Alternative investment firm Oaktree Capital Management is reportedly using private credit financing from Ares and Barings to fund an acquisition of Australian fund manager Perpetual’s wealth management arm.
The transaction is said to be being executed through Oaktree-backed AZ Next Generation Advisory (AZ NGA), with Perpetual’s wealth division merged into AZ NAGA, creating one of the largest wealth management platforms in Australia, according to Bloomberg.
Read more: Private credit deals fall 11.2pc in H1 but remain up year-on-year
The move is the latest in a string of acquisitions, with experts previously saying they expect more big M&A deals over the next few years.
“Similar to other industries that have experienced boom cycles, we can expect to see significant consolidation among asset managers to achieve scale and market penetration rapidly,” Morris DeFeo, partner and co-chair of Herrick’s corporate department, previously told Alternative Credit Investor.
Read more: Private debt managers expect industry-wide consolidation in 5 years
And research by Carne Group recently found that nearly all managers (96 per cent) surveyed globally anticipate industry-wide consolidation in the next five years.
Ares, Barings, and Oaktree declined to comment on the deal.
Read more: Private credit’s consolidation season
