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)

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