New and unique professional structure for Moore Kingston Smith
Moore Kingston Smith LLP has become the first major accountancy firm in the UK to take on private equity funding and at the same time fully retain its coveted limited liability partnership status. The unique structure of the firm’s investment from major European PE house Waterland, which successfully completed on 30 June 2023, represents an innovative break from the traditional requirement to move to a limited company operating model as part of a PE transaction.
The newly adopted structure will allow other acquisition targets to join the firm in a seamless way, whilst ensuring the opportunity for people to rise to the top and become equity partners and joint owners of an enlarged business. This flexibility was a significant consideration for the firm’s partners in pursuing this new deal structure. Equally important was the partners’ ability to retain full operational control of the day-to-day business, in line with their commitment to protect the culture and ethos they have developed over many years.
Maureen Penfold, managing partner of Moore Kingston Smith LLP, explains: “The completion of this PE investment is a key part of our strategy to ensure sustainable success for our people and clients. When we considered the options for securing our growth both in the UK and overseas what drove us was to find a way to keep our limited liability partnership model while taking on PE investment in this ground-breaking way. We are delighted to be the first major professional services firm in the accountancy sector to pioneer such an innovative deal structure and to pave the way for other firms to follow suit.”
William Wastie, partner, and head of the leading professional practices group at Addleshaw Goddard LLP who acted as legal advisors on the deal, added: “It has been a privilege to advise our client at such a pivotal time in their history, and especially given the uniqueness of this transaction. To retain the flexibility of an LLP ownership structure