Oaktree closing in on securing AZ NGA buy

Oaktree Capital Management’s Howard Marks. Picture: Nikki Short

California-based private equity firm Oaktree Capital Management is understood to be progressed on a deal to buy the Italian-backed accounting and financial firm AZ NGA in a transaction that could be worth at least $600m.

Working on the sale of the financial firm has been investment bank Jefferies, and other private equity groups have been around the hoop.

However, Oaktree is understood to be working hard on a transaction.

AZ NGA is founded and led by Paul Barrett and the business focuses on financial advisory and accounting small-to-medium enterprises, helping groups with growth and succession.

The company is backed by one of Europe’s largest independent financial advice services companies, Azimut Group, based in Italy.

It entered a strategic partnership with AMP this month.

Oaktree, chaired by Howard Marks, has $US193bn worth of assets under management and, most recently, its interest is understood to have been centred on wealth management.

It has assessed a number of opportunities in recent years where Australian banks have placed assets on the market.

It has also held talks about recapitalisation plans in Australia for casino operator Star Entertainment and last year it emerged as the lead private equity firm that recapitalised GenesisCare, Australia’s largest cancer care provider.

Some believe that Oaktree may bring that business to market in about a year’s time.

Sonic and Medibank

Staying on healthcare, Sonic Healthcare and insurer Medibank flagged further mergers and acquisitions were part of their strategy when they reported their results on Wednesday.

Medibank said it aimed to invest between $150m and $250m through further M&A.

It would focus on opportunities that added scale, capability and geographic coverage.

It recently acquired a shareholding in Myhealth, which it said provided an opportunity to scale its GP clinic footprint and expand virtual-health capabilities.

DataRoom revealed in June that Medibank had been looking at opportunities to invest in the GP market.

If suitable M&A opportunities did not eventuate in a reasonable time frame, the group said it would consider capital management actions.

Last year, Medibank announced it had increased its primary investment from 49 per cent to 90 per cent for about $50.8m in Myhealth Medical Group after initially buying 33.4 per cent for $63m.

Meanwhile, the country’s largest pathology provider, Sonic Healthcare, said it had further acquisition and contract opportunities under consideration.

The group was understood to have considered buying the Healius diagnostic imaging unit, Lumus Imaging, which is towards the end of the UBS-advised competition.