Recludo grows broker network with Astar Financial deal

The transaction forms part of Recludo’s broader plan to establish a national, broker-led platform designed to support founder-run mortgage businesses at scale and co-ordinate strategic succession planning.

Launched in mid-2024, the group has built a $3.2 billion residential loan book through a combination of acquisitions and partnerships with established brokerages.

Recludo said the latest acquisition aims to strengthen its presence in Victoria and marks its seventh partnership since launch.

Astar Financial, headquartered in Melbourne, specialises in a variety of lending sectors, including home loans, refinancing, investment lending, and commercial finance.

Under the agreement, Recludo will acquire a majority 51 per cent stake in Astar Financial and provide strategic and operational support to accelerate the brokerage’s next stage of development.

“Our focus has always been on providing clear guidance and customised lending strategies that reflect each client’s circumstances,” said Peishan Wu, who founded the brokerage in 2024.

“As the market becomes more sophisticated, we recognise the need for stronger infrastructure and strategic support. Partnering with Recludo gives us access to that capability while allowing us to retain the culture and client-first approach that defines our business.”

Bigger is better?

The partnership reflects broader structural shifts across the mortgage sector. Mortgage brokers now originate more than three-quarters of all new residential loans nationally, yet Recludo said that the industry remains fragmented and compliance-intensive.

It claims that for many independent brokerages, scaling beyond a certain point requires deeper operational systems, governance frameworks, and capital backing.

Recludo CEO Tim Brown said the Astar partnership aligns with the group’s long-term growth strategy.

“Astar Financial has built meaningful client relationships and demonstrated consistent growth in a competitive market. Peishan has significant growth ambitions for the business, and we look forward to supporting her in execution of those plans,” Brown said.

“Our role is to provide the governance, scalable systems, AI-enabled automation and recruitment capability so the Astar leadership team can focus on expanding the business rather than managing administrative complexity.”

Recludo’s model is designed to preserve founder leadership, while introducing shared infrastructure that improves efficiency and scalability, including centralised compliance support, marketing capability, performance benchmarking, peer forums, and access to capital for expansion initiatives.

Recently, Recludo acquired Pink Finance, headed up by AFG broker Cannon, as reported by Broker Daily sister brand The Adviser.

The firm also acquired mortgage management business Thry Group last month.

With Astar Financial joining the platform, Recludo’s combined residential loan book now stands at around $3 billion across seven acquisitions, reinforcing its ambition to build a national network of broker businesses.

The Hawley brothers on board

The company has also attracted backing from high-profile industry figures, with Tom and Ben Hawley of Top 25 brokerage Azura Financial recently becoming shareholders in Recludo.

Tom Hawley told The Adviser the decision to invest personally reflected confidence in the “roll-up” model, which he believes is well-suited to the Australian mortgage market.

“We like the investment proposition of acquiring multiple brokerages. I think there’s significant upside, and we’ve built a lot of IP in our business that we can share with other brokers,” he said.

He added that the “one-man band” model is becoming increasingly difficult to sustain in a more complex regulatory environment.

“It’s so hard to operate as a single broker these days. I think many brokers are looking for guidance on how to grow,” he said.

Wu added: “This gives us the ability to invest in our people, strengthen internal systems and broaden our reach without losing our independence in the market.”

[Related: Brokers share experiences as 5% Deposit Scheme hits 300k]

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