Hellman & Friedman is refinancing approximately $3bn of debt for Baker Tilly Advisory Group, moving it from private credit to the broadly syndicated loan market. Deutsche Bank is arranging the transaction, expected to launch next week.

This refinancing replaces private credit facilities established after Hellman & Friedman acquired Baker Tilly in 2024, and debt used for the firm's merger with Moss Adams. The move aims to reduce borrowing costs and increase flexibility, allowing original private lenders to redeploy capital.

Since acquiring Baker Tilly, Hellman & Friedman has pursued an aggressive buy-and-build strategy, including recent acquisitions of Anchin, Block & Anchin and Berkowitz Pollack Brant. A significant event was the $7bn merger with Moss Adams in April 2025, which created the sixth-largest US accounting firm, with Blackstone providing around $1.5bn in financing. This illustrates private credit's role in sponsor-led M&A.

The planned refinancing reflects a broader trend where private equity sponsors use private credit for initial deal execution and then move debt to the syndicated market once integration risks decrease and market conditions improve. This positions private credit and syndicated markets as complementary.