Big 4 accounting and consulting firm KPMG LLP has acquired the hedge fund group Rothstein Kass, the companies have announced. Most partners and employees of Rothstein Kass will join KPMG.
The agreement brings together KPMG’s expansive alternative investments presence and global reach with Rothstein Kass’ industry leading expertise and personnel. The deal is a powerful demonstration of KPMG’s strength in and commitment to serving the broader Alternative Investments industry and capital markets, including hedge funds, private equity, real estate, infrastructure, and other segments of this important industry. The transaction is expected to close in the coming weeks, and terms of the agreement will not be disclosed.
“Combining the strength of KPMG and its global reach with Rothstein Kass’ leading market position will create the preeminent professional services provider in the hedge fund market,” said John Veihmeyer, Global Chairman of KPMG. “This powerful combination will provide the services and capabilities our clients need as they face new regulations, increasing market complexity and global convergence that are affecting hedge funds and the broader alternative investments industry around the world. This also represents a significant investment in our Audit and Tax businesses and demonstrates our continued commitment to driving growth in our core services.”
“This is a game changer, and we are truly excited by the expanded global opportunities that this combination will present for our clients and our people,” said Steven Kass, CEO of Rothstein Kass.
“We are looking forward to a seamless transition that will provide business continuity for both our clients and professionals, and are committed to continuing to provide the highest level of service for which KPMG and Rothstein Kass are known.”
KPMG’s Alternative Investments practice, with more than 6,000 partners and professionals worldwide, provides audit, tax and advisory services to hedge, private equity, real estate, infrastructure and fund of funds, and is an integral part of the firm’s Financial Services business line. Rothstein Kass has more than 1,000 principals and professionals in 10 offices across the United States. It provides audit, tax, and advisory services to hedge fund, private equity, venture capital, and other clients.
“This agreement will significantly strengthen KPMG’s market position in the Alternative Investments space and enable us to provide the highest level of service to hedge funds of every size and at every stage of growth, from emerging managers to the most seasoned funds,” said P. Scott Ozanus, Deputy Chairman and COO of KPMG. “It demonstrates that KPMG intends to continue to invest in enhancing capabilities to service this fast-growing market and our clients.”
“Joining KPMG positions us extremely well as the demand for emerging hedge fund managers and new launches at existing funds continues to expand,” said Howard Altman, Chairman of Rothstein Kass. “Our combined expertise will enhance the services we provide to clients navigating the regulatory and business complexities in the global hedge fund industry – today and in the future.”