KPMG in the Cayman Islands and British Virgin Islands has completed the sale of its restructuring practices to Teneo.
The advisory firm said its decision to sell the businesses was driven by significant changes in the insolvency and restructuring markets in Cayman and the BVI over recent years. The increasing number of stakeholders in distressed situations has made the navigation of conflicts of interest ever more complex for Big 4 firms.
“As it is expected that this will only intensify in the future, and as such developments limit the ability to grow these businesses in the Cayman Islands and British Virgin Islands, the decision to commence a sale process was taken,” KPMG said in a press release.
Andy Stepaniuk, managing partner of KPMG in Cayman, described the sale as the best possible outcome for the firm and the restructuring businesses in Cayman and the BVI.
The sale would enable KPMG to accelerate investments in audit, tax and other advisory services, he said.
“At the same time, it will allow the team at Teneo to serve a broader client base and explore new market opportunities.”
A team of 25 professionals will transfer to Teneo. In addition, the restructuring practices’ related services, including e-Discovery, have also been transferred.
Anthony Cowell, head of markets at KPMG in the Cayman Islands, said, “Throughout this process, our key priority has been to ensure the stability and future success of the Restructuring businesses and its talented people.”
The sale does not affect the KPMG insolvency and restructuring businesses in other jurisdictions.
In a separate press release, Teneo said the transaction would further extend the range of its financial advisory services.
The more than two dozen professionals in the Cayman and BVI practices will add specialist expertise in local and international restructuring, insolvency, e-Discovery and forensic technology services.
In addition, Teneo said the acquisition will expand its footprint into another key financial market.
As part of the transaction, Kris Beighton, the former leader of KPMG’s Cayman and BVI restructuring business, will join Teneo as chairman of its offshore restructuring business.
“Teneo is the perfect fit for our people and business,” Beighton said in the firm’s press release. “Teneo’s commitment to client service, wide range of service offerings around the world, and vision to build a global financial advisory business aligns with our ambition for the growth of our Cayman and BVI practices.”
Teneo’s financial advisory business now employs 350 professionals in the US, Europe, Asia-Pacific and the Caribbean.
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