Australia’s PEP makes 5x multiple on exit

Australian private equity firm Pacific Equity Partners will reap more than fives times its money from the realisation of its investment in a local financial services platform provider.

Sydney-based fund manager and life insurer ING Australia has acquired a majority stake in investment platform specialist provider Oasis Asset Management for A$54 million ($38.4 million; €31.9 million),

The transaction will provide an exit for Oasis’ early backer Pacific Equity Partners, which will sell its entire majority stake.

ING will acquire a 75 percent stake in Oasis, out of which 51 percent was held by PEP, with the remainder coming from other minority interests including Oasis’ own management, according to ING.

Tim Sims, founder and managing director of PEP, told PEO that his firm’s 75 percent stake amounted to approximately A$36 million, representing a more than 5x return on an initial investment of just under A$7 million.

PEP originally invested in Oasis in September 2000 when the company was a still a start-up. The founding directors of Oasis will retain a 24 percent stake in the company and will continue to manage the business.

ING Australia is a wealth management joint venture between Amsterdam-headquartered ING Group (51 percent) and Australian bank ANZ (49%).

Sydney-headquartered Oasis operates a full service wholesale platform providing securities dealers with the ability to develop and distribute their own customised financial products, including superannuation master trusts, wrap accounts and other specialist products for retail investors in the Australian market.