Key facts
- Grant Thornton UK equity partners received a £35.2m payout from a deal with private equity firm Cinven.
- The payout was made to 'certain individuals' who are equity partners.
- The deal involved Cinven buying a large stake in the firm.
- Grant Thornton separated its audit arm from its advisory and tax arm.
- The firm's combined revenue growth was £787m in its most recent financial results.
- The average profit per partner in 2024 was £682,000.
Equity partners at Grant Thornton's UK arm received a total payout of £35.2 million following a significant stake acquisition by private equity firm Cinven. This substantial one-time payment was distributed among 'certain individuals' who hold equity partner status within the firm.
The transaction also resulted in the structural separation of Grant Thornton's audit division from its advisory and tax services. The deal, initially announced in November 2024, marked Grant Thornton as the largest UK professional services business to secure external equity investment, though the specific financial terms of the sale were not disclosed.
In its most recent financial reporting in May, Grant Thornton reported a combined revenue growth of £787 million, representing a 4% increase compared to the previous year. The payout from the Cinven deal averaged approximately £160,000 per partner, contributing an additional 23% to their annual earnings. This comes after the average profit per partner in 2024 stood at £682,000.
The Financial Reporting Council (FRC), the UK's financial watchdog for audit and accountancy firms, is closely observing the increasing interest from private equity in the sector. FRC Chief Executive Richard Moriarty stated that while the regulator is neutral on the source of capital, it scrutinizes such investments for compliance with independence and ethics standards, noting that some potential investors have been turned away.