Wauwatosa-based national advisory and accounting firm
Wipfli LLP announced Friday that it has reached an agreement for a “significant minority investment” from New York-based private equity firm
New Mountain Capital.
Details of the transaction were not disclosed.
According to a report from the Wall Street Journal, which broke the news about the deal, Wipfli is selling “a roughly 40% stake” in the firm to New Mountain Capital.
New Mountain Capital has about $55 billion in assets under management, according to a news release from Wipfli about the deal.
“This values-aligned partnership will accelerate Wipfli’s growth, expand its investments in talent and technology, and fuel innovation to deepen its impact where it matters most: clients and people,” Wipfli said in its news release.
Wipfli has grown aggressively in recent years with numerous acquisitions. The firm says it has completed 34 acquisitions over the past decade and now has more than $600 million in annual revenue. Advisory services comprise nearly half of its total revenue, the company says.
“This investment will mark the next chapter in that story,” Wipfli says in its news release. “A moment to accelerate, scale with purpose and help even more organizations reach their full potential. Following closing of the transaction, the firm will remain majority-owned and partner-led, preserving its culture and independence while unlocking greater speed, scale and strategic opportunity.
“Wipfli has been on the offensive, scaling smartly and profitably. And now, we’re accelerating the course we already set with this investment,” said
Kurt Gresens, managing partner of Wipfli. "New Mountain gives us more capital and confidence to expand and deliver even greater value to our clients and our people.”
“We have been highly impressed by Wipfli’s culture, strong growth track record and its deep commitment to client service and employee success. We are excited to partner with Kurt and the firm’s leadership team to further accelerate growth, including supporting investments in talent, technology, and acquisitions,” said
Nikhil Devulapalli, managing director at New Mountain Capital.
The transaction is subject to regulatory approval and other standard closing conditions.
Following the closing of the transaction, Wipfli will operate in an alternative practice structure: Wipfli LLP, a licensed CPA firm, will provide attest services — and Wipfli Advisory LLC, which will not be a licensed CPA firm, will provide business advisory and non-attest services.
“New Mountain continues to see strong, long-term growth tailwinds in the accounting, tax and advisory profession, a sector which is well aligned with our defensive growth investment strategy,” said
Andre Moura, managing director at New Mountain Capital. “In other investments in this space, we have been proud to support initiatives that grew client satisfaction, maintained the highest quality standards, invested in people, and expanded the breadth of service and technology capabilities.”
“We selected New Mountain Capital because they recognized what's special about Wipfli—the culture we've built where our approachable style creates deep relationships, leading to breakthrough results,” said
Kelly Fisher, chief practice officer at Wipfli. “We were intentional about finding a partner who values that, so we're positioned to expand our impact, while preserving what makes us who we are.”
Guggenheim Securities, LLC is serving as financial advisor to Wipfli on the deal.
Simpson Thacher & Bartlett LLP,
Godfrey & Kahn SC and
Hunton Andrews Kurth LLP are serving as legal advisors to Wipfli.
William Blair and
Koltin Consulting Group are serving as financial advisors to New Mountain Capital.
Kirkland & Ellis LLP and
Vedder Price P.C. are serving as legal advisors to New Mountain Capital.
[caption id="attachment_596793" align="aligncenter" width="1121"]
Chart of net revenues for Wipfli LLP. Image taken from Wipfli's annual report.[/caption]
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