Stephano Slack, an INSIDE Public Accounting top 300 firm, announced Wednesday a strategic growth investment from funds managed by Madison Dearborn Partners, a private equity firm based in Chicago, with additional participation from co-investor Norlantic Capital.
Financial terms of the deal weren’t disclosed.
Wayne, PA-based Stephano Slack says the investment will accelerate its strategic growth plan and support its long-term vision of investing in talent, technology, and creating opportunities for both its clients and team members.
Stephano Slack will continue to be led by its existing leadership team, including CEO and Managing Partner Michael Stephano. In addition, Jim Brady, a 45-year industry veteran and former chief operating officer of top 10 accounting firm Grant Thornton, will join Stephano Slack as executive chairman. Brady brings a proven track record—from Grant Thornton as well as 30 years at Big Four firm Deloitte—of developing talent and scaling accounting and advisory organizations through periods of transformational growth, Stephano Slack says. Brady is currently an executive at MDP, according to his LinkedIn profile.
Established in 1992, MDP has raised aggregate capital of more than $36 billion and has completed more than 160 platform investments.
“We were first introduced to Stephano Slack by Jim Brady, and, from our initial meeting, it was clear that Michael and his team have built a high-quality, growth-oriented business, ideally suited to MDP’s decades of experience in scaling professional services platforms with strong operational advantages and broad addressable markets,” Vahe Dombalagian, managing partner and co-head of financial services at MDP, said in a statement on June 10. “We look forward to partnering with Michael and Jim to accelerate the growth of the platform, deepen service offerings, and broaden the firm’s geographic reach into new markets.”
Founded by Michael Stephano in 2004, Stephano Slack provides a full range of tax, audit, outsourced accounting, and advisory services to a diverse base of middle-market clients.
“Our partnership with MDP, a firm that understands and embodies our commitment to exceptional relationship-driven client service, adds a compelling new growth driver to the Stephano Slack platform,” Michael Stephano said in a statement. “MDP’s support will pave new avenues for Stephano Slack to grow and diversify our platform and will foster opportunities for both our clients and employees.”
“I’m eager to get started working alongside Michael, whom I have known personally and professionally for years, as the leader of a well-respected and growth-oriented firm,” Brady said in a statement. “I’m confident that our combined operational experience and passion for identifying opportunities and building talented teams will add to Stephano Slack’s strengths and position the firm for continued success.”
Following the close of the transaction, Stephano Slack will operate in an alternative practice structure. Stephano Slack LLC, a licensed CPA firm, will provide attest services, and Stephano Slack Advisory LLC will provide tax, business advisory, and other non-attest services.
Koltin Consulting Group advised MDP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, Kirkland & Ellis LLP, and Vedder Price P.C. provided legal counsel to MDP. Leelanau Management advised Stephano Slack, and Pierson Ferdinand provided legal counsel to Stephano Slack. Freshfields LLP provided legal counsel to Norlantic Capital.
Norlandic Capital is a specialized, cross-border private equity firm that exclusively targets the U.S. middle market. The firm is headquartered in New York, with strategic operations in Dublin.
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