The private equity tussle over a buyout of KPMG’s UK restructuring services division is over, with HIG Capital emerging victorious.
HIG beat off reported competition from buyout houses including Epiris, Intermediate Capital Group and Towerbrook Capital Partners.
KPMG had been expected to score about £400m for the unit, but no financial terms of the deal have been released.
HIG’s buyout is set to complete next month, the firm added.
The professional services firm became the second member of the ‘big four’ after Deloitte to signal plans to sell its restructuring wing last Autumn, amid growing pressure on auditors over their management of conflicts of interest.
KPMG was the auditor for construction company Carillion, and faces a fine for its work from a ongoing Financial Reporting Council investigation in the wake of the company’s disastrous fall into liquidation with liabilities of almost £7bn.
The restructuring unit advises companies, lenders, equity holders and other stakeholders including government, regulators and pension trustees to navigate issues associated with economic disruption and overcome financial and operational challenges.
The business will rebrand to Interpath Advisory following the deal, becoming the largest independent restructuring and turnaround team in the UK.
Markus Noe-Nordberg, managing director and head of the HIG European middle market LBO team, said, “HIG has had great success investing in leading professional services firms, and we will use this experience to help Interpath maximise its potential.
“This transaction is an ideal fit with our investment mandate and underscores once more HIG’s ability to execute on complex transactions such as carve-outs.”
Nishant Nayyar, managing director at HIG Europe, added, “We have been impressed by Interpath’s track record, deep client relationships and above all its collaborative culture.
“Interpath will be ideally positioned to support its clients in their recovery from the disruptions caused by the Covid-19 pandemic.”
Last year KPMG sold its UK pensions advisory practice to Exponent Private Equity.
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