A strategic partnership and “long term funding support arrangement” between BC Invest and Mortgageport Management Pty Ltd (Mortgageport) have been announced, after the financial services group confirmed it had acquired 53 per cent of the Australian non-bank lender. The sum of the deal has not been disclosed.
According to the Hong Kong-headquartered group, the transaction will also include a “significant placement” of new equity and sponsorship of Mortgageport’s current and future warehouse facilities.
Under this deal, BC Invest and Mortgageport will have combined assets of over $3.3 billion ($1.8 billion and $1.5 billion, respectively), and 190 staff members across 11 offices in seven countries.
BC Invest has said that “the infusion of new permanent capital, together with BC Invest’s funding support” would help assist Mortgageport in accelerating its growth plans “with a view to trebling assets under management within the next few years”.
The duo said they aim to establish Mortgageport as “one of the top three non-bank mortgage managers” in the country.
BC Invest chief executive David Hinde said: “The transaction with Mortgageport evidences BC Invest’s growth-by-partnership approach as we align ourselves with established and respected businesses across both the APAC region and the United Kingdom and work towards our five-year plan of becoming one of Asia’s largest non-bank financial institutions.
“We expect our partnership with Mortgageport will deliver immediate operational and funding efficiencies and provide both parties with access to a deeper pool of institutional capital as we grow our capital markets program.”
Mortgageport founder and managing director, Glen Spratt, added that he believes the non-bank lender has “established its pedigree over the past 23 years” and that, with the involvement of BC Invest, now has the capacity “to become Australia’s non-bank lender of choice”.
“Mortgageport routinely exceeds $100 million per month in mortgage applications and we intend to grow this to an industry-leading level over the coming two to three years,” Mr Spratt concluded.
BC Invest last month launched into the UK market after securing a £255 warehouse facility ($473 million) from the Swiss-based investment bank Credit Suisse to help “fund buy-to-let mortgages to non-resident overseas investors”.
In July, the group put forward an RMBS bid worth $500 million that attracted over $2 billion in bids.
The collaboration is one of the largest partnerships Mortgageport has undertaken since its 2016 partnership with one of the UK’s largest mortgage broking brands, Mortgage Advice Bureau.
Darren Cantor, Mortgageport’s former director, now heads up the Australian arm of the broking network as managing director.