US hedge fund manager Och-Ziff Capital Management is believed to be the frontrunner to acquire UK tool hire business HSS Service Group from private equity sponsor 3i, in a rare deal that would mark one of the few times an alternatives manager has led a buyout.

According to bankers, the sale is still very much at the negotiation stages, but Och-Ziff has emerged as the lead bidder for the company in a buyout purportedly worth close to £300m (€441m).