AlixPartners has ambitious growth plans after capital injection

AlixPartners, an international advisory firm in the field of restructuring, has bought a majority of its shares to private equity party CVC Capital Partners. With this capital infusion the firm plans to pursue an aggressive international expansion strategy. According to insiders, AlixPartners has been valued at slightly more than $1 billion. The firm’s 125 partners, as well as the founder, Jay Alix, will continue to own a minority stake.

Over the past years the consulting firm has become known for its work in several high-profile turnaround assignments, including GM's Saab division, Kodak and Barney's New York. The firm also offers traditional management consulting work and other financial advisory offerings, such as forensic accounting services.

International expansion

AlixPartners decided to sell a majority stake to be able to finance its ambitious growth and international expansion plans. Since 2006, AlixPartners has grown from 550 to more than 950 professionals, expanded from 12 to 17 offices globally and expanded into China, Hong Kong and the Middle East. In the coming decade it has plans to double its workforce and surpass its main financial advisory competitors FTI Consulting and Alvarez & Marsal. According to US newspapers, AlixPartners had for some time considered funding its plans through an initial public offering but was held off due to the uncertainty of the markets.

Private equity

AlixPartners already was to a large extent owned by a private equity firm. In 2006, another private equity firm, Hellman & Friedman, acquired a majority stake in AlixPartners. At the time, that transaction valued the consultancy at about $800 million.

The partners of the advisory firm were advised by Goldman Sachs en Bank of America Merrill Lynch during the sale.