US firm Cohen & Gresser in talks over private equity backing, FT reports

Cohen & Gresser, the New York firm known for representing Sam Bankman-Fried and Ghislaine Maxwell, is exploring a private equity stake sale as the US legal market continues to open up to outside investment.

The firm has been in discussions over a $40 million convertible note that would later convert into equity, with a possible deal in early 2026, according to a Financial Times report.

Co-founder and managing partner Lawrence Gresser told the FT that the firm has spent more than a decade preparing for private capital to enter the legal sector. He said the firm is working with several investment firms on potential structures that align with its strategic goals.

Alternative investment model

The firm is considering a structure where the lawyer-owned practice sits alongside a separate managed services organisation (MSO) - an increasingly common model in the US for bringing outside capital into professional services firms.

It allows private equity to invest in the MSO, which holds the brand and support functions, without breaching state rules that restrict non-lawyer ownership.

McDermott is also exploring private equity investment through an MSO-style structure as more US firms road test outside capital.

Firm context

Founded in 2002 as a New York boutique, Cohen & Gresser has expanded internationally in recent years. Its London white collar practice has contracted recently after several departures and is repositioning towards corporate-focused work, according to Law.com.

Co-founder Mark Cohen represented Bankman-Fried in the FTX fraud trial and previously defended Maxwell in her federal prosecution. He has also defended hedge fund traders facing corruption and insider trading allegations.