Salter Brothers grows credit footprint via | Australian Markets

Salter Brothers has expanded its personal credit attain and experience with the acquisition of the $600 million Sydney-based fund supervisor, Causeway Asset Management.

Causeway’s experience lies in direct lending options for small-to-medium enterprises (SMEs) and middle-size corporates in Australia, with its whole company loan portfolio amounting to nicely over AUD$1.7 billion because the firm was based in 2003.

The acquisition of Causeway is one of a number of transactions finalised by Salter Brothers within the final 12 months, with founding administrators Mike Davis and Tim Martin, in addition to the broader Causeway staff, set to enter the Salter Brothers fold and produce with them deep expertise and information of credit, loan structuring, evaluation, restoration, restructuring and exercises.

“We are delighted to welcome Mike, Tim and the Causeway team to Salter Brothers,” Paul Salter, Managing Director at Salter Brothers, mentioned.

“We are impressed with their expertise, experience and reputation in the industry and believe they will complement our credit capabilities and will be instrumental in driving our private credit growth ambitions.”

Causeway Founding Director, Mike Davis, mentioned the heightened urge for food for personal debt in recent times confirmed now was the correct time to companion with the $4 billion firm.

“The increase in investor engagement within the private debt asset class over the past 5-8 years reminded us of the private equity sector’s journey since the early 2000’s,” he mentioned.

“In order to scale our participation in the Australian lower mid-market corporate sector which now totals in excess of A$500 billion borrowing appetite, we felt it was timely to build on our foundation in private debt markets by teaming up with Salter Brothers who are also keen to grow their private credit business.”

“We have previously partnered with Salter Brothers on transactions, and these experiences have demonstrated to us that we share similar values and culture,” fellow Causeway Founding Director, Tim Martin, mentioned.

“Importantly, we have a shared perspective on conservative underwriting practices and a laser focus on capital preservation across our portfolios, which means we are well-placed to provide a compelling, integrated offering to our wholesale and institutional investors in our targeted market sector.”

“The integration of Causeway’s extensive track-record and Salter Brothers’ global platform is garnering significant interest,” David O’Connor, Managing Director, Debt Capital Markets at Salter Brothers, mentioned.

“We have already presented our combined capability to a number of our investment partners, who have expressed a desire to participate in this opportunity”.