Investcorp, an alternative asset manager that counts Abu Dhabi’s Mubadala Investment Company as its biggest shareholder, acquired a majority stake in CrossCountry Consulting, a US-based business advisory firm.
Terms of the acquisition and financials of the deal were not disclosed.
Founded in 2011, Virginia-headquartered CrossCountry provides customised finance, accounting, human capital management, risk, operations and technology consulting services to various businesses.
"We are excited to partner with the CrossCountry team who have driven strong organic growth and profitability since inception," said Dave Tayeh, head of private equity, North America, at Investcorp.
"There are several macro themes driving continued opportunity in accounting advisory, including the rise of outsourcing and the evolving role of the finance function to involve technology as businesses digitise their operations,” Mr Tayeh said.
CrossCountry has more than 700 professionals and currently represents clients in the private equity, financial services, life sciences, real estate and hospitality sectors, among others.
Over the past 10 years, its footprint has grown significantly, with professionals in various countries such as the US, Ireland, South Africa and the Philippines.
This partnership puts the company in the “best position to solve new, complex challenges for our clients”, Erik Linn, co-founder and managing partner of CrossCountry, said.
"We believe Investcorp is the right partner with whom we can expand our capabilities, and we look forward to a new, exciting chapter of growth together."
Investcorp, with $42.7 billion in total assets under management as of June 30, including those run by third-party managers, is an active investor in mid-market companies across consumption-linked sectors and in the proper business. It has 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore.
Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region.
The company went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and is bullish about the growth prospects for its portfolio.
Last month, Investcorp said it had bought a majority stake in US-based fresh produce distributor Sunrise Produce.
The boutique accounting advisory serviceable market is estimated to be worth nearly $10 billion and projected to grow by double digits over the coming years, said Steve Miller, managing director, private equity – North America, at Investcorp.
“Having looked at many opportunities in the space, what attracted us most to CrossCountry is its best-in-class culture and remarkable employee engagement metrics,” he said.
The Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers with $230.5 billion of net assets under management as of March 31, and RLH Equity Partners will continue as investors in CrossCountry.
"CrossCountry's co-founders and management team have built a leading financial advisory firm with a differentiated culture over the last decade," said Philippe Bouchard, senior director at PSP Investments.
“We believe CrossCountry is strategically positioned in its industry and we look forward to working with all shareholders to support the company's growth prospects over the coming years."