AZ NGA makes first acquisition post-Oaktree deal
AZ NGA has acquired a Sydney-based financial advice firm, marking its first major M&A deal since announcing its partnership with Oaktree Capital Management.
The professional services group has purchased StrategyOne Advice Network, a financial planning business located in Sydney that was established in 1984.
According to AZ NGA, this deal continues its record of partnering with “mature, high quality advisory businesses”.
StrategyOne is led by managing director, Virginia Heyer, and senior private client adviser, Duncan Derrington. With approximately 600 clients, the firm specialises in wealth management, retirement planning and risk advice. It has four advisers and eight support staff.
Chesne Stafford, AZ NGA executive general manager, said there are strong synergies between the two businesses. She explained: “When we do a deal, we don’t just look at individual businesses in isolation but rather how they fit into our broader community. We consider things like values, complementary services and potential opportunities to collaborate.
“We believe there are a lot of synergies with StrategyOne and we’re excited to work together.”
StrategyOne’s Heyer commented that AZ NGA’s acquisition of the firm will enable it to harness additional scale amid an increasingly challenging business environment.
“It is getting harder and more costly for advice SMEs to operate effectively so we sought a large, experienced partner to help future-proof our business and ensure a sustainable future,” she said.
“StrategyOne has been around for 40 years and we want to be around for another 40 years to take care of our people and clients. We had a good look around at our options and AZ NGA is the right fit. We’ve been thoroughly impressed by the team and we’re excited about the group’s proposition and plans for the future.”
This is the first major transaction that AZ NGA has made since it announced its strategic growth partnership with global investment manager Oaktree Capital Management in late September.
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.
Speaking with Money Management about the deal, AZ NGA chief executive Paul Barrett said Oaktree and its access to vast capital will enable the financial advisory group to continue sustaining the growth ambitions of its more than 30 partner firms.
He remarked: “We now have one of the most respected investors on the planet – it’s an absolute privilege for us to have Oaktree. It means that we now have significant financial horsepower and significant know-how to go about the rest of our work. That means taking what we’ve built over the last decade to the next level.”
Moreover, AZ NGA also confirmed a strategic alliance with AMP and Entireti in August. This will see AZ NGA acquire minority stakes held by AMP in 16 practices for $82.2 million. Meanwhile, Entireti will acquire AMP’s advice licensees and Jigsaw for $10.2 million.
Barrett said that by understanding the individual goals of all 16 equity firms, AZ NGA plans to “seize the day” by assisting each business to achieve their growth ambitions.
With these larger deals in mind, Stafford continued: “We have the capacity, capability and capital to do transactions of all shapes and sizes and we’re able to innovate to satisfy the needs of different stakeholders.
“While our recent focus has been on large deals, we’re always looking to partner with quality accounting and advisory SMEs to help grow their business, drive efficiencies and capture opportunities.”
AUTHOR
Jasmine Siljic
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Interesting. Would be good to know the details of the StrategyOne deal.