Cerberus to buy Bluestone Holdings Australia

Cerberus Capital Management LP said Feb. 27 that it has agreed to buy Bluestone Holdings Australia. Financial terms weren’t announced. The Australian Financial Review pegged the sale at $103 million. The deal includes Bluestone’s Australasian mortgage lending and portfolio servicing operations.


NEW YORK and LONDON, Feb. 27, 2018 /PRNewswire/ — Cerberus Capital Management, L.P., a global leader in alternative investing, today announced that one of its affiliates has entered into an agreement with Bluestone Group, the international financial services business based in the U.K., to acquire its Australasian mortgage lending and portfolio servicing operations (“Bluestone Holdings Australia”).

Bluestone Holdings Australia is a leading specialist lending business with operations in Australia, New Zealand, and the Philippines. It has originated over A$6 billion worth of loans, served over 37,000 customers, and completed more than 24 securitizations in Australia. Bluestone was also voted Australia’s number one specialist lender by Momentum Intelligence’s 2017 lending survey. For its part, Cerberus oversees a number of successful servicing platforms in various markets across the globe including Haya Real Estate, the leading independent special servicing platform in Spain; CHL, a U.K. residential mortgage servicing platform; and Cerberus European Servicing, its own proprietary platform with locations across Europe.

Lee Millstein, President of Cerberus Global Investments, said, “With its solid balance sheet and strong competitive position, Bluestone Holdings Australia is well positioned to capitalize on the currently attractive market and regulatory dynamics. Cerberus is excited to work with the management team to scale Bluestone Holdings Australia’s platform to serve the region’s mortgage market. We believe this is the ideal transaction to draw on our mortgage investing and servicing experience and expand our business into the Australian market.”

Campbell Smyth, Bluestone Holdings Australia’s Chief Executive Officer said, “Cerberus has built a reputation as a global leader in mortgages and servicing as a trusted partner to banks and borrowers alike. The combination of Cerberus’s expertise, resources, and commitment to our future success, as well as Bluestone’s strong brand recognition will strengthen our ability to serve borrowers and capture opportunities inherent in the current market environment.”

About Cerberus Capital Management L.P.
Established in 1992, Cerberus Capital Management, L.P. is a global leader in alternative investing with more than US$34 billion under management across complementary credit, private equity, and real estate strategies. From its headquarters in New York City and network of affiliate and advisory offices in the United States, Europe, and Asia, Cerberus has the on-the-ground presence to invest in multiple asset classes globally.

About Bluestone Group
Bluestone Consolidated Holdings Limited (Bluestone Group) is a fast growing European financial services business with its headquarters in Cambridge and offices in London, Sheffield and Dublin. Founded in 2000, Bluestone employs a team of around 130 professionals and specialises in loan origination, consumer loan purchase and portfolio servicing. The business is owned by a mix of private and institutional shareholders including interests associated with founder, Mr. Jeffery, Australia’s Macquarie Bank Limited and the management team. Bluestone Group operates residential mortgage lending and servicing businesses in the UK, and an auto finance business in Ireland. The business reported net assets of £43m and earnings of £5.8m pa (FY17) prior to the sale of Bluestone Australia. Further information can be found at www.bluestone.co.uk.

About Bluestone Holdings Australia
Bluestone Holdings (Australia) Pty Ltd (Bluestone Australia) is a leading non-bank mortgage lender and servicer, headquartered in Sydney with operations in Australia, New Zealand and the Philippines. In addition to lending to borrowers who don’t meet bank criteria, Bluestone also provides servicing solutions to third parties, leveraging its proprietary origination and servicing systems and resources. Bluestone has successfully issued 24 securitisations across Australia and New Zealand primarily under its Sapphire shelf. The business reported net assets of A$41.2m and earnings of A$12.4m for FY17.