In November 2022, private equity firm Broad Sky Partners made an undisclosed investment in then-INSIDE Public Accounting top 200 firm Smith + Howard. In the three and a half years since, Smith + Howard has become one of the 85 largest accounting firms in the U.S. based on revenue, sustained organic growth, completed strategic M&A deals, and made investments in technology, core operations, and talent.
And under the leadership of CEO Sean Taylor, Smith + Howard now has approximately 800 professionals across Alabama, Georgia, North Carolina, South Carolina, Tennessee, Texas, and Virginia. The firm pulled in revenue of $74.2 million during its most recent fiscal year.
This morning, Smith + Howard announced the next phase of its growth plan, as TPG, a global alternative asset management firm, signed a definitive agreement to make what officials say is a “significant” investment in the Atlanta-based accounting firm. TPG will invest in Smith + Howard through TPG Growth, the firm’s middle-market and growth equity platform.
Financial terms of the deal weren’t disclosed. Smith + Howard will continue to operate under its existing brand and leadership team, according to a June 9 media release.
The transaction is expected to close in the third quarter of this year, subject to customary closing conditions and regulatory approvals.
The deal also is one of the few since private equity firms have bought stakes in accounting firms in which private equity ownership of a firm has transferred, or flipped, from one investment group to another.
The first of this kind was in January 2025 when Blackstone acquired the ownership stake in Citrin Cooperman from New Mountain Capital, a much smaller private equity firm that announced its investment in the New York City-based top 20 accounting firm in April 2022.
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Smith + Howard says TPG’s investment will bolster its ongoing expansion through investments in operational infrastructure, technology, talent capabilities, enhanced client service offerings, and broader strategic growth initiatives. The partnership will also accelerate the accounting firm’s ongoing efforts to leverage artificial intelligence integration to improve workflows, elevate the client experience, and create additional capacity for professionals as it continues to grow.
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“We are incredibly proud of what our team has accomplished over the past several years and are grateful to Broad Sky for their partnership during a critical phase of our evolution. Through a combination of organic growth, strategic acquisitions, and continued investment in our capabilities, we have built a stronger, more diversified platform positioned to serve clients at every stage of growth,” Taylor, who has been CEO of Smith + Howard since 2022, said in a statement. “We’re excited to begin our next chapter with TPG. Their experience supporting high-growth professional services businesses, combined with their operational and technology expertise, makes them an ideal partner as we further invest in innovation and growing the firm.”
Founded in 1992 and based in San Francisco, TPG employs 1,900 employees and has 30 offices around the world. The firm manages $306 billion in assets, as of the end of March.
“Smith + Howard has established itself as a highly respected firm, defined by strong client relationships, a partner-led culture, and consistent growth. The firm has demonstrated a clear ability to grow thoughtfully while maintaining the service quality and culture that underpin its success. Its approach to growth, particularly its early investments in technology and AI-enabled capabilities, aligns closely with our business-building model and value creation strategy,” Max Wein, business unit partner at TPG Growth, said in a statement. “We are excited to partner with Sean and the team to build on that foundation and support the firm’s long-term growth strategy.”
Tyler Zachem, CEO and partner at Broad Sky Partners, added: “It has been a privilege to work alongside Sean and the Smith + Howard team. Smith + Howard is emblematic of Broad Sky’s investment strategy; partnering with strong management teams in essential, high-growth professional services markets to build larger, more strategically differentiated platforms. Sean and the team executed at every level, and we are proud of this outcome and excited for what comes next.”
After the closing, Smith + Howard will continue to operate in an alternative practice structure in accordance with applicable professional standards, with Smith & Howard P.C., a licensed CPA firm, providing attest services and Smith & Howard Advisory LLC and its affiliates providing tax, advisory, and other services.
William Blair acted as lead financial advisor to Smith + Howard and Broad Sky Partners. Baird & Co. served as co-financial advisor to Smith + Howard and Broad Sky Partners. Morrison Cohen LLP served as legal counsel to Smith + Howard and Broad Sky Partners. Guggenheim Securities LLC served as financial advisor to TPG. Weil, Gotshal & Manges LLP served as legal counsel to TPG. Levenfeld Pearlstein LLC represented Smith + Howard management and its partners.
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