How to Prep as Private Equity Starts Investing in Law Firms

Benjamin Malerba and Emily Manning wrote the Law360 article, “How to Prep as Private Equity Starts Investing in Law Firms,” which covers the emerging trend of PE investing in professional services firms.

Here is an excerpt.

Private equity investment in professional services has expanded significantly over the past decade, first gaining traction in healthcare and accounting, and now extending into legal services. This shift is evidenced by public discussions that took place in November involving McDermott Will & Schulte, which openly acknowledged growing interest from private equity investors.

In healthcare, private equity sponsors commonly invest through management services organization, or MSO, structures that separate clinical practice from nonclinical operations. Accounting firms have adopted similar models to support growth, technology investment and operational scale while complying with professional and ownership restrictions.

Law firms are now adapting this established playbook.

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