Exponent acquires KPMG pensions advisory

Katharine Hidalgo
06 December 2019

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Exponent Private Equity has agreed to acquire KPMG's pensions advisory business.

The business could be sold for £120-200m, according to a report by Sky News.

Exponent registered its fourth fund in July 2017 and was expected to hold a first close on £700m in March 2018, according to Unquote Data. Exponent Private Equity Partners III, which closed on £1bn in 2015, is now fully deployed.

KPMG first announced the possibility of selling the business in June 2019. Inflexion Private Equity-backed Lane Clark & Peacock reportedly put in an offer for the company in August with several other trade and financial bidders interested in the process, according to the Sky News report.

In November 2018, KPMG announced it would no longer provide consultancy work for its audit clients following the launch of a probe by the Competition and Markets Authority into the audit sector. The combined revenues of the tax, pensions and legal advisory team came to £546m for 2018.

KPMG sold its Sweden-based business services division to IK Investment Partners in June 2018.

Company
The sale will see all 20 partners and around 500 staff currently employed in KPMG's pensions practice transfer to the newco. The business's customers include pension funds, holding around £50bn in pension assets under advice. While KPMG is headquartered in Amstelveen, the Netherlands, the UK-based pensions business is based in London. The company was founded in 1891.

People
KPMG pensions business – Andrew Coles (CEO).

Advisers
Equity – Deloitte (corporate finance); Macfarlanes (legal).
Vendor – Liberty Corporate Finance (corporate finance); Addleshaw Goddard (legal).
Company – KPMG (corporate finance).