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Blackstone Leads $1.45B Private Credit Financing for Baker Tilly, Moss Adams Merger; Blue Owl, New Mountain Capital Among Lenders

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A Blackstone-led lender group, including Blue Owl and New Mountain Capital, has provided a $1.455 billion incremental debt financing package backing Baker Tilly’s merger with Moss Adams, according to sources.

The deal for the advisory firms’ merger consists of a $925 million term loan, $400 million delayed draw term loan and $130 revolving credit facility, according to sources. Pricing on the financing is coming at a range of SOFR+425 bps-450 bps depending on leverage, sources added.

Baker Tilly and Moss Adams announced in April their planned combination to create the sixth-largest advisory CPA firm in the United States, which is valued at roughly $7 billion, according to reporting by The Wall Street Journal. The merger closed on June 3, according to one source.

As part of this transaction, private equity firm Hellman & Friedman, an existing investor in Baker Tilly, will make a “meaningful additional strategic investment” in the business, with existing shareholder Valeas Capital Partners also increasing its investment, according to a press release.

Octus, formerly Reorg, reported in June 2024 that Blackstone and other lenders provided more than $800 million in debt financing to back the strategic investment from private equity firms Hellman & Friedman and Valeas Capital Partners in accounting firm Baker Tilly US to return capital to Baker Tilly US partners, recapitalize the balance sheet and for future M&A.

Blackstone Private Credit Fund and Blackstone Secured Lending Fund, together with Blue Owl Capital Corp., Golub Capital BDC, Stone Point Credit Income Fund and other business development companies, are existing lenders to Baker Tilly Advisory Group LP, according to Octus’ BDC Database. The lenders hold a portion of a first lien loan to the company priced at SOFR+475 bps and maturing in June 2031, according to the same database.

A list of Baker Tilly’s CLO holders can be found in Octus’ CLO Database HERE. A list of Baker Tilly’s BDC creditors can be found HERE.

Blackstone, Blue Owl and Baker Tilly declined to comment. Moss Adams, Hellman & Friedman, Valeas Capital Partners and New Mountain Capital did not respond to requests for comment.