TRANSACTION SUMMARY

On 21 March 2018, LCM Partners, a European alternative credit investment manager, announced that it had entered into a strategic partnership with Brookfield Asset Management (“Brookfield”), a leading global alternative asset manager.

Under the terms of the agreement, Brookfield will acquire a 25% strategic interest in Link Financial Group, which comprises both LCM and its sister companies which operate a pan-European loan servicing platform under the Link Financial brand, with an option to acquire another 24.9% interest over time.

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

LCM PARTNERS

LCM is a leading European alternatives asset manager based in London, which specialises in buying whole loan consumer and SME credit portfolios. Offering unrivalled expertise in investing in and managing credit portfolios, LCM has approximately €3 billion of drawn and/or committed capital and has invested in over 2,500 portfolios of performing, re-scheduled and non-performing loans.

LCM has won several investment industry awards, including the European Pensions’ Alternatives Investment Manager of the Year 2017, which followed a double win at Private Debt Investor’s 2016 awards as European Distressed Debt Manager and European Fundraising of the year. These awards are testament to the track record the team has built, delivering an unleveraged IRR of 14.8% since 1999.

LCM is currently deploying capital for its LCM Credit Opportunities III strategy, for which fundraising closed in 2016 and launched its Strategic Origination and Lending Opportunities strategy ‘SOLO’ in March 2018.

LINK FINANCIAL

Link provides European financial institutions, investors and other credit providers with loan management, debt purchase and standby servicing solutions. Link manages approximately 3 million customer accounts and €25 billion of corresponding assets, and employs some 700 people across 10 European offices.

Link was one of the founding members of the modern credit and collections industry in Europe and has been at the forefront of innovation ever since. Link’s proprietary operational platform allows its business to service a range of asset types from within and outside the financial services industry.

BROOKFIELD

Brookfield Asset Management Inc. is a global alternative asset manager with over US$285 billion in assets under management. The company has more than a 100-year history of owning and operating assets with a focus on real estate, renewable power, infrastructure and private equity.

Brookfield offers a range of public and private investment products and services, and is co-listed on the New York, Toronto and Euronext stock exchanges under the symbol BAM, BAM.A and BAMA, respectively.

ROLE

SHP acted as financial adviser to Link Financial Group.