Recludo takes majority stake in Melbourne broker Astar

Recludo has agreed to buy a majority stake in Melbourne mortgage brokerage Astar Financial, expanding its presence in Victoria.

Under the agreement, the residential mortgage group will acquire 51% of Astar Financial and provide strategic and operational support. The transaction is Recludo's seventh partnership since launch and lifts its combined residential loan book to about $3 billion.

Founded by Peishan Wu, Astar Financial advises clients on home loans, refinancing, investment lending and commercial finance through a panel of lenders.

The deal adds another founder-led brokerage to Recludo's model of taking stakes in established broker businesses while keeping existing leadership in place. It provides shared support in compliance, marketing, performance benchmarking, peer forums and access to expansion capital.

The transaction comes as mortgage brokers now account for more than three-quarters of new residential loans in Australia, according to Recludo. That has intensified competition among brokerages and increased pressure on smaller firms to invest in systems, governance and compliance.

For independent broker businesses, growth can become harder as client numbers rise and regulatory demands increase. Recludo aims to address that by combining ownership stakes with centralised services, including recruitment support and automation tools.

Wu said the partnership would allow Astar Financial to expand while maintaining its existing approach to clients.

"Our focus has always been on providing clear guidance and customised lending strategies that reflect each client's circumstances. 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," said Peishan Wu, chief executive officer of Astar Financial.

Established in April 2024, Astar Financial has grown in the Melbourne market during a period of heightened complexity for borrowers. Demand for mortgage advice has remained firm as households navigate refinancing decisions, interest rate settings and tighter lending conditions.

Growth strategy

Recludo chief executive officer Tim Brown said the Astar Financial deal fits the group's broader consolidation 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. 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," said Tim Brown, chief executive officer of Recludo.

Brown's comments reflect a wider shift in the mortgage broking sector, where scale is becoming more important as compliance obligations and technology costs rise. Larger networks and platform operators are increasingly targeting smaller brokerages with back-office support while leaving advisers to manage client relationships and local branding.

Victoria remains a key market for mortgage distribution, with Melbourne one of the country's largest lending centres. By taking a controlling stake in Astar Financial, Recludo gains a larger foothold in that market and another base from which to expand its national network.

Wu said the arrangement would support further investment in staff and internal processes.

"This gives us the ability to invest in our people, strengthen internal systems and broaden our reach without losing our independence in the market. It's about building a stronger business for the long term," Wu said.