Investcorp acquires majority stake in CrossCountry Consulting

07 December 2022 2 min. read

Investcorp, a Bahrain-headquartered global manager of alternative investments, has acquired a majority stake in CrossCountry Consulting, a McLean, VA-headquartered management consulting firm.

The transaction, for which financial terms were not disclosed, will see RLH Equity Partners exit its majority stake in the consultancy, though it will remain a shareholder alongside CrossCountry co-founders Dave Kay and Erik Linn.

PSP Investments, the investment management arm of Canada’s federal public sector employee pension plan, also invested in CrossCountry.

“We are excited to partner with the CrossCountry team who have driven strong organic growth and profitability since inception," said Dave Tayeh, head of private equity – North America at Investcorp.

CrossCountry was founded in 2011 and has grown to more than 700 professionals across offices in McLean, New York, Boston, San Francisco, and Seattle – with additional international talent located in Ireland, South Africa, and the Philippines.

Investcorp acquires majority stake in CrossCountry Consulting

The firm provides services in accounting advisory, business transformation, corporate transactions, risk and compliance, technology, cybersecurity, and data and analytics. CrossCountry works with clients in financial services, health and life sciences, hospitality, real estate, and TMT.

“There are several macro themes driving continued opportunity in accounting advisory, including the rise of outsourcing and the evolving role of the finance function to involve technology as businesses digitize their operations,” Tayeh added. “We believe that our long history of working with professional services companies, and the potential synergies across our current portfolio in this space, will help CrossCountry achieve its next phase of growth."

Investcorp had assets under management of $42.7 billion as of June 30, 2022. The firm last year sold its majority stake in KSM Consulting, an Indianapolis-based management consultancy.

"As we continue to expand our reach, our partnership with Investcorp puts us in the best position to solve new, complex challenges for our clients, while growing our exceptional team," said Erik Linn, co-founder and managing partner of CrossCountry. "We owe much of our success over the years to our incredible clients and employees; we believe Investcorp is the right partner with whom we can expand our capabilities, and we look forward to a new, exciting chapter of growth together."

Guggenheim Securities was financial advisor to CrossCountry Consulting, Clearsight Advisors advised RLH Equity Partners, and Houlihan Lokey advised Investcorp and PSP Investments.