KPMG ties up with VC adviser Acceleris as it embarks on investment spree
KPMG UK signed a joint venture with venture capital adviser Acceleris in what the audit firm’s boss Jon Holt said is the first in a “series of innovative investments”.
KPMG said it had signed an agreement to form a joint venture with Acceleris to target early-stage businesses and entrepreneurs in the technology, life sciences and ESG-related sectors.
The joint venture will also offer clients access to a pool of investors to support £1m-£30m growth investments, the firm said on 27 April.
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The audit firm will acquire 50% of Acceleris’s shares subject to the consent of the Financial Conduct Authority. The transaction is expected to complete later this year.
KPMG’s head of corporate finance Jonathan Boyers and Manchester senior partner Warren Middleton will take seats on the company’s board following completion. The company will trade under the brand KPMG Acceleris on completion of the deal.
“This is a market that is growing really rapidly. The growth in capital in the space in the last year or so is staggering,” Boyers told Financial News.
Boyers said the firm had spotted a gap in the market for providing high-quality advice to early stage companies.
“This is an area where we think the market is growing very rapidly and there is not a lot of competition,” he said.
KPMG UK chief executive Jon Holt described the deal as a “milestone” for the firm and said it was “the first in a series of innovative investments we’re making to transform our business and develop new services to help our clients grow.”
Boyers did not rule out KPMG investing in early-stage businesses it came across via Acceleris, but said this was not the reason for the deal.
“We are open to acquiring or investing in any professional services business that would fit well in our existing portfolio of businesses. We are looking at lots of different things,” he told FN.
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Holt has promised to invest the windfalls the firm received from the sale of its pensions and restructuring practices, which netted more than £500m after they were sold to private equity buyers in 2020 and 2021 respectively.
KPMG said in September that the firm planned to invest £300m over the next three years.
Financial details for the Acceleris deal were not disclosed.
The deal was first reported by Sky News.
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