Professional services firm CohnReznick is selling a stake in the company to London-based private equity firm Apax Funds.
The accounting, advisory and assurance firm has offices in Hartford and Stamford, employing 94 CPAs and 261 people overall in the state as of the third quarter of 2024, according to Hartford Business Journal’s Book of Lists. It is the second-largest accounting firm in the Greater Hartford area after Deloitte, according to HBJ’s rankings.
CohnReznick says with the sale it will split the firm into two entities, CohnReznick LLP, a licensed CPA firm with Kelly O’Callaghan as CEO, and CohnReznick Advisory LLC to provide tax, advisory and other non-attest services, led by David Kessler, the current CohnReznick CEO. It did not reveal the size of the stake that Apax is taking in the firm.
The deal is part of a growing trend of consolidation and mergers among mid-tier accountancy firms. Baker Tilly, Grant Thornton and Citrin Cooperman are all among those who have recently announced private equity deals.
The trend reflects both financial pressures and the difficulty in hiring qualified accountants in recent years. Private equity deals often fuel more consolidation, and CohnReznick says that Apax will support the pursuit of targeted acquisitions to further grow its client offering.
CohnReznick reported revenues of $1.12 billion in the most recent fiscal year. It has more than 5,000 global employees and 350 partners in 29 offices across the U.S.
“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,” said CEO David Kessler in a statement announcing the deal.
