$400M PE fund is investing in founder-led mid-market service businesses

• Jay Alix, THE CPA who founded AlixPartners ($2.3Bn financial advisory and global consulting firm) and PE investor Dave Tayeh are teaming up. 
• Their mission: Tayeh Capital Group (TCG), a $400–500M fund backing founder-led business services firms.
• We’re talking accounting & tax firms, management consulting, legal services, IT-enabled services, the trust-driven businesses that make the U.S. economy tick.
• In India, a similar opportunity exists just at a smaller scale but with immense potential.

The players

• Jay Alix: Founder of AlixPartners, a global turnaround and consulting firm. Huge credibility in helping businesses restructure and grow.
• Dave Tayeh: Veteran private equity (PE) investor. Knows how to deploy capital, structure deals, and grow businesses.
• GCM Grosvenor: A huge alternative investment firm ($86B in assets) backing them financially via their Elevate Fund.

What’s their focus?

Family-owned, mid-sized professional and business services companies that are now facing a generational transition.

Think:

• Equipment distributors
• Accountancies
• Law firms
• Advisory groups

The Mid-market sweet spot

The opportunity is massive

In the U.S. alone, there are hundreds of thousands of mid-sized professional services firms (accounting, consulting, legal, IT-enabled services).

Some verified but approximate figures:

• They collectively form a $1.8 trillion market.
• Employment: As of mid-2024, the industry employed over 11 million workers, making it a significant contributor to the U.S. economy.
• Mid-sized firms (earning between $10M and $200M annually) are growing fast.

The ageing problem in US firms

As James O’Dowd, Founder & CEO at Patrick Morgan, puts it in his LinkedIn post:

“Many of these firms are at a crossroads: founders are ageing, succession plans are messy, and their clients want bigger, more sophisticated tech-first solutions.”

He further added, “Founder enquiries are at an all-time high: ‘Who should I trust with my firm?’ ‘How do I prepare for a sales process?’ At the same time, the volume of inbound from Private Equity looking for proprietary introductions and deal flow from us has never been greater.”

That’s exactly where TCG steps in to provide capital, guidance, and trust to help founders grow, scale, or hand over the reins without losing their legacy!

How they’ll do it

In service businesses, value is built on relationships.

Clients stick with founders, not balance sheets…And TCG understands this.

So, TCG isn’t just writing checks. The team promises hands-on support, a network of advisors, and decades of operational experience.

For founders, that means money plus credibility.

For Tayeh and Alix, it means access to the best mid-market deals.