Capital for partner-owned businesses.
Professional services firms — legal, accounting, consulting, advisory — run on partner equity, working capital, and the structures that fund partnership transitions. The capital decisions are different. So are the structures.
Partner equity is the primary capital. The major events are transitions.
Professional services firms operate a capital structure unlike most businesses. Partner equity is the primary capital. Working capital funds the gap between work-in-progress and billing. Equipment and technology are relatively modest. The major capital events are partner buy-ins, buy-outs, and succession transitions.
Most professional services firms we meet are over-banked in some areas and under-structured in others. Working capital lines accumulated as the partnership grew, often with personal guarantees from individual partners. Partner buy-in arrangements funded informally rather than through structured facilities. Succession planning conducted without proper capital architecture.
The right capital architecture for professional services separates firm capital from partner capital. Working capital structured at the firm level with appropriate covenants. Partner buy-in facilities at the individual partner level, separated from firm exposure. Succession structures that move equity cleanly between generations without straining firm cashflow.
Professional services capital separates firm from partner.
A typical professional services firm's capital stack combines working capital at the firm level and transition facilities at the partner level. The right mix depends on the partnership size, the transition cadence, and the growth trajectory.
Working Capital & Operating Lines
Sized to work-in-progress and billing cycles. Often the highest-impact restructure available to growth-stage professional services firms.
Partner Buy-In Funding
For incoming partners purchasing equity stakes. Individual partner-level facilities separated from firm exposure. Structured around partner income and exit arrangements.
Partner Buy-Out & Succession
For outgoing partners exiting equity positions. Either firm-funded through working capital or structured through dedicated buy-out facilities. Tax-aware structures designed alongside the firm's accountant.
Practice Acquisition & Consolidation
For firms acquiring competing or complementary practices. Sector consolidation has accelerated across professional services in Australia. Structures combine senior debt, vendor finance, and partner equity contribution.
Three recent Professional Services engagements.
Melbourne legal practice partner buy-in.
Established legal practice funding incoming partner equity purchase. Individual partner facility structured around partner income with appropriate exit arrangements.
Sydney accounting practice acquisition.
Mid-tier accounting firm acquiring competing practice. Senior debt structured with vendor finance integration and earn-out arrangements with outgoing partners.
Melbourne consulting firm working capital.
Established consulting practice restructuring working capital after rapid growth. Firm-level facility replacing fragmented partner guarantees. Released working capacity for next-stage growth.
Five observations from operating in professional services.
Partner guarantees compound until they constrain the firm.
Most professional services firms accumulate partner personal guarantees across multiple facilities over time. The cumulative effect constrains firm decision-making and individual partner flexibility. Restructure is usually overdue when we meet them.
Buy-in structures should match partner income, not firm cashflow.
Most partner buy-ins are funded informally through firm distribution adjustments. Structured buy-in facilities at the partner level are usually faster, cleaner, and tax-more-efficient.
Succession is the biggest unmanaged capital event in professional services.
Most firms transition equity between generations without proper capital architecture. The structural mistakes are common and compounding.
Practice acquisition is the underused growth strategy.
Most growth-stage professional services firms grow through partner hires and organic team building. The faster, more capital-efficient path is often acquisition of complementary practices.
Technology infrastructure is becoming a capital question.
Professional services firms increasingly require significant technology investment. Specialist technology finance structures preserve working capital that would otherwise fund infrastructure.
Talk to our professional services lead.
Whether you're funding a partner buy-in, restructuring working capital, or planning succession — the first conversation is the same. No commitment. No fee. Just an honest discussion of structure.
Discuss a professional services facility