Mortgage brokers and their clients in Victoria are set to see a new wave of consolidation and capability-building as Recludo takes a majority stake in Melbourne-based brokerage Astar Financial.
The deal extends Recludo’s presence in the state and underscores the growing appeal of investment partners that can help established, founder-led brokerages scale without losing their identity. It also comes amid a broader M&A upswing, with publicly announced deals involving Australian-based companies reaching about $143.8 billion in 2025 as consolidation gathers pace across financial services, including banks and mortgage distribution.
Under the agreement, Recludo will acquire 51% of Astar Financial and provide strategic and operational support to drive its next phase of development.
Founded in April 2024 by CEO Peishan Wu (pictured left), Astar has built a steady presence in home loans, refinancing, investment lending and commercial finance, serving an increasingly diverse client base with solutions drawn from a broad lending panel.
Wu said the partnership is about matching client expectations in a more complex lending market.
“Our focus has always been on providing clear guidance and customised lending strategies that reflect each client’s circumstances. As the market becomes more sophisticated, we recognise the need for stronger infrastructure and strategic support,” she said. “Partnering with Recludo gives us access to that capability while allowing us to retain the culture and client-first approach that defines our business.”
The move reflects a broader shift across the mortgage sector, where brokers now write more than three-quarters of new residential loans nationally but many firms still operate as small, fragmented businesses. As compliance demands increase and technology expectations rise, independent brokerages often need deeper systems, governance frameworks and capital to push into their next growth stage.
Recludo executives have previously pointed to rising administrative and governance costs as a key driver of consolidation, arguing that smaller firms increasingly need scale to keep up with regulatory and technology spend.
Recludo chief executive Tim Brown (pictured right) said the Astar deal fits squarely with the group’s consolidation strategy.
“Astar Financial has built meaningful client relationships and demonstrated consistent growth in a competitive market,” Brown said. “Peishan has significant growth ambitions for the business, and we look forward to supporting her in execution of those plans.
“Our role is to provide the governance, scalable systems, AI-enabled automation, and recruitment capability so the Astar leadership team can focus on expanding the business rather than managing administrative complexity.”
Recludo’s model is built around preserving founder leadership while plugging businesses into shared infrastructure, including centralised compliance, marketing support, performance benchmarking, and peer forums, as well as access to capital for expansion.
The group has been steadily executing this playbook since its launch in 2024, adding a series of partnerships – including a 51% stake in mortgage manager Thry Group – as it builds scale in the broker market. With Astar now on the platform, Recludo’s combined residential loan book stands at approximately $3 billion, and the Astar deal marks its seventh partnership since launch.
Wu said the backing will help underpin long-term growth.
“This gives us the ability to invest in our people, strengthen internal systems and broaden our reach without losing our independence in the market. It’s about building a stronger business for the long term,” she said.
Recludo has signalled plans to invest in 40 to 50 brokerages over the next five years, suggesting that broker clients can expect more well-capitalised, tech-enabled advisory firms to emerge as this push towards larger, better-resourced broker groups continues.
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