The FT reports
Two former leaders of a UK “magic circle” law firm have founded a consultancy to advise on private capital investments into the legal sector, as record profits in the industry drive external interest in the firms. Wim Dejonghe and David Morley, former managing partners at Allen & Overy — now A&O Shearman — launched Dejonghe & Morley on Monday and said they were working with several potential investors.
The venture is a sign of growing interest from private equity and family offices in law firms as investors aim to capitalise on a sector that is highly profitable but is having to contend with increasing competition and pressure to invest in technology. Dejonghe and Morley predict more tie-ups between law firms and investment companies in the next 12 to 18 months. “Firms have strategic choices to make. Before long I think every firm is going to find themselves competing with some kind of private equity model,” Morley told the Financial Times.
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https://www.ft.com/content/a3c2e33c-2d06-4252-8fcb-8fcc2869d325
