Private equity’s hunger for investment in professional services firms—from auditors to restructuring specialists—seems insatiable, yet traditional law firms remain largely untouched. While investment in non-traditional legal services has been buoyant, direct investment in partnerships has been little more than a trickle. This article explores why, and how that might be changing.
The appeal is obvious. TheCityUK legal services report 2024 reported the global legal services market is predicted to reach $950 billion by 2027, and total revenue of the world’s largest law firms broke through the $150 billion mark in 2023-24. Law firms, especially global giants, can be money machines with top firms exceeding 40% profit margins and multimillion-dollar profit-per-partner figures. This, combined with the potential for expansion, consolidation and efficiency gains, makes the sector tempting.