UHY Receives Private Equity Funding From Summit Partners

UHY is getting an injection of private equity funding from Boston-based investment firm Summit Partners, calling it a significant milestone in its growth and strategic development, the top 30 accounting firm said on Dec. 3.

Financial terms of the deal weren’t disclosed.

With this deal, more than 35% of the top 30 accounting firms in the U.S. by revenue have sold stakes in their firms—many a controlling stake and some a minority stake—to private equity investors. The last two top 30 firms to strike private equity deals were PKF O’Connor Davies and CRI (Carr, Riggs & Ingram), both announced on Nov. 18.

Farmington Hills, MI-based UHY, which unveiled its first rebrand in 20 years in late October, said in a media release on Tuesday that the investment from Summit Partners will support the continued expansion of its team, technology, and client service offerings while helping to accelerate both organic and acquisition-driven growth.

Established in 2000, UHY serves a diverse client base ranging from closely held middle-market companies to Fortune 500 firms, providing tailored solutions to meet each business’s unique needs. In the U.S., the firm operates nearly 40 offices with more than 1,800 professionals, and through its global network, UHY International, the firm is represented in 334 offices across 96 countries.

UHY in the U.S. had revenue of $346.6 million during its most recent fiscal year, according to INSIDE Public Accounting.

Steve McCarty

“This partnership marks the beginning of a new and expanded era of growth for UHY. Together with Summit, we are focused on scaling our impact while continuing to deliver the highest-quality service and outcomes for our clients and colleagues,” UHY CEO Steve McCarty said in a statement. “This new capital—and Summit’s commitment to operational excellence and deep experience supporting profitable growth—will help us accelerate our growth strategy, deepen relationships with existing clients, and set new standards in the dynamic middle market.

“UHY is consistently ranked best-in-class for quality of service and client satisfaction, and we believe this is a testament to our service-focused team and the culture of excellence we’ve created,” he added. “We are excited to continue growing our team and building on UHY’s position as an industry leader.”

Since the firm’s founding in 1984, Summit Partners has invested in more than 550 companies in technology, healthcare and other growth industries. These companies have completed more than 175 public equity offerings, and more than 250 have been acquired through strategic mergers and sales. Summit maintains offices in North America and Europe.

“UHY has established itself as a highly respected, market-leading accounting, tax, consulting, and advisory services firm built on a reputation for exceptional client service and innovation,” said Paul Furer, a partner at Summit who has joined UHY’s board of directors. “We have been deeply impressed by UHY leadership, particularly by the team’s demonstrated ability to achieve robust organic growth while building a strategic acquisition engine. We are thrilled to join forces with the UHY team to support the firm’s continued expansion.”

UHY is the brand name under which UHY LLP and UHY Advisors Inc. provide professional services. The two firms operate as separate legal entities in an alternative practice structure: UHY LLP is a licensed independent CPA firm that performs attest services, while UHY Advisors provides tax and business consulting services through subsidiary entities.

The separation of audit and non-audit services allows the firm to comply with securities laws prohibiting conflicts of interest that could impair the objectivity of the firms’ auditors.