There had been rumours earlier this year that the two firms were in “exclusive talks” with each other over a potential deal.
Oaktree Capital was set up in 1995 by co-founders Howard Marks and Bruce Karsh and has US$193 billion ($294 billion) in assets under management. Based in Los Angeles, it opened an Australian office in 2016, which is led by managing director Byron Beath.
As part of this agreement, Oaktree will invest $240 million and become the largest shareholder of AZ NGA, while Azimut Group, AZ NGA management and current shareholders will continue to retain a strategic stake.
Through this partnership, AZ NGA, Azimut and Oaktree will work together to accelerate acquisition and integration activity and enhance AZ NGA’s position as the growth and succession partner of choice for financial advisory and accounting firms in Australia.
“We are excited to work with a world-class strategic investor like Oaktree as we execute our strategy and deliver on our promise to our people, community and clients,” said Paul Barrett, AZ NGA chief executive.
“With strong momentum to date and an attractive pipeline of M&A opportunities, AZ NGA is strongly positioned for accelerated growth alongside Azimut and Oaktree.”
Beath remarked: “AZ NGA and the leadership team have established themselves as the growth and succession partner of choice for high-performing financial planning and accounting firms.”
Continuing, Barrett said: “Oaktree has invested in financial services platforms globally, such as Ascot Lloyd and Atomos, and we look forward to enhancing AZ NGA’s strong market position and sharing Oaktree’s seasoned investment philosophies to deliver even greater value to AZ NGA’s retail and wholesale clients. We will work together to achieve our shared vision of AZ NGA as Australia’s leading consumer financial services advisory firm.”
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals.
Earlier this year, AZ NGA announced it had acquired stakes in 16 advice practices from AMP for $82.2 million, with the intention of helping those practices with their M&A goals.
“We are just so thrilled to be able to invest in such quality organisations, and brick by brick create a substantial financial services company,” Barrett said.
“Ultimately, these 16 firms in the portfolio have all the same problems and ambitions that our core firms in the AZ NGA portfolio have. We are very accustomed to working with them and solving those problems around succession and growth.”
