Bloomberg Reports Private Equity Interested In UK Law Firms

Aug. 3 (Bloomberg) — Private equity funds including Fleming Family & Partners Ltd., Phoenix Equity Partners Ltd. and Lyceum Capital Partners LLP are considering investing in U.K. law firms as rules allowing shared ownership move closer to taking effect, according to people familiar with the plans.

Fleming Family, a money management firm, is in talks to buy law firm stakes of as much as 20 percent, said the people who declined to be identified because the talks are private. Lyceum Capital, a London-based leveraged buyout firm, may invest in other legal services models, managing partner Jeremy Hand said.

Funds are raising money to prepare for when law firms can accept outside investments in 2011, industry consultants say. Phoenix Equity, another leveraged buyout firm based in London, has similar plans, the people said.

?Law firms are pretty attractive investments as they have stable cash flows, long track records of business operations and increasingly are much better run,? said John Llewellyn-Lloyd, executive director of Noble Group Ltd., a London-based investment bank. ?You would expect them, like any professional services business, to provide a pretty good return.?