Prosperity Partners, a Chicago-headquartered tax, client accounting and transaction support services firm, has announced a majority growth investment from Lightyear Capital, a New York-based private equity firm with approximately $8.1 billion in assets under management. Unity Partners, which invested in Prosperity in April 2023, will retain a minority position in the company. The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals. Financial terms were not disclosed.
Founded in 2003, Prosperity has grown into a national platform with more than 250 employees and offices in Chicago, New York City, Iselin, Houston, Washington D.C., Santa Barbara, Detroit, Kansas City and Burlington. The firm delivers tax advisory, tax consulting, tax preparation, valuation, outsourced back-office accounting, fractional CFO, litigation support and start-up business services to high-net-worth individuals, family offices and entrepreneurial businesses nationwide. It has been recognized as one of Accounting Today’s Fastest Growing Firms and has received multiple Best Place to Work honors. Lightyear frames the investment as its seventh in tech-enabled business services, a sector where the firm has spent more than 25 years building market-leading platforms alongside strong management teams.
The three years under Unity Partners marked a period of significant transformation for Prosperity. During that time the company completed nine strategic add-on acquisitions, expanded its service lines, made meaningful investments in technology and offshoring and rebranded as Prosperity Partners to better reflect its mission. Lightyear’s investment is intended to build on that foundation through further talent investment, best-in-class automation and technology solutions, and strategic M&A, with a focus on continuing to serve the fast-growing high-net-worth advisory market where Prosperity has developed a specialized and highly recurring-revenue model.
A notable feature of the transaction is the distribution of approximately $18 million in proceeds to employees through the Prosperity Employee Purpose Plan, a broad-based ownership program launched concurrently with Unity’s initial 2023 investment. Lightyear and Prosperity have agreed to continue an employee ownership program for qualifying employees going forward, sustaining the profit-sharing culture that management views as central to Prosperity’s ability to attract and retain talent in a competitive professional services market.
Support: Guggenheim Securities served as lead financial adviser to Prosperity and Unity, with Koltin Consulting Group serving as an additional financial adviser. Kirkland & Ellis served as legal counsel to Prosperity and Davis Polk to Lightyear.
KEY QUOTES:
“Prosperity marks Lightyear’s seventh investment in tech-enabled business services. Our strategy is to partner with strong management teams of growing companies and help them continue to institutionalize their businesses, accelerate their growth organically and inorganically, and create enduring enterprise value. We are excited about our acquisition of Prosperity given the strong growth tailwinds in the high-net-worth space, and Prosperity’s sterling reputation. We look forward to supporting the Prosperity team to further their capabilities in the years ahead.”
Mark Vassallo, Managing Partner, Lightyear Capital
“Prosperity operates in a growth market, is a differentiated company with highly recurring revenue and outstanding client relationships, and is run by an impressive leadership team. The Company has developed a specialized model delivering sophisticated advice to a highly-desirable client base, positioning itself as a leader in the fast-growing high-net-worth advisory market. We are excited to partner with Jeremy, the entire Prosperity team, and Unity to help drive continued growth through investments in talent, best-in-class automation and technology solutions, and strategic M&A.”
Jay Comerford, Partner, Lightyear Capital
“As we enter our next stage of growth supported by the outstanding Lightyear team, we are eager to pursue our lofty strategic goals and to continue to provide premier services to high net-worth individuals, family offices and closely held businesses. With significant employee growth and enhancements to key processes, systems and services, I am extremely proud of everything we have achieved alongside Unity Partners and am ecstatic for our employees to reap the rewards of our Employee Purpose Plan.”
Jeremy Dubow, CEO and Co-Founder, Prosperity Partners
“We thank Jeremy and the team for all we accomplished together over the past three years, from completing nine strategic add-ons, expanding service lines, and making significant investments in technology and offshoring, to rebranding as Prosperity Partners to better capture the Company’s mission and purpose. It is wonderful to see Prosperity’s outstanding team rewarded for their hard work and dedication through the Employee Purpose Plan, and we look forward to Prosperity’s continued growth and success.”
Peter Cozzi, Investment Team Lead, Unity Partners
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