ASX-listed Challenger partners with New Zealand private credit lender Finbase
Institutional capital is moving deeper into New Zealand’s private credit market, with Challenger Limited entering a NZD $150 million strategic capital partnership with Auckland-based private credit platform Finbase.
The partnership with Challenger is a forward flow arrangement targeting first-ranking, low loan-to-value residential mortgages in New Zealand.
The partnership reinforces Challenger’s confidence in investment into New Zealand assets through a local platform and represents Finbase’s first large-scale institutional funding line.
For Finbase, the transaction signals a step-change in scale and positioning.
“This is a significant milestone in the evolution of our platform,” said Pernell Callaghan, Managing Director of Finbase. “An ASX-listed investment manager committing capital at this scale is a strong endorsement of the infrastructure we’ve built.”
Challenger’s Head of Whole Loans, Andy Armstrong, said the transaction aligns with Challenger’s whole loan investment strategy, partnering with lenders to acquire attractive assets with strong risk-adjusted returns for Challenger and institutional clients.
“We are pleased to partner with Finbase as they continue expanding their presence in the New Zealand market. Their positive track record, and focus on risk give us confidence in supporting their next phase of growth. This additional capital will enable Finbase to increase origination in their core segments and broaden their product offering into adjacent lending opportunities.”
Institutional capital targets New Zealand private credit growth
The deal comes as regulatory capital requirements and tighter bank credit settings continue to reshape New Zealand’s mortgage market.
Private credit lenders have gained market share in investor and commercial segments, where borrowers prioritise execution, certainty and speed. Institutional capital has increasingly sought exposure to this segment, attracted by secured lending structures and floating-rate cashflows.
The Challenger partnership provides Finbase with committed capital to scale origination while diversifying its funding base beyond wholesale investors.
Upon deployment, Finbase’s total funds under management are expected to approach NZD $500 million.
Scaling with institutional infrastructure
Finbase has invested heavily over recent years in credit governance, compliance and portfolio oversight functions.
The platform originates through a national broker network and direct borrower relationships, focusing exclusively on first-ranking mortgage security.
Callaghan said the partnership forms part of a broader strategy to diversify capital partnerships as the company scales.
“Our objective is to build a durable institutional private credit platform in New Zealand. This partnership is the first major step in that direction.”
About Challenger
Challenger Limited is an investment management firm focused on providing customers with financial security for a better retirement.
Challenger operates a fiduciary Funds Management division and an APRA-regulated Life division. Challenger Life Company Limited is Australia’s largest provider of annuities.
