Oaktree Capital Management has purchased a major stake in professional advisory firm AZ NGA.
The deal was foreshadowed by The Australian’s DataRoom column on August 22.
AZ NGA said on Monday that Oaktree would invest $240m in the business and become its largest shareholder.
Milan-based financial company Azimut and current management and shareholders will continue to retain a strategic stake in AZ NGA.
AZ NGA strategically invests in financial planning and accounting businesses.
It has a network of 34 partner firms, including financial advice and accounting businesses and a number of financial service providers.
As at August 31, it collectively managed $15.1bn of assets under advice.
AZ NGA said that, with Azimut, the business would work to accelerate acquisition and integration activity and enhance the company’s position as the growth and succession partner of choice for Australian financial advisory and accounting firms.
Oaktree has invested in financial services platforms globally, including Ascot Lloyd and Atomos. As of June, it had $US193bn of assets under management.
Investment bank Jarden Group and law firm Clifford Chance Working assisted Oaktree and Jefferies advised AZ NGA.
“With strong momentum to-date and an attractive pipeline of mergers and acquisition opportunities, AZ NGA is strongly positioned for accelerated growth alongside Azimut and Oaktree,” AZ NGA chief executive Paul Barrett said.
Azimut is one of Europe’s largest independent financial advice services companies.
Its chief executive, Massimo Guiati, said the company was committed to the Australian market for the long term.
The transaction is expected to close in the fourth quarter of 2024.
AZ NGA was founded and is led by Mr Barrett. The business focuses on financial advisory and accounting for small to medium enterprises, and helping companies with growth and succession. It entered a strategic partnership with AMP earlier this year where it would acquire minority equity stakes in 16 financial planning practices.
The deal values the company at $690m including debt.
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