
A report by Institute of Chartered Accountants in England and Wales (ICAEW) highlighted the growing impact of private equity investment (PEI) on the UK accountancy profession.
The report indicates that 86% of surveyed firms rank PEI among the top three macro trends reshaping the industry, a notable increase from 57% last year.
The ICAEW said the drive for growth is a primary motivator for firms considering private equity, as they seek innovative expansion strategies.
Firms also cited M&A activities, access to talent, and technology investment as key benefits of PEI, with many reporting positive outcomes in these areas.
A quarter of the mid-tier firms surveyed have already secured PEI, while 25% are likely to pursue it in the next three years, double the number from 2024.
The majority have engaged in board-level discussions about exploring PEI.

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By GlobalDataHowever, the report also notes resistance to private equity among some firms.
For three-quarters of independently owned companies, PEI is not attractive, despite 93% receiving approaches from private equity houses in the last three years.
Concerns include potential negative impacts on culture, talent retention, and succession planning.
The research reveals that all surveyed firms reported fee growth this year, with new clients, increased client spending, higher charge-out rates, and M&A activities as key contributors.
Access to skills and regulation were identified as the main barriers.
Nearly half of mid-tier firms made acquisitions in the last year, with 67% planning further acquisitions.
Expanding the client base was the primary reason for considering mergers or acquisitions, according to 97% of firms.
ICAEW chief executive Alan Vallance said: “Our firms have told us that private equity interest in the mid-tier accountancy sector remains high, and while we expect this trend to continue and become a major force shaping the future of the profession, it is important to recognise that private equity is not a one-size-fits-all solution to growth.
“For every firm that identifies opportunities to broaden its reach or invest in tech, another will recognise it as a threat to culture and talent retention. Beyond doubt, however, is the crucial role mid-tier firms play in supporting the national agenda for economic growth.
“The professional services sector was identified as a key growth driving sector in the government’s new industrial strategy, and the impeccable fee growth reported by firms in this report clearly demonstrates why our sector’s contributions to the economy are held in such high regard.”