Key Takeaways
- • Charlesbank Capital Partners has invested in the non-legal operations of Los Angeles-based law firm Wood Smith Henning & Berman (WSHB), a transaction reportedly valuing the business at approximately $700m, according to Reuters.
- • The investment is structured through WSHB Support Services, a newly established management services organisation (MSO) that will provide operational infrastructure and administrative support.
- • Charlesbank's capital is earmarked for geographic expansion and technology development, including artificial intelligence and data science capabilities.
- • WSHB, which employs more than 550 lawyers across 23 US states, will reportedly remain an independent law firm with control of its legal practice and client relationships.
- • The deal is part of a growing wave of private equity investment in legal services platforms, using MSO structures to comply with US rules that bar non-lawyer ownership of law practices.
Summary
Charlesbank Capital Partners has invested in the non-legal operations of Wood Smith Henning & Berman (WSHB), a Los Angeles-based US law firm, in a transaction reportedly valuing the business at approximately $700m, according to a Reuters report. Financial terms were not formally disclosed, although the Financial Times had previously reported the $700m valuation.
The investment has been channelled into WSHB Support Services, a management services organisation (MSO) established to provide operational infrastructure and administrative support to the firm. WSHB employs more than 550 lawyers across 23 US states and specialises in representing insurers, self-insured corporations and institutional clients. Charlesbank's capital is intended to support geographic expansion and the development of technology, including artificial intelligence and data science capabilities.
The MSO structure is central to the deal's design. US regulations generally prohibit non-lawyers from owning law practices or sharing legal fees, so private equity investors typically access law firms through their non-legal operations. WSHB will reportedly remain an independent law firm, retaining control of its legal practice and client relationships.
The transaction follows increasing private equity interest in legal services, where investors are targeting opportunities to consolidate operations and expand technology capabilities. According to the report, it is among a growing number of private equity investments in legal services platforms as firms seek operational efficiencies and technology adoption across the sector.
The investment has been channelled into WSHB Support Services, a management services organisation (MSO) established to provide operational infrastructure and administrative support to the firm. WSHB employs more than 550 lawyers across 23 US states and specialises in representing insurers, self-insured corporations and institutional clients. Charlesbank's capital is intended to support geographic expansion and the development of technology, including artificial intelligence and data science capabilities.
The MSO structure is central to the deal's design. US regulations generally prohibit non-lawyers from owning law practices or sharing legal fees, so private equity investors typically access law firms through their non-legal operations. WSHB will reportedly remain an independent law firm, retaining control of its legal practice and client relationships.
The transaction follows increasing private equity interest in legal services, where investors are targeting opportunities to consolidate operations and expand technology capabilities. According to the report, it is among a growing number of private equity investments in legal services platforms as firms seek operational efficiencies and technology adoption across the sector.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.