CPA firm Baker Tilly US, LLP announced a strategic investment from private equity firms Hellman & Friedman (H&F) and Valeas Capital Partners. This investment – which is estimated to close in early June 2024 – recognizes Baker Tilly’s outstanding track record of value creation and marks the largest private equity investment in the US CPA sector to date.
Over the past five years, Baker Tilly doubled its workforce by expanding its footprint nationally and internationally, securing its position as a top 10 advisory CPA firm in the United States. And the significant investment from H&F and Valeas provides the firm with access to additional capital and capabilities to drive growth through investments in talent, technology and further strategic acquisitions directed at providing best-in-class client services.
As part of this transaction, the firm will be restructured as two entities: Baker Tilly Advisory Group, LP will provide the firm’s business advisory, tax and, other services with Jeff Ferro continuing in his role as CEO. And Baker Tilly US, LLP, a licensed CPA firm, will provide the firm’s attest services, with Jere Shawver, Managing Partner – Risk and Assurance, stepping into the new role of CEO. Baker Tilly US, LLP will operate as a separate legal entity pursuant to regulatory and independence requirements. Following the restructuring, both of the firms will remain partnerships, with all partners holding equity alongside H&F and Valeas in Baker Tilly Advisory Group, LP.
Baker Tilly engaged William Blair & Company as its financial advisor and Foley & Lardner LLP as its legal counsel on this transaction. And Simpson Thacher & Bartlett LLP and Vedder Price PC served as legal advisors to H&F and Ropes & Gray LLP advised Valeas.
KEY QUOTES:
“We are extremely proud to join forces with H&F and Valeas, blue-chip and growth-oriented private equity investors, who support our vision, recognize the value we’ve already created and see our vast future potential. With this transaction, the firm will be in an even stronger position to grow and invest in our business to create new opportunities for our talented team members and valued clients.”
– Jeff Ferro
“Our investment in Baker Tilly builds on H&F’s long history of successful partnerships in the professional services sector. Baker Tilly has built a remarkable firm with an empowering culture, tremendously talented workforce, and impressive track record of growth through outstanding client service and smart acquisitions. We are excited to invest alongside Baker Tilly’s partners and senior leadership to bolster its capabilities, expand its footprint, and, together, help build the country’s preeminent mid-market advisory CPA firm.”
– Blake Kleinman, Partner at H&F
“As a top global brand in accounting, tax and advisory with a strong track record of value creation and growth, Baker Tilly is uniquely positioned to lead the transformation of the industry. We look forward to working with Baker Tilly’s leaders to further the firm’s impressive growth trajectory in the years ahead.”
– Ed Woiteshek, Co-Founder and Managing Partner, Valeas
