H.I.G. Capital explores lucrative Interpath exit

H.I.G. Capital is preparing to launch a formal sale process for Interpath Advisory. According to reports in the British press, the private equity firm is taking pitches from banks to oversee a sale valued at £800 million.

In 2021, as the UK’s Big Four attempted to de-risk, by selling off some arms of their empires that had been subject to conflict of interest allegations, KPMG announced it had sold off its restructuring wing. The £400 million carve-out ultimately saw the unit helmed into independence by its partners, with the backing of H.I.G. Europe, the European affiliate of investment firm H.I.G. Capital.

While the deal created the largest independent corporate turnaround firm in Britain, however, early life was by no means easy on the firm that soon rebranded as Interpath. Set-up costs saw it initially post losses of £10.6 million in the year to March 2023, following a £10.2 million loss the previous year. The years since have seen it turn a corner, though, with its expanding advisory and consulting portfolio helping it to hit a £3 million pre-tax profit in 2024, while Mark Raddan replaced Blair Nimmo as CEO.

Amid a difficult moment for private equity firms, this may have prompted H.I.G. to see the time as right to cash out. While higher interest rates and macroeconomic volatility are dampening deal activity across the economy, professional services firms are still attracting private equity interest – making a lucrative exit from Interpath easier than in other areas of its backer’s portfolio.
To that end, reports from the Financial Times suggest that H.I.G. is targeting a valuation of approximately £800 million – double the fee it shelled out paid for the business four years ago. And while both companies declined to comment, the Financial Times stated that banks have already begun pitching to H.I.G. Capital to advise on the sale of Interpath, citing people familiar with the matter.

Reflecting the possible motives of the deal, a number of private equity investments have made headlines in the consulting sector recently. Most famously, November 2024 saw Cinven purchase a majority stake in Grant Thornton, the sixth-biggest UK audit firm. Smith & Williamson also received a £700 million investment from Apax Partners in the same month. Earlier in 2025, meanwhile, Axiom GRC launched with some £500 million in backing from Inflexion.