SYDNEY – Australian non-bank lender Pepper Money Limited PPM.AX said on Monday it has entered a consortium with global investment firm KKR KKR.N to acquire the RAMS home loan portfolio from Westpac Banking Corp.
The portfolio comprises A$21.4 billion ($13.9 billion) in residential mortgages as at September 30, 2025.
Under the binding agreement, Pepper Money will acquire the legal title to the residential mortgages and will be appointed as the servicer of the portfolio, the company said in a statement.
The transaction aligns with Pepper Money’s strategy to expand its fee-earning, capital-light servicing business, which provides stable, annuity-style earnings.
KKR is making its investment from managed credit funds as part of its Asset-Based Finance strategy. The beneficial interest in the loan portfolio will be held by a securitisation financing vehicle, in which Pepper Money will hold a small, non-material investment alongside other consortium members.
The acquisition is subject to customary conditions, including approvals from Australia’s Foreign Investment Review Board and the competition regulator. The deal is targeted for completion in the third quarter of 2026.
Pepper Money, established in 2000, is a leading non-bank lender in Australia and New Zealand. KKR is a major global investment firm with assets in private equity, credit, and real assets.
($1 = 1.5374 Australian dollars)