TFS Gulf 
- Private Equity (PE) investment on the horizon for Grant Thornton Bharat? Well, maybe!
- GT Bharat CEO Vishesh Chandiok exclusively told Financial News London that they are open to PE and the possibility of it.
- But before you get too excited, remember the keyword—”possibility”! No deal is on the table just yet!
What’s happening?
In a statement to Financial News London, Vishesh Chandiok said:
“We are open to partnering with private equity, which may involve selling a minority stake.
However, it is important to clarify that currently, there is no mandate to seek private equity investment.”
Additionally, Chandiok mentioned that GT Bharat is looking to grow through the ‘acquisition of rival firms!’
“Our commitment to growth includes actively seeking opportunities to acquire other firms both domestically and globally,” he told Financial News.
Why is everyone asking GT Bharat about Private Equity?
Because in 2024, Grant Thornton US & UK made similar moves.
Grant Thornton’s other notable Private Equity deals:
- May 2024: Grant Thornton US sold a significant stake to New Mountain Capital, marking a major private equity deal.
- November 2024: Grant Thornton UK sold a majority stake to Cinven, the largest private equity investment in a UK accounting firm to date.
- Other Considerations: Grant Thornton UK weighed offers from EQT (Swedish PE firm) and a potential merger with Grant Thornton US before choosing Cinven.
- January 2025: Grant Thornton US acquired its sister firm in Ireland, funded by New Mountain Capital.
So naturally, people are wondering: Is GT Bharat next?
Intense competition in India’s Advisory Space
According to the ICRA rating report, GT Bharat’s services are divided into three key areas:
- Tax and regulatory services
- Specialist advisory services – the largest revenue contributor, making up about 65-70%!
- International assurance services
However, the advisory space is fiercely competitive. The Big 4s dominate (and now a rising number of boutique firms) limiting price flexibility.
On top of that, attrition rates are at an all-time high!
GT Bharat’s sweet spot is the mid-market, but now, even the Big 4s & other boutique firms are moving into this space.
In December 2022, CEO Vishesh outlined ambitious workforce growth plans to grow to 100,000 by FY 2031
But these ambitions can only become a reality with capital infusion, right?
Also read: Private Equity money is pouring into US CPA Firms. Surge in offshoring to India?
GT India is a growth machine
As of 2024, GT Bharat is in 19 locations with 11,000+ professionals and together with Walker Chandiok & Co. they have 224 Partners (59 new Partners that joined in 2024!)
What is GT’s revenue? ICRA report, the firm achieved a combined revenue of approximately ₹1,050 crore ($129-130 Mn)!
Growing at a solid 21% CAGR over the past 5 years.
This was supported by higher revenues from:
- Technology-enhancement projects
- Audit/compliance services
- Services provided to various public sector undertakings, Government entities, and private companies
Going forward, the revenue growth is expected to remain healthy; thanks to:
- Diversified customer base, including reputed Government and private sector companies
- Repeat businesses from its clientele
- Focussed on employee well-being and India’s growth story
Grant Thornton Global revenue
In 2024, Grant Thornton Global’s revenue hit a record $8 billion, reflecting an 8.8% increase in adjusted constant currency terms, following the previous year’s 10.9% growth.
(Guess what?Grant Thornton Bharat, which saw a ~27% YoY growth in FY2024!)
GT’s global key service line growth:
- Assurance: Up 11.9% to $3.5 billion
- Tax: Increased by 8.9% to $1.6 billion
- Advisory: Grew by 5.0% to $2.8 billion
Leadership at Grant Thornton Bharat
- CEO: Vishesh Chandiok
- COO: Prashant Mehra
- CFO: Anuj Mishra
- CIO: Suresh Kumar
Accounting firms & their Private Equity deals
The professional services sector has seen a surge in private equity interest.
PE firms have invested in most of the top 30 US accounting firms in the last three years!
Firms that have taken PE investments include:
- CohnReznick
- Baker Tilly
- EisnerAmper
- Cherry Bekaert
- Citrin Cooperman
- Doeren Mayhew
- Smith + Howard
- ATA CPAs
- Cendrowski Corporate Advisors (CCA)
- The most recent one, PKF O’Connor Davies (Revenue: $380M) secured a massive investment from Investcorp!
Also read: US firm CohnReznick in talks with Private Equity, has 1000+ India-GCC team
So, what’s next for GT Bharat?
Although a future PE deal may be on the table, Vishesh Chandiok confirmed there is no immediate mandate to secure funding.
If the deal does happen, Grant Thornton Bharat could be the first Big 6 firm in India to secure PE investment!
As the accounting and advisory landscape becomes more competitive, firms are increasingly turning to private equity to scale operations, develop cutting-edge technology, and remain competitive.
