18 Nov 2024
Investcorp, a leading global alternative investment firm, in partnership with the Public Sector Pension Investment Board (“PSP Investments”), today announced their strategic growth investment in PKF O’Connor Davies (“PKFOD”) (“the Organization”), one of the largest accounting, tax and advisory firms in the US.
This transaction represents a significant milestone for PKFOD, adding two experienced investors that will help fuel growth and expand service offerings to enhance the overall client experience. This partnership will elevate the Organization’s competitiveness and amplify long-term sustainability. The strengthened balance sheet will provide flexibility for increased M&A activity as well as investing in cutting-edge technology and new service lines.
Investcorp has a well-established record of investing in specialized professional services firms with notable investments including AlixPartners, ICR, Resultant, United Talent Agency and CrossCountry Consulting.
Steve Miller, Co-Head of North America Private Equity at Investcorp, said: “In recent years, Investcorp has established itself as a partner of choice for ambitious professional services organizations seeking to grow. Together with PSP Investments, with whom we have a history of investments in the professional services sector, and more than 200 PKFOD partners, we are excited to build upon the Organization’s decades of success.”
Vitali Bourchtein, Principal at Investcorp, said: “As ownership rules in the sector have evolved, we have been seeking the right platform to back. We were instantly impressed by PKFOD’s leadership team and the exceptional track record of financial performance. Providing the Organization with additional resources will help accelerate growth and enhance its competitive position in the accounting, tax and advisory verticals.”
David Morin, Managing Director and Head of North America, Private Equity at PSP Investments, added: “We are excited to partner with Investcorp and PKFOD to provide strategic capital and work together in realizing PKFOD’s full potential during their next chapter of growth.”
Kevin Keane, Executive Chairman at PKF O’Connor Davies, said: “Since inception, our identity as an Organization has been our enduring commitment to service. This investment from Investcorp and PSP Investments further validates that we have an attractive business with a great brand, great talent, and great customers. Investcorp and PSP Investments have a long history of backing profitable, industry-leading companies with demonstratable growth avenues and were impressed by PKFOD and the culture that we have built.”
Going forward, PKFOD will continue to operate in an alternative practice structure in accordance with applicable professional standards where PKF O’Connor Davies LLP, a licensed CPA firm, will continue to provide attest services and PKF O’Connor Davies Advisory LLC and its subsidiary entities will continue to provide tax and advisory services.
Terms of the transaction were not disclosed. The transaction has received regulatory approval and is subject to other standard closing conditions.