate independently under the leadership of the existing management team, who will remain focused on delivering excellent investment performance and best-in-class loan servicing for its clients.
Link Financial Group was established in the UK in 1998 and has since grown across 10 European offices to become a leading alternative investment manager focused on credit and specialized in investing in and servicing consumer, SME, auto, leasing and commercial loans.
The firm employs approximately 700 people and has acquired more than 2,500 portfolios of performing, rescheduled and non-performing loan portfolios since inception from major banking groups and financial institutions.
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