New Jersey CPA Firms Embraced Private Equity Funding
Local accounting practices are adopting alternative ownership models to fuel growth and solve succession planning challenges.
Updated on Oct. 12, 2026 in Professional Services
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New Jersey accounting firms have increasingly turned to private equity investment since 2021 to fund expansion and technology initiatives. These partnerships often employ alternative practice structures to isolate audit functions from advisory services, ensuring compliance with independence requirements.
Why it matters
Firms are seeking external capital to finance investments in artificial intelligence, talent recruitment, and strategic acquisitions. This shift provides a clear path for retiring partners while enabling established firms to scale their service offerings in a competitive market.
Sax LLP reported $138 million in 2025 gross revenue and has completed six add-on acquisitions since receiving investment from Cobepa in July 2025. Industry projections suggest most of the top 500 CPA firms will operate under private equity or public ownership within five years.
The players
EisnerAmper
A top-ranked national accounting firm that transitioned to an alternative practice structure in 2021.
CohnReznick
A national tax and advisory firm currently expanding its geographic footprint and technological capabilities.
Sax LLP
A New Jersey-based accounting and wealth management firm that recently adopted a private equity-backed growth strategy.
Grassi
An independent accounting firm that maintains an employee stock ownership plan model.
Goldstein Lieberman & Co. LLC
A professional services firm that maintains its operations without debt, relying on internal cash flow.
The details
To balance regulatory demands with growth goals, firms like EisnerAmper and CohnReznick utilize alternative practice structures that legally separate their audit arms from private equity-backed advisory groups. This model allows the advisory side to aggressively pursue capital-intensive projects, such as proprietary AI platforms, while the audit division remains independent. Firms also leverage equity instruments as retention tools to secure talent and establish structured exit paths for retiring partners.
Timeline
2021: EisnerAmper entered a partnership with TowerBrook Capital Partners.
July 2025: Sax LLP accepted an investment from Cobepa.
Fall 2026: CohnReznick is scheduled to launch a proprietary AI platform.
Market Landscape
The push toward private equity ownership marks a significant departure from the traditional independent partnership model that dominated the accounting sector for decades. This shift effectively updates the operational framework relative to established CPA firm audit independence requirements.
Operators in the professional services space should monitor how these ownership shifts impact local service pricing and partner succession flexibility. Firms choosing to remain independent may face increased pressure to demonstrate competitive value against well-funded, private equity-backed rivals.
The takeaway
The transition to private equity-backed ownership models is rapidly reshaping the scale and capability of regional accounting firms. Business owners should monitor the firm ownership models of their financial partners to understand potential shifts in service focus, long-term stability, and fee structures.
Further reading
For more on industry shifts, see Professional Services.
Source note: This article includes information reported by NJBIZ.
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