Where's My MOIC? Ask The Accountants

Private equity firms and their portfolio companies are facing a critical threat to value creation: an exodus of accounting talent that shows no signs of abating. While this talent drain may seem like a trivial back-office operational issue, make no mistake — it directly impacts Multiple on Invested Capital (MOIC), the ultimate scorecard of investment success. When accounting falters, MOIC suffers, and investor returns diminish.

As reported in recent Wall Street Journal (WSJ) coverage, "More than 300,000 U.S. accountants and auditors have left their jobs between 2019 and 2022, a 17% decline, and the dwindling number of college students coming into the field can't fill the gap."¹ This exodus is not merely a staffing challenge; it is a threat to reliable financial reporting, efficient capital markets, and ultimately, investment returns.