Smith + Howard flips investors

Smith + Howard announced today it will receive a significant investment from alternative asset management firm TPG.

As part of the transaction, which is expected to close in the third quarter of this year, the Top 100 Firm's former private equity investor Broad Sky Partners will sell substantially all of its investment. Smith + Howard will continue operating under its existing brand, leadership and alternative practice structure. Terms of the deal were not disclosed. 

This deal is among the first instances of an accounting firm to "flip" investors — that is, to transfer private equity ownership from one group to another. In January 2025, Citrin Cooperman announced it would receive an investment from Blackstone, which would acquire a majority stake in the firm from New Mountain Capital. Then in March of this year, EisnerAmper completed a continuation vehicle transaction with its private equity investor, TowerBrook Capital Partners — a move that represented the equivalent of a flip, but instead of selling its stake to another investor, TowerBrook held onto it. 

Notably, this flip moves Smith + Howard from a private equity investor to an alternative asset management investor, rather than to another PE firm. 

"The transition represents the natural next phase of our growth evolution," Smith + Howard CEO Sean Taylor told Accounting Today in a written statement. "Broad Sky Partners invested in 2022 to help us accelerate our initial scaling from a regional firm into a national professional services platform. TPG Growth brings a massive global network, specialized operational resources, and technology and AI expertise that makes them the ideal partner to expand our runway even further."

(Read more: "Going beyond PE")

TPG, based in San Francisco, has $306 billion in assets under management. It will invest in Smith + Howard through its middle market and growth equity platform TPG Growth. The capital will be used to support organic growth, geographic expansion, technology investments in artificial intelligence and expanded advisory services, with a focus on acquisitions as part of the firm's growth strategy.

"Smith + Howard has established itself as a highly respected firm, defined by strong client relationships, a partner-led culture, and consistent growth," Max Wein, business unit partner at TPG Growth, said in a statement. "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." 

During Broad Sky's roughly four-year investment period, Smith + Howard grew from under $40 million in revenue to $170 million, according to Taylor, making it one of Accounting Today's Fastest Growing Firms and ranking it as No. 66 on the 2026 Top 100 Firms list. The firm now has roughly 800 employees across seven states, including Alabama, Georgia, North Carolina, South Carolina, Tennessee, Texas and Virginia.

"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," Tyler Zachem, CEO and partner at Broad Sky, said in a statement. "Sean and the team executed at every level, and we are proud of this outcome and excited for what comes next."

William Blair acted as lead financial advisor to Smith + Howard and Broad Sky Partners. Morrison Cohen served as legal counsel to Smith + Howard and Broad Sky Partners. Guggenheim Securities served as financial advisor to TPG. Weil, Gotshal & Manges served as legal counsel to TPG. Levenfeld Pearlstein LLC represented Smith + Howard management and its partners.