Moore Kingston Smith completes private equity funding

Moore Kingston Smith LLP has become the first major accountancy firm in the UK to take on private equity funding from Waterland, while fully retaining its coveted limited liability partnership status.

The unique structure of the firm’s investment from European private equity firm Waterland, which successfully completed on 30 June 2023, represents an “innovative” break from the traditional requirement to move to a limited company operating model as part of a PE transaction.

The newly adopted structure will allow other acquisition targets to join the firm in a “seamless” way, whilst ensuring the opportunity for people to progress into becoming equity partners and joint owners of an enlarged business.

Partners at the firm pursued this new deal structure due to its flexibility and for their ability as partners to retain full operational control of the day-to-day business, as they want to protect the culture and ethos they have developed over many years.

Maureen Penfold, managing partner of Moore Kingston Smith LLP, said: “Growth has always been a key ambition of ours, and the completion of this PE investment is a key part of our strategy to ensure sustainable success for our people and clients.

“We are delighted to be the first major professional services firm in the accountancy sector to pioneer such an innovative deal structure and to pave the way for other firms to follow suit.”

William Wastie, partner and head of the Professional Practices Group at Addleshaw Goddard LLP, who acted as legal advisors on the deal, added: “It has been a privilege to advise our client at such a pivotal time in their history, and especially given the uniqueness of this transaction.

“To retain the flexibility of an LLP ownership structure combined with taking on private equity funding has created a new model for investment growth, and we are sure that this will provide significant further opportunity for the future growth of the business.”