Ex-Macquarie operator rules off $65m raise for non-bank lender Metro

afr.com:

Sydney’s Metro Finance is eyeing its next phase of growth after ruling off a $65 million institutional equity placement.

A novated lease allows users to switch to a new car every three to five years. 

It comes after the non-bank lender, which counts former Macquarie capital markets division director Phillip Crossman as its chief executive, finalised a $500 million debt funding deal in February.

Proceeds of the equity placement will be used to strengthen its balance sheet and grow its novated lease and consumer lending businesses. Metro will also look to pursue a range of strategic acquisitions to beef up its distribution networks and systems.

At its core, Metro is a commercial auto and equipment lender. Over the past few years, it has also expanded into car finance for consumers and novated leasing, which allows employers to finance an employee’s car, with payments made from the employee’s salary. It competes with the major and regional banks by offering faster turnaround times on loan applications.

Founded in 2011, the lender settles about $150 million in loans each month – or between $1.5 billion to $2 billion annually – servicing more than 50,000 customers across its loan portfolio. The business is co-owned by non-bank investor and lender Balmain Group and Crossman.

Street Talk understands the equity injection came from a single investment fund that already has a debt relationship with Metro. The equity was secured directly between Metro and the new investor, with KMPG bringing its valuation services to the deal.