UHY, a Top 50 Firm based in Farmington Hills, Michigan, has received private equity funding from Summit Partners, a Boston-based investment firm, the latest in a long line of accounting firms receiving PE financing.
The amount of funding and how much of a stake is being taken by Summit was undisclosed. Private equity funding often leads to firms splitting their attest and non-attest sides and operating in an alternative practice structure, but UHY has long maintained a split between its auditing firm, UHY LLP, and UHY Advisors Inc., which provides tax and business consulting services.
This is UHY's first institutional capital investment, however, and the firm plans to use the funding to expand its team, technology and client service offerings. Both UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited (UHY International), a U.K. company, and form part of the international UHY network of legally independent accounting and consulting firms.
The firm dates back to 1964, when Urbach Kahn & Werlin was established in Albany, New York. In 1986, UHY International formed, combining Urbach Kahn & Werlin with U.K.-based Hacker Young. However, Urbach Kahn & Werlin maintained its name in the U.S. until 2000, when Follmer Rudzewicz, Grace & Co., and Urbach Kahn & Werlin combined as part of Centerprise Inc. Then in 2003, Centerprise Inc. became UHY, forming an alternative practice structure with UHY LLP and UHY Advisors.
UHY completed 15 strategic acquisitions in the past four years, while expanding its global network. The firm now ranks No. 29 on Accounting Today's list of Top 100 Firms, with $349.7 million in annual revenue and nearly 40 offices with over 1,800 professionals across the U.S. In its global network, UHY International has 334 offices across 96 countries.
"This partnership marks the beginning of a new and expanded era of growth for UHY," said UHY CEO Steve McCarty in a statement Tuesday. "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. 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."
As part of the deal, Summit partner Paul Furer has joined UHY's board of directors. "UHY has established itself as a highly respected, market-leading accounting, tax, consulting and advisory services firm built on a reputation for client service and innovation," he said in a statement. "We have been deeply impressed by UHY leadership, particularly by the team's demonstrated ability to drive strong 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."
