The competition to buy Perpetual Limited (ASX:PPT)'s wealth management unit is understood to have narrowed to just Oaktree Capital Management, L.P. and Bain Capital, LP, with TA Associates (TA Associates Management, L.P.) now believed to be out the race. Boston-based Bain Capital surprised some in the market by bidding for the company in the first round of the sale process, after many expected it to be a race between TA Associates and Oaktree. But now it appears to be shaping up as a serious contender.

Working on the sale process for Perpetual is investment bank Barrenjoey. Oaktree, working with adviser Jarden, purchased a major stake in professional advisory firm AZ NGA for $240 million last year. TA Associates is known to have been scanning the Australian market for opportunities in the financial services space for some time.

Bain Capital has made its interest in wealth management businesses well known by bidding for Australian-listed Insignia Financial. However it withdrew its early $5 a share offer after Brookfield also walked away following a bid for the same price that equated to a $3.35bn market value. CC Capital has also carried out due diligence and offered $5 a share for Insignia, but there's some talk that securing debt funding for a deal could be an issue and it may not complete, or do so at a lower price.

Shares in Insignia closed at $3.60 each with its market value at $2.38bn. First round bids were due at the end of May for Perpetual Wealth. Perpetual is selling its wealth management unit after an attempt to sell its Corporate Trust unit and wealth business to Kohlberg Kravis Roberts last year for $2.2 billion.

That deal stalled with the ATO demanding a larger-than-expected capital gains tax bill. That sales process happened after Perpetual received buyout approaches, and after it purchased rival Pendal for $2.5 billion in 2023. The sale of wealth management will reduce Perpetual's debt, currently at about $569 million.

The unit is expected to sell for between $500 million and $1 billion, but some have suggested that the price some suitors want to pay is closer to $400 million, although competitive tension could provide firepower for the auction.