Blackstone to Acquire HSBC’s A$36 Billion Australian Home Loan Portfolio

Blackstone (NYSE: BX) today announced that funds managed by Blackstone Credit & Insurance, Blackstone Tactical Opportunities, and Blackstone Real Estate Debt Strategies (“Blackstone”), have signed a definitive agreement to finance the acquisition of HSBC’s A$36 billion (US$25 billion) Australian home loan portfolio. This represents the largest home loan portfolio transaction globally, demonstrating Blackstone’s ability to deliver scaled, complex capital solutions to back leading financial institutions and critical sectors of the real economy. It also reinforces Blackstone’s long-term commitment to Australia, where the firm has invested for nearly two decades, and to deploying significant capital to support its housing market.

Dan Leiter, Head of International for Blackstone Credit & Insurance, said: “International expansion is a major priority for our private credit business. Blackstone’s global credit platform, deep origination capabilities, and long-standing relationships position us to deliver unique value to clients around the world. This marquee investment is a testament to the power of our franchise and our conviction in the growing opportunities in credit across Asia.”

Mike Culhane, Head of International Business Development for Asset Based Finance, Blackstone Credit & Insurance, said: “We are pleased to invest in a high-quality Australian home loan portfolio while supporting a seamless transition for HSBC customers and helping them maintain competitively priced loans. With Pepper Money providing experienced local loan management, customers can continue to receive high standards of service. We strive to oversee this portfolio thoughtfully and with discipline and remain committed to Australia as a highly attractive market for long-term credit investment.”

Pepper Money will serve as the portfolio’s loan management partner. Pepper Money is one of Australia and New Zealand’s leading non-bank lenders. It was established in 2000 as a specialist residential home loan lender in Australia, with a focus on delivering innovative home loan solutions. Pepper Money brings more than 26 years of experience and will work closely with Blackstone to facilitate a seamless transition from HSBC and a consistent and positive borrower experience.

Mario Rehayem, Chief Executive Officer of Pepper Money, said: “Pepper Money’s appointment as the loan manager reflects the strength of our established platform and our experience supporting customers across large, complex portfolios. For more than 26 years, we have both originated and serviced loans on behalf of third parties. With the scale, systems, and focus on customer care, we are well placed to provide a positive customer and partner experience through transition. Alongside Blackstone and HSBC, our focus will be on disciplined execution, continuity for customers, and clear, genuinely helpful support at every step.”

Completion of the transaction is subject to regulatory approvals. For more information, please refer to this fact sheet.

About Blackstone
Blackstone is the world’s largest alternative asset manager. Blackstone seeks to deliver compelling returns for institutional and individual investors by strengthening the companies in which the firm invests. Blackstone’s over $1.3 trillion in assets under management include global investment strategies focused on real estate, private equity, credit, infrastructure, life sciences, growth equity, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.