The transaction is expected to accelerate CrossCountry’s growth as it expands geographically and adds new service line offerings
NEW YORK, NY and MCLEAN, VA, December 6, 2022 — Investcorp, a leading global alternative investment firm, today announced its acquisition of a majority stake in CrossCountry Consulting (“CrossCountry,” or “the Company”), a leading business advisory firm. In addition, Public Sector Pension Investment Board (PSP Investments) invested, and RLH Equity Partners will continue as an investor. CrossCountry founders, Dave Kay and Erik Linn, continue to be significant shareholders.
Founded in 2011, CrossCountry provides accounting, finance, risk, operations, cyber, and technology-enabled transformation solutions for the Office of the CFO in public and private organizations. The Company has over 700 professionals and currently represents clients in the private equity, financial services, life sciences, real estate and hospitality sectors, among others. Its footprint has grown significantly over the past 10 years with professionals located across the United States and globally in Ireland, South Africa and the Philippines.
“We are excited to partner with the CrossCountry team who have driven strong organic growth and profitability since inception,” said Dave Tayeh, Head of Private Equity – North America at Investcorp. “CrossCountry’s relentless focus on exceptional client service has enabled this sustained track record of growth. There are several macro themes driving continued opportunity in accounting advisory, including the rise of outsourcing and the evolving role of the finance function to involve technology as businesses digitize their operations. We believe that our long history of working with professional services companies, and the potential synergies across our current portfolio in this space, will help CrossCountry achieve its next phase of growth.”
“As we continue to expand our reach, our partnership with Investcorp puts us in the best position to solve new, complex challenges for our clients, while growing our exceptional team,” said Erik Linn, Co-Founder and Managing Partner of CrossCountry Consulting. “We owe much of our success over the years to our incredible clients and employees; we believe Investcorp is the right partner with whom we can expand our capabilities, and we look forward to a new, exciting chapter of growth together.”
“CrossCountry’s co-founders and management team have built a leading financial advisory firm with a differentiated culture over the last decade,” said Philippe Bouchard, Senior Director at PSP Investments. “As a provider of long-term strategic capital, PSP Investments is pleased to back this transaction alongside Investcorp. We believe CrossCountry is strategically positioned in its industry and we look forward to working with all shareholders to support the company’s growth prospects over the coming years.”
“The boutique accounting advisory serviceable market is estimated to be nearly $10 billion and projected to grow double digits over the coming years. Having looked at many opportunities in the space, what attracted us most to CrossCountry is its best-in-class culture and remarkable employee engagement metrics. We believe that bodes well for their ability to continue to recruit and retain the best talent in the industry and grow above market,” added Steve Miller, Managing Director, Private Equity – North America at Investcorp.
Investcorp has a long history of investing in professional and tech-enabled services with notable investments including AlixPartners, ICR, PRO Unlimited (now Magnit), Resultant and United Talent Agency.
Guggenheim Securities, LLC acted as the financial advisor to CrossCountry Consulting, Clearsight Advisors advised RLH Equity Partners, and Houlihan Lokey acted as the advisor to Investcorp and PSP Investments.
Terms of the acquisition were not disclosed.
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Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure, and insurance asset management. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach. In January 2022, Investcorp issued its 2021 Responsible Business Report which outlines its Environmental, Social, and Governance (ESG) highlights for 2021 and specific initiatives the Firm implemented to meet its goals: https://www.investcorp.com/esg/.
Investcorp has today 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2022, Investcorp Group had US $42.7 billion in total AUM, including assets managed by third party managers, and employed approximately 480 people from 50 nationalities globally across its offices.
For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $230.5 billion of net assets under management as of March 31, 2022. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.
About CrossCountry Consulting
CrossCountry Consulting is a trusted business advisory firm that provides customized finance, accounting, human capital management, risk, operations, and technology consulting services to leading organizations facing complex change. We partner with our clients to help them navigate pressing business challenges and achieve goals related to improving operations, minimizing risks, and enabling future growth.