KordaMentha Restructuring has now commenced a recapitalisation and sale process for non-bank lender Boomer Home Loans.
The recapitalisation process has started following the appointment of Richard Tucker and Kate Conneely of KordaMentha Restructuring as voluntary administrators of Boomer Home Loans on August 15.
The non-bank lender was founded in 2020 to provide alternative mortgage solutions for older Australian’s including reverse mortgage facilities and is Australia’s first over 55s specialist home loan lender designed for customers aged 55 and older.
On August 16, it was announced the Perth-based company was entering voluntary administration.
Boomer Home Loans launched reverse mortgages in May 2022, raised more than $13m in capital and recruited 30 people to its staff. Boomer had also signed major sponsorship deals with the Fremantle Dockers AFL club and the Wests Tigers NRL club for the 2022 and 2023 seasons.
“Boomer has heavily invested in its products which were due to launch later this year,” Tucker said. “Boomer has also developed an end-to-end technology platform to support its products that integrates Boomer’s proprietary software, Boomer’s website and third-party applications.”
Read more: Boomer Home Loans Group enters voluntary administration
Tucker said that he confirmed the recapitalisation of business process was underway with the administrators also reviewing offers for a sale of the business.
“A sale of the business would include Boomer’s intellectual property, including its technology platform,” he said. “Boomer is uniquely positioned to provide mortgage solutions to customers over 55, however requires new funding to support operations and the planned loan book.”
Tucker said Boomer has customers around the country.
“T. are excellent growth prospects for Boomer given the demographic trends in Australia,” he said.
Read more: First dedicated over 55s home loan lender launches
“The company has received significant interest in its products since launching them to market in May. “It is a distinct brand that offers a niche service other lenders were unable to bring. Given the amount of capital in the global markets, we believe Boomer will provide an attractive platform for capital to find a home in a tier one jurisdiction with tier one capital.”
A spokesperson for Boomer Home Loans said the business was preparing to launch products to the market in 2022, however required additional capital to support the business.