Private equity investment in Britain's professional services sector has surged dramatically over the past year, with billions of pounds being deployed to acquire stakes in established firms. This trend highlights a significant shift in the ownership landscape of the UK's advisory and accounting industries.
Interpath Advisory in Exclusive Bridgepoint Talks
The latest major move was revealed on Monday 5 January 2026, when it emerged that Interpath Advisory, the former restructuring division of Big Four giant KPMG, is in exclusive negotiations with private equity firm Bridgepoint. The deal would see Bridgepoint acquire a majority stake in the business.
Interpath was originally sold by KPMG to private equity group HIG Capital in 2021 for £400m. The firm's most recent financial results show revenue growth, increasing from £163.6m to £198.9m in the latest financial year. However, it also reported a pre-tax loss of £11m for the 12 months to 28 March 2025.
Interpath's CEO, Mark Raddan, stated that Bridgepoint's investment will "empower us to continue attracting exceptional talent and accelerate our expansion into new geographies." Charles Welham, a partner at Bridgepoint, described Interpath as a "differentiated advisory platform" operating in a growing market with significant opportunity for further gains.
A Sector-Wide Investment Spree
The interest in Interpath is part of a much broader wave of private equity capital flowing into professional services. Over the past two years, PE firms have aggressively targeted the sector, with a particular focus on mid-tier accountancy firms.
In a landmark deal in December 2024, private equity firm Cinven acquired Grant Thornton UK for a reported £1.5bn. Defying wider sector trends, the firm subsequently announced plans to hire 160 new partners over the following two years.
The trend has also been powerful in the United States. In May 2024, New Mountain Capital bought a majority stake in Grant Thornton's US arm for around £2bn. Furthermore, Hellman & Friedman acquired a majority stake in Baker Tilly, though its UK and Irish arm, MHA, chose a different path by listing on the London Stock Exchange in April 2025.
Why Private Equity is Betting Big on Professional Services
Industry experts point to several compelling reasons for this investment surge. James O'Dowd, CEO of recruitment firm Patrick Morgan, explained that PE firms see substantial upside in "branded advisory platforms with credible heritage, international ambition and a willingness to absorb short-term losses in pursuit of long-term equity value."
He added that "2026 is likely to be characterised by persistently high pricing for these assets." The attraction is clear: the professional and business services sector accounts for 12 per cent of the UK's total economic output, with a collective turnover of £277bn. Many firms in this space offer reliable, non-cyclical revenue streams, making them a top priority for yield-seeking private capital.
The wave of investment has even begun to reach the legal sector, with law-focused PE funders acquiring smaller and mid-tier firms. As O'Dowd concluded, "Now is not a bad time to have ownership in a professional services firm," a sentiment that suggests this transformative trend is set to continue throughout the new year.
