Firstfolio expands through non-bank deal

By Adam Smith | 19/07/2011 5:00:00 AM | 0 comments

Financial services company Firstfolio has announced it is in negotiations to acquire a controlling interest in a non-bank lender.

The company revealed it plans to take a controlling stake in Calibre Financial Services, allowing Firstfolio to enter the non-bank lending market in earnest. CEO Mark Forsyth said the move would open up the non-bank market to the company due to Calibre's securitisation structure and line of warehouse funding.

“In acquiring an interest in Calibre, Firstfolio gains a securitised lending platform that will give us additional options over funding, product and pricing of residential mortgages as a non-bank lender. It will be a great supplement to our existing lines,” he commented.

Firstfolio executive director Mark Flack told Australian BrokerNews he believed other aggregators with the scale to support such infrastructure would increasingly make moves into the non-bank lending space.

Flack said the acquisition would allow Firstfolio to focus on "niche prime products," as well as branch out into areas beyond residential lending, such as equipment finance. Flack said Firstfolio will launch new products by year's end.

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