The Brief:
Ashurst Perkins Coie becomes the UK’s largest firm to secure an Alternative Business Structure licence.
The firm insists it’s not chasing private equity cash, despite the corporate structure allowing exactly that.
Ashurst Perkins Coie has become the largest law firm in the UK to land an Alternative Business Structure (ABS) licence from the UK’s Solicitors Regulation Authority.
Ashurst’s model
The ABS structure lets firms take on private equity money, bring non-lawyers into the ownership mix, and bolt on other professional services like accounting.
But Ashurst Perkins Coie says that’s not what’s going on here.
“We are not seeking and have no intention to seek third-party investment, and the structure was not put in place for that purpose,” a firm spokesperson said.
A source close to the decision said that it’s really about integration. “An ABS structure permits a corporate entity or non-lawyer to be a member of an SRA regulated law firm LLP. The ABS structure therefore allows for Ashurst Perkins Coie Global LLP to become a member of Ashurst Perkins Coie U.K. LLP to facilitate financial integration of the combined firm.”
The firm plans to integrate its finances globally from early 2027.
The bigger picture
Almost 2,000 ABSs now exist in the UK, but most are small players. Big Law uptake has been few and far between. The London arms of Reed Smith, Wilson Sonsini, Alston & Bird and Sheppard Mullin all hold licences. None have taken outside money.
DWF remains the biggest firm to actually go down that path, backed by private equity outfit Inflexion Partners since a £342m buyout in 2023.
Former legal regulator Iain Miller, now a partner at Kingsley Napley, says a major firm taking PE money would set off a chain reaction.
“Every law firm wants to be in the middle of the pack,” he said. “This will generate FOMO (fear of missing out), plus there will be pressure from the partnership.”
No PE cheque yet. But Ashurst Perkins Coie’s got the structure ready to bank it.
Source: Law.com, Legal Cheek