PE-backed HF swoops for collapsed London firm Rosling King

London law firm Rosling King has been acquired by private equity-backed Horwich Farrelly after the firm filed a notice to appoint administrators earlier this month under mounting financial pressure.

HF said it had taken on around 40 lawyers and staff from the firm, with the team joining on Tuesday (26 May).

Rosling King filed a notice to appoint administrators on 8 May, saying it faced “significant creditor pressure” linked to large unpaid fees owed to the firm.

HF said the Rosling King team would strengthen its commercial offering in areas including dispute resolution, insolvency and real estate.

Rosling King senior partner Georgina Squire said: “We are thrilled to be joining HF and to be part of their ongoing success.  We’re looking forward to being able to focus on providing outstanding service to our clients as part of a successful and growing business.”

Financial pressure

Rosling King’s collapse followed years of sluggish financial performance alongside mounting balance sheet pressure.

The firm generated revenue of roughly £11 million in the 11 months to March 2024, down from £13.8 million the previous year. More than a decade earlier, in 2013, the firm reported revenue of around £10 million.

The firm’s most recently filed accounts for 2024 also contain striking disclosures around debtor recoverability and related-party exposure.

The accounts show a bad debt provision of more than £15 million linked to sums owed by a single client over a number of years - a figure that corresponds with disclosures relating to transactions involving two entities connected to a member of the firm.

Legal industry consultant Adil Taha described the disclosures as extraordinary relative to the size of the business.

“For a firm with £10.97m of annual revenue, that provision is 141% of revenue,” he said.

“That is not a normal debtor issue. That is a catastrophic concentration, governance and recoverability issue sitting inside a law firm balance sheet connected to one of its members.”

Taha said the collapse highlighted why law firm accounts need to be analysed beyond headline profit figures.

“Cash is fact when reviewing law firm accounts. And lock-up is often where the truth lives,” he said.

HF expansion

Horwich Farrelly has expanded rapidly in recent years beyond its traditional insurance litigation roots into broader commercial legal services including real estate, restructuring, employment and dispute resolution.

The firm received minority investment from private equity firm CBPE in 2024.

HF now generates roughly £70 million in revenue.

Ronan McCann, chief executive and managing partner of HF, said: “Georgina and the team at Rosling King are very highly regarded in their field and we’re pleased and excited to have them join us.

“Within HF, they will provide the same excellent standard of service, backed by HF’s scale, innovation and technology.”