Canadian boutique advisory firm Sapling Financial Consultants has opened a New York office, accelerating its US expansion. CEO Rob Hong cited relationship-driven growth, underserved market segments, and shifting private equity dynamics as key drivers. The firm, headquartered in Toronto, already counts over 75% of its client base in the US.
Hong told InvestmentNews that the physical presence addresses a critical gap. “Without a physical presence in the US marketplace, we’re not able to compete on an equal footing in the area that is most important for winning business in our industry – relationships,” he said. The firm had previously opened a satellite office in Atlanta, Georgia, in 2025.
Sapling provides financial modeling, due diligence, and data analytics services to private equity firms, CFOs, entrepreneurs, and investment banks. Despite initial concerns that New York was overserved, Hong said the firm changed its stance after closing several important private equity clients in a short period. “While there are lots of providers, they are Big Apple-sized in terms of budgets, and the lower midmarket firms we serve struggle to afford these services and to get the attention of the ‘A’ team in bigger firms,” he noted.
Cross-border activity remains a factor, though most of Sapling’s work is domestic within the US. Hong observed that Canadian PE firms buying US portfolio companies is common, particularly in healthcare. He also noted that US sponsors like Trivest (Miami-HQ) are building small teams in Canada to find deals, driven by valuation differences. “Americans are attracted to Canada because we have less private equity capital overall, and hence lower valuation multiples on our companies,” Hong said.
Hong highlighted persistent gaps in financial preparation among business owners. “For financial modelling, there are always lots of poorly constructed models – errors, too much or too little complexity, lack of fit between model drivers and actual drivers of performance,” he said. On due diligence, he pointed to poor accounting as a top issue, including outdated systems and reliance on cash accounting instead of accrual accounting, which can obscure true profitability.
In the current volatile macro environment, deal structures are becoming more flexible. “There is definitely more creativity in deal structuring when buyers and sellers have a gap in valuation expectations,” Hong said. Earn-outs are increasingly used to bridge valuation gaps, with deferred cash payments contingent on performance milestones. Despite uncertainty, valuations in the lower mid-market have remained broadly steady since 2020, creating a dynamic where deals only happen when uncertainty recedes.
While Sapling expands geographically, service delivery remains largely remote. “For now, not much,” Hong said when asked how local offices change client support. The firm is not currently hiring consulting roles in New York or Atlanta, but proximity aids relationship-building. “It does mean we have a business development/relationship management person on site for key client meetings,” he said, with consulting staff flown in as needed.
The expansion comes amid broader trends in private credit and alternative investments. As advisors navigate these shifts, firms like Sapling are positioning to serve the lower mid-market, where valuation gaps and relationship-driven growth create opportunities. For more on private credit trends, see SEC and Global Regulators Intensify Scrutiny of $2 Trillion Private Credit Market and BlackRock Aladdin and RedBlack Launch Alts Upgrades.
