In a significant move within the UK's professional services sector, private equity firm Bridgepoint has successfully acquired Interpath Advisory, the restructuring and advisory business. The deal, which is understood to be valued at more than £200 million, sees Bridgepoint triumph over several other competing buyout shops that were also vying for the asset.
A Competitive Auction Concludes
The sale process for Interpath was highly competitive, drawing interest from a number of prominent private equity houses. However, Bridgepoint emerged as the victor, securing the business from its current owner, HIG Capital. The transaction is a notable example of continued private equity appetite for stable, fee-generating professional services firms, particularly those with strong reputations in counter-cyclical areas like restructuring.
Interpath Advisory was originally formed from the UK restructuring division of KPMG, which was purchased by HIG Capital in 2021. Under HIG's ownership, the business has been led by Blair Nimmo and has expanded its operations. The firm has established itself as a key player in the UK market, advising on numerous high-profile corporate turnarounds and insolvencies.
Strategic Rationale and Future Growth
For Bridgepoint, the acquisition aligns with its strategy of investing in high-quality businesses with strong management teams and clear growth trajectories. Interpath's expertise in restructuring is seen as a valuable and resilient service line, especially in periods of economic uncertainty. The deal provides Bridgepoint with a platform to potentially consolidate the fragmented restructuring advisory market through further add-on acquisitions.
The leadership at Interpath, including Chief Executive Blair Nimmo, is expected to remain in place following the transition to Bridgepoint's ownership. This continuity is crucial for maintaining client relationships and the firm's strategic direction. The investment is likely to provide Interpath with additional capital and strategic support to accelerate its growth plans, both organically and through potential mergers.
Implications for the UK Advisory Landscape
This transaction underscores the ongoing trend of private equity investment into the UK's professional services sector. Firms like Interpath, which offer essential and non-discretionary services, are attractive assets due to their predictable revenue streams and potential for operational improvement under new ownership.
The deal also highlights the evolving shape of the advisory market, which has seen traditional audit firms divest certain divisions while new, independently capitalised players rise in prominence. Bridgepoint's acquisition positions Interpath as a strongly-backed competitor in the restructuring space, potentially increasing competition for large-scale advisory mandates in the UK and beyond.
With the financial backing of a major private equity player, Interpath is now poised to challenge the established order more aggressively. The market will be watching closely to see how the firm leverages its new resources to expand its service offerings and market share in the coming years.
