- Private equity’s growing interest in CPA firms isn’t new – it started back in 2021. (Fun fact: Who was the first to make the move? EisnerAmper)
- In late 2021, Citrin Cooperman sold a majority stake to New Mountain Capital.
- Now, in 2025, New Mountain has sold its majority stake to Blackstone at 15 times its EBITDA.
Private Equity invests in Citrin Cooperman
Let’s rewind to 2021.
New Mountain Capital first took a majority stake in Citrin Cooperman in October 2021, valuing the firm at approximately $500 million.
Scaled with PE investment
Revenue growth:
- Oct 2021: Citrin Cooperman’s revenue was $350 million when New Mountain Capital acquired the majority stake!
- By 2024, revenue grew to approximately $850 million due to strategic acquisitions of regional accounting firms.
Market position: Today Citrin Cooperman is ranked among the top 20 largest accounting firms in the US.
In just three years New Mountain Capital secured an impressive return on its investment.
India GCC
Yes, Citrin has a strong presence in India.
Citrin Cooperman India LLP (CCI) was established in 2016 in Ahmedabad, Gujarat as a resource to support the firm’s strategic vision.
They have over 330 exceptional professionals and expanding to various cities including Hyderabad.
Also read: CEO of Klarna stopped hiring a year ago….because of AI!
Now enters Blackstone
In a landmark move, on 7 Jan’25 Blackstone buys out the firm’s previous investor, New Mountain Capital and acquires a “significant” stake in Citrin Cooperman.
Terms of the transaction were not disclosed.
- Blackstone-led group will own over two-thirds of Citrin Cooperman, with Blackstone holding 40-45%.
- Deal set to close by Q2 2025, fueling Citrin Cooperman’s next growth phase.
- Citrin Cooperman could be valued at over $2 billion says Financial Times.
Why is this a big deal?
First CPA Firm to change PE owners: This deal marks the first time a CPA firm’s private equity ownership has shifted from one investment group to another.
Acquisition multiples…The deal reportedly values the firm at approximately 15 times its EBITDA, up from the 11 times multiple when New Mountain initially acquired it.
Blackstone, the new investor
With Blackstone’s investment and global expertise, Citrin Cooperman is set for explosive growth.
Here’s how:
- Rolling over ownership: Partners will roll over most shares but still enjoy a lucrative payout.
- Expanded services: The deal will fuel new service offerings for clients.
- Advancing technology: Blackstone’s support will drive investments in cutting-edge tech to enhance operations.
- Hiring top talent: More capital means more opportunities to attract the best talent in the industry.
- Strengthening firm culture: Citrin Cooperman will continue to prioritize its strong culture while delivering top-tier services.
- Elevating client experience: Focus remains on providing exceptional, innovative, and high-quality client services.
Also read: Thomson Reuters $8Bn AI bet: To invest $100M annually on GenAI deals!
PE investment causes regulatory concerns
As private equity takes a larger role in the accounting industry, regulators are increasingly starting to take notice.
Why?
- The growing ties between audit firms and private equity investors have raised concerns about potential conflicts of interest.
- The crux of the issue is that auditors need to remain independent to preserve the integrity of their work.
To navigate this challenge,
- Citrin Cooperman will maintain a strict separation between its audit and non-audit services.
- Private equity will have a say in the non-audit side of the business, but the audit unit will remain independently owned.
Post PE major acquisitions by Citrin Cooperman
Notable Acquisitions by Citrin Cooperman:
- November 2021: OLC Management Inc., a California-based business management firm in the entertainment industry.
- January 2022: Massarsky Consulting, a New York-based music economics and valuations business.
- March 2022: Appelrouth, Farah & Co., P.A., located in Coral Gables, Florida.
- March 2022: Bloom, Gettis & Habib, A., in Miami, Florida.
- April 2022: McNulty & Associates, a provider of price-to-win (PTW) and competitive analysis in Westford, Massachusetts.
- July 2022: Kingston Smith Barlevi, an entertainment industry-focused business management firm in Los Angeles, California.
- July 2022: Shepard Schwartz & Harris, based in Chicago.
- August 2022: Untracht Early, a New Jersey-based firm specializing in tax and business solutions for financial services and alternative investments industries.
- September 2022: Murray Devine Valuation Advisors, an independent advisory firm based in Philadelphia.
- November 2022: Kaufman Bernstein Lee & Robert (KBLR), an entertainment industry business management firm.
- January 2023: Chapman Bird & Tessler, specializing in entertainment industry clients.
- February 2023: Non-attest business of Berdon LLP, New York-based accounting, tax, and consulting firm, making it a $600 million powerhouse.
- November 2023: Gettry Marcus.
- January 2024: MIBAR, a tech-enabled consulting firm specializing in ERP, BI, and CRM software solutions.
- January 2024: Coleman Huntoon & Brown, a North Carolina-based tax, accounting, and business consulting firm.
- February 2024: Keefe McCullough & Co. (KMC), a full-service tax, attest, and business advisory firm in Fort Lauderdale, Florida.
- May 2024: Maier Markey & Justic LLP (MMJ), a White Plains, NY-based CPA firm.
- July 2024: S&G LLP, a Worcester, MA-based assurance, tax, and advisory firm.
- November 2024: Signature Analytics, a San Diego-based outsourced accounting and advisory firm.
- November 2024: Clearview Group, a Baltimore metro-based management consulting and CPA firm. This acquisition significantly strengthened Citrin Cooperman’s presence in the Mid-Atlantic and enhanced its capabilities in risk advisory, state and local tax, and purpose-built technology solutions.
- December 2024: Andsager, Bartlett & Pieroni, LLP, a Providence, Rhode Island-based boutique tax firm specializing in high-end tax services for businesses and individuals.
(Note: Some dates may not align perfectly.)
Also read: GenAI in Accounting, Tax and Finance….Impact on Billable Hours!
About Blackstone
Blackstone is the world’s largest alternative asset manager, with $1.1 trillion in assets under management.
Its global investment strategies focus on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that currently manages private equity, credit and net lease investment strategies with approximately $55 billion in assets under management.
Citrin Cooperman
Citrin Cooperman, recently named #18 on the “Top 100 Firms” list by Accounting Today, is one of the US’s largest professional services firms.
- Citrin Cooperman & Company, LLP is a licensed CPA firm that provides attest services
- Citrin Cooperman Advisors LLC and its subsidiary entities provide tax, advisory, and business consulting services.
Revenue split of Citrin Cooperman:
- Audit accounts for 20%
- Over 50% of its income comes from taxation services
- Advisory services contribute about 25% to the firm’s revenue.
Employees: The entities include more than 450 partners and 2,000+ professionals
Clients: The firm is serving over 15,000 clients globally.
Wrapping up
Over 35% of the top 30 U.S. accounting firms by revenue have sold stakes to private equity investors, with many selling majority stakes.
The result? Private equity ownership is driving a need for growth and expansion of current and introduction of new service lines thus a surge in M&A across the accounting industry.
This trend is pushing CPA firms to establish Global Capability Centers (GCCs) in countries like India.
(Nearly all of the Top 20 CPA firms now have a strong presence in India, and more than 30 mid-sized firms are following suit)
Why India? CPA firm leaders see it as the prime location for growth, thanks to its skilled English-speaking talent pool and technological advancements.
