Key Takeaways
- • Schellman becomes first major CPA firm to execute a "flip," transitioning from Lightyear Capital (majority stake, October 2021) to Goldman Sachs Alternatives (March 2026) while retaining Lightyear as minority investor, signaling maturation of PE-backed accounting consolidation cycle.
- • Private equity has deployed over $10 billion into the accounting profession in four years, with early-stage PE-backed firms (Citrin Cooperman, EisnerAmper) now approaching exit windows of 5-7 years, triggering predictions of major portfolio flips at 15-16x revenue multiples.
- • PE investment transformed Schellman from organic-growth partnership model into data-centric, institutionalized platform: deployed new CRM and ERP systems, expanded executive leadership (added COO, chief revenue officer, CTO), and executed five accretive acquisitions across new service lines and vertical markets.
- • Goldman Sachs Alternatives selected as second PE partner based on technical expertise in emerging compliance areas (trust, AI governance) and understanding of broader market dynamics, suggesting PE acquirers increasingly value domain expertise alongside financial returns.
- • Accounting sector's three-year relationship with private equity is entering exit phase as initial wave of 2021 investments reach maturity, with industry analysts predicting Citrin Cooperman may lead next-generation flips, potentially followed by EisnerAmper by end of 2025.
Summary
The accounting profession is entering a new phase of private equity consolidation, marked by the first major "flip" transaction between competing PE sponsors. In March 2026, top 100 CPA firm Schellman accepted an investment from Goldman Sachs Alternatives, transitioning from majority ownership by Lightyear Capital—which acquired a stake in October 2021. Lightyear retained a minority position in the transaction, establishing a precedent for how PE sponsors may structure sequential investments in high-performing portfolio companies. This milestone reflects the maturation of accounting as an alternative asset class, with industry observers predicting a wave of similar sponsor-to-sponsor transitions as initial PE commitments reach their natural exit windows.
Private equity capital deployment into accounting has accelerated dramatically. The sector has absorbed more than $10 billion in PE investment over the past four years, fundamentally altering operational models and growth trajectories for participating firms. Schellman's transformation under Lightyear's ownership exemplifies the structural changes driving investor interest. The firm transitioned from a partnership-based "lifestyle business" model to an institutionalized, data-driven platform. Management implemented enterprise-grade systems including a new CRM platform to drive sales execution and an ERP system to enable data-centric decision-making. The firm expanded its executive leadership team from a three-person core (CEO, general counsel, CFO) to include a chief operating officer, chief revenue officer, and chief technology officer—architecture typical of PE-backed scaling platforms.
Schellman's acquisition strategy under PE ownership generated material growth. Prior to the 2021 Lightyear investment, the firm pursued exclusively organic expansion. With PE backing, Schellman executed five accretive acquisitions that expanded service offerings and penetrated new vertical markets, a consolidation playbook standard across PE-backed professional services platforms. This growth model—combining bolt-on acquisitions with operational upgrades and leadership expansion—has become the dominant value creation thesis in accounting sector PE.
The market is now pricing the next wave of PE flips. Allan Koltin, CEO of Koltin Consulting Group, has identified Citrin Cooperman (backed by New Mountain Capital since October 2021) as a likely first-mover in sponsor transitions. Transaction multiples for successful PE-backed accounting flips have already exceeded expectations, with marketplace participants suggesting valuations in the 15-16x revenue range—well above historical accounting firm multiples. New Mountain Capital is concurrently invested in Grant Thornton through a second PE vehicle, positioning the firm to potentially execute partial exits or full portfolio transitions. EisnerAmper, which accepted Tower Brook Capital investment in July 2021, may follow closely behind, potentially moving within the 2025 timeframe. These emerging sponsor-to-sponsor transitions validate the underlying thesis that accounting firms generate predictable, recurring revenue streams attractive to institutional capital seeking sustainable cash flow profiles.
Private equity capital deployment into accounting has accelerated dramatically. The sector has absorbed more than $10 billion in PE investment over the past four years, fundamentally altering operational models and growth trajectories for participating firms. Schellman's transformation under Lightyear's ownership exemplifies the structural changes driving investor interest. The firm transitioned from a partnership-based "lifestyle business" model to an institutionalized, data-driven platform. Management implemented enterprise-grade systems including a new CRM platform to drive sales execution and an ERP system to enable data-centric decision-making. The firm expanded its executive leadership team from a three-person core (CEO, general counsel, CFO) to include a chief operating officer, chief revenue officer, and chief technology officer—architecture typical of PE-backed scaling platforms.
Schellman's acquisition strategy under PE ownership generated material growth. Prior to the 2021 Lightyear investment, the firm pursued exclusively organic expansion. With PE backing, Schellman executed five accretive acquisitions that expanded service offerings and penetrated new vertical markets, a consolidation playbook standard across PE-backed professional services platforms. This growth model—combining bolt-on acquisitions with operational upgrades and leadership expansion—has become the dominant value creation thesis in accounting sector PE.
The market is now pricing the next wave of PE flips. Allan Koltin, CEO of Koltin Consulting Group, has identified Citrin Cooperman (backed by New Mountain Capital since October 2021) as a likely first-mover in sponsor transitions. Transaction multiples for successful PE-backed accounting flips have already exceeded expectations, with marketplace participants suggesting valuations in the 15-16x revenue range—well above historical accounting firm multiples. New Mountain Capital is concurrently invested in Grant Thornton through a second PE vehicle, positioning the firm to potentially execute partial exits or full portfolio transitions. EisnerAmper, which accepted Tower Brook Capital investment in July 2021, may follow closely behind, potentially moving within the 2025 timeframe. These emerging sponsor-to-sponsor transitions validate the underlying thesis that accounting firms generate predictable, recurring revenue streams attractive to institutional capital seeking sustainable cash flow profiles.
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