Grant Thornton partners paid £682k as Cinven deal closes

Partner payouts at Grant Thornton UK rose to an average of £682,000 in 2024, following the completion of a landmark private equity deal with Cinven—the largest such investment in the UK accountancy sector to date.

The firm confirmed on Tuesday that the transaction had formally closed, triggering what it described as an “exceptional” £39 million bonus for staff, in addition to performance-related pay.

Employees below partner level are also set to receive shares in the business over the coming weeks, as part of the transition to the new ownership model.

The buyout was reviewed by the Financial Reporting Council (FRC) to ensure auditor independence remained intact.

While the transaction is expected to have valued the UK business at up to £1.5 billion, neither the size of Cinven’s stake nor the exact consideration paid has been disclosed.

Grant Thornton’s 250 partners each received an average payout of £682,000—up 6% on the previous year.

However, the firm reported a slowdown in operating profit growth, rising less than half a percent in 2024, compared with an 18% increase the previous year.

The firm attributed the subdued performance to transaction-related costs stemming from the Cinven deal. Net revenue climbed 11% to £724 million.

Alternative Ownership Models Gaining Ground

The Cinven acquisition reflects a broader trend in the UK accountancy market, where firms are increasingly exploring alternative ownership structures to enable partner cash-outs or access to external growth capital—mirroring similar developments in the US.

In a parallel move, mid-tier firm MHA, the UK member of Baker Tilly International, made its debut on London’s AIM market on Tuesday.

The firm had originally targeted a £350 million valuation, but ultimately floated with a market capitalisation of £271 million.

Chief executive Rakesh Shaunak cited “turmoil in the market,” including policy uncertainty around US tariffs, as key factors behind the adjusted valuation. MHA shares were trading 2.5% higher in Tuesday afternoon trading.

Shaunak said the decision to list publicly—rather than pursue private equity investment—was motivated by a desire to “retain significant control” and “work at our own pace.”

“We’ve had offers, but we ruled out private equity,” he said, adding that recent private equity activity in the sector had cooled. “The frenzy has plateaued. It’s not as dominant as it was a few months ago.”

He noted that MHA’s IPO could set a precedent. “I suspect that our IPO will pique people’s interest. And you know I can’t say for certain that this will be the way that other firms will be going as well. But it certainly gives another option.”

Regulatory Oversight Remains

The FRC said it would continue to monitor such changes in ownership structures closely.

“Ownership structures remain a matter for the firms themselves,” said Sarah Rapson, executive director of supervision at the regulator.

“Any party interested in a capital restructuring must be able to continue to provide assurance that it can support the public interest, the independence dimensions of audit and all applicable regulatory expectations.”