Brookfield to Pick Up 25% Stake in European Money Manager
March 20 2018 - 3:28PM
Dow Jones News
By Justin Baer
Real estate giant Brookfield Asset Management Inc. agreed to buy
a 25% stake in the European private-debt investor LCM Partners Ltd.
and its loan-servicing arm.
LCM, which is based in London, manages and services about EUR25
billion ($31 billion) in assets ranging from credit-card debt and
car loans to mortgages. Brookfield oversees $285 billion in assets
from headquarters in New York and Toronto, making it one of the
world's largest investors in real estate, infrastructure and
private equity.
Under the agreement, Brookfield will buy the 25% stake in LCM's
parent company, Link Financial Group, and have an option to acquire
another 24.9% stake over time, the companies said. Terms of the
agreement weren't disclosed.
Paul Burdell, LCM's chief executive and co-founder, said his
firm had been on the lookout for about a year for a strategic
investor to "turbocharge" its business. He said he expects LCM and
Brookfield will be able to spot potential investments for one
another.
LCM bought out its previous outside investors, including Morgan
Stanley and HBOS PLC, after the financial crisis as the firm
shifted its focus toward managing money for pensions, companies and
other large institutions. The firm, whose clients include the
Arizona State Retirement System and Illinois's Teachers Retirement
System, has delivered an average annual return of 14.8% since
1999.
Write to Justin Baer at justin.baer@wsj.com
(END) Dow Jones Newswires
March 20, 2018 15:13 ET (19:13 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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