Household Capital closes Series B financing with strategic investment from UK’s Legal & General
10 March 2020:
Household Capital has announced the completion of a Series B financing, with UK global asset manager and financial services provider Legal & General acquiring a 20 percent stake in the Australian company. Existing and new investors joined Legal & General in the Series B financing, which takes the total amount of equity capital raised by Household Capital to $25 million since launching in 2017.
Legal & General’s strategic investment, Household Capital’s first non-domestic, multinational investor, will be used to underpin the Australian home equity retirement funding provider’s corporate growth, and build on its early success.
Legal & General – a leading provider of insurance, annuities and lifetime mortgages in the UK and a global asset manager with close to £1.2 trillion in assets under management – is dedicated to helping institutions and individuals in all phases of pension and retirement planning. Household Capital will benefit from this deep understanding of retirement markets, asset management and market leading experience of equity release and product innovation.
Joshua Funder, Chief Executive Officer of Household Capital, said, “Legal & General’s strategic investment shows when it comes to tackling the challenge of our burgeoning retirement-age population, global investors see Australia as a significant market opportunity.”
“We’re excited to have an investor on board with experience in this market segment and who recognises that Household Capital is an innovator in home equity retirement funding with a clear values-based focus on customer outcomes.”
Chris Knight, Chief Executive Officer of Legal & General Retail Retirement said, ‘‘This is a great opportunity to invest in a dynamic business, in a market with lots of potential. It reflects our commitment to improving the opportunities available to everyone at retirement, regardless of where they may be, so that they can live longer, healthier and happier lives.”
“The Australian equity release market is extremely promising, with Household Capital at the forefront of developing innovative funding options for retirees. We’re looking forward to working together to help grow the scale of the business so that consumers have better options at this critical life stage.’’
Series B fundraising
The Series B fundraising will enable Household Capital to continue to meet its growth objective; to provide retired Australian homeowners with solutions to their increasingly complex retirement funding needs.
The funds raised will be used to grow Household Capital’s team, to enable the business to continue to provide the high quality personalised service for which it’s become known. It also plans to expand its offering of innovative home equity retirement funding solutions, increase its marketing footprint and continue to invest in technology.
Legal & General and incoming Series B investors join the company’s initial investors, including ME Bank, which holds both an equity stake and has provided Household Capital’s initial debt facility.
Combined with its strong digital offering, local market expertise and innovative wholesale debt structure, Household Capital will continue to meet its growth objectives, providing retired Australian homeowners with solutions to their increasingly complex retirement funding needs.
Nick Sherry, Chair, Household Capital and former Federal Minister for Superannuation and Corporate Law said, “It is a myth that Australians downsize. They want to continue to live in their homes and in their community.”
“Drawing down part off the capital in their home can help many retirees achieve their objectives and maintain a good lifestyle.”
“Our investors know that growth in home equity retirement funding is not only necessary – it’s inevitable.”
Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.