Simpson Thacher & Barlett and Latham & Watkins have claimed the lead roles as private equity house Bridgepoint looks to close a deal to acquire Interpath, a restructuring advisory firm, from H.I.G Capital.
Latham is advising Bridgepoint as the mid-market buyout shop has entered into exclusive negotiations to take a majority stake in a deal worth an estimated £800m. M&A partner Farah O’Brien is heading up the team.
Simpson Thacher is advising is the H.I.G fund responsible for Interpath, with a London-based team led by European M&A practice co-head James Howe and corporate partners Lucy Gillett and Alex Ward.
Milbank is acting as counsel to Interpath’s management with the team led by corporate partners James McClymont and Paul Buchan.
Restructuring outfit Interpath became independent after it was carved out of KPMG in 2021 and acquired by H.I.G., in a transaction that also saw Simpson Thacher advise H.I.G. It currently employs over 1,000 professionals across 12 countries.
Latham has a deep relationship with Bridgepoint. Last summer alone, the firm advised Bridgepoint on at least three deals, including its acquisitions of mydentist and Beekeeper, as well as Bridgepoint Credit’s partnership with Rezonate Music.
For its part, Simpson Thacher has also advised Bridgepoint on several deals in recent years, including on its 2023 acquisition of Energy Capital Partners for €57bn, with a team that also included London corporate partner Gillett.
In December, both Latham and Simpson Thacher advised as Bridgepoint acquired a team from leading secondaries platform Newbury. Simpson Thacher advised Bridgepoint, and Latham represented Apollo, which previously acquired Newbury’s parent company.
H.I.G.’s successful exit from its investment in Bridgepoint may mark a positive sign for the PE market. ‘There is a gradual increase in market confidence,’ one PE partner at a magic circle firm said before the new year. ‘A lot will depend on people seeing successful exits that give them confidence to start processes themselves.’
The sale is also further evidence of private equity’s interest in the professional services arena, as the sector looks for new vehicles to deliver returns, with the legal sector touted as a sought-after market.
Last year offshore firm Walkers partnered with PE house Vitruvian on a deal to co-invest in Walkers’ corporate services business, while DAC Beachcroft again began exploring a sale of its claims business.
McDermott Will & Schulte also expressed its willingness to explore private investment, while stressing that any such moves were at preliminary stage.
The Interpath deal is expected to close in Q2 or Q3 of this year, subject to regulatory approvals.
