London sports firm Northridge takes private equity investment

Sports law boutique Northridge has secured a strategic minority investment from US-based private equity firm Cordillera Investment Partners as it looks to accelerate growth.

Founded in 2017 by a group of partners from Charles Russell Speechlys, the London firm has built a tightly focused model around high-stakes sports matters, growing to 44 legal professionals and establishing a leading position in the sector.

Northridge has advised on high-profile matters at the top of the sports market, including the sale of Everton FC to The Friedkin Group and Red Bull’s investment in Leeds United. The firm also advised on the sale of Chelsea FC and AC Milan in 2022.

Its specific focus is part of the appeal to investor Cordillera, which focuses exclusively on niche assets. Its recent investments include sports-related businesses as well as spirits inventory, music royalties, boat marinas and data centres.

What they said

Jonathan Ellis, partner at Northridge, said: “As the sports industry continues to grow and evolve, we see a significant opportunity to be even more ambitious.

This investment will enable us to accelerate our strategic priorities, broadening and deepening our capabilities, expanding internationally, and continuing to invest in exceptional talent and innovative technology.”

Chris Heller, co-founder and co-managing partner at Cordillera, said: “Identifying opportunities in undercapitalised segments of the sports market has led us to explore a growing ecosystem of sports related service providers around the world.”

He added: “These businesses benefit from powerful tailwinds in sports but importantly are not exposed to onfield performance or league risk. Northridge is a perfect example of a clear leader in this ecosystem.

Why private capital, why now

Demand for investment in technology, hiring and international expansion is pushing firms to look beyond traditional partnership funding models.

Survey data shows 75% of firms are very likely to consider, or have already taken, external capital according to a report published by law firm Macfarlanes.

Private investment activity has historically been focused on smaller firms, but interest is broadening, with even larger firms increasingly open to external investment.

Small firms with revenues below £25 million show the greatest willingness to accept private investments, while large firms with revenues above £500 million, the percentage drops to 43%.

Rather than relying on partner capital or bank debt, firms are increasingly open to the idea of turning to minority investors to fund expansion.

Matt Doughty - chief executive of the UK’s largest private equity-backed law firm DWF - recently joined The Non-Billable Podcast to discuss why he thinks most firms are not ready for private equity investment.