Commercial finance broker COG Financial Services is extending its move into lending, with the acquisition of funds management business Equity-One Mortgage Fund Ltd.

The acquisition is being made by Westlawn Finance Ltd, a COG subsidiary. COG took its stake in Westlawn, a commercial and consumer lender, from 51 per cent to 75 per cent last year and plans to move to 100 per cent ownership over the next three to five years.

Equity-One operates a contributory mortgage scheme and has around A$350 million of funds under management.

Westlawn will pay $24 million in cash for 70 per cent of Equity-One in the initial tranche of the deal and then acquire the balance of the equity in three tranches under option agreements that run until 2027.

Separately, COG announced that it has established a $31 million acquisition finance facility with a major bank. It is a revolving facility with a five-year term.

COG chief executive Andrew Bennett said in a statement: “The facility will enable COG to continue its strategy of acquisition for growth by allowing it to acquire additional asset finance businesses to the value of $31 million without the need to raise additional equity.”

COG claims an 18 per cent share of asset finance broking. Most recently, it has acquired 30 per cent of broker PCG it did not already own and an 80 per cent interest in Access Capital, an asset finance broker in South Australia and the Northern Territory.