Baker Tilly Secures Strategic Investment Led by Hellman & Friedman

Baker Tilly, a leading advisory CPA firm, has announced a strategic investment led by private equity firms Hellman & Friedman (H&F) and Valeas Capital Partners (Valeas). This investment, set to close in early June 2024, is the largest private equity investment in the US CPA sector to date and recognizes Baker Tilly's exceptional track record of value creation.

Over the past five years, Baker Tilly has significantly expanded its workforce, establishing itself as one of the top 10 advisory CPA firms in the United States. The investment from H&F and Valeas provides the firm with additional capital and capabilities to accelerate its growth. This includes investments in talent, technology, and strategic acquisitions aimed at delivering best-in-class client services.

As part of the transaction, Baker Tilly will undergo a restructuring process, resulting in two entities: Baker Tilly Advisory Group, LP, which will provide business advisory, tax, and other services, and Baker Tilly US, LLP, a licensed CPA firm that will focus on attest services. Both entities will operate as separate legal entities, with Baker Tilly US, LLP being compliant with regulatory and independence requirements. All partners will retain equity alongside H&F and Valeas in Baker Tilly Advisory Group, LP.

Jeff Ferro, the CEO of Baker Tilly Advisory Group, LP, expressed his excitement about joining forces with H&F and Valeas, stating that the investment positions the firm to create new opportunities for its team members and clients. He acknowledged the support of the investors and their recognition of the value already created and the firm's potential for further growth.

Blake Kleinman, a Partner at H&F, highlighted the firm's long history of successful partnerships in the professional services sector and praised Baker Tilly for its remarkable growth and outstanding client service. The partnership aims to bolster Baker Tilly's capabilities, expand its reach, and contribute to building the country's leading mid-market advisory CPA firm.

Similarly, Ed Woiteshek, Co-Founder and Managing Partner at Valeas, emphasized Baker Tilly's strong track record and global brand reputation. Valeas looks forward to collaborating with Baker Tilly's leaders to continue the firm's impressive growth trajectory.

Baker Tilly engaged William Blair & Company, L.L.C. as its financial advisor, while Foley & Lardner LLP acted as its legal counsel for this transaction. Simpson Thacher & Bartlett LLP and Vedder Price PC served as legal advisors to H&F, and Ropes & Gray LLP advised Valeas.

About Baker Tilly US, LLP

Baker Tilly US, LLP is a leading advisory CPA firm with a genuine coast-to-coast and global advantage. With major locations in New York, London, San Francisco, Los Angeles, and Chicago, Baker Tilly is able to provide clients with comprehensive services. As an independent member of Baker Tilly International, the firm is part of a worldwide network of independent accounting and business advisory firms. The combined revenue of the network stands at $4.7 billion.

About Hellman & Friedman

Hellman & Friedman is a global private equity firm known for its investment approach focused on large-scale equity investments in high-quality growth businesses. The firm partners with exceptional management teams, leveraging its sector expertise and collaborative partnership approach to foster the success of companies. H&F targets outstanding businesses across various sectors, including software & technology, financial services, healthcare, consumer & retail, and other business services.

About Valeas Capital Partners

Valeas Capital Partners is a mid-market private equity firm based in San Francisco. The firm specializes in growth-buyout partnerships, backing industry-leading management teams. Valeas aims to create a concentrated portfolio of growth-oriented, tech-enabled businesses in sectors where its team has deep industry expertise. By prioritizing collaboration with portfolio company management teams, Valeas seeks to build lasting market leaders and deliver value to investors. The firm focuses on the healthcare, financial services, and data & technology sectors.

In conclusion, Baker Tilly's strategic investment led by Hellman & Friedman and Valeas Capital Partners marks a significant milestone for the US CPA sector. This partnership will provide Baker Tilly with the resources and support needed to accelerate its growth and continue delivering exceptional client services. With a focus on talent, technology, and strategic acquisitions, Baker Tilly is poised to further solidify its position as a leading advisory CPA firm in the United States.