CRI Secures Strategic Growth Investment from Centerbridge Partners

Seeks to accelerate growth, evolve service offerings, and increase technology investment to enhance client service.

Enterprise, AL and New York City, NY – Carr, Riggs & Ingram, L.L.C., a top 25* nationally-ranked accounting and advisory firm, announced that effective as of today, November 18, 2024, CRI has received a strategic investment from funds advised by affiliates of Centerbridge Partners, L.P. ("Centerbridge"), a global alternative investment manager with approximately $40 billion in assets under management as of September 30, 2024, and a focus in the financial services, technology, industrial and healthcare markets, and Bessemer Venture Partners ("Bessemer"), a venture capital firm with more than $18 billion in assets under management primarily invested in the consumer, financial technology, enterprise, and healthcare markets. This first-time investment of institutional capital for CRI recognizes the firm's exemplary track record of growth and creating value for its clients and is intended to help accelerate the firm's innovation initiatives and expansion strategies.

CRI's success story consists of a distinctive growth strategy, tailored client service, and an intentional investment in its people and leadership. CRI's combination of organic growth and strategic M&A transactions has catapulted a small local firm, founded in Enterprise, Alabama, and Destin, Florida, in 1997, into a top 25 nationally ranked leader in the accounting and advisory space, according to industry publication Accounting Today. Over the past ten years, CRI has expanded its reach by adding new locations and growing its professional organization. The firm has also enhanced its service capabilities and broadened its focus areas to include commercial products, financial services, government and public sector work, and healthcare. Additionally, they have extended offerings beyond traditional accounting to include business consulting, estate and trust services, investment banking, payroll services, professional athlete services, retirement plan administration, data analytics, and wealth management.

The strategic investment from Centerbridge and Bessemer is intended to help CRI accelerate its growth trajectory through strategic expansion into new markets and service areas, investments in technology to enhance service delivery, attracting and retaining top professional talent, and enhancing internal infrastructure. This investment will enrich CRI's organic growth and M&A strategy, paving the way for expanded geographic reach and service capabilities.

Going forward, CRI will operate in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. Carr, Riggs & Ingram, L.L.C., an independent licensed CPA firm, will provide assurance, attest, and audit services. CRI Advisors, LLC (including its subsidiary entities) will operate as a separate legal entity, providing clients with tax and business consulting services. Together in this alternative practice structure, Carr, Riggs & Ingram, L.L.C. and CRI Advisors, LLC will service clients nationwide.

"Centerbridge and Bessemer recognize the value that CRI has already built and see the potential for where the company can go," stated CRI Chairman Bill Carr. "We are thrilled to gain partners whose vision aligns with ours. We believe this strategic investment will greatly benefit our talented team members and certainly our valued clients as well. We'll be able to invest more into our staff, create new opportunities, and continue doing what we've always done, which is delivering exceptional results to our clients."

"We believe strongly in the value proposition created by CRI's unique blend of 'local firm' culture and client service with 'big firm' capabilities, and the benefits to CRI's clients and professionals of its deep roots across smaller, mid-sized, and metro markets in the Southeastern and Southern U.S.A.," said Dan Osnoss, Centerbridge Senior Managing Director. "We look forward to supporting the partners of CRI as they continue to build on their innovative history of organic growth and mergers to expand talent, capabilities, and geographic reach."

"Over the next decade, the accounting industry is going to be transformed by technology," said Brian Feinstein, partner at Bessemer Venture Partners. "CRI is one of the most innovative accounting firms in the industry, and we are excited to work with the CRI team to take advantage of innovations in software and AI."

"This combination is truly groundbreaking—CRI is the accounting profession's 'feel good' story of the century," commented Allan D. Koltin, CEO of Koltin Consulting Group, LLC, who consulted with CRI during the investment research and transaction process. "CRI is the only top 25 firm in the country to grow from a start-up to $500 million in a little over 25 years, making it the country's fastest-growing first-generation firm. From its humble beginnings in Enterprise, Alabama, and Destin, Florida, CRI has become the youngest top 100 firm ever to receive a private equity investment as a foundation firm." Koltin continued to say, "Many private equity firms courted them during this process, but they chose Centerbridge and Bessemer for their similar values and shared vision of what CRI can become at the national level. There is no question in my mind that CRI will grow substantially over the next years while maintaining the 'family feel' culture they have had since day one."

Financial terms of the transaction were not disclosed.

CRI engaged William Blair & Company, L.L.C. as its financial advisor and McGuireWoods LLP as its legal counsel for this transaction. Simpson Thacher & Bartlett LLP and Vedder Price served as legal advisors, and Citizens M&A Advisory served as financial advisor to Centerbridge and Bessemer.

ABOUT CRI
Located in 35+ markets across 12 states, CRI is a top 25 nationally ranked accounting and advisory firm driven by relationships to cultivate growth. CRI's industry specializations include construction, government, banking/financial institutions, healthcare, insurance, not-for-profit, manufacturing, and distribution. CRI offers traditional and specialized services, including audit and assurance*, business outsourcing and support, forensic accounting, IT auditing, retirement plan auditing, SEC compliance, service organization control (SOC) reports*, business valuation, tax planning, and trusts and estates work. Additionally, the CRI Family of Companies delivers data analytics, investment banking, business consulting, retirement plan administration services, wealth management, payroll services, and trust and estate services. We invite you to learn more about CRI at CRIadv.com and join our conversations on LinkedIn, Facebook, Instagram, and X.

ABOUT CENTERBRIDGE PARTNERS
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—private equity, private credit, and real estate—in an effort to develop the most attractive opportunities for our investors. The firm was founded in 2005 and, as of September 30, 2024, has approximately $40 billion in assets under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit http://www.centerbridge.com|LinkedIn.

ABOUT BESSEMER VENTURE PARTNERS
Bessemer Venture Partners helps entrepreneurs lay strong foundations to build and forge long-standing companies. With more than 145 IPOs and 300 portfolio companies in the enterprise, consumer, and healthcare spaces, Bessemer supports founders and CEOs from their early days through every stage of growth. Bessemer's global portfolio has included Pinterest, Shopify, Twilio, Yelp, LinkedIn, PagerDuty, DocuSign, Wix, Fiverr, and Toast, and it currently has more than $18 billion of assets under management. Bessemer has teams of investors and partners located in Tel Aviv, Silicon Valley, San Francisco, New York, London, Hong Kong, Boston, and Bangalore. Born from innovations in steel more than a century ago, Bessemer's storied history has afforded its partners the opportunity to celebrate and scrutinize its best investment decisions (see Memos) and also learn from its mistakes (see Anti-Portfolio).

*Assurance, attest, and audit services provided by Carr, Riggs & Ingram, L.L.C.

"CRI" is the brand name under which Carr, Riggs & Ingram, L.L.C. ("CPA Firm" and CRI Advisors, LLC ("Advisors") and its subsidiary entities provide professional services. CPA Firm and Advisors (and its subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. CPA Firm is a licensed independent CPA firm that provides attest services to its clients, and Advisors and its subsidiary entities provide tax and business consulting services to their clients. Advisors and its subsidiary entities are not licensed CPA firms.