The first generation of private equity deals in accounting is approaching its inflection point. With holding periods ending, Accounting Today reports that early movers like Citrin Cooperman and EisnerAmper are either flipping to new investors or nearing their exit windows.

In January, Citrin accounted a new deal with Blackstone, marking the first secondary private equity transaction of its kind in the U.S. accounting space. Industry watchers expect EisnerAmper to follow by early 2026.

Private equity has brought rapid growth and early liquidity to firms long run by aging partners with limited succession plans. It is also pushed firm valuations well beyond what partners could expect in traditional M&A. According to Koltin Consulting CEO Allan Koltin, many firms are outperforming expectations and haven’t experienced the kind of control issues skeptics anticipated.

The shift mirrors what happened in adjacent sectors like insurance and consulting, where private equity capital has been flipping firms for years. Today, accounting firms are catching up, and splintering into two main models: large “mothership” firms that acquire others using private equity funding, and “roll-ups” that give smaller firms autonomy under a shared platform, according to Accounting Today.

While the impact of private equity varies, the exit options are clear: go public, sell to a strategic buyer, move to a larger private equity fund, or transfer to a continuation fund. Initial public offerings remain rare, though the Andersen Group has reportedly filed, and some expect Big Four splits in the next few years. 

Concerns remain, especially around culture. Some leaders worry that pressure for returns could push firms to overpay for acquisitions, chase large clients at the expense of the middle market, or lose their sense of identity, according to Accounting Today.