Support Crete to acquire a $500 million accounting firm and promote growth using OpenAI tools

According to a Reuters exclusive report, Crete Professionals Alliance, a fast-growing accounting platform backed by Thrive Capital, plans to acquire the US-based accounting firm over the next two years. This investment is part of a broader effort to bring traditional practices into the AI ​​era using tools developed alongside Openai.

Crete PA is part of a broad trend in ventures to buy and layer their technology in older industries, including healthcare, real estate management and current accounting. It’s a modern roll-up play and Crete is moving fast.

Founded in 2023, the company has already generated over $300 million in annual revenue, including over 20 accounting firms under its umbrella. It has 900 employees across 17 offices, including international operations in Asia.

The company is backed by investors such as Thrive, ZBS Partners and Bessemer Venture Partners. The strategy is simple. Earn a majority of local accounting firms, take over employment and managers, plug in technology to increase production and reduce friction.

Jake Sloane, a co-founder of Crete PA and partner at ZBS, has previously built and done this in the industry from veterinary care to plumbing. This time, he saw the opportunity to bring AI to accounting and worked quickly with Thrive last year.

Thrive’s partner Kareem Zaki said selling software alone isn’t enough to move needles in an industry like accounting. So the company chose to roll up all in, giving them more control over the way these businesses operate and bringing greater interest.

“As a full stack operator at an accounting firm, I can take all the software elements, the operational elements and then flow into the final customer experience,” Zaki told Reuters.

Best known for backing companies like Stripe, Openai and Databricks, Thrive has brought more than just money. He also brought in an internal technical team and began working directly with OpenAI to build tools for the accounting space, from data mapping to memo drafting.

And the impact has already been shown. Bennie Lewis, president of Assurance Dimensions, a Florida-based company owned by Crete, said the AI ​​tools used during audit testing save teams hundreds of hours a month, giving them more time to focus on their clients.

Sloan says the Crete model breaks from the typical private equity type. While Crete is acquiring a majority stake, its founders will maintain some equity, stay engaged daily, helping them maintain relationships and continuity. “I don’t think that AI is a fundamental elimination of the need for accountants,” Sloan said. “It’s about helping them do better.”

The industry has challenges, including a shortage of talent, but accounting companies are still good businesses. Many run with outdated software and manual workflows, making them a major candidate for high-tech upgrades. Tools like QuickBooks have helped us provide accounting online. Crete wants to push further with the Generate AI.

And Crete is not the only player. General Catalyst also rolls up companies through Accrual, an accounting venture. Both companies bet that AI can improve the margins of businesses that rely on human judgment and process-rich tasks.

It remains to be seen whether the bet will be rewarded on venture scale. Private equity has been successful in accounting firm transactions in the past, but VC returns require a bigger leap. With a $500 million rollout, Crete is now in the spotlight to prove whether AI and acquisitions can blend well in traditionally conservative industries.