Private equity is finding a way into law firms (without actually owning the law firm).
Charlesbank Capital Partners just invested in the back-office operations of Wood Smith Henning & Berman, a 550+ lawyer firm with offices across 23 states.
The structure is the interesting part.
WSHB separated its non-legal operations into a management services organization, or MSO.
That entity can take outside investment while the lawyers retain control of the legal practice.
The money is expected to fund expansion, technology, AI and data capabilities.
Reuters reports that similar deals are becoming increasingly common across the industry.
It’s another sign that firms are getting more deliberate about what lawyers should actually spend their time doing… and what can be handled elsewhere.
-The Legal Brief
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