Australian private equity firms Allco Equity Partners (AEP) and DB Capital Partners have jointly acquired a debt collection service provider in Australia and New Zealand for A$97 million ($75 million; €59 million).
DB Capital Partners, the private equity arm of Deutsche Asset Management in Australia, and AEP have teamed up to acquire Baycorp Collection Services (BSC), a division of Australia-listed provider of business intelligence and solutions Baycorp Advantage Limited.
AEP secured a 17.3 percent stake in Baycorp Advantage after an unsuccessful hostile bid for a 50.1 percent stake last July.
“Baycorp Collection Services…enjoys a broad customer base and a diverse service offering. We believe there are sound growth prospects given the structure of the industry and the high consumer debt levels in Australia,” Peter Yates, managing director of AEP, said in a statement.
AEP and DB Capital Partners are existing majority shareholders of another debt collection business, Portfolio Management Group, in which both parties hold a combined 80 percent stake, head of DB Capital, Peter Dowding tells PEO. The two financial investors are expected to roll PMG and Baycorp into a newly-created platform Trans Tasman Collections, also the holding company for BSC, in due course, Dowding said.
Sydney-headquartered Allco Equity Partners is a division of Australia-listed Allco Finance Group, a structured finance company. The firm is focused on investments in the financial services, media, gaming and healthcare sectors in Australia and New Zealand.