Blackstone Boosts Market Position with Strategic $2B Citrin Cooperman Acquisition
Recently, Blackstone Group made headlines by acquiring a majority stake in Citrin Cooperman, a notable accounting and consulting firm. The transaction values Citrin Cooperman above $2 billion. This acquisition involves Blackstone taking over shares from New Mountain Capital, a private equity giant that initially invested in Citrin Cooperman in 2021 when the firm was valued at approximately $500 million.
Citrin Cooperman, founded in 1979 by Niles Citrin and Joel Cooperman, stands as a substantial player in the professional services sector, serving over 15,000 clients. With New Mountain Capital's backing, Citrin Cooperman's revenue surged from $315 million to $850 million, propelling its valuation and solidifying its position among the top 20 accounting firms in the United States within just a few years.
Blackstone, recognized as the world's largest alternative asset manager with over $1.1 trillion in assets under management as of last year's third quarter, has positioned this investment as a significant move into the accounting advisory domain. This acquisition reflects Blackstone's commitment to enhancing Citrin Cooperman's service offerings and technological advancements, as expressed by Eli Nagler and Kelly Wannop, senior managing directors at Blackstone.
The acquisition is part of a broader buying spree by Blackstone, exemplifying its aggressive investment strategy which includes varied sectors such as real estate, private equity, and credit. In recent months, Blackstone has engaged in several landmark transactions, including acquiring data center operator AirTrunk and facilitating the privatization of L'Occitane with substantial financial backing.
This dynamic period sees Blackstone actively seeking strategic acquisitions across the globe, leveraging its significant capital reserves to capitalize on opportunities in markets poised for growth or transformation. This approach echoes the broader sentiment within the private equity sector, where firms like Blackstone use their solid cash flow positions to secure promising acquisitions amid market uncertainties.