The traditional partnership model for solicitors is waning, according to the chief executive of a private equity-owned law firm, who claims unprecedented opportunities have arisen post-takeover.
Nelsons, an East Midlands legal practice, recently celebrated its one-year anniversary under the ownership of Lawfront, backed by private equity firm Blixt. Lawfront, which aims to construct a £150 million national group, has already acquired four regional firms, marking significant progress towards its goal.
Stewart Vandermark, Nelsons’ chief executive, detailed how the firm had sought growth before the COVID-19 pandemic and noted that this intention has only intensified as the market evolves. He explained that aligning with Lawfront felt strategic and culturally fitting, allowing Nelsons to consolidate its regional presence without expanding into a national firm with widespread offices.
The firm has experienced a year marked by substantial growth, with two strategic acquisitions in 2023. Notably, this expansion attracted talent eager to embrace the new ownership model, which is perceived as a contemporary method of law firm management. Vandermark reassured that the lack of equity partnerships has not hindered recruitment, citing career development and competitive remuneration as key motivators for joining the firm.
The transition to a private equity model introduced new dynamics for Vandermark, who shifted from having full control to being accountable to owners. However, he noted the benefits outweigh the challenges. Lawfront’s investments have facilitated acquisitions and enhanced marketing, particularly digital initiatives, and improved employee benefits.
Additionally, investments in technology are enabling Nelsons to explore artificial intelligence and upgrade their practice management systems. This technological integration is part of a broader strategy to unite IT efforts across the group and foster collaboration among practice groups.
Vandermark acknowledged the typical private equity exit strategy but expressed confidence in Lawfront’s approach, which ensures a buffer between legal operations and investor demands, promising stability amidst potential changes in investment leadership.
Looking forward, Vandermark envisages a diverse legal market where various ownership models coexist. He assured that while equity ownership will not vanish entirely, its prevalence is diminishing. Nelsons aims to leverage this early advantage with Lawfront to continue its growth trajectory and enhance client services, ultimately aspiring to compete with the top 100 firms.
As the legal market continues to evolve, firms like Nelsons are at the forefront of experimenting with alternative business models, potentially setting the stage for further private equity interest in the sector.
