Private equity firm New Mountain Capital has acquired a majority interest in Citrin Cooperman, a Top 25 Firm based in New York, fueling a string of mergers at the firm.
In the six months since New Mountain invested an undisclosed sum, Citrin Cooperman
The move is part of a larger trend with private equity firms buying stakes in accounting firms. The most prominent deal came last August when TowerBrook Capital Partners made a significant
The firm plans to do more merger deals in the future with the help of the private equity investment. “Our expertise and focus on our clients have made us a clear leader in our space, and this exciting partnership with New Mountain will provide resources to continue to add talent and technological innovation as we grow,” said Joel Cooperman, executive chairman and co-founder of Citrin Cooperman, in a statement Monday. “I am thrilled about the number of accounting firms across the United States and abroad that have reached out to us, and I expect the next several years to be exciting.”
Citrin Cooperman had been working with New Mountain Capital for a decade before the investment came together. “As we got to know New Mountain Capital extremely well over the last 10 years, we knew they were the right strategic growth partner for our firm when the timing made sense,” said Citrin Cooperman CEO Alan Badey in a statement. “We are thrilled to be entering this next phase of our growth journey with them. Our goal has always been to put our clients first, and we are particularly excited about how this partnership will help us enhance our core services, expand new advisory service offerings and develop technology capabilities for even better service to our clients.”
New Mountain’s investment is fueling the M&A wave at the firm. “We have known the leadership of Citrin Cooperman for 10 years, and we are excited to provide strategic and financial resources to the partners of Citrin Cooperman as they accelerate their organic and inorganic expansion,” said Andre Moura, managing director of New Mountain Capital, in a statement. “Citrin Cooperman is an outstanding firm, and we are pleased with all the progress that has already been made in the first six months since our investment.”
“We have already seen significant growth into several new markets in the short period we have been working with the Citrin Cooperman team and we look forward to building on this success,” said Nikhil Devulapalli, director of New Mountain Capital, in a statement.
Koltin Consulting Group CEO Allan Koltin served as exclusive financial adviser on the deal. “Citrin Cooperman is already the country’s fastest growing first-generation firm and their combination with New Mountain Capital will create a national powerhouse,” he said in an email. “Given their track record for growth and attracting top talent, I wouldn’t be surprised to see the firm break the $1 billion revenue figure in the next five years. New Mountain Capital has a very successful history of working with professional services (people) businesses and will be an amazing strategic and financial partner to Citrin Cooperman.”
Simpson Thacher & Bartlett LLP was legal adviser to New Mountain Capital, while Zukerman Gore Brandeis & Crossman LLP was legal adviser to Citrin Cooperman.
Citrin Cooperman ranked No. 23 on Accounting Today's 2022 list of the Top 100 Firms, with $350 million in annual revenue.
Other accounting firms have also been receiving financing from private equity and other types of investment firms. Last week,
