In a significant move impacting the legal landscape, a prominent city law firm has introduced a consultancy service to provide regulatory advice to investors interested in the UK and international legal markets.
The legal profession is witnessing notable changes as external investments increase. Several announcements signal this growth, and a city-based firm, Kingsley Napley, aims to meet the demand with the launch of a new service. Through a consultancy named Stratify, the firm intends to provide strategic regulatory advice to private equity firms and other potential investors keen on entering the legal field.
Iain Miller, a partner at Kingsley Napley known for his expertise in legal regulations, leads this initiative. He has recruited Crispin Passmore as a senior consultant to enhance the consultancy’s capabilities. Passmore, with a history as a director at both the Legal Services Board and the Solicitors Regulation Authority, brings significant experience. His consultancy, which focused on alternative business structures, has been integrated into Stratify.
Passmore notes the growing interest from funders and new market entrants seeking advice on navigating the regulatory landscape. He highlights the awareness among existing law firms regarding potential restructuring options to match regulatory advancements. The consultancy addresses needs not only in the UK but also in the US and other global markets.
Miller expresses that evolving regulatory frameworks are compelling traditional businesses to diversify, thus increasing the need for informed strategic direction about regulatory structures and risk management. This service already advises an array of clients, including private equity firms, US law practices, and tech start-up founders, about their interest in the UK legal market.
Passmore believes the legal market is undergoing unprecedented transformation, with significant opportunities available. Recent activities in the sector support this view, such as a professional services firm branching into law via a £6.1 million acquisition and private equity players acquiring regional law firms.
The continuous flow of such deals, according to Passmore, reflects a maturation in the perception of investments by both law firms and investors. He suggests this evolving understanding is leading to better investment-readiness among firms, with emphasis on strong governance, corporatisation, and clear growth strategies.
Additionally, Passmore considers the role of artificial intelligence in boosting productivity within law firms. He argues that substantial and patient capital is necessary to support these changes, capital often provided by private equity with long-term investment horizons.
The legal market is further influenced by the emergence of alternative legal service providers. Such growth is facilitated by major investors who become more comfortable operating within regulated environments. Firms in this sphere are setting benchmarks that others are inclined to follow.
Passmore emphasises the increasing interest of US investors in the UK’s legal space, pointing to a cross-border dynamic that seeks novel structures to overcome regulatory obstacles. He references the expanding expertise among finance and regulatory advisors which boosts investor confidence.
In the US, Arizona and Utah have pioneered the allowance of alternative business structures, offering insights into regulatory flexibility. These developments suggest an ongoing openness to investment and innovation within the legal sector.
As the legal industry evolves, the strategic consultancy offered by Kingsley Napley represents a key resource for investors navigating the regulatory complexities of the market. With experienced leadership and a proactive approach to meeting contemporary demands, Stratify positions itself at the forefront of this transformation.
