Bridgepoint has agreed to acquire a majority stake in Interpath, valuing the advisory group carved out of KPMG UK at about €920M, in a deal that underlines private equity’s continued appetite for professional services firms with exposure to restructuring and real estate advisory work.

Bridgepoint, which invested in Belfast-based regulatory consultancy Fscom in 2022, said it intended to back further growth in Dublin, across Europe and beyond.

The deal provides an exit for HIG Capital, which bought the business from KPMG in 2021 for approximately €440M and has overseen a period of rapid international expansion.

Since its separation from KPMG nearly five years ago, Interpath has broadened its offering into corporate finance and debt advisory, areas closely tied to property, development and capital markets activity.

The group now employs about 1,000 people across 12 countries and its Irish operation launched in 2022, formed by former partners from KPMG and Deloitte and headquartered in Dublin at Riverside Two, Sir John Rogerson’s Quay, with additional offices in Cork and Belfast.

Interpath’s Irish arm works across sectors including property, retail, leisure and hospitality, construction, aviation, sport and media. Recent mandates have included restructuring and insolvency cases such as the receivership of The Square shopping centre in Tallaght.

The Irish unit reported an operating loss of €5.7M for the year to 31 March 2024, its first full year of operation, compared with a €3.3M loss in the prior period. Revenues rose from €1.8M to €13.1M, while staff costs increased from €1.9M to €14.7M, reflecting rapid hiring for growth.

Interpath’s chief executive, Mark Raddan, said the business aimed to challenge established rivals such as AlixPartners, Alvarez & Marsal and FTI Consulting.

The original spin-out of Interpath formed part of a broader retreat by the big four from restructuring businesses, driven by perceived conflicts of interest.

Deloitte sold its own restructuring arm to CVC-backed Teneo, and private equity has been behind a series of investments across the professional services sector, including Cinven’s acquisition of a majority stake in Grant Thornton UK.