PRIVATE Equity firm Pacific Equity Partners (PEP) has made its first move into retail financial services after investing in wrap account and master trust group Oasis Asset Management.
PEP will make an undisclosed investment in the group, which was formed last year by a number of senior executives from Connelly Temple to provide master trust and wrap account services to financial planning groups.
Since launching, Oasis has signed deals with both Australian Financial Services and Matrix Financial Group. Negotiations with a third national firm should conclude in January, according to Oasis managing director Bruce Tustin.
Pacific Equity Partners would not have any active participation in Oasis, Tustin says, but would work at a strategic level and become more involved when a float was likely in three to four years.
Tustin says Oasis is looking at working with dealer groups that have at least $500 million in funds under management, an equity structure for advisers and national exposure.
“So far we have identified about 10 groups and our aim is to have five clients by June next year and more than $4 billion in funds under management within client’s products in three to four years,” Tustin says.
PEP managing director Tim Sims says while PEP is not willing to reveal the level of investment in Oasis, it was consistent with taking Oasis to a competitive position in the market.
“The type of product does require major investment to ensure a superior service, as the technology base is not trivial, nor is the manpower that goes with the service,” Sims says.
Tustin says the investment will be in a number of tranches, however, Oasis may not call on the full amount of the investment.
“It has been agreed this will be a phased investment through a series of tranches but it is dependent on growth of funds under management. At the moment, it is double our projected inflows and if that continues we will be able to fund our own growth,” Tustin says.
