In a landmark deal, Allegro Funds and PwC have agreed to create a separate consulting firm called Scyne Advisory. With approximately 1,750 employees, Scyne Advisory faces the task of rebuilding trust within the government advisory sector.
The decision to spin off PwC’s public sector consulting arm was prompted by mounting calls to ban PwC from government contracts. This was due to a former PwC partner violating a confidentiality agreement related to the drafting of tax legislation nearly a decade ago.
Government advisory commitment
The transaction for the creation of Scyne Advisory took place on 1 July. Allegro and PwC anticipate finalising the deal by the end of August. Allegro will provide over $100 million to support the establishment and operation of the new practice. This funding will cover the transition costs, investment in people, and the necessary system enhancements.
An independent board of directors will be appointed for Scyne Advisory to ensure independent oversight. Former Federal Court judge Andrew Greenwood has agreed to join the board as a non-executive director. Greenwood will also chair a board committee responsible for Probity, Conflicts, and Ethics.
This committee will thoroughly assess the background of employees joining the advisory practice. Additionally, subcommittees for Audit & Risk and Remuneration will be established under the board’s direction.
Initially, Scyne Advisory will be guided by the leadership of PwC’s Government, Health, Infrastructure, Defence, and Trust and Risk groups. This temporary leadership arrangement will remain in place until the search for a chief executive officer is concluded.
Solving societal issues
Partners in the new practice, Tim Jackson and Ben Neal, emphasise that Scyne Advisory represents a revolution in government advisory in Australia. Neal has been part of PwC’s consulting practice since 2016, following a decade of experience in the public sector. Meanwhile, Jackson joined PwC’s consulting practice in 2014 after more than three decades with consulting firm Booz & Company.
They highlight that the firm’s employees have a deep understanding of the sector and are adept at solving complex problems that impact the public sector.
Governance and culture will be central to the new business’s operations. Scyne Advisory is committed to restoring client trust, making it the company’s top priority. The firm is pleased to have secured roles for around 1,750 individuals who will continue contributing to governments across the country.
Scyne Advisory’s employees possess extensive sector knowledge and will shape the firm’s new culture, ensuring the clients’ needs remain paramount.
Allegro Funds’ support for change
Allegro Funds Co-Founder Adrian Loader said in a statement, “A strong and independent government advisory firm of scale is clearly needed in the Australian market. Scyne Advisory will possess an industry-leading governance model capable of meeting the requirements of the Australian government and its agencies.”
Scyne Advisory’s governance model is designed to meet the Australian government’s and its agencies’ requirements. The appointment of the Honourable Andrew Greenwood adds expertise and independence to ensure best practices in probity and conflict resolution processes.