Your Income and Access to Capital Are Unaffected. Here Are the Facts
You may have seen this week’s coverage of the Bathla Group administration in which La Trobe Financial was named among the group’s lenders, and separate moves by some private credit managers to restrict redemptions.
You deserve to hear from us directly and plainly.
No La Trobe Financial investor will lose access to their capital because of Bathla. We will not freeze, gate or restrict redemptions because of it. Bathla will not affect the income paid to investors or result in any loss of capital for our pooled investors. Full stop.
Granular. Diversified. Conservative
We construct portfolios around three disciplines: quality assets, genuine diversification and conservative lending settings.
La Trobe Financial’s total exposure to the Bathla Group is approximately 0.15% of assets under management, or $38.1 million. It comprises four residential loans and one development loan. Every loan is secured by a first registered mortgage, at a weighted average loan-to-value ratio of 62.5%.
The development project is approximately 95% complete. We hold the full costs to complete it, and presales cover 89% of the current loan balance. We expect to recover the loan in full.
Within our flagship 12 Month Investment Account, the exposure is smaller again: two residential loans totalling approximately $5.0 million, or 0.04% of the portfolio. Both are secured against completed homes, not development stock.
Those are deliberately small exposures. That is not luck. It is design.
We do not predict which borrower will fail. We build portfolios so that it does not matter which one does.
As at 31 July 2026, the 12 Month Investment Account holds 10,531 individual loans, with an average loan size of approximately $1.08 million. It is granular, diversified and conservatively secured by first registered mortgages.
This week’s coverage asked the right questions. When a borrower group or developer fails, the market finds out which lenders controlled concentration risk, maintained appropriate security and kept their investors fully informed.
Here Are Our Answers:
On concentration. The largest individual exposure in the 12 Month Investment Account represents approximately 0.25% of the portfolio. Diversification and granularity are enforced through hard portfolio limits.
On security and valuation. Every loan in the 12 Month Investment Account is secured by a first registered mortgage over independently valued real property. Loans are conservatively assessed at origination and subject to ongoing monitoring and impairment review.
On transparency. You are reading exactly how large our Bathla exposure is and how it is secured. We publish detailed portfolio reporting each month.
Those disciplines are embedded in our portfolios from the outset. They cannot be retrofitted once stress appears.
Liquidity Is Held to the Same Standard
La Trobe Financial has operated in Australian real estate credit since 1952 and first offered investment products to retail investors in 1989. Since then, through the global financial crisis, COVID-19, the Silicon Valley Bank dislocation and every property cycle in between, La Trobe Financial has never frozen, gated or restricted redemptions because of a lack of liquidity^.
Every valid withdrawal request has been met on time and in full, in accordance with the terms of the relevant product. Liquidity is managed daily across the business and tested under a range of stressed conditions.
The events of this week are testing portfolio construction and liquidity management across the sector. That is precisely when the difference between managers becomes clear.
We Are Built Differently
Bathla will not affect our pooled investors. We will not freeze, gate or restrict redemptions because of it.
We have operated in Australian real estate credit since 1952 and managed retail investor capital since 1989. That record has been built over decades and tested when it matters.
If you have a question about your investment, please speak with our Investor Centre on 1800 818 818 or your dedicated relationship
^ Past performance is not a reliable indicator of future performance.
Note: numbers as at 25 August 2026 unless otherwise stated.
La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Credit Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321, the La Trobe US Private Credit Fund ARSN 677 174 382 and the La Trobe Private Credit Fund ARSN 686 964 312 (ASX:LF1). It is important that you consider the relevant Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in the fund. The PDSs and Target Market Determinations are available on our website.
Any financial product advice is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before investing, you should consider whether the product is appropriate for you and read the relevant PDS and Target Market Determination available from La Trobe Financial.
