Blackstone has agreed to finance the acquisition of HSBC’s A$36bn (£18.8bn) Australian home loan portfolio, in what the alternative asset manager described as the world’s largest mortgage portfolio transaction.

Funds managed by Blackstone Credit & Insurance, Blackstone Tactical Opportunities and Blackstone Real Estate Debt Strategies will provide the capital for the transaction.

Pepper Money, an Australia and New Zealand-focused non-bank lender, will act as loan management partner for the portfolio following completion. Pepper will work with Blackstone and HSBC to manage the transfer and service the loans.

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Blackstone said the arrangement would support a seamless transfer for HSBC borrowers while helping customers to retain competitively priced loans.

Dan Leiter, head of international at Blackstone Credit & Insurance, said international expansion was a “major priority” for the firm’s private credit business.

“This marquee investment is a testament to the power of our franchise and our conviction in the growing opportunities in credit across Asia,” he said.

Mike Culhane, head of international business development for asset-based finance at Blackstone Credit & Insurance, said Australia remained an attractive market for long-term credit investment.

“We are pleased to invest in a high-quality Australian home loan portfolio while supporting a seamless transition for HSBC customers,” he said.

Reuters reported that the transaction is expected to complete during the first half of 2027.

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