Baker Tilly Seeks $3 Billion Debt Refinancing to Replace Private Credit

Baker Tilly Advisory Group is preparing to refinance approximately $3 billion of debt through the syndicated loan market, replacing private credit financing used to support its transformational merger with Moss Adams, in a transaction that underscores the intensifying competition between banks and private credit lenders for leveraged finance mandates.

According to people familiar with the matter, Deutsche Bank is expected to launch the refinancing process by meeting leveraged loan investors in the coming week. The proposed financing remains under discussion, and final terms have not yet been determined.

If completed, the transaction would refinance debt incurred to fund Baker Tilly’s $7 billion merger with Moss Adams, alongside other existing borrowings. The move would shift a significant portion of the company’s financing from private credit providers into the broadly syndicated loan market, expanding its lender base while potentially lowering funding costs through increased investor participation.

The refinancing follows one of the most significant consolidations in the accounting industry. Baker Tilly completed its combination with Moss Adams in April 2025, creating the sixth-largest accounting firm in the United States with more than 11,500 employees and annual revenue exceeding $3 billion. The enlarged firm has set an ambitious goal of reaching $6 billion in annual revenue by 2030 through continued expansion and acquisitions.

Replacing Private Credit Financing

Private credit played a central role in financing the Baker Tilly-Moss Adams transaction.

A lending group led by Blackstone provided approximately $1.5 billion of financing for the merger, pricing the debt at 4.5 percentage points above the benchmark interest rate. That financing reflected the growing role of private credit firms in underwriting large leveraged buyouts and corporate acquisitions, particularly where borrowers seek execution certainty and flexible deal structures.

By refinancing those obligations through public debt markets, Baker Tilly would join a growing number of corporate borrowers returning to syndicated lending as capital market conditions improve and banks compete more aggressively for leveraged finance business.

Representatives for Baker Tilly, Deutsche Bank and private equity owner Hellman & Friedman declined to comment on the proposed transaction.

Growth Through Acquisition

The refinancing also reflects Baker Tilly’s rapid expansion under Hellman & Friedman’s ownership.

Since the private equity firm acquired Baker Tilly in 2024, the accounting and advisory company has pursued an active acquisition strategy aimed at strengthening its national footprint and expanding advisory capabilities.

Recent transactions include the acquisition of New York-based accounting firm Anchin, Block & Anchin and the purchase of Miami advisory firm Berkowitz Pollack Brant, continuing a broader consolidation strategy across the professional services sector.

The merger with Moss Adams represented the largest milestone in that strategy, significantly expanding Baker Tilly’s presence across the U.S. middle market while increasing its scale in advisory, tax and assurance services.

Banks Challenge Private Credit

The proposed refinancing highlights an increasingly competitive relationship between traditional investment banks and private credit managers.

Over the past several years, private credit funds have captured a growing share of leveraged finance by offering borrowers faster execution, customized financing structures and greater certainty for complex acquisitions. These advantages enabled direct lenders to displace banks in many large buyout financings, particularly during periods of market volatility.

However, improving investor demand for leveraged loans has encouraged banks to reclaim market share by refinancing existing private credit facilities through syndicated markets. Such transactions allow borrowers to diversify funding sources while providing institutional investors with access to larger corporate credits.

For banks, winning refinancing mandates also creates opportunities to rebuild relationships with sponsors that increasingly relied on private credit during periods when syndicated markets were less receptive.

Implications for Private Markets

A successful refinancing would represent one of the largest recent examples of debt migrating from private credit back into public leveraged loan markets.

The transaction will also serve as an important indicator of investor appetite for leveraged loans tied to professional services businesses, particularly those backed by private equity sponsors and pursuing aggressive acquisition-led growth strategies.

Professional services firms have attracted increasing private equity investment in recent years as investors seek businesses with recurring client relationships, diversified revenue streams and opportunities for consolidation in fragmented markets.

At the same time, the financing landscape has become more fluid, with borrowers increasingly moving between private credit and syndicated debt depending on pricing, liquidity and market conditions.

Rather than signaling a retreat from private credit, Baker Tilly’s proposed refinancing illustrates how large corporate borrowers are leveraging competition between financing providers to optimize capital structures. As syndicated loan markets continue to recover and investor demand strengthens, more sponsor-backed companies could pursue similar refinancing transactions while maintaining flexibility to access both public and private debt markets.

The outcome of Baker Tilly’s financing will therefore be closely watched by lenders, institutional investors and private equity sponsors seeking insight into the evolving balance of power between banks and direct lending funds in the global leveraged finance market.

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