Key Takeaways
- • Baker Tilly Advisory Group is refinancing approximately $3 billion in debt through the syndicated loan market, with Deutsche Bank arranging the transaction and marketing expected to begin the following week.
- • The refinancing replaces private credit facilities established following Hellman & Friedman's acquisition of Baker Tilly in 2024 and debt used to finance the firm's merger with Moss Adams, valued at approximately $7 billion in April 2025.
- • Blackstone provided approximately $1.5 billion in direct lending to support the Moss Adams merger, underscoring the significant role of private credit sponsors in backing sponsor-led acquisitions.
- • Baker Tilly has executed an aggressive buy-and-build expansion strategy under Hellman & Friedman ownership, completing multiple acquisitions including Anchin, Block & Anchin in New York and Berkowitz Pollack Brant in Miami, establishing itself as the sixth-largest accounting firm in the United States.
- • The refinancing exemplifies a broader trend in which private equity-backed companies initially utilize private credit for acquisition financing before accessing the syndicated loan market once integration risks diminish and market conditions stabilize.
Summary
Baker Tilly Advisory Group, controlled by private equity firm Hellman & Friedman, is preparing to refinance approximately $3 billion of debt through the syndicated loan market, replacing private credit facilities that supported the accounting firm's substantial expansion since its 2024 acquisition. Deutsche Bank is arranging the transaction, with marketing to leveraged loan investors expected to commence in the coming week, according to unnamed sources familiar with the matter.
The refinancing addresses debt incurred across multiple initiatives, including the original acquisition financing and obligations from Baker Tilly's transformative merger with Moss Adams. That combination, completed in April 2025 and valued at approximately $7 billion, created the sixth-largest accounting firm in the United States. Blackstone served as the lead lender on the Moss Adams merger, providing roughly $1.5 billion in direct credit financing, illustrating the critical role institutional direct lenders have assumed in backing sponsor-led acquisitions during the current market environment.
Since acquiring Baker Tilly in 2024, Hellman & Friedman has pursued an aggressive buy-and-build strategy designed to expand the firm's national footprint through complementary acquisitions. Recent transactions include the acquisition of New York-based Anchin, Block & Anchin and Miami-based advisory firm Berkowitz Pollack Brant, executed late in the prior year. These moves have systematically increased Baker Tilly's geographic presence and service capabilities across the United States.
The planned refinancing reflects a well-established pattern among private equity-backed companies, whereby borrowers initially rely on private credit for acquisition financing before transitioning to the broadly syndicated loan market once integration risks have substantially eased and broader market conditions become more favourable. This approach provides flexibility during integration phases while enabling refinancing at lower cost through scaled capital markets access once operational stability improves.
The refinancing addresses debt incurred across multiple initiatives, including the original acquisition financing and obligations from Baker Tilly's transformative merger with Moss Adams. That combination, completed in April 2025 and valued at approximately $7 billion, created the sixth-largest accounting firm in the United States. Blackstone served as the lead lender on the Moss Adams merger, providing roughly $1.5 billion in direct credit financing, illustrating the critical role institutional direct lenders have assumed in backing sponsor-led acquisitions during the current market environment.
Since acquiring Baker Tilly in 2024, Hellman & Friedman has pursued an aggressive buy-and-build strategy designed to expand the firm's national footprint through complementary acquisitions. Recent transactions include the acquisition of New York-based Anchin, Block & Anchin and Miami-based advisory firm Berkowitz Pollack Brant, executed late in the prior year. These moves have systematically increased Baker Tilly's geographic presence and service capabilities across the United States.
The planned refinancing reflects a well-established pattern among private equity-backed companies, whereby borrowers initially rely on private credit for acquisition financing before transitioning to the broadly syndicated loan market once integration risks have substantially eased and broader market conditions become more favourable. This approach provides flexibility during integration phases while enabling refinancing at lower cost through scaled capital markets access once operational stability improves.
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