Wipfli partners with private equity for the latest top 25 firm deal

Wipfli LLP is the latest top 25 accounting firm to secure a significant investment from private equity.

Wipfli announced Friday “a definitive agreement for a significant minority investment” with New Mountain Capital, a prominent private-equity investor in large firms.

“Wipfli has been on the offensive, scaling smartly and profitably. And now, we’re accelerating the course we already set with this investment,” Kurt Gresens, Wipfli managing partner, said in a news release that noted, even before the deal, that Wipfli had tripled in size over the past decade. “New Mountain gives us more capital and confidence to expand and deliver even greater value to our clients and our people.”

Terms of the transaction, still subject to regulatory approval, weren’t disclosed. The deal is set to follow a familiar alternative structure. According to the news release, Wipfli LLP, a licensed CPA firm, will provide attest services, and Wipfli Advisory LLC, which will not be a licensed CPA firm, will provide business advisory and nonattest services.

“We have been highly impressed by Wipfli’s culture, strong growth track record, and its deep commitment to client service and employee success,” Nikhil Devulapalli, managing director at New Mountain Capital, said in the release. “We are excited to partner with Kurt and the firm’s leadership team to further accelerate growth, including supporting investments in talent, technology, and acquisitions.”

New Mountain Capital and Grant Thornton LLP announced a similar arrangement last year. Then, earlier this year, New Mountain Capital made news by selling the majority stake it had made in 2022 with Citrin Cooperman to fellow private-equity investment company Blackstone.

“New Mountain continues to see strong, long-term growth tailwinds in the accounting, tax, and advisory profession,” Andre Moura, managing director at New Mountain Capital, said in Friday’s release.

Kelly Fisher, chief practice officer at Wipfli, said in the news release: “We selected New Mountain Capital because they recognized what’s special about Wipfli — the culture we’ve built where our approachable style creates deep relationships, leading to breakthrough results. We were intentional about finding a partner who values that, so we’re positioned to expand our impact, while preserving what makes us who we are.”

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.