New York-based accounting firm CohnReznick has secured investment from funds advised by private equity company Apax Partners.
Financial details of the transaction, termed as a “strategic growth investment”, remain undisclosed.
This is said to be the first institutional investment in CohnReznick, which is anticipated to catalyse the firm’s growth plan, enhance client services, and create more opportunities for its workers.
In collaboration with Apax, CohnReznick plans to further invest in its talent and operations to sustain its growth trajectory.
Apax will contribute its operational expertise and extensive experience in professional services to support CohnReznick’s value creation plan.
This includes expanding service lines, developing technology-driven client solutions, entering new markets, strengthening talent, and enhancing its technology platform.
Additionally, Apax will aid CohnReznick in executing a targeted acquisition strategy to expand its client services.
Post-transaction, CohnReznick will adopt an alternative practice structure.
CohnReznick, a licensed CPA firm, will continue to provide attest services under the leadership of CEO Kelly O’Callaghan.
Meanwhile, CohnReznick Advisory, which will not be a licensed CPA firm, will offer tax, advisory, and other non-attest services, headed by CEO David Kessler.
Kessler said: “This strategic investment from the Apax Funds will help us continue on our growth trajectory, expanding our solutions and geographic presence to meet client needs while continuing to create exciting career growth for our people.
“We were impressed by the Apax team’s track record in the professional services sector and their experience in driving operational excellence in complex businesses like ours, while continuing to create a best-in-class experience for employees and clients.”
Apax Partners partner Ashish Karandikar said: “We are excited to partner with David and the firm’s leadership team to fuel the next phase of growth. Together, we aim to accelerate service line expansion, explore new geographic opportunities, and drive innovation. We look forward to what we are confident will be a highly successful and rewarding partnership.”
