---
title: "Understanding the Trend: PE Investments in Accounting Firms"
description: Private equity investments in accounting firms are on the rise. What triggers this trend and how will it affect the industry? Find out the answers.
---

[Infographics - D&V Philippines ](https://www.dvphilippines.com/infographics)

# [Understanding the Trend: PE Investments in Accounting Firms](https://www.dvphilippines.com/infographics/understanding-the-trend-pe-investments-in-accounting-firms)

 Written by [Ma. Jessica Paula Florita](https://www.dvphilippines.com/infographics/author/ma-jessica-paula-florita) | Jul 18, 2025

# **What’s happening?**  

[Private equity (PE) firms](https://www.dvphilippines.com/blog/private-equity-investments-in-accounting-firms) — *a type of investment company that buys, grows, and sells other companies to earn a profit* — have been actively making investments in accounting firms. 

## **Key figures:** 

- **10*** of the Top 30 CPA firms in the U.S. have already signed investment deals with various private equity firms. 
- **2021:** The first successful private equity investment took place when EisnerAmper received a strategic investment from TowerBrook Capital. 
- **7****th** largest U.S. accounting firm Grant Thornton signed a deal with New Mountain Capital in May 2024 — making this transaction the largest equity investment in accounting to date. 

###### **As of 6 May 2025* 

 

## In essence, **non-CPA firms like private equity companies cannot own audit/attest firms.** 

To bend the rules without outright breaking them, deals involving PE firms and accounting firms resulted in the so-called **alternative practice structure (APS).** 

In this case, APS happens when the accounting firm transfers the ownership of its non-audit/non-attest services (e.g., tax and consulting services) to the private equity firm.

Such complex business relationships and firm restructurings have been a source of concern, especially when it comes to maintaining auditor independence. 

 

> ***“Private equity structures can be complex and can include entities that have varying levels of influence over other entities — either within their investment portfolio or within the contemplated structure.” *** 

#### *- A statement from the United States Securities and Exchange Commission – Office of the Chief Accountant (SEC-OCA)** 

 

###### *Source: Auditor Independence and Ethical Responsibilities: Critical Points to Consider When Contemplating an Audit Firm Restructuring at https://www.sec.gov/newsroom/speeches-statements/munter-statement-auditor-independence-ethical-responsibilities-082922 

 

## Despite these concerns, **it’s undeniable that the capital infusion from PE investments isn’t easy to brush aside. ** 

Accounting firms that have received strategic investments have so far used the new capital to: 

- Upgrade technology 
- Attract and retain top talent 
- Buyout of retiring partners’ benefits 
- Increase operational expertise 
- Become more competitive 

 

We have yet to uncover the actual effects of PE firms’ investments in accounting firms. However, one thing must remain constant:  

> Professional accountants and auditors must always stick to their principles and ethical duty to deliver objective and accurate results at all times. 

 

# Adapting to the changes 

If your accounting firm has recently received PE investment and is hardly keeping up, getting an outsourced back-office support team can extend your capacity right when you need it. Message us at [marketing@dvphilippines.com](mailto:marketing@dvphilippines.com) to know more about our services or download our whitepaper, [Outsourcing: How to Make it Work](https://www.dvphilippines.com/outsourcing-how-to-make-it-work). 

 

 

 

[View full post](https://www.dvphilippines.com/infographics/understanding-the-trend-pe-investments-in-accounting-firms)

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