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Genworth Financial Mortgage Insurance Pty Ltd (Genworth) has become a strategic investor in non-bank lender Household Capital, after taking a 22 per cent stake in the company following a fundraising round.
Household Capital — which specialises in reverse mortgages — recently completed a $37.6 million Series C fundraising, with Genworth becoming a strategic partner in the business.
Lisa Griffin, Genworth’s chief commercial officer, new ventures, will now join Household Capital’s board of directors.
Speaking of the partnership, Genworth chief executive Pauline Blight-Johnston commented: “Genworth is delighted to have entered a strategic partnership with Household Capital. This investment demonstrates a significant step toward achieving our purpose of accelerating financial wellbeing through home ownership.
“Genworth is committed to helping Australians through a range of solutions along all stages of their property journey,” adding that the partnership would help it deliver on this commitment.
The CEO of Household Capital, Dr Joshua Funder, added that the capital injection would enable the group to continue supporting retirees in accessing funding to support their retirement needs.
Welcoming Genworth as a strategic investor, he added: “Genworth understands Australia’s home ownership market and has deep expertise in mortgage and risk evaluation.
“Home equity retirement funding plays a critical role in meeting the needs of an ageing population, particularly as many Australian retirees have insufficient funds in their pension accounts because compulsory superannuation payments by employers only started in 1992.”
Legal & General UK (L&G), an existing partner of Household Capital, welcomed the new strategic investment partner, too.
Lorna Shah, managing director, retail retirement at L&G, said: “The Australian equity release market is extremely promising, and Household Capital is at the forefront, expanding the retirement funding and housing options available to Australian retirees.”
Looking forward, Dr Funder said that the non-bank lender was now focused on growing its share of the home equity retirement funding market — noting that around 5 million Australians, or about a fifth of the population, are retired and have more than $1 trillion in home equity available to them.
“Together with our strategic partners Genworth and L&G, Household Capital looks forward to providing financial assistance for retirees and delivering on our mission to help Australians ‘Live Well At Home’,” he said.
“Home equity is the missing link in the nation’s retirement funding system. We work closely with financial advisers and brokers to deliver their clients access to capital and enhanced income in retirement. The high level of service we provide to brokers and their clients underpins our success.”
In December 2021, Household Capital completed a $300 million financing package provided by Citi and IFM Investors.
[Related: Household Capital secures $300m investment]