Private Equity in Accounting: Who’s Driving the Change?

07 August 2025

The Investment Surge Transforming the Sector

Over the past 12 months, more than $6 billion has been invested in accounting by private equity. This capital infusion represents more than financial backing – it marks a fundamental shift in how the profession operates.

Mergers like Baker Tilly and Moss Adams are not simply creating larger firms. They are building faster, smarter, investor-grade organisations. These firms are no longer run solely as professional service providers; they are structured to generate returns, scale quickly, and lead with data.

Why Private Equity Is Driving Change in Accounting

Private equity firms expect results quickly. They bring with them a different level of discipline, technological adoption, and strategic thinking. When they invest in accounting, they do so with a clear agenda:

• Accelerated growth through rapid scaling
• Operational efficiency driven by automation, AI, and cloud-based platforms
• High return on investment (ROI) from every decision and resource

According to ICAEW projections, 25% of mid-tier UK accounting firms are already private equity-backed, with another 25% expected to follow by 2028. The model is shifting from traditional service delivery to a private equity-inspired operating framework.

What Legacy Firms Are Struggling With

Many firms remain tied to outdated models that no longer reflect the demands of today’s market. The symptoms of this lag include:

• Slow decision-making: Technology upgrades are delayed by prolonged internal debates.
• Manual, inefficient processes: Automation is lacking, which increases both risk and cost.
• Talent attrition: Skilled professionals prefer to work in progressive, technology-driven environments.

In an industry where agility now defines success, clinging to legacy systems puts firms at a competitive disadvantage.

The New Leaders in Private Equity Accounting

Leadership in this new era does not always belong to the largest firms. Instead, firms that adopt private equity-style thinking are moving to the front.

These leaders:

• Align every investment, hire, and initiative to ROI
• Adapt operating models quarterly, not annually
• Integrate cloud accounting, AI-enabled audits, and private equity fund accounting tools into their core systems

These capabilities are not future ambitions. They are the current standard for firms with serious growth intent.

How Private Equity-Backed Firms Operate Differently

The differences between traditional and PE-backed firms are stark:

This shift is not cosmetic. It is foundational, changing how accounting firms operate, grow, and deliver value.

Preparing for a Private Equity-Standard Future

The question facing most accounting firm leaders is not whether change is coming. It is whether they are ready.

Consider the following:

• Is your firm structured for scalable growth?
• Do your systems support automation and real-time reporting?
• Are your key performance indicators aligned to outcomes, not activity?
• Would private equity see your firm as a viable investment?

Firms that answer “yes” are already well-positioned. Others must consider whether their current model will remain competitive in a transformed industry.

Final Thoughts

Private equity is not only funding accounting firms — it is reshaping them. Those who understand this shift and build for speed, ROI, and innovation will thrive. Those who resist will be left behind.

Now is the time to act. The firms that adapt early will lead the next chapter of growth in professional services.

Sources: ICAEW Mid‑Tier Evolution 2025, ICAEW Survey data, ICAEW final findings, Wall Street Journal/Reuters, Corporate coverage sources

Pooja Kshirsagar

With a rich experience of curating content for various industries, Pooja believes in the power of words in marketing and building brands. She enjoys experimenting with different forms of content and is currently on a mission to add value to the accounting industry through her detailed and researched write-ups.

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