Crowe Ends KKR Private Equity Investment
Chicago-based Crowe has finalized a deal with private equity firm KKR, selling a stake in the firm to become one of the largest accounting entities in the U.S. to accept such an investment. The transaction closed on Aug. 7, following an announcement in June.
Structure dictates the new partnership. The deal splits the firm into two distinct entities to maintain the traditional license required for auditing. Crowe Advisory LLC will now provide tax, advisory, and other non-attest services. Meanwhile, Crowe LLP retains its status as a licensed CPA firm, continuing to handle attest services like audits and reviews.
Both organizations operate under the Crowe Global network, ensuring a unified brand and service offering for clients.
Growth depends on this capital. Officials stated that the funds will support existing business strategies and facilitate further investments in talent, technology, and innovation. This funding aims to enhance the firm’s capabilities and client service delivery.
Crowe ranks as the 12th-largest accounting firm in the U.S. by revenue, according to a recent ranking from INSIDE Public Accounting.
“Crowe’s existing business strategy is driving momentum across our service lines, and we have bold ambitions to significantly grow the platform for the benefit of clients and team members alike,” Crowe CEO Steven Strammello said in a statement on Aug. 7.
He added that the strategic partnership with KKR empowers the firm to make more investments in talent and technology, resulting in a platform with greater reach and broader capabilities. Strammello emphasized that the firm’s values and focus on quality have defined its history and will continue to underpin its success.
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“The only thing that changes is our capacity to do even more for our clients, bringing more of the firm to them,” he said.
Chris Harrington, a partner at KKR, noted that the investment reflects confidence in the Crowe team and the many opportunities ahead.
“Crowe has built an outstanding business, with deep industry expertise, trusted client relationships and a clear strategy for continued growth,” Harrington added.
Financial advisers Harris Williams and William Blair & Company LLC assisted Crowe, while Hunton Andrews Kurth LLP served as legal counsel. Mayer Brown LLP advised Crowe’s board of directors. For KKR, Kirkland & Ellis LLP acted as the legal adviser.
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