Grant Thornton, a provider of audit and assurance, tax and advisory services, and New Mountain Capital, a growth-oriented investment firm with approximately $50 billion in assets under management, partnered for a significant growth investment to accelerate Grant Thornton’s business strategy.
“Our partnership with New Mountain Capital empowers Grant Thornton to deliver transformational, high-quality outcomes for our clients, our talented team members and the industry as a whole,” Seth Siegel, CEO of Grant Thornton, said. “The investment immediately enhances our value in the marketplace and enables us to accelerate our current strategy. We’ll enjoy greater scale, resources and agility, while better positioning the firm to make targeted investments in talent, technology, infrastructure and enhanced capabilities. Grant Thornton will further solidify our position as the industry’s platform of choice.”
“We have been deeply impressed by the Grant Thornton team, and in our research, Grant Thornton ranked at the highest levels in the U.S. as measured by the quality of its work product and the satisfaction of its clients, even at a much lower price to clients,” Andre Moura, managing director at New Mountain Capital, said. “Grant Thornton’s unique culture drives the exceptional service the firm provides its clients, and we look forward to working with Grant Thornton to invest further in technology and automation, talent and new service line capabilities to achieve rapid growth — while maintaining an unwavering focus on quality and client experience.”
“We are thrilled to support Grant Thornton as it advances its superior, technology-enabled audit, tax and advisory services platform,” Nikhil Devulapalli, managing director at New Mountain Capital, said. “Grant Thornton offers its clients a compelling value proposition and we look forward to helping the firm expand its service offerings and execute on strategic acquisitions to continuously grow its platform.”
“We take great pride in our many accomplishments over the past century, and partnering with New Mountain Capital will ensure that we fully capitalize on the compelling opportunities that will define our next century,” Siegel said. “They share our standards and our vision, and together we will reshape the industry landscape, while enhancing Grant Thornton’s value proposition for our full range of stakeholders.”
The transaction is subject to regulatory approval and other standard closing conditions. Following the closing of the transaction, which is expected in the second calendar quarter of 2024, Grant Thornton will operate in an alternative practice structure: Grant Thornton, a licensed CPA firm, will provide attest services, and Grant Thornton Advisors will provide business advisory and non-attest services. The purpose-built structure will ensure the highest possible client service and an unwavering focus on quality.
Deutsche Bank Securities is serving as sole financial adviser to Grant Thornton. Dechert and Vedder Price are serving as legal advisers to Grant Thornton. Mayer Brown is acting as legal adviser to Grant Thornton’s Partnership Board. Simpson Thacher & Bartlett and Hunton Andrews Kurth are serving as legal advisers to New Mountain Capital.
