Walker Morris has drawn ‘huge amount’ of PE interest, says managing partner

Walker Morris has attracted a “huge amount of interest” from potential investors, but private equity is not a realistic option for the firm, according to managing partner Jeanette Burgess.

Burgess told The Non-Billable Podcast she had received interest from “a very wide variety of sources, national and international” as investors increasingly explore opportunities in the legal sector.

The interest comes as Walker Morris closes in on £100 million in revenue. The Leeds-based firm grew turnover by 11% to a record £90.2 million last year, leaving it firmly on track to reach its £100 million target next year.

Burgess said its partners were unwilling to sacrifice the independence that sits at the heart of the firm’s model.

Control of its own destiny

“PE investment has its place, but to date it’s largely been focused on smaller and volume-based firms which PE can consolidate,” she said.

“For our part, it’s not a realistic option for us and our partners have been very clear that the trade-off in terms of having control of our own destiny is not something they’ve been prepared to countenance.”

Burgess said Walker Morris’ partnership is built around sharing risk and reward while preserving the same opportunities for future generations. The loss of control that would come with a private equity deal makes the model unattractive, she added.

She has also looked at minority investment and so-called patient capital, but does not believe either is right for Walker Morris at this stage. The firm will nevertheless continue watching how external investment develops across the market, she added.

Scaling from Leeds

Walker Morris regularly goes head-to-head with City firms on major deals, all from a single office in Leeds.

Burgess said the model supports closer working relationships, avoids the politics and salary differences that can arise between offices and gives the firm a lower cost base than it would have in London.

The firm has not seen evidence that its single location prevents it from winning top mandates. Although opening in London remains something it could consider, Burgess said the advantages of staying in Leeds currently outweigh the potential benefits.

The model is also attracting lawyers from larger firms seeking a different proposition. Walker

Morris has recently hired senior lawyers from City rivals, including Freshfields, Hogan Lovells and DLA Piper.

The firm has nearly doubled in size over the past seven years and is now developing the strategy that will follow Ambition 27, its current three-year plan.

“We feel that, for now, we can continue to scale and deliver £100m-plus from our Leeds base,” Burgess said.

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