Key Takeaways
- • The first wave of private equity investments in accounting firms is reaching natural exit points, with EisnerAmper expected to execute an exit in late 2025 or early 2026, following Citrin Cooperman's January 2025 transition from New Mountain Capital to Blackstone—marking the first PE-to-PE ownership transfer in U.S. accounting.
- • PE-backed accounting firms are delivering returns that exceed expectations, with deals initially projected for five to seven-year hold periods achieving profitability targets in three to four years, according to industry advisor Allan Koltin, who has tracked 16+ transactions without observing typical PE micromanagement concerns.
- • The trend commenced in August 2021 with EisnerAmper's investment from TowerBrook Capital Partners and October 2021 with Citrin Cooperman's New Mountain Capital deal, fundamentally reshaping valuation expectations for Top 25 accounting firms by offering equity multiples of 2-4x what partners could realize through independent exits.
- • PE capital has enabled rapid profitability and growth acceleration in the accounting profession while providing aging partners with meaningful liquidity optionality earlier than traditional succession planning timelines would allow.
Summary
Private equity's entry into the accounting profession is reaching a critical juncture as initial investments from 2021 approach their natural exit windows. The trend, which commenced with EisnerAmper's August 2021 investment from TowerBrook Capital Partners and Citrin Cooperman's October 2021 deal with New Mountain Capital, is generating unexpected returns and reshaping conventional valuation expectations across the Top 25 accounting firm landscape.
The most significant recent development occurred in January 2025, when Citrin Cooperman announced Blackstone's acquisition of a majority stake from New Mountain Capital—the first documented instance of a PE-backed accounting firm transferring ownership between private equity sponsors in the United States. Industry experts anticipate EisnerAmper will follow with its own exit transaction in late 2025 or early 2026, potentially establishing a pattern for subsequent portfolio transitions.
According to Allan Koltin, CEO of Koltin Consulting Group and advisor to many large PE transactions in accounting, the financial performance has been extraordinary. The deals have achieved profitability and growth milestones originally projected for five to seven years in approximately three to four years. Koltin's tracking of 16+ transactions shows all deals are either meeting or exceeding financial targets. Notably, he has not observed the stereotypical PE operational challenges—such as heavy-handed management or excessive micromanaging—that often characterize PE involvement in professional services.
The appeal of PE capital to accounting firm partners is straightforward: liquidity multiples that are double, triple, or even quadruple what partners could achieve through independent exits, combined with earlier access to cash. This has proven transformative for firms with aging partner bases seeking both growth acceleration and succession solutions. While PE investment in accounting is unprecedented for the profession, similar patterns exist across broader professional and financial services sectors, suggesting this trend reflects structural changes in how capital markets value service-based businesses.
The most significant recent development occurred in January 2025, when Citrin Cooperman announced Blackstone's acquisition of a majority stake from New Mountain Capital—the first documented instance of a PE-backed accounting firm transferring ownership between private equity sponsors in the United States. Industry experts anticipate EisnerAmper will follow with its own exit transaction in late 2025 or early 2026, potentially establishing a pattern for subsequent portfolio transitions.
According to Allan Koltin, CEO of Koltin Consulting Group and advisor to many large PE transactions in accounting, the financial performance has been extraordinary. The deals have achieved profitability and growth milestones originally projected for five to seven years in approximately three to four years. Koltin's tracking of 16+ transactions shows all deals are either meeting or exceeding financial targets. Notably, he has not observed the stereotypical PE operational challenges—such as heavy-handed management or excessive micromanaging—that often characterize PE involvement in professional services.
The appeal of PE capital to accounting firm partners is straightforward: liquidity multiples that are double, triple, or even quadruple what partners could achieve through independent exits, combined with earlier access to cash. This has proven transformative for firms with aging partner bases seeking both growth acceleration and succession solutions. While PE investment in accounting is unprecedented for the profession, similar patterns exist across broader professional and financial services sectors, suggesting this trend reflects structural changes in how capital markets value service-based businesses.
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