Thrive-backed Crete to acquire accounting firms with $500M, boost growth using OpenAI tools

Crete Professionals Alliance, a fast-growing accounting platform backed by Thrive Capital, plans to spend over $500 million acquiring U.S.-based accounting firms over the next two years, according to an exclusive report from Reuters. The investment is part of a broader effort to bring traditional practices into the AI age with tools developed alongside OpenAI.

Crete PA is part of a broader trend where venture firms are buying up companies in older industries—like healthcare, property management, and now accounting—and layering tech on top. It’s a modern roll-up play, and Crete’s moving fast.

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

The firm is backed by investors including Thrive, ZBS Partners, and Bessemer Venture Partners. Its strategy is straightforward: acquire majority stakes in local accounting firms, take over hiring and admin, and plug in tech to increase output and reduce friction.

Jake Sloane, co-founder of Crete PA and a partner at ZBS, has done this before, building roll-ups in industries from veterinary care to plumbing. This time, he saw an opportunity to bring AI into accounting and teamed up with Thrive last year to move fast.

Kareem Zaki, a partner at Thrive, said selling software alone isn’t enough to move the needle in an industry like accounting. That’s why the firm chose to go all-in on roll-ups, giving it more control and a bigger stake in how these businesses operate.

“As full-stack operators of the accounting firm, we can take all the software elements, the operational elements, and be able to flow that through into the end customer experience,” Zaki told Reuters.

Thrive, best known for backing companies like Stripe, OpenAI, and Databricks, brought more than just money. It also brought its in-house tech team, which began working directly with OpenAI to build tools for the accounting space, from data mapping to drafting memos.

And the impact is already showing. Bennie Lewis, president of Assurance Dimensions, a Florida-based firm owned by Crete, said the AI tools used during audit testing have saved his team hundreds of hours per month, giving them more time to focus on clients.

Sloane says Crete’s model breaks from the typical private equity mold. While Crete acquires a majority stake, founders keep some equity and stay involved in the day-to-day, helping maintain relationships and continuity. “I don’t believe AI is something that will fundamentally eradicate the need for accountants,” Sloane said. “It’s about helping them do more, better.”

The industry has its share of challenges, including a talent shortage, but accounting firms are still good businesses. Many run on old software and manual workflows, making them prime candidates for tech upgrades. Tools like QuickBooks helped bring accounting online, and now Crete wants to push it further with generative AI.

And Crete isn’t the only player. General Catalyst is also rolling up firms through its accounting venture, Accrual. Both firms are betting that AI can improve margins in businesses that depend on human judgment and process-heavy tasks.

Whether that bet pays off at venture scale is still unclear. Private equity has had success with accounting firm deals in the past, but VC returns require bigger leaps. With $500 million to deploy, Crete’s now in the spotlight to prove whether AI and acquisitions can mix well in a traditionally conservative industry.