Clark Perkins’ Mercury Capital closes in on Findex; MacCap advising

afr.com:

Clark Perkins’ buyout firm Mercury Capital is on the move. Street Talk understands Mercury’s team, spearheaded by dealmaker Ben Hawter, has its eye on KKR-backed accounting and advisory firm Findex Group.

Sources said Macquarie Capital, which was called in by the private equity firm in 2021 to find a buyer for its 40 per cent stake, is advising Findex on the potential transaction.

While a deal has not been signed, sources said Mercury had secured exclusivity status on the asset and is working through final diligence.

Findex managing director Spiro Paule. Jessica Hromas

Findex was founded more than 30 years ago by brothers Spiro and Terry Paule. The Melbourne-based company, which counts former Prime Minister Malcolm Turnbull as a non-executive director, is Australia’s fifth-biggest accounting firm with $17 billion in funds under advice and 3000-plus staff.

The company generated a net loss of $6.6 million in financial year 2023, according to its latest ASIC filing, driven by higher interest rates leading to a rise in cash interest expenses and bank fees. Operating EBITDA rose 2.8 per cent to $78.4 million while revenue came in at $449 million.

KKR called in Macquarie Capital’s bankers to find a buyer for its 40 per cent stake in 2021. At the time, Findex was pitched to potential suitors as the country’s leading “tech enabled provider of integrated wealth advisory and professional services”, with a track record dating back to 1987 and 250,000 clients and 2500 staff across Australia and New Zealand.

KKR’s credit team invested in Findex in 2014, to help the company acquire Centric Wealth. Findex has since grown to $11 billion in SMSF assets under administration, according to Macquarie’s pitch to potential suitors. The bankers