Bridgepoint, the owner of Burger King, loses £800 million after learning about the Interpath advisory firm.

The consulting firm that oversaw controversial cost-cutting at Manchester United Football Club is being sold to the owner of Burger King’s British operations in a deal worth more than £800m.

London-listed buyout firm Bridgepoint has agreed to buy a controlling stake in Interpath Advisory, Sky News has learnt.

According to banking sources, the deal can be announced by Monday morning.

Bridgepoint’s agreement to buy Interpath

Bridgepoint’s agreement to buy Interpath from fellow private equity firm HIG Europe will come after a heated auction that resulted in a second round of bids due later this month.

Blackstone, Onex, PAI Partners and Permira were among the other bidders who expressed interest in acquiring Interpath, the former restructuring arm of KPMG UK.

Interpath was spun out of KPMG UK in 2021 in a deal prompted by the changing regulatory environment in the audit profession.

Growing concerns over conflicts of interest between the audit and consulting arms of the accounting giants were heightened by the collapse of companies such as BHS and Carillion, which prompted a number of disposals by the ‘big four’ firms.

Interpath has advised on a range of major restructurings and cost-saving mandates for clients, including acting as administrator of the UK and Irish subsidiaries of Claire’s, the sister retailer that collapsed last summer.

It is now being appointed as administrator of the British arm of casual dining chain TGI Fridays and is also advising family-owned shoe retailer Russell & Bromley on a potential sale.

Among its other roles was being recruited by Sir Jim Ratcliffe’s Ineos Sports to help cut costs at Manchester United FC following the acquisition of a stake in the Premier League club in 2024.

The sale of Interpath to Bridgepoint is the latest in a wave of acquisitions in the UK professional services and financial advisory sector as private equity investors seek new deal opportunities in a high-margin sector of the economy.

Interpath has doubled its earnings before interest, taxes, depreciation and amortisation since HIG Europe acquired the business four and a half years ago, the sources said.

It has recently published financial results, showing a 26% increase in revenues to almost £200 million.

“Although we are only four years old, we have a clear vision of becoming one of the world’s leading advisory firms and we have made great progress towards that goal – establishing the Interpath flag in major financial centres around the world, making bold acquisitions, hiring market-leading professionals and investing in our people and infrastructure,” said its chief executive, Mark Redden.

Mr Raddan and other senior executives are expected to retain a stake in the company following the completion of the Bridgepoint deal.

HIG Europe has been advised on the auction by Moelis bankers.

Neither Bridgepoint nor HIG Europe could be reached for comment.