PE momentum builds as more UK legal firms secure backing

Private equity’s push into the UK legal market is gathering steam, with Midlands firm Higgs and Manchester-headquartered Leonard Curtis both landing new backers.

Higgs has taken investment from London-based PE firm August Equity, whose portfolio has included professional services groups. August previously owned mid-tier accounting firm AAB, backing a buy-and-build strategy that tripled its size to more than £100 million in revenue before selling out to Goldman Sachs' investment arm in July. Higgs reported revenue of £20 million in its most recent accounts.

Meanwhile, SME-focused restructuring and insolvency specialist Leonard Curtis has been sold by its current owners to mid-market buyout firm Pollen Street. The group, which also runs an SRA-regulated legal business, told the Gazette the deal will help fuel a recruitment drive and expansion of its legal arm.

Bigger picture

The two deals add to the growing interest private equity is showing in the legal sector.

Activity is already reshaping parts of the UK mid-market, with PE-backed groups like Lawfront pursuing roll-up strategies, and comes amid talk that even larger City firms are beginning to weigh external investment options. Clifford Chance managing partner Charles Adams recently said he would not rule out outside capital if the right opportunity arose.

At the same time, a new advisory ecosystem is springing up to help law firms navigate the space. This week, former Rosenblatt CEO Adil Taha and ex-RPC chief Jonathan Watmough launched Taha & Watmough to specialise in law firm-PE transactions, joining boutiques set up this year by former A&O leaders Wim Dejonghe and David Morley and ex-Linklaters strategy chief Greg Jackson.

For now, much of the action remains concentrated in the SME and regional end of the market. But with the scale of private capital circling the sector, today’s deals may well prove a staging ground for bigger plays to come.