Key Takeaways
- • Private equity ownership of top U.S. CPA firms has expanded rapidly since 2021, with PE funds now controlling approximately 24 of the top 100 accounting firms, including at least 10 of the top 30, marking a fundamental industry transformation in under five years.
- • The traditional PE investment model—characterized by three to five-year holding periods—is shifting toward a "flip" strategy in the events and professional services sectors, where early PE investors are now exiting by reselling portfolio companies to competing PE firms at higher valuations rather than seeking traditional exit routes.
- • Documented "flip" transactions in 2025 include Citrin Cooperman's sale from New Mountain Capital to Blackstone (January 2025) and Schellman's transition from Lightyear Capital to Goldman Sachs Alternatives, signaling an acceleration of secondary PE ownership cycles.
- • PE-driven consolidation in accounting has increased fourfold since 2021, with PE-backed firms aggressively pursuing acquisition strategies; however, the shift raises material concerns regarding sustained profitability, cultural stability, and the ability to justify elevated valuations across consecutive ownership cycles.
- • The maturation of the PE market in professional services and events has fundamentally altered the traditional acquisition model: rather than the historical "buy, professionalize, scale, and exit" playbook, firms now face pressure to justify multiple ownership transitions and manage growth expectations across shorter fund lifecycles.
Summary
The private equity industry's approach to events, accounting, and professional services has undergone a significant strategic pivot over the past two decades. What historically represented a linear acquisition model—characterized by PE firms acquiring quality assets, professionalizing operations, pursuing add-on acquisitions, and achieving a clean exit—has evolved into a more complex environment where multiple rounds of PE ownership are becoming standard. This shift reflects the maturation of the PE market and changing exit dynamics, particularly as early investors seek returns within constrained fund lifecycle windows.
In the accounting sector, the transformation has been especially pronounced. Since 2021, when EisnerAmper completed the first major deal with TowerBrook Capital, PE funds have acquired ownership stakes in approximately 24 of the top 100 U.S. CPA firms, including at least 10 of the top 30. This concentration of ownership has catalyzed unprecedented consolidation activity; according to the International Federation of Accountants, consolidation in accounting has increased fourfold since 2021. PE capital has since expanded its focus beyond the largest firms to target "middleweights"—firms with revenues between $75 million and $400 million—creating a multi-tiered acquisition strategy across the sector.
The emergence of "flip" transactions represents the most significant tactical shift. Rather than pursuing traditional third-party sales or public market exits, PE investors are increasingly selling portfolio companies to competing PE firms at enhanced valuations. Citrin Cooperman's January 2025 transaction—moving from New Mountain Capital to Blackstone—and Schellman's 2025 sale from Lightyear Capital to Goldman Sachs Alternatives exemplify this trend. These inter-PE transfers compress traditional hold periods and accelerate the pace of ownership transitions, creating a secondary market dynamic where sequential PE ownership becomes an expected value creation pathway.
This structural shift introduces material challenges for portfolio company management and returns realization. PE firms typically operate within three to five-year investment horizons, with some extending to seven years. Successive ownership transitions require sustained growth justification, operational continuity amid cultural transitions, and the ability to command higher valuations with each flip to deliver returns to outgoing investors. The Professional services sector faces particularly acute pressure: firms must demonstrate resilience through multiple ownership cycles while maintaining client relationships, talent retention, and profitability metrics that support increasingly premium acquisition multiples.
Looking forward, the trend signals a maturing PE market where traditional exit optionality has contracted. Rather than representing a one-time transformation event, PE ownership has become embedded in the professional services and events sectors, creating a market structure dependent on continuous value extraction and intra-PE secondary transactions. This model raises strategic questions for remaining independent firms and established market participants regarding competitive positioning and the long-term sustainability of returns within a consolidating, PE-dominated landscape.
In the accounting sector, the transformation has been especially pronounced. Since 2021, when EisnerAmper completed the first major deal with TowerBrook Capital, PE funds have acquired ownership stakes in approximately 24 of the top 100 U.S. CPA firms, including at least 10 of the top 30. This concentration of ownership has catalyzed unprecedented consolidation activity; according to the International Federation of Accountants, consolidation in accounting has increased fourfold since 2021. PE capital has since expanded its focus beyond the largest firms to target "middleweights"—firms with revenues between $75 million and $400 million—creating a multi-tiered acquisition strategy across the sector.
The emergence of "flip" transactions represents the most significant tactical shift. Rather than pursuing traditional third-party sales or public market exits, PE investors are increasingly selling portfolio companies to competing PE firms at enhanced valuations. Citrin Cooperman's January 2025 transaction—moving from New Mountain Capital to Blackstone—and Schellman's 2025 sale from Lightyear Capital to Goldman Sachs Alternatives exemplify this trend. These inter-PE transfers compress traditional hold periods and accelerate the pace of ownership transitions, creating a secondary market dynamic where sequential PE ownership becomes an expected value creation pathway.
This structural shift introduces material challenges for portfolio company management and returns realization. PE firms typically operate within three to five-year investment horizons, with some extending to seven years. Successive ownership transitions require sustained growth justification, operational continuity amid cultural transitions, and the ability to command higher valuations with each flip to deliver returns to outgoing investors. The Professional services sector faces particularly acute pressure: firms must demonstrate resilience through multiple ownership cycles while maintaining client relationships, talent retention, and profitability metrics that support increasingly premium acquisition multiples.
Looking forward, the trend signals a maturing PE market where traditional exit optionality has contracted. Rather than representing a one-time transformation event, PE ownership has become embedded in the professional services and events sectors, creating a market structure dependent on continuous value extraction and intra-PE secondary transactions. This model raises strategic questions for remaining independent firms and established market participants regarding competitive positioning and the long-term sustainability of returns within a consolidating, PE-dominated landscape.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.