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The private equity owner of Sumer Penta Capital Partners has reportedly delayed a planned £1bn sale of the accountancy group despite reported interest from multiple suitors, according to the Times.
Warren Mead, Sumer co-founder and the former chief operating officer of KPMG’s clients and markets division, had appointed advisers at corporate finance outfit Continuum last year, with early valuations suggesting the business could command a huge price tag
However, the Times has learnt that Penta Capital Partners is now exploring alternative options, including a “continuation vehicle” that would allow the firm to retain ownership while providing liquidity to investors.
This process involves a private equity firm effectively selling a business to itself by transferring the asset into a new fund, allowing current investors to realise their gains while the firm maintains management of the asset.
The Times stated that if the firm does not proceed with a solo vehicle, it may seek a new investor to “co-control” the new fund to provide additional growth capital.
Market sources suggest that while the accountancy sector remains attractive to private equity due to reliable cash flows, recent geopolitical instability has slowed deal volumes.
New Bloomberg data indicates that the war in Iran has shaken the international private equity market, with dealmaking down by a third this year.
However, The Times reported that Penta could still launch a formal sale if market conditions improve.
Additionally, while several large private equity firms are understood to have assessed Sumer, some are said to have raised concerns over its £1bn valuation.
People familiar with the matter told the Times that there remains strong interest from other funds should the business eventually come to market.
Sumer was co-founded in 2023 by Mead, and under his leadership, the firm has undertaken a rapid acquisition strategy to become the UK’s 12th largest accountancy practice, employing 3,000 staff with annual revenues of approximately £300m.
The Times stated that this business model is intended to differentiate Sumer from the “Big Four” and other consolidators in the professional services sector.
Mead told the Times: “Sumer is not your average accountancy group. I am not interested in taking the crumbs from the ‘Big Four’ accountants’ table.”
Sumer and Penta Capital Partners have been contacted for comment.
