New York-based IPA 100 firm CohnReznick LLP (FY23 net revenue $1.05 billion) announced a strategic growth investment from Funds advised by Apax Partners LLP. The transaction marks the first institutional investment in CohnReznick and is expected to help accelerate the firm’s growth strategy to deliver best-in-class client solutions and create greater career opportunities for employees.
In partnership with Apax, CohnReznick intends to invest further in its talent and business to continue to drive growth. Apax will apply its operational expertise and deep experience in professional services to support CohnReznick in advancing its value creation plan, which includes expanding service lines, developing technology-centric client solutions, entering new markets, developing best-in-class talent and advancing its existing tech platform to drive further innovation and efficiency. Apax will also support the firm in pursuing its targeted acquisitions strategy to further grow its client offering.
David Kessler, CEO of CohnReznick, said “Our partnership with Apax is a milestone moment in CohnReznick’s history. We have consistently delivered strong growth and cemented our position in the mid-market, thanks to our best-in-class talent, industry expertise and comprehensive service offerings. 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.”
Ashish Karandikar, partner at Apax Partners, said “Over the past two years, we have built a strong relationship with the CohnReznick team and have been deeply impressed by the company’s culture, vision and the consistent growth they have achieved. 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.”
Allan D. Koltin, CEO of Koltin Consulting Group, who advised on the combination said, “It was love at first sight – I can’t recall two firms and their leaders culturally and strategically aligning as fast as they did. When one side talked, the other side finished the sentence. No question in my mind, this combination will produce one of the next $2 Billion firms in the accounting profession, but more importantly produce a lot of successful people and clients along the way.”
Following the closing of the transaction, CohnReznick will operate in an alternative practice structure: CohnReznick LLP, a licensed CPA firm, will provide attest services and Kelly O’Callaghan will serve as CEO — and CohnReznick Advisory LLC (which will not be a licensed CPA firm) will provide tax, advisory, and other non-attest services, led by Kessler as CEO.
