Blackstone Funds to Buy Citrin Cooperman Stake from New Mountain

Blackstone Group-managed private equity funds have agreed to acquire a substantial interest in Citrin Cooperman Advisors from New Mountain Capital, confirming recent market chatter.

The Providence, RI-based Citrin Cooperman provides tax, advisory and accounting services to private middle-market businesses and high-net-worth individuals. Currently, it caters to over 15,000 clients globally, according to a January 7 announcement of the deal.

The financial terms of the investment were not disclosed. However, London's Financial Times reported that the deal gives Citrin Cooperman an enterprise value of more than $2B. Two people familiar with the matter told the publication that Blackstone is purchasing the stake at 15x of Citrin Cooperman's EBITDA, compared with when New Mountain purchased the interest at 11x EBITDA.

Citing two people familiar with the matter, the FT noted that the transaction will give the Blackstone funds ownership of more than two-thirds of the target's equity. Smaller investors are expected to be involved in the transaction to keep the private equity giant's ownership below 50% and allay potential regulatory concerns.

The move comes after New Mountain in May 2024 made a significant growth investment in the large global tax, advisory, and accounting provider Grant Thornton.