HIG Capital is preparing to launch a formal sale process for Interpath Advisory, the former KPMG restructuring unit it acquired in 2021, with a target valuation of approximately £800m, according to a report by the Financial Times.
According to sources familiar with the matter, a number of investment banks have begun pitching for the sell-side mandate, with HIG expected to appoint advisers imminently. The process marks a potential exit four years after the US-based private equity firm acquired the business from KPMG for a reported £400m.
Interpath, which initially faced profitability challenges post-acquisition, has recently returned to the black. It reported pre-tax profits of £3m in its most recent financial year to March 2024, following consecutive losses in 2022 and 2023 attributed to start-up and separation costs.
The firm’s turnaround has been credited to CEO Mark Raddan, who succeeded Blair Nimmo last year. Raddan previously led Interpath’s advisory business and is a former KPMG partner.
Since its carve-out from KPMG, part of a broader Big Four trend to reduce conflicts of interest, Interpath has expanded its offering beyond restructuring into corporate finance and advisory services. Headcount has more than doubled from 450 to over 1,000 employees.
The sale process comes amid subdued exit activity across private markets, as elevated interest rates and macroeconomic volatility continue to weigh on deal volumes and IPOs. Sponsors are increasingly exploring alternative exit routes, including asset breakups and continuation vehicles.
Interpath joins a growing list of UK professional services firms attracting private equity interest. Recent transactions include Cinven’s acquisition of a majority stake in Grant Thornton UK and Apax Partners’ £700m deal for Smith & Williamson, part of Evelyn Partners.
HIG Capital and Interpath declined to comment.
