Bluestone Mortgages and Athena Home Loans announce $2 Billion funding deal

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Partnership Is One of Australia’s Largest Fintech Whole-loan Funding Arrangements

SYDNEY – 5 May 2021 – Bluestone Mortgages (“Bluestone”) and Athena Home Loans (“Athena”) today announced a strategic partnership that will provide up to $2 billion of whole-loan funding to Athena over the next three years. The partnership represents one of Australia’s largest fintech whole-loan funding arrangements.

Bluestone is a leading non-bank lender specialising in residential home loans, supported by more than 275 professionals. The company manages over $10 billion in home loans and has provided nearly 60,000 customers with tailored solutions that fit a wide range of circumstances. Bluestone is backed by an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing with more than US$53 billion in assets.

Campbell Smyth, Chief Executive Officer of Bluestone, commented: “This partnership builds on Bluestone’s foundation as a tech-enabled, non-bank lender. Athena shares our commitment to innovation and tailored solutions to meet customers’ evolving needs. We look forward to exploring strategic opportunities with Athena to expand our offerings and capabilities.”

Athena is one of Australia’s fastest growing fintech’s and has developed an innovative platform to access wholesale funding from leading financial institutions. Since its launch in February 2019, the company has settled over $2 billion in applications.

Michael Starkey, Chief Operating Officer and Co-Founder of Athena, said: “Athena’s innovation on funding arrangements supports our accelerated lending growth, allowing us to help more Aussies to pay down their home loans faster and capture big interest savings. This deal is further validation that there is strong institutional demand for innovative funding models. We are excited to partner with Bluestone, an innovative lender with a common mission, and Cerberus, a global powerhouse in investing.”

David McWilliam, Managing Director for Cerberus Australia Advisors, added: “This strategic partnership brings together Bluestone’s and Athena’s complementary platforms and strong expertise in the residential home loan sector. We continue to focus on how we can provide solutions to Australian businesses and customers.”

Deloitte Financial Advisory acted as lead financial adviser to Athena on the transaction. James Chown Deloitte Australia Financial Services M&A Partner, commented: “Partnerships between established, global firms and local Australian fintech’s drive more innovation and further competition in the Australian market – and most importantly better outcomes for customers.”

About Bluestone

Bluestone is a fast-growing, full-service lender providing a range of residential home loan solutions including Prime, Near Prime and Specialist, reflecting the growing need for flexible solutions that cater to different and unique circumstances. With offices in Australia, New Zealand and the Philippines, Bluestone manages over A$10 billion in loans and employs a team of over 275 professionals.

About Athena Home Loans

Athena is on a mission to save Australians a whole lot of money and help pay off their home loan faster. Athena was founded in June 2017 by Nathan Walsh and Michael Starkey to revolutionise the home loan industry and make it better in every way. Athena built an innovative digital home loan platform to deliver savings to borrowers, backed by local home loan experts, seven days a week. Athena has an experienced executive team with a track record of delivering innovative products and outstanding customer experiences.

About Cerberus

Founded in 1992, Cerberus is a global leader in alternative investing with approximately US$53 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.