Accounting firm Crowe LLP has agreed to sell a majority stake in the business to private equity firm KKR in a transaction valued at nearly $3bn, marking a significant shift for one of the larger US accounting firms outside the Big Four, according to a report by the Wall Street Journal.
Under the agreement, KKR and its co-investors will take control of a majority position, while Crowe’s existing partners will retain a minority stake. The deal is expected to close in the third quarter, subject to regulatory and customary approvals.
The transaction reflects a broader wave of private equity involvement in the accounting sector, as firms seek external capital to fund expansion and invest in technology, particularly artificial intelligence. Crowe’s leadership said the new partnership is aimed at strengthening competitiveness and accelerating digital transformation across its services.
Chief executive Steven Strammello said the competitive environment for accounting firms has been evolving rapidly, prompting a reassessment of long-standing reluctance to accept outside ownership.
Once completed, the investment will support Crowe’s AI initiatives and provide additional firepower for acquisitions, helping the firm expand its footprint in the mid-market advisory space. The company serves clients with revenues typically ranging from $10 million to $1 billion across audit, tax, and consulting services.
To comply with regulatory requirements, Crowe plans to separate its audit and advisory businesses under an alternative practice structure, with only the advisory arm receiving private equity investment.
The deal places Crowe among a growing list of accounting firms that have taken private equity backing since 2021, as the sector undergoes consolidation and increased competition from PE-supported rivals investing heavily in technology and expansion.
