New Jersey Accounting Firms Embraced Private Equity
Local CPA firms adopted alternative practice structures to secure growth capital and manage partner successions.
Updated on Oct. 12, 2026 in Professional Services
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Throughout 2025 and 2026, major New Jersey accounting firms increasingly turned to private equity investments to fuel expansion and technology adoption. Firms like Sax LLP, EisnerAmper, and CohnReznick utilized these partnerships to fund acquisitions and modernize their operations.
Why it matters
These firms seek capital to invest in artificial intelligence, talent acquisition, and sustainable business growth. Furthermore, private equity provides a clear succession path for retiring partners, replacing traditional ownership models.
Sax LLP reported $138 million in 2025 gross revenue and achieved a 12% organic growth rate. The firm, currently ranked 59th nationally, expects to surpass $200 million in revenue by 2026 following six add-on acquisitions since July 2025.
The players
Sax LLP
This New Jersey-based accounting and advisory firm is ranked 59th nationally and maintains a minority ownership structure with its private equity investor.
EisnerAmper
A top-15 national accounting firm that utilizes an alternative practice structure and grew to nearly 5,000 employees over five years.
CohnReznick
This national accounting firm is currently integrating lateral partners and preparing to launch a proprietary artificial intelligence platform for audit execution.
Joseph Damiano
He has served as the CEO of Sax LLP since 2015.
The details
Accounting firms employ alternative practice structures to separate audit functions from advisory services, maintaining regulatory independence while accessing investor capital. These partnerships also utilize equity instruments as retention tools for staff while firms scale their employee bases significantly.
Timeline
In 2015, Joseph Damiano became the CEO of Sax LLP.
EisnerAmper partnered with TowerBrook Capital Partners in 2021.
Sax LLP accepted an investment from Cobepa in July 2025.
CohnReznick welcomed 25 lateral partners during the 2026 fiscal year.
CohnReznick is scheduled to launch a proprietary AI platform in the fall of 2026.
Market Landscape
The move toward private equity ownership signals a fundamental shift in the accounting industry as firms consolidate to gain competitive scale. This trend reflects broader projections that most top 500 CPA firms will likely be private equity-owned or public within the next five years.
Clients of these accounting firms may experience expanded service capabilities, such as new AI-driven audit tools and advisory offerings, resulting from these capital infusions. However, the shift to private equity models can also introduce changes in firm management and long-term service consistency.
The takeaway
The transition toward private equity-backed accounting structures offers firms the necessary capital for technological modernization and partner succession. Readers should anticipate continued industry consolidation as smaller firms seek these partnerships to remain competitive against larger, well-funded rivals.
What happens next
CohnReznick is scheduled to launch its proprietary AI platform for audit execution in the fall of 2026.
Further reading
Learn more about the evolving landscape of Professional Services within the state.
Source note: This article includes information reported by NJBIZ.
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