Key Takeaways
- • Allen & Overy sold a majority stake in its risk management business aosphere to private equity investors Inflexion Partnership Capital II and Endicott Capital, with A&O retaining a 'significant minority' stake.
- • aosphere serves around 725 blue-chip clients, including banks, asset managers and corporates, who pay subscriptions for standardised legal risk and compliance analysis.
- • For the year ended 31 December 2022, aosphere's profit before members' remuneration rose 21% to £5.36m, while revenue grew 13% to £20.8m, with £5.1m in cash and 42 staff.
- • The new investors plan to build a scaled, worldwide regulatory data business, with a particular focus on growing in the US. The purchase price and stake size were not disclosed.
- • The deal comes as A&O prepares to merge with US practice Shearman & Sterling, and adds to Inflexion's 2023 legal-sector activity, including its agreement to buy DWF.
Summary
Magic circle firm Allen & Overy has sold a majority stake in its risk management business, aosphere, to private equity investors, according to The Law Society Gazette. Inflexion Partnership Capital II and Endicott Capital are the new investors, and A&O will retain a 'significant minority' stake in the business it created in 2002. aosphere will become a stand-alone entity following the investment.
The platform provides subscription-based standardised legal analysis on legal risk and compliance, working with local counsel across the globe. Its roughly 725 blue-chip clients include banks, asset managers and corporates, who pay for advice on areas such as financial derivatives, cross-border marketing and data privacy. The Gazette reports that the amount paid and the size of the stake acquired have not been disclosed.
The new owners say they intend to create a scaled, worldwide regulatory data business, particularly by growing in the US. David Whileman, partner and head of Inflexion Partnership Capital, said the sector has been tracked for some time, as heightened regulatory scrutiny and complexity have increased demand for efficiency and outsourcing in legal spend. Wim Dejonghe, senior partner at A&O, described Inflexion as a 'world-class partner' and said the firm looks forward to supporting aosphere's continued growth. A&O said the partnership will benefit both the business and its clients, and the sale takes place while A&O is in the process of merging with US practice Shearman & Sterling.
Accounts for aosphere, filed in October 2023 and covering the year ended 31 December 2022, show profit before members' remuneration up 21% to £5.36m and revenue up 13% to £20.8m. The business held £5.1m in cash reserves and employed 42 staff.
The deal also extends Inflexion's activity in the legal sector this year. The firm has agreed to buy international firm DWF in the final quarter of 2023. Previously, Inflexion led the buyout of legal rankings business Chambers and Partners in 2018, acquired a stake in conveyancing firm O'Neill Patient in 2019, and has invested in National Accident Helpline.
The platform provides subscription-based standardised legal analysis on legal risk and compliance, working with local counsel across the globe. Its roughly 725 blue-chip clients include banks, asset managers and corporates, who pay for advice on areas such as financial derivatives, cross-border marketing and data privacy. The Gazette reports that the amount paid and the size of the stake acquired have not been disclosed.
The new owners say they intend to create a scaled, worldwide regulatory data business, particularly by growing in the US. David Whileman, partner and head of Inflexion Partnership Capital, said the sector has been tracked for some time, as heightened regulatory scrutiny and complexity have increased demand for efficiency and outsourcing in legal spend. Wim Dejonghe, senior partner at A&O, described Inflexion as a 'world-class partner' and said the firm looks forward to supporting aosphere's continued growth. A&O said the partnership will benefit both the business and its clients, and the sale takes place while A&O is in the process of merging with US practice Shearman & Sterling.
Accounts for aosphere, filed in October 2023 and covering the year ended 31 December 2022, show profit before members' remuneration up 21% to £5.36m and revenue up 13% to £20.8m. The business held £5.1m in cash reserves and employed 42 staff.
The deal also extends Inflexion's activity in the legal sector this year. The firm has agreed to buy international firm DWF in the final quarter of 2023. Previously, Inflexion led the buyout of legal rankings business Chambers and Partners in 2018, acquired a stake in conveyancing firm O'Neill Patient in 2019, and has invested in National Accident Helpline.
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