Private Equity Accelerates Consolidation in US Accounting and Law Firms

Private equity investment in the US public accounting sector has surged, with more than 53 transactions between 2020 and mid‑2025 injecting roughly $29 billion. Analysts expect that by late 2025 over half of the 30 largest accounting firms will have some form of private‑capital ownership. Investors are pursuing platform models that acquire a large firm and then add regional practices, as well as umbrella networks that keep local brands while sharing technology, marketing and talent services. The capital is also being used to expand advisory and consulting offerings and to fund cloud, workflow‑automation and artificial‑intelligence tools.

In the legal market, direct private‑equity ownership of law firms remains prohibited, but firms are creating separate management service organizations (MSOs) that own the firm's infrastructure, technology, AI and branding. These MSOs charge flat or per‑lawyer management fees, preserving 100% lawyer ownership of the practice. More than 15 MSO deals were closed in six months, with roughly 100 additional transactions targeting AmLaw 100 firms, AI‑focused boutiques and estate‑planning practices.