A Plain-English Guide to Private Equity (That Doesn’t Suck)

Let’s be honest—when most people hear “private equity,” they picture spreadsheets, leveraged buyouts, and suits on the 35th floor of a building they’ll never be allowed into. It sounds like a world of billionaires buying billion-pound companies, not something relevant to most founders or small business owners.

But here’s the truth: private equity isn’t just for mega-funds and multinational takeovers. When done right, it can be a powerful, founder-friendly tool for growing and future-proofing real-world businesses—especially in sectors like accountancy, law, financial advice, and compliance. And when we say private equity, we don’t mean asset-stripping. We mean value-building.

At Founder Capital, we use private equity differently. This post breaks down what that means—in plain English.

What is Private Equity, Actually?

Private equity (PE) is money invested into private companies (i.e. not listed on a stock exchange), usually to help them grow, change hands, or level up. In return, the investor gets shares in the business and usually plays an active role in its future. It’s not a loan. It’s ownership—with skin in the game.

Think of it as long-term, strategic partnership capital. The investor takes some risk, hoping to grow the business and eventually exit (via sale, merger, or dividends) with a return.

But here’s the twist: not all PE is the same.

The Problem with Traditional Private Equity

A lot of private equity firms operate like corporate sharks. They look for distressed companies, swoop in, cut costs (often jobs), load the business with debt, and try to flip it fast for a quick win. It’s not always pretty—and founders know it. That’s why many business owners run a mile when they hear “private equity.”

But there’s another kind of PE: partnership-led, operator-backed, long-term focused.

That’s what we do.

Enter the AD Group Fund

At Founder Capital, we run the AD Group Fund—a private equity fund focused on acquiring and growing UK-based professional services firms: accountancy practices, legal firms, IFA businesses, and compliance consultancies.

These are the kinds of businesses that underpin the UK economy. They’re profitable, trusted, and essential. But many are stuck. Founders are ageing out. Tech is moving faster than they can adapt. Talent is hard to keep. Margins are squeezed. And succession planning? It’s a headache.

That’s where we come in.

What We Look For

We look for firms that are:

• Generating consistent, recurring revenue (usually £500k–£5m)

• Delivering strong client service but struggling with scale, tech, or growth

• Led by founders who want to step back, sell out gradually, or accelerate expansion

• Based across the UK—not just London. We have active deals in the Midlands, North, and Northern Ireland.

What We Actually Do

Unlike slash-and-burn PE firms, we don’t strip assets. We invest, we support, and we integrate. Here’s what that looks like in practice:

• We upgrade tech stacks (Xero, Apron, Clio, FYI, etc.)

• We consolidate back-office functions across firms

• We roll firms into our branded group structure (AD Accountancy, AD Legal, AD Financial Services)

• We keep client service local, while giving teams central support, shared systems, and succession stability

• We grow value long-term, not by flipping, but by building a better business from the inside out

What Founders Get

If you’re the founder of a professional services firm, and you’re thinking about next steps—this matters.

We offer:

• A gradual exit—you don’t need to walk away day one

• Real cash value for your business (1.3–1.6x GRF typically, with earn-outs or equity options)

• The chance to stay involved in a reduced role or mentor the next generation

• A team to take the weight off your shoulders: finance, tech, marketing, ops, HR—sorted

Most importantly: we respect what you’ve built. And we help it live on—bigger, stronger, and future-ready.

What Investors Get

If you're an investor looking at private equity for services in the UK, the AD Group Fund is designed for you.

We offer:

• Exposure to a low-volatility, recession-resilient sector

• Strong, consistent EBITDA

• Platform synergy across acquired firms

• Yield-focused growth strategy

• A fund team of actual operators—not spreadsheet-only investors

In short, you’re investing in real businesses with real clients, real revenue, and real momentum.

What This Means for the UK

Our goal isn’t just to make money—it’s to modernise and protect vital UK firms. With thousands of professional services founders due to retire in the next 10 years, we’re solving a generational challenge: how to preserve value, jobs, and legacy in sectors that rarely get headlines—but always get the job done.

Private equity doesn’t have to be scary. When done right, it’s succession with support, not separation. It’s scale without soul-selling. It’s a way to keep great businesses alive, modern, and thriving.

Final Thought

If you’re a founder of an accountancy, legal, IFA, or compliance firm and want to talk about exit, growth, or both—let’s chat.

If you’re an investor looking to put capital to work in the UK’s most under-served, over-delivering sector—we should talk too.

Founder Capital is redefining private equity for services. No buzzwords. No corporate theatre. Just real growth, built together.