Wipfli LLP, a middle market provider of accounting, tax and advisory services, today announced entry into a definitive agreement for a significant minority investment from New Mountain Capital, a leading growth-oriented investment firm with approximately $55 billion in assets under management. This values-aligned partnership will accelerate Wipfli’s growth, expand its investments in talent and technology, and fuel innovation to deepen its impact where it matters most: clients and people.
Founded nearly a century ago in the Midwest, the firm has grown into a national powerhouse by balancing deep relationships with bold investments in its people, technology and services. Wipfli’s strategy has resulted in growth to over $600 million in annual revenue, tripling in size over the last decade and completing 34 acquisitions.
As an early pioneer in advisory services and international operations over two decades ago, the firm expanded its capabilities to stay ahead of the complex demands of middle-market organizations. Today, advisory services comprise nearly half of total revenue — validation of Wipfli’s integrated approach to solving multifaceted business challenges for their clients.
“New Mountain Capital’s interest in the accounting profession began in 2011 and one could argue they had a 10-year head start over all the other PE firms entering the accounting profession,” said Allan D. Koltin, CEO of Koltin Consulting Group, who served as an advisor on the deal. “Wiplfi is their third (significant) CPA firm investment, and all indications are that the Wipfli investment will be as successful as the Citrin Cooperman and Grant Thornton ones have been. Andre Moura and his team (at New Mountain Capital) are exceptional in understanding “people” businesses and providing strategic and capital resources to firms.
Wipfli has grown from a small firm in Wausau, Wisconsin to a Top 20 CPA and Advisory firm nationally by always investing deeply in its people, technology, and innovation. They are blessed to have a culture (The Wipfli Way) where everyone trusts and respects each other and they are all about value added services for their clients (I should know, I’m a happy outsourced accounting and tax client!).”
Following closing of the transaction, the firm will remain majority-owned and partner-led, preserving its culture and independence while unlocking greater speed, scale and strategic opportunity.
“Wipfli has been on the offensive, scaling smartly and profitably. And now, we’re accelerating the course we already set with this investment,” said Kurt Gresens, Managing Partner of Wipfli. “New Mountain gives us more capital and confidence to expand and deliver even greater value to our clients and our people.”
Kelly Fisher, chief practice officer at Wipfli, said: “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.”
New Mountain Capital, known for its focus on business building and long-term value creation, brings proven experience in scaling firms in the accounting sector and a disciplined approach to growth. The investment in Wipfli will be through New Mountain’s Strategic Equity effort where New Mountain makes value added non-control investments in leading companies.
“We have been highly impressed by Wipfli’s culture, strong growth track record and its deep commitment to client service and employee success. 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,” said Nikhil Devulapalli, managing director at New Mountain Capital.
Andre Moura, managing director at New Mountain Capital, said: “New Mountain continues to see strong, long-term growth tailwinds in the accounting, tax and advisory profession, a sector which is well aligned with our defensive growth investment strategy. In other investments in this space, we have been proud to support initiatives that grew client satisfaction, maintained the highest quality standards, invested in people, and expanded the breadth of service and technology capabilities.”
Terms of the transaction were not disclosed. The transaction is subject to regulatory approval and other standard closing conditions. Following the closing of the transaction, Wipfli will operate in an alternative practice structure: 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 non-attest services. The purpose-built structure will support the highest possible client service and a continued, unwavering focus on quality.
Guggenheim Securities, LLC is serving as sole financial advisor to Wipfli. Simpson Thacher & Bartlett LLP, Godfrey & Kahn SC and Hunton Andrews Kurth LLP are serving as legal advisors to Wipfli. William Blair and Koltin Consulting Group are serving as financial advisors to New Mountain Capital. Kirkland & Ellis LLP and Vedder Price P.C. are serving as legal advisors to New Mountain Capital.
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Tags: Firm Management, investment, private equity, wipfli
