Non-public fairness agency New Mountain Capital has acquired a majority curiosity in Citrin Cooperman, a High 25 Agency based mostly in New York, fueling a string of mergers on the agency.
Within the six months since New Mountain invested an undisclosed sum, Citrin Cooperman merged in Appelrouth, Farah & Co. PA, in Coral Gables, and Bloom, Gettis & Habib PA, in Miami, and music trade consultancy Massarsky Consulting in New York. Final November, Citrin added OLC Administration Inc., a California-based enterprise administration agency within the leisure trade.
The transfer is an element of a bigger development with non-public fairness corporations shopping for stakes in accounting corporations. Essentially the most outstanding deal got here final August when TowerBrook Capital Companions made a major funding in EisnerAmper, prompting the agency to restructure, with Eisner Advisory Group providing enterprise advisory and non-attest providers, and EisnerAmper providing audit and attest providers. Equally, Citrin Cooperman break up off its non-attest aspect into Citrin Cooperman Advisors LLC, whereas the attest aspect is called Citrin Cooperman & Co. LLP.
Citrin Cooperman workplace in Fairfax, Virginia
The agency plans to do extra merger offers sooner or later with the assistance of the non-public fairness funding. “Our experience and concentrate on our shoppers have made us a transparent chief in our house, and this thrilling partnership with New Mountain will present assets to proceed so as to add expertise and technological innovation as we develop,” mentioned Joel Cooperman, govt chairman and co-founder of Citrin Cooperman, in a press release Monday. “I’m thrilled in regards to the variety of accounting corporations throughout america and overseas which have reached out to us, and I anticipate the following a number of years to be thrilling.”
Citrin Cooperman had been working with New Mountain Capital for a decade earlier than the funding got here collectively. “As we acquired to know New Mountain Capital extraordinarily properly over the past 10 years, we knew they have been the precise strategic development companion for our agency when the timing made sense,” mentioned Citrin Cooperman CEO Alan Badey in a press release. “We’re thrilled to be getting into this subsequent part of our development journey with them. Our purpose has all the time been to place our shoppers first, and we’re significantly enthusiastic about how this partnership will assist us improve our core providers, broaden new advisory service choices and develop know-how capabilities for even higher service to our shoppers.”
New Mountain’s funding is fueling the M&A wave on the agency. “We’ve got recognized the management of Citrin Cooperman for 10 years, and we’re excited to supply strategic and monetary assets to the companions of Citrin Cooperman as they speed up their natural and inorganic enlargement,” mentioned Andre Moura, managing director of New Mountain Capital, in a press release. “Citrin Cooperman is an excellent agency, and we’re happy with all of the progress that has already been made within the first six months since our funding.”
“We’ve got already seen important development into a number of new markets within the quick interval we have now been working with the Citrin Cooperman staff and we sit up for constructing on this success,” mentioned Nikhil Devulapalli, director of New Mountain Capital, in a press release.
Koltin Consulting Group CEO Allan Koltin served as unique monetary adviser on the deal. “Citrin Cooperman is already the nation’s quickest rising first-generation agency and their mixture with New Mountain Capital will create a nationwide powerhouse,” he mentioned in an e mail. “Given their observe report for development and attracting high expertise, I wouldn’t be stunned to see the agency break the $1 billion income determine within the subsequent 5 years. New Mountain Capital has a really profitable historical past of working with skilled providers (individuals) companies and shall be a tremendous strategic and monetary companion to Citrin Cooperman.”
Simpson Thacher & Bartlett LLP was authorized adviser to New Mountain Capital, whereas Zukerman Gore Brandeis & Crossman LLP was authorized adviser to Citrin Cooperman.
Citrin Cooperman ranked No. 23 on Accounting Right this moment’s 2022 listing of the High 100 Corporations, with $350 million in annual income.
Different accounting corporations have additionally been receiving financing from non-public fairness and different kinds of funding corporations. Final week, RoseRyan was acquired by the expertise advisory agency ZRG, which is owned by non-public fairness agency RFE Funding Companions, and final September, Lightyear Capital invested in Schellman & Co., and CVC Capital Companions in CFGI (see story). In latest months, Parthenon Capital acquired RSM US’s wealth administration apply and Warren Averett’s asset administration subsidiary acquired funding from funding corporations Wealth Companions Capital Group and HGGC.