CANFIELD, Ohio – HBK, a leading integrated accounting, tax, audit, consulting, technology and wealth management firm, on Tuesday announced a strategic growth investment from an affiliate of H.I.G. Capital, a global alternative investment firm with $75 billion of capital under management.
The investment establishes H.I.G. as HBK’s first institutional partner.
HBK’s partners will continue to lead the firm, preserving its culture and client-first approach, while gaining access to expanded resources and capabilities to support its next phase of growth, a news release states.
The transaction is expected to close in the fourth quarter, subject to customary closing conditions and required regulatory approvals.
“This partnership marks an exciting new chapter for HBK. In H.I.G., we found a partner that shares our values and our long-term vision and that recognizes what makes HBK special,” said Tom Angelo, chief executive officer of HBK CPAs & Consultants. “With H.I.G.’s resources and experience, we will invest further in our people, our technology and our client service capabilities, expanding both what we can do for our clients and the opportunities we can create for our team, while preserving the culture that has defined our firm since 1949.”
HBK brings together two complementary businesses: HBK CPAs & Consultants, a Top 50 U.S. CPA firm, and HBKS Wealth Advisors, a Barron’s Top 100 RIA honoree, along with affiliates including Vertilocity, the firm’s technology advisory practice.
Across 27 offices in seven states and India, HBK’s professionals serve tens of thousands of clients nationwide, from entrepreneur-led and family-owned businesses to high-net-worth individuals and families.
“Partnering with H.I.G. gives us the resources to scale our business and invest in the professionals and technology that matter most to our clients,” said Chris Allegretti, chief executive officer of HBKS Wealth Advisors. “HBKS clients will continue to work with the same advisers, in the same offices, under the same standard of care as we continue to deliver comprehensive advice to individuals, families and business owners.”
In connection with the investment, HBK will adopt an alternative practice structure prior to closing. This structure is common across the accounting profession and is designed to preserve CPA ownership of attest services while allowing outside investment in the firm’s other lines of business, the release states. Under this structure, HBK’s attest services, including audits and reviews, will continue to be provided by its licensed CPA firm, Hill, Barth & King LLC, which will retain its name and remain owned and controlled by its CPA partners.
HBK’s tax, consulting, accounting and technology services will be provided by HBK Advisory Group LLC, and wealth management services will continue to be provided by HBKS Wealth Advisors. Existing clients will also continue working with the same teams they work with now.
“HBK is one of the most respected firms in accounting and wealth management, with more than 75 years of technical excellence and a reputation built on trusted, long-term client relationships,” said Chris Byrne, managing director at H.I.G. “We are very impressed with the HBK team and how they have built the firm into an employer of choice across two highly attractive industries. We are thrilled to partner with Tom, Chris and the entire HBK team to support the firm’s next phase of growth.”