Becoming number one in the hedge fund space wouldn't be an impressive achievement without a masturbatory press release celebrating it. KPMG delivers!
KPMG LLP, the U.S. audit, tax and advisory firm, has completed its acquisition of certain assets of Rothstein Kass and the admission of most of the former Rothstein Kass principals and employees. The combination brings together KPMG's expansive alternative investments presence and global reach with Rothstein Kass's hedge fund industry expertise and personnel. With the addition of Rothstein Kass's capabilities and team members, KPMG becomes a market leader in providing the highest level of service to hedge funds of every size and at every stage of growth, while also enhancing the firm's already strong position in the alternative investment space – including private equity, real estate, infrastructure and hedge.
"Certain assets" — as in not certain family office folks who high-tailed it out of there as soon as the virtual ink was dry on the Wall Street Journal's announcement of the merger. As recently as March, Rothstein Kass added eight new hires to the Family Office Group, two of them senior level. "The moves demonstrate the firm’s continued commitment to expanding its footprint and professional capabilities in the high-growth family office market," RK said at the time. But forget all that, we all know why KPMG wanted RK.
"Adding Rothstein Kass's team to KPMG significantly enhances the services we provide to hedge funds of all sizes, all around the globe, and at every stage of the fund lifecycle," said John Veihmeyer, Global Chairman of KPMG. "With the explosive growth of capital moving into hedge funds, enhancing trust has never been more important to investors, regulators, and the broader industry. The global reach and market-leading expertise KPMG now offers will be vital to hedge funds operating around the world and complying with a multitude of regulatory and legal requirements."
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, and infrastructure funds, and is an integral part of the firm's Financial Services business line.
"The deal is a powerful demonstration of KPMG's expanding strength in and commitment to serving the broader Alternative Investments industry and capital markets," said P. Scott Ozanus, Deputy Chairman and COO of KPMG. "The enhanced team not only offers clients and prospects an unparalleled client experience, but it also extends to them an ability to leverage the expertise of the largest auditor of hedge funds."
That last line is a little odd. Post-acquisition, KPMG is in fact the largest auditor of hedge funds, assuming all their clients came along for the Big 4 experience. Prior to the acquisition, KPMG was #5, with 1,616 hedge fund clients; Rothstein Kass came in third with 2,063. So yeah, mash those two up and obviously you get a behemoth. In reality, EY is only about 100 some hedge fund clients behind them in second place (first place, pre-merger). So there, KPMG, you aren't the only ones who can leverage the expertise.
We assume this press release means we can put this puppy to rest and speak no more on the acquisition itself. Of course, if you have juicy details to share with the class such as layoffs, merger problems, contention in the ranks, anti-KPMG notes left in the break room, etc, do get in touch.