Brookfield to acquire 25% of Link Financial Group

Brookfield Asset Management Inc. (TSX: BAM.A; NYSE: BAM; Euronext: BAMA) has entered into an agreement to acquire 25% strategic interest in Link Financial Group, which comprises both 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.

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 over 2,500 portfolios of performing, rescheduled and non-performing loan portfolios since inception from major banking groups and financial institutions.

“We are very excited to announce our strategic partnership with Brookfield, with whom we can further develop our 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,” said Paul Burdell, CEO of LCM and Link Financial Group. “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.”

“We are pleased to partner with LCM, a market leader with an established track record of strong investment performance and long-term client relationships,” said Ralf Rank, Managing Partner, Brookfield. “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.”

Link Financial Group will continue to operate independently under the leadership of the existing management team who remain focused on delivering excellent investment performance and best-in-class loan servicing for its clients.

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 adviser to Link Financial Group.

photo credit: Link Financial Group

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.