(L to R): Bob Sahota and Andrew Chepul

Leading Australian private credit investment manager, Revolution Asset Management (Revolution) and non-bank lender ColCap Financial (ColCap) has announced a strategic partnership designed to expand access to alternative capital sources.

Under the partnership, ColCap acquires a minority 14% shareholding in Revolution, while Channel Capital converts its existing interest into a 25.8% shareholding. Revolution’s investment team retains majority ownership, ensuring continuity of leadership, strategy and alignment of interest with investors.

The partnership brings together two powerhouses in their respective fields, combining ColCap’s deep expertise in mortgage and specialised lending with Revolution’s institutional-grade private credit capabilities across Australia and New Zealand. ColCap currently manages over $19 billion in assets under management, while Revolution oversees more than $3 billion in funds under management.

“This investment reflects our commitment to expanding our diversified and resilient funding platform to support our future growth and strategic ambition,” said ColCap’s Chief Executive Andrew Chepul.

“Revolution’s disciplined credit approach and strong institutional relationships complement our strategic vision and operational strengths in origination, which will add scalable funding diversity as we transition towards a broader asset management focus, less reliant on securitisation funding sources.”

Revolution’s Managing Director Bob Sahota said the partnership marks a milestone for the business as it combines Revolution’s established private credit funds management expertise with ColCap’s strong origination and lending capabilities focusing on high quality lending.

“This strategic investment further diversifies our origination pipeline and deal flow by leveraging ColCap’s established lending platform and track record to expand our access to high quality lending opportunities, enhancing portfolio depth and diversification.”

The partnership enables enhanced origination in institutional grade, Asset-Backed Securities, focusing on mezzanine and senior tranches, whole loans, as well as warehouse facilities. These assets aim to deliver regular income, diversification and capital protection, without exposure to subprime markets.

“Our investment committee, credit discipline, and risk frameworks remain unchanged.  Investors can be confident that portfolio construction, risk management, and investment decision-making processes continue to deliver the consistent quality and performance Revolution is known for.”

ColCap’s Co-Founder and Chief Operating Officer Ilias Pavlopoulos said the move reflects ColCap’s deliberate investment to become a diversified non-bank lender.

“We’re a genuine mortgage origination leader, having spent the last almost 20 years delivering product innovation challenging bank and competing non-bank lenders, providing borrowers with choice and trusted prime mortgage alternatives. We believe now is the right time to leverage strategic investments and expand beyond traditional mortgages to provide broader asset management offerings for professional investors.

As one of Australia’s largest non-bank lenders, with growing global operations, ColCap will continue to look at opportunities for growth through strategic investments and acquisitions in complementary markets.”

Channel Capital Group (Channel) provides institutional-grade non-investment services to Revolution, including operations, client service, distribution, and marketing.

Channel’s Managing Director Glen Holding said the partnership ensures the ongoing strength of Channel’s relationship with Revolution, while also driving significant growth for the business.

“Channel’s focus remains on providing robust governance, operational oversight, and support for Revolution. At the same time, this partnership opens the door to new growth opportunities, enabling the creation of innovative investment solutions powered by ColCap’s proven origination platform.”

Berkshire Global Advisors acted as exclusive corporate advisor to Revolution on this strategic partnership.

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