Bridgepoint Doubles Down on Professional Services with £800 Million Interpath Acquisition

Bridgepoint Group has emerged victorious in a competitive auction to acquire a controlling stake in Interpath Advisory for more than £800 million, the London-listed private equity firm announced January 5. The transaction represents a lucrative exit for H.I.G. Capital, which is selling the restructuring and advisory business at double the £400 million valuation it paid when carving the unit out of KPMG UK's restructuring arm in 2021.

The deal underscores the intensifying competition among private equity investors for professional services assets, a sector that has become increasingly attractive for its predictable revenue streams, high margins, and opportunities for international expansion. Bridgepoint beat out competition from a pack of rival buyout firms including Blackstone, Onex, PAI Partners, and Permira in what sources described as a hotly contested process.

The sale marks a successful value-creation story for H.I.G. Capital, which has fundamentally transformed Interpath since acquiring it from KPMG. When H.I.G. executed the carve-out at a £400 million valuation in 2021, Interpath was primarily a UK-focused restructuring practice. Under private equity ownership, the business has evolved into a diversified international advisory platform.

Today, Interpath employs about 1,000 people across 12 countries, with operations spanning the UK, Ireland, and continental Europe. The firm's Irish operation launched in 2022, formed by former partners from KPMG and Deloitte, and is headquartered in Dublin at Riverside Two, Sir John Rogerson's Quay, with additional offices in Cork and Belfast.

The financial performance has been equally impressive. Interpath reported revenues from continuing operations of £198.1 million in FY25, up 26.6% from the prior year, demonstrating the firm's ability to capitalize on both organic growth opportunities and strategic expansion initiatives. This growth trajectory has been consistent, with the company previously reporting double-digit revenue increases as it built out its geographic footprint and service capabilities.

For Bridgepoint, the acquisition represents a strategic addition to its portfolio of professional services investments. Charles Welham, a partner at Bridgepoint, emphasized the geographic fit in comments to the Financial Times: "Interpath has moved quickly from a UK only business to establish a strong pan-European platform, which makes it a natural fit for Bridgepoint".

The deal aligns with Bridgepoint's investment thesis around backing businesses with strong market positions that can benefit from operational improvements and international expansion. Interpath's pan-European presence provides immediate scale and a platform for further growth across the continent, where Bridgepoint has deep operational expertise and an established network.

The advisory firm's service mix also offers defensive characteristics that appeal to institutional investors. Interpath Advisory is the UK's largest independent turnaround and restructuring business, providing services that remain in demand across economic cycles. While restructuring work naturally increases during downturns, the firm has successfully diversified its revenue base to include real estate advisory, transaction support, and other corporate advisory services that generate steady fees regardless of market conditions.

The Interpath transaction is the latest in a wave of PE investments in the professional services sector, as buyout firms increasingly view these businesses as attractive alternatives to traditional leveraged buyouts. The sector offers several compelling characteristics that have drawn private equity interest: recurring revenue relationships, limited capital intensity, high cash conversion, and opportunities to drive growth through geographic expansion and service line additions.

The trend accelerated in 2021, when Deloitte sold its restructuring arm to CVC Capital Partners-backed consultancy Teneo, following a similar playbook to the KPMG-H.I.G. transaction. More recently, in early 2025, London-based wealth manager Evelyn Partners completed the sale of its accounting arm to PE investor Apax for £700 million.

These carve-outs from Big Four accounting firms and other established professional services organizations have created a new category of independent advisory businesses backed by private equity capital. The model allows the carved-out units to operate with greater entrepreneurial flexibility while leveraging PE resources to pursue acquisitions, enter new markets, and invest in technology and talent.

The timing of the Interpath sale reflects both the maturity of H.I.G.'s investment and favorable market conditions for professional services exits. After five years of ownership, H.I.G. has successfully executed its value-creation plan, transforming a regional UK business into an international platform with diversified service offerings and a significantly larger revenue base.

The competitive auction process that preceded the deal demonstrates continued strong demand for quality professional services assets. That Bridgepoint prevailed over larger, better-capitalized rivals like Blackstone suggests the firm's strategic vision and operational capabilities resonated with Interpath's management team and H.I.G. as the selling shareholder.

Industry observers note that the professional services sector has attracted growing PE interest in recent years as investors seek steady, reliable income, loyal client relationships, and opportunities to scale businesses and improve efficiency. Unlike cyclical manufacturing or retail businesses, professional services firms typically maintain strong client retention and can grow through both organic expansion and strategic acquisitions.

While the strategic logic appears sound, Bridgepoint will face the challenge of maintaining Interpath's growth momentum while integrating the business into its portfolio. Professional services firms are fundamentally people businesses, and retaining key partners and senior professionals will be critical to preserving client relationships and the firm's market position.

The firm's recent track record provides some reassurance. Interpath has already demonstrated its ability to navigate ownership transitions, having successfully separated from KPMG and built an independent brand and culture under H.I.G.'s ownership. The business has also shown it can attract talent from competitors, as evidenced by its Irish expansion through former KPMG and Deloitte partners.

Bridgepoint's experience with similar businesses should help smooth the transition. The firm has a history of backing professional services and business services companies, giving it a playbook for supporting organic growth initiatives, facilitating add-on acquisitions, and helping portfolio companies expand internationally.

The Interpath transaction sends several signals to the broader professional services market. First, it validates the carve-out model pioneered by H.I.G. and others, demonstrating that restructuring and advisory practices can thrive as independent businesses outside the Big Four ecosystem. This may encourage other accounting firms to consider similar transactions for non-audit practices that face regulatory constraints or strategic misalignment.

Second, the premium valuation—reportedly double H.I.G.'s entry price—will likely encourage more private equity investment in the sector. The ability to generate a 2x return in five years, even before accounting for any interim distributions, represents an attractive risk-adjusted return profile that should draw additional capital to professional services deals.

Third, the deal highlights the ongoing consolidation and professionalization of the restructuring and turnaround advisory market. As independent firms backed by institutional capital compete with Big Four practices and boutique partnerships, the sector is evolving toward a more corporate structure with greater emphasis on brand building, geographic expansion, and service line diversification.

The transaction remains subject to regulatory approvals and customary closing conditions, with completion expected in the coming months. Financial terms beyond the headline valuation were not disclosed, though the deal is structured as a majority stake acquisition, suggesting Interpath's management team and potentially H.I.G. will retain minority positions to ensure continuity and alignment.

For Bridgepoint, the acquisition represents a significant deployment of capital from its latest fund and a statement of conviction in the professional services thesis. The firm will be looking to replicate H.I.G.'s success by continuing Interpath's international expansion, potentially pursuing add-on acquisitions in complementary service areas, and further diversifying the revenue base beyond core restructuring work.

For H.I.G., the exit represents a textbook private equity success story: identify an attractive carve-out opportunity, execute a complex separation, invest in growth and internationalization, and exit at a substantial premium to a strategic buyer. The firm's ability to double its money in five years while building a market-leading business demonstrates the value-creation potential in professional services carve-outs.

As the professional services sector continues to evolve, the Interpath transaction will likely be remembered as a milestone deal that validated the independent advisory firm model and demonstrated the sector's appeal to institutional investors. Whether Bridgepoint can build on H.I.G.'s foundation and drive the next phase of growth will be closely watched by industry participants and investors alike.

Moelis & Company served as financial advisor to H.I.G. Capital on the transaction.