Press releases
Business Finance and Liberty Financial establish Joint Venture
Business Finance Limited (“Business Finance”) and Liberty Financial Pty Ltd (“Liberty”) today announced the establishment of a joint venture (“JV”) between the two companies.
As part of an overall investment of $22 million, Liberty has become a 50% owner of Business Finance with the balance of shareholding being retained by the existing owner. In addition to enhancing its financial position, the JV will also bolster Business Finance’s risk management, corporate governance and systems infrastructure. This JV will enable Business Finance to continue its unblemished track record and take a leading position in its industry.
Based in Auckland, Business Finance has successfully operated an equipment finance business and a retail deposit program since 2002. Business Finance’s management team previously led the Lion Nathan Group finance subsidiary in the 1980’s and early 1990’s which, following the acquisition of that company by management in 1994 was renamed Nationwide Finance. This company was sold in 2001. Liberty is one of Australasia’s leading diversified finance groups with total revenues of more than $400 million for the year ended June 2009. Liberty has provided over $800 million of residential mortgage loans in New Zealand since 2001 and in 2006 acquired a 50% interest in New Zealand’s leading mortgage broker, Mike Pero Mortgages Limited.
“This JV is a demonstration of how a deposit taking finance company can successfully position itself in an environment of increasing regulation,” said Business Finance’s Managing Director Leo Davis. “We reviewed a range of options which not only strengthened our financial position but also gave us access to established risk management infrastructure, systems and distribution. With Liberty, we have partnered with a well-capitalised financial services group that complements our conservative approach.”
Liberty’s Executive Director Peter Rollason said, “Business Finance has successfully managed all of its retail depositors during the recent economic downturn. Future regulatory changes will ensure prudent operating standards are consistently applied by all industry participants and we are delighted to partner with Business Finance. This JV will endow Business Finance with the critical mass that it needs to continue its growth as an industry leader.”
Liberty Financial is a leading specialty finance company offering residential and commercial mortgages, motor vehicle, dealer floorplan, debtor and equipment finance in Australia and New Zealand. It employs over 200 professionals and has advanced more than $10 billion sourced from global capital markets and retail depositors. Since 1997, Liberty has helped more than 120,000 customers achieve their financial goals.
To organise an interview or for more information, please contact:
Peter Rollason, Executive Director, Liberty Financial
Email prollason@liberty.com.au
