Penta Capital Partners recapitalises Sumer Group at approximately £1 billion valuation through single asset continuation vehicle

TPG GP Solutions anchors vehicle as sole lead investor, valuing Sumer at ~£1 billion enterprise value

New vehicle includes fresh capital to support Sumer Group’s M&A strategy

Transaction delivers attractive returns and optional liquidity to existing Penta LPs

Penta Capital LLP (“Penta”), a leading financial and business services focused private equity firm, today announces the successful close of a single asset continuation vehicle for portfolio company Sumer Group (“Sumer” or “the Company”).

Founded in 2022, Sumer is the UK and Ireland’s leading middle-market accountancy practice focused on delivering professional services to small and medium-sized enterprises (SMEs). The Company’s unique Hub and Spoke model, supported by an integrated platform and operating model, combine to bring all the benefits of local delivery for clients and people, backed by national expertise and central investment in technology and automation. Since its establishment in 2022, Sumer has scaled from an initial concept to approaching £350 million of revenue, completing more than 50 acquisitions and becoming a truly national business of ~3,500 people. It serves SMEs of all shapes and sizes with a broad array of services including audit, accounting, tax and other advisory such as corporate finance, business restructuring, forensic accounting and specialist legal services.

The transaction values Sumer at ~£1 billion enterprise value. The new vehicle is anchored by TPG GP Solutions as the sole lead investor, following strong interest from several large US and European PE investors. TPG’s investment is underpinned by its longstanding experience across the professional services sector. This transaction provides an attractive liquidity option to existing Penta investors and is the first of its kind in European accountancy.

This capital structure allows Penta and Sumer management to continue their successful partnership through the next ownership cycle whilst providing new capital to continue to drive significant further M&A and support Sumer’s ongoing mission to be the champion of SMEs across the UK and Ireland. As part of the transaction, Sumer has also refinanced its existing debt, bringing on board a new club of committed lenders, including funds managed by Ares, BlackRock, Pemberton, and Investec to support the go-forward plan.

Warren Mead, CEO, Sumer, said:

“Our ambition has always been to build a different kind of accountancy group. One that brings together the strengths of great regional firms, keeps local relationships at its heart and gives SMEs access to the support and expertise they need to succeed. We’re proud of what our people have built and we’re delighted to continue the journey alongside Penta Capital and welcome new partners in TPG GP Solutions.”

“As we look to the next chapter, our strategy and commitment to our clients remain central to everything we do. By continuing to invest in our people, our technology and our capabilities, we can give our teams even more opportunities to develop and help our clients navigate the challenges and opportunities ahead. Our ambition is clear: to continue to be the UK champion of SME businesses.”

Steven Scott, Managing Partner from Penta Capital, said:

“We are proud of the business we have built alongside Sumer management and are delighted to welcome TPG GP Solutions as partners. There is enormous opportunity ahead for the business and we are excited to continue supporting the team over the next investment cycle. Our ongoing ownership allows us to drive further value via our buy-and-build expertise and active approach with portfolio companies as reflected in our track record. We look forward to all that is to come with Sumer.”

Jason Harvie, Investment Director from Penta Capital, said:

“Sumer is one of the few businesses in European professional services to scale significantly while delivering strong organic growth and a material M&A and integration agenda. We are delighted to continue our partnership with a business we have been with from the start and begin a new partnership with TPG GP Solutions. The reinvestment underscores our conviction in Sumer’s exceptional management team, the business’ market leadership position, and our excitement for the next phase of growth.”

Matt Jones, Co-Managing Partner of TPG GP Solutions, said:

“We have tremendous respect for Penta’s track record of building strong platforms across the UK market and are thrilled to partner with them on Sumer. This is an area where TPG has deep sector expertise and longstanding thematic conviction, and we believe Sumer’s outstanding management team has built a best-in-class platform with significant opportunity ahead.”

Penta was advised by Lazard CL (Secondaries Advisor), Continuum Advisory Partners (Financial Advisor), Many Waters Capital (Debt Advisor), OC&C (Commercial Due Diligence Advisor), Simpson Thacher & Bartlett LLP, Dickson Minto, Carey Olsen, Macfarlanes and KPMG. TPG was advised by Fried Frank (Legal Advisor).

Media Contact:

Sharon Adey
media@sumer.co.uk

About Sumer

Sumer is the UK and Ireland’s leading mid-market accountancy practice delivering professional support to small and medium-sized enterprises (SMEs) across England, Scotland and Northern Ireland. A top 11 UK accountancy practice, Sumer is on a mission to champion SME businesses and offer local delivery supported by national expertise. 

Since its inception, Sumer has grown rapidly. It now employs more than 3,500 champions, with over 80 offices, and generates annual revenue of nearly £300 million.  

Sumer’s strategy revolves around partnering with leading regional practices that share the same values and purpose.  Hubs remain rooted in their communities but benefit from nationally integrated technology, infrastructure and resources.  Existing Hubs include BHP, Carpenter Box, Cowgills, DPC Accountants, EQ Chartered Accountants, HW Fisher, Jerroms, Monahans, Moore Thompson, RMT Accountants & Business Advisors, R.T. Marke & Co Ltd, Scrutton Bland, Simmons Gainsford Group, Sumer Northern Ireland.  

To find out more about Sumer, visit our website: ​​​​sumer.co.uk