Kindleworth plans US launch as conditions align for law firm startups

Kindleworth is preparing to open its first US office, betting that growing frustration inside Big Law will drive more senior partners to strike out on their own.

The consultancy, which helps partners spin out of large firms to launch specialist boutiques, is planning an East Coast launch this year. "Our plan now is to open up on the East Coast and to be building a team out there," founder James Hacking told us on The Non-Billable Podcast.

Burford backing

The move comes after Kindleworth took investment from litigation funder Burford Capital last year, a deal that has expanded its ability to help partners solve one of the hardest parts of leaving Big Law: funding. "One of the barriers in launching your own firm was how to fund it, how to deal with the costs it takes to open doors, and then how to manage working capital from day one," Hacking said. "Banks really aren’t interested in providing that."

While Burford is not an exclusive funding partner, the relationship removes what Mike Estill, Kindleworth partner, described as "two massive headaches" for lawyers thinking about a move: operations and capital. "We do all of the stuff that lawyers just don’t like to do," Estill said. "And then you’ve got money to make it happen."

Kindleworth has built a reputation around high-profile launches and rescues, including arbitration specialist Three Crowns, litigation firm Pallas Partners, and last year’s rapid carve-out of Rosenblatt from collapsed listed legal services group RBG Holdings. In that case, Hacking said teams were operational again within "five or six weeks in total", calling it "the fastest project we’ve ever been involved with".

Why now is different

Both Hacking and Estill argue the timing has rarely been better for ambitious partners to leave and start up on their own. "There has never been a better time to have a conversation with a business like us than there is today," Hacking said, pointing to easier access to technology, capital and infrastructure. "Most of our clients don’t start up, they spin out. They’ve got existing books of business and loyal clients."

Estill added that Big Law’s increasing strategic focus and merger activity is creating opportunities. "There are partners with very, very good practices who just don’t fit anymore," he said. "There’s a real opportunity to help them stand on their own two feet and create really interesting businesses focused exclusively on their client base."

Listen to the full conversation on The Non-Billable Podcast.