In a major move within the UK's financial advisory sector, Bridgepoint Group, the London-listed private equity firm known for owning Burger King's UK operations, has struck a deal to acquire a controlling stake in Interpath Advisory. Sky News can reveal the transaction is valued at more than £800 million.
The Deal and the Fierce Competition
The agreement, which could be formally announced as early as Monday morning, concludes a hotly contested auction process. Bridgepoint successfully outbid a pack of rival buyout houses, including industry giants such as Blackstone, Onex, PAI Partners, and Permira, to secure the prize. Bridgepoint is purchasing Interpath from its current owner, the private equity firm HIG Europe, which was advised by bankers at Moelis.
Interpath, originally the restructuring division of KPMG UK, was spun out as an independent entity in 2021. This move was largely driven by regulatory shifts in the audit profession following high-profile corporate collapses like BHS and Carillion, which heightened concerns over conflicts of interest at major accounting firms.
Interpath's High-Profile Clientele and Growth
Since its inception, Interpath has built a formidable reputation, advising on numerous prominent restructuring and cost-saving mandates. Its recent and upcoming high-profile work includes:
- Being lined up to handle the administration of the British arm of casual dining chain TGI Fridays.
- Acting as administrator for the UK and Ireland subsidiaries of collapsed accessories retailer Claire's last summer.
- Advising family-owned shoe retailer Russell & Bromley on a potential sale.
- Being recruited by Sir Jim Ratcliffe's Ineos Sports to help implement cost-cutting measures at Manchester United Football Club following its 2024 investment.
The firm has demonstrated impressive financial growth under HIG Europe's ownership. Sources indicate Interpath has doubled its EBITDA (earnings before interest, tax, depreciation, and amortisation) over the past four and a half years. It recently published results showing a 26% increase in revenues to nearly £200 million.
Strategic Vision and Sector Trend
Mark Raddan, Chief Executive of Interpath, highlighted the firm's ambitious trajectory, stating: "Although we're only four years old, we have a clear vision to become one of the world's leading advisory firms and have made enormous strides towards that goal." Following the completion of the Bridgepoint deal, Mr Raddan and other senior executives are expected to retain a stake in the business.
This acquisition is the latest in a wave of private equity investments into the UK's professional services sector. Investors are increasingly attracted to the high-margin, resilient nature of financial advisory and restructuring businesses, seeing them as lucrative deal opportunities in the current economic climate.
Neither Bridgepoint nor HIG Europe provided an official comment when approached.
