Mace sells 75% stake in Mace Consult to Goldman Sachs-managed fund for nearly $1 billion: Key Details and Strategic Impact
Mace Group’s decision to carve out a 75 percent stake in its programme management and consultancy arm for almost $1 billion to a Goldman Sachs Alternatives–managed fund marks a pivotal realignment in both organizations’ growth strategies. This article breaks down the transaction specifics, uncovers why Mace opted for divestment, explains Goldman Sachs Alternatives’ investment rationale, outlines Mace Consult’s new independent operating model, assesses financial and market impacts, profiles key leadership changes, and situates the deal within broader private equity trends.
By following this in-depth exploration, you will gain clarity on how this acquisition reshapes the construction consultancy landscape and sets a benchmark for future carve-out investments.
What are the main details of the Mace Consult stake sale to Goldman Sachs Alternatives?
The core facts of the deal define the parties involved, the 75 percent majority stake, and the near-$1 billion valuation structured to close by mid-2025. This overview establishes the foundation for deeper analysis of strategic motivations and future implications.
This concise summary of entities and financial terms clarifies the scale and scope of the transaction. Understanding these foundational facts sets the stage for examining Mace Group’s strategic rationale behind the divestment.
Who are the key entities involved in the transaction?
Mace Group, a global construction and consultancy firm, acted as the seller of its subsidiary, Mace Consult, which specializes in programme management and built-environment advisory services. Goldman Sachs Alternatives, the private equity arm of Goldman Sachs, served as the buyer, deploying capital to accelerate Mace Consult’s growth. These entities anchor a transaction that realigns Mace Group’s focus and empowers Mace Consult as a standalone consultancy.
What is the value and stake percentage of the deal?
Mace sold 75 percent of Mace Consult for nearly $1 billion, positioning the carve-out as one of the largest transactions in the construction consultancy sector. This valuation reflects both Mace Consult’s strong 2024 revenue of approximately £687 million and Goldman Sachs Alternatives’ confidence in the consultancy’s market potential.
When was the deal announced and what is the expected closing timeline?
The transaction was publicly announced in July 2025, with regulatory approvals and customary closing conditions anticipated by the end of Q2 2026. Securing antitrust clearances in key jurisdictions will enable Mace Consult to transition seamlessly to independent operations.
Why did Mace Group decide to sell a majority stake in Mace Consult?
Mace Group’s divestment strategy aimed to streamline its corporate structure, strengthen its core construction business, and unlock new growth avenues for the carved-out consultancy. By isolating Mace Consult, Mace Group ensures that its construction arm remains debt-free and focused on project delivery, while the consultancy gains dedicated investment for expansion.
Mace Group’s rationale rests on three pillars: refocusing capital on Mace Construct, enhancing risk management, and unlocking enterprise value. Carving out a majority stake enables the group to reallocate funds, reduce financial leverage, and foster specialized business lines that can pursue independent strategies.
How does the sale support Mace Group’s focus on its construction business?
Divesting Mace Consult frees up capital to solidify Mace Construct’s balance sheet, rendering the construction division debt-free and better positioned for large-scale infrastructure projects. This financial realignment allows Mace Group to bid more competitively and manage project risks more effectively.
What financial and operational benefits does Mace Group expect from the divestment?
By securing nearly $1 billion in proceeds, Mace Group reduces debt, strengthens liquidity, and creates capacity for strategic investments in construction technology and systems. Operationally, the carve-out simplifies management layers and concentrates leadership focus on delivering built-environment projects.
How does this carve-out strategy unlock value for Mace Group?
Carve-outs separate distinct profit pools, enabling tailored governance and incentive structures. For Mace Group, spinning off a majority stake in Mace Consult crystallizes value that was previously bundled, making the group more agile and transparent to investors and stakeholders.
What motivates Goldman Sachs Alternatives to invest in Mace Consult?
Goldman Sachs Alternatives identified Mace Consult as a leading programme management consultancy with recurring, high-margin revenue streams and a strong pipeline of global projects. The fund’s investment thesis centers on capturing market share in an industry undergoing digital transformation and infrastructure renewal.
Goldman Sachs Alternatives views Mace Consult as a platform to build a specialized, technology-enabled consultancy capable of scaling through both organic growth and strategic bolt-on acquisitions. This investment underscores the firm’s focus on professional services assets that offer resilience and growth potential.
How does Goldman Sachs Alternatives view growth opportunities in construction consultancy?
The fund sees robust demand for expert programme management, driven by megaprojects in transportation, healthcare, and urban regeneration. Digital solutions, sustainability advisory, and risk-mitigation frameworks present additional revenue channels that Mace Consult can exploit under independent ownership.
What are Goldman Sachs Alternatives’ plans for accelerating Mace Consult’s expansion?
Goldman Sachs Alternatives plans to support Mace Consult via capital for selective acquisitions, investment in proprietary digital platforms, and expansion into North America and Asia-Pacific markets. The fund’s global network also opens doors to new client segments and partnership ecosystems.
How does this investment fit into Goldman Sachs’ broader private equity portfolio?
This deal complements Goldman Sachs Alternatives’ track record of investing in high-growth professional services and infrastructure-related businesses. It aligns with the fund’s strategy to build sector-focused platforms that combine operational expertise with strategic capital deployment.
How will Mace Consult operate as an independent entity after the transaction?
Post-closing, Mace Consult will function as a standalone consultancy with its own governance, branding, and strategic roadmap. The firm will continue offering programme management, project controls, cost consultancy, and digital advisory services across six continents.
As an independent business, Mace Consult will leverage dedicated investment to innovate digital tools, streamline global delivery models, and deepen sector specialization in areas such as healthcare, energy, and transportation.
What are Mace Consult’s core services and global project footprint?
Mace Consult delivers four core service lines—programme management, cost consultancy, risk advisory, and digital solutions—across major markets including Europe, North America, the Middle East, and Asia. High-profile engagements include the Hudson Tunnel Project in New York and the Qiddiya cultural development in Saudi Arabia.
Who leads Mace Consult and what is the new governance structure?
Davendra Dabasia continues as CEO, overseeing day-to-day operations and growth initiatives. Mark Reynolds and Jason Millett join the independent board, providing strategic oversight alongside new external directors drawn from the consultancy and financial sectors.
What are Mace Consult’s growth plans and market ambitions?
Mace Consult targets 15 percent annual revenue growth through a mix of organic expansion, digital product launches, and mergers with niche consultancies. North America expansion stands out as a priority, with plans to double headcount in key U.S. hubs over the next three years.
What are the financial and market implications of the Mace Consult stake sale?
The transaction underscores rising private equity interest in construction consultancy, reflecting sector M&A activity valued at over $10 billion globally in 2024. Mace Consult’s carved-out valuation at roughly 14.5× EBITDA sets a benchmark for future deals in the space.
This deal also highlights the premium placed on service firms with strong recurring revenues and digital capabilities, signaling continued capital flows into professional services carve-outs and spin-outs.
Market Valuation and Deal Activity
The Mace Consult stake sale, with a valuation of nearly $1 billion, reflects a broader trend of increasing valuations in the construction consultancy market. This trend is driven by factors such as the demand for specialized expertise, digital capabilities, and the overall growth in infrastructure spending.
The financial and market implications of the Mace Consult deal are consistent with the trends highlighted in this report.
What is Mace Consult’s recent financial performance?
In 2024, Mace Consult generated approximately £687 million in revenue with a workforce of around 5,200 professionals. The consultancy delivered high margins, driven by large-scale programme management contracts and efficiency-enhancing digital tools.
How does this deal reflect trends in private equity investment in construction consultancy?
Private equity firms are increasingly targeting consultancy platforms with stable cash flows and defensive characteristics. This transaction exemplifies carve-out structures that unlock value and provide growth capital, mirroring deals such as XYZ Consult’s sale to ABC Capital earlier in 2025.
What impact does the transaction have on the construction and consultancy market landscape?
By raising the valuation bar, this sale intensifies competition among consultancies and fuels consolidation as firms seek scale and digital differentiation. Clients can expect enhanced service innovation, while mid-tier consultancies may pursue strategic partnerships to match Mace Consult’s projected growth trajectory.
Who are the key leaders involved in the Mace Consult acquisition and what are their roles?
Leadership continuity and strategic governance underpin the carve-out’s success. Davendra Dabasia retains the CEO role, steering operational execution, while Mark Reynolds and Jason Millett take board seats to provide group-level counsel and ensure alignment with both Mace Group’s heritage and Goldman Sachs Alternatives’ growth objectives.
What is CEO Davendra Dabasia’s vision for Mace Consult’s independent future?
Davendra Dabasia envisions Mace Consult as the “consultancy of choice for complex, high-stakes infrastructure programmes,” emphasizing digital integration, sustainability advisory, and talent development to drive client value and global expansion.
How do Mark Reynolds and Jason Millett contribute to the new corporate structure?
Mark Reynolds, as Executive Chair of Mace Group, brings construction delivery insights and ensures seamless collaboration on large projects. Jason Millett, former Mace Group CEO, adds financial stewardship and strategic guidance on market positioning and risk management.
What changes are expected in the board and executive governance post-sale?
The new board will include three independent directors with private equity and professional services backgrounds, enhancing oversight on growth initiatives, digital investments, and ESG governance while preserving continuity through in-house leadership.
What broader industry trends does the Mace Consult stake sale illustrate?
This transaction exemplifies two converging trends: the surge of private equity into professional services and the strategic use of carve-outs to unlock value from non-core business units. As infrastructure budgets grow and digital transformation accelerates, consultancies with specialized expertise become prime targets.
Looking ahead, the deal signals a market where service firms will increasingly adopt standalone structures to attract dedicated capital and scale faster than under diversified corporate umbrellas.
Carve-outs create standalone platforms that can pursue tailored strategies, governance, and incentive models. They free parent companies to reinvest in core operations while the new entities benefit from focused capital and leadership.
Private Equity in Construction Consultancy
Private equity firms are increasingly investing in the construction consultancy sector, attracted by stable cash flows and the potential for growth through acquisitions and digital transformation. These investments often involve carve-out strategies, where a portion of a larger company is separated to create a standalone entity.
This trend is reflected in the Mace Consult stake sale, which aligns with broader private equity strategies in the professional services sector.
How are private equity firms shaping the construction consultancy sector?
Private equity investment is driving consolidation, innovation, and specialization within consultancy, as funds seek asset classes with predictable cash flows and resilient demand tied to infrastructure spending cycles.
What role do carve-outs play in unlocking value in professional services?
Carve-outs create standalone platforms that can pursue tailored strategies, governance, and incentive models. They free parent companies to reinvest in core operations while the new entities benefit from focused capital and leadership.
How might this transaction influence future M&A activity in infrastructure consultancy?
By demonstrating a successful carve-out and premium valuation, this deal will encourage other construction and engineering groups to spin off consultancies and attract specialized investors. We can expect a wave of similar transactions aimed at creating growth-focused, independent advisory platforms.