Azets secures PAI Partners as new investor

Azets Group has announced that PAI Partners, a pre-eminent private equity firm, has joined the business as a new investor. 

Following completion, PAI will hold an equal and co-controlling stake in Azets alongside current owners Hg, a leading investor in European and transatlantic software and services businesses.

Azets was formed by Hg six years ago, in response to the growing digitalisation of financial compliance processes for SMEs. Since then, the group has grown significantly to become one of the largest tech-enabled providers of professional advisory, financial and accounting services to SMEs globally.

Azets continues to benefit from the broader trend of SMEs outsourcing non-core and non-discretionary services, as well as the highly fragmented nature of the sector. The business has acquired more than 90 local providers since inception. Today, Azets’ 7,600 professionals support more than 93,000 clients and generate revenues of approximately £700m.

With PAI joining as an investor, Azets said it is well placed to continue its successful growth strategy, deepening its presence in new and existing markets across Europe through a combination of organic growth and further strategic M&A.

Colm O’Sullivan, a partner at PAI Partners, said: “With its proven and resilient business model, Azets provides a strong platform for future growth. Thanks to its leading market positioning, the firm is well placed to benefit from the growing levels of compliance, regulation and outsourcing that underpin its core services market. We look forward to partnering with the management team and Hg in this next phase of Azets’ growth.”

Matthew Brockman, managing partner at Hg, added: “We are delighted to have reached this milestone with Azets. From the original vision, we have built a world-class company using our deep knowledge of this sector and considerable operational capabilities in building software and services companies. 

“This transaction allows us to return significant capital to our investors, a huge priority for us in the last year, while bringing on substantial new expertise from a strong partner and retaining a substantial interest in the next leg of growth for Azets.”