Wipfli Partners with New Mountain Capital for Growth and Innovation

Wipfli LLP, a prominent provider of accounting, tax, and advisory services focused on the middle market, has recently made headlines by entering into a definitive agreement for a substantial minority investment from New Mountain Capital, a leading investment firm. This partnership, marking a strategic milestone for Wipfli, aims to leverage this investment to foster growth, enhance technology, and innovate solutions tailored for clients.

A Legacy of Growth and Transformation

Founded nearly a century ago, Wipfli has transformed from its Midwest roots into a powerhouse on the national stage. Over the years, the firm has adeptly balanced its commitment to nurturing client relationships with strategic investments in its personnel and technological capabilities. This approach has led to impressive growth, with Wipfli's annual revenue eclipsing $600 million, a remarkable tripling in size, and the successful completion of 34 acquisitions in the last decade alone.

As it stands, Wipfli has consistently demonstrated its ability to evolve, adapting to the ever-changing demands of mid-market organizations, thus establishing itself as a leader within the professional services arena. The firm has been particularly forward-thinking in its advisory services and international operations, which were pioneered over two decades ago. In fact, advisory services now represent nearly half of Wipfli's total revenue, reflecting the firm's integrated approach in tackling complex business challenges.

Strategic Investment for the Future

The recent investment from New Mountain Capital is poised to initiate a new chapter for Wipfli. Upon finalization of the transaction, Wipfli will maintain majority ownership and remain partner-led, thus ensuring the preservation of its unique culture and independence while also unlocking opportunities for accelerated growth. Kurt Gresens, Managing Partner at Wipfli, expressed excitement over this partnership, stating, "New Mountain provides us not only with capital but also the confidence to expand our offerings and deliver even more value to both our clients and our employees."

Kelly Fisher, the firm's chief practice officer, echoed these sentiments, noting, "We intentionally sought out New Mountain Capital because they understand and value the unique culture we’ve cultivated at Wipfli. This alignment will enable us to broaden our impact while safeguarding the essence of who we are."

Collaboration with New Mountain Capital

New Mountain Capital, renowned for its focus on business growth and long-term value creation, possesses substantial experience in scaling firms within the accounting sector. Through their Strategic Equity approach, they aim to make value-added, non-control investments in well-established companies. Nikhil Devulapalli, a managing director at New Mountain Capital, highlighted the firm’s admiration for Wipfli’s culture and commitment to service, stating, "We are thrilled to collaborate with Kurt and the leadership team to accelerate Wipfli’s growth and enhance its offerings."

The growth trajectory in the accounting, tax, and advisory sectors continues to be robust according to New Mountain Capital. This investment aligns perfectly with their strategic focus, which aims to elevate client satisfaction, uphold the highest quality standards, and expand service and technological capabilities.

Navigating Forward

Terms surrounding the investment transaction remains undisclosed, although it is subject to regulatory approvals and other standard closure conditions. With the transaction's completion, Wipfli plans to adopt a dual operational structure: Wipfli LLP, identified as a licensed CPA firm for providing attest services, and Wipfli Advisory LLC, focusing on business advisory and non-attest services — a strategic move to maintain client service excellence.

Guggenheim Securities, LLC has been appointed as Wipfli's financial advisor, while prominent legal advisors include Simpson Thacher Bartlett LLP and Godfrey & Kahn SC. For New Mountain Capital, William Blair and Koltin Consulting Group are guiding them financially, with legal advisory provided by Kirkland & Ellis LLP.

About Wipfli and New Mountain Capital

Wipfli stands as a national advisory and accounting firm boasting nearly a century-long history in serving ambitious middle-market clients. The firm's reputation is founded on a blend of trust and innovative strategies designed to help clients thrive. With over 3,000 professionals, Wipfli offers an extensive suite of audit, tax, and consulting solutions across diverse sectors.

New Mountain Capital, headquartered in New York, focuses on building sustainable businesses aimed at long-term capital growth, managing approximately $55 billion in assets across various investment strategies.

This collaboration marks a key moment for Wipfli as it continues to navigate the demands of its clients and the evolving professional landscape, positioning itself for sustained success in the future.