Key Takeaways
- • Charlesbank Capital Partners, a Boston-based private equity firm managing $24 billion in assets, is investing in WSHB Support Services, a newly formed management services organization (MSO) supporting Wood Smith Henning & Berman (WSHB), a Los Angeles-headquartered civil litigation defense firm.
- • The Financial Times reports the deal values WSHB at around $700 million; financial terms were not disclosed by the parties.
- • The MSO structure lets outside investors own nonlegal support businesses and collect fees without owning the legal practice, while lawyers retain control of legal decisions and client representation.
- • Holland & Knight said in September it had closed 35 legal MSO deals so far in 2026, indicating accelerating private equity activity in the legal sector.
- • WSHB, with more than 550 lawyers across 43 offices in 23 states, plans to use the capital for expansion into new markets and practice areas and for spending on artificial intelligence and data science.
Summary
Charlesbank Capital Partners, a Boston-based private equity firm with $24 billion in assets under management, is investing in WSHB Support Services, a management services organization (MSO) that will provide nonlegal infrastructure and support to Wood Smith Henning & Berman (WSHB), a Los Angeles-headquartered civil litigation defense firm. The two groups announced the investment on Monday. Financial terms were not disclosed, but the Financial Times reports that the deal values WSHB at around $700 million, according to Forbes.
Under the structure, WSHB's lawyers will remain in charge of legal decisions and client representation. The MSO model has become an increasingly popular workaround for professional ethics rules that generally bar nonlawyers from owning law firms or sharing legal fees. Outside investors can own the business supplying a firm's technology, marketing or other support services and collect fees for that work without owning the legal practice, though the arrangement must still preserve lawyers' professional independence.
The deal follows a growing number of similar transactions. In April, Arizona's Rafi Law Group announced a $125 million investment from an outside investor in its newly formed MSO, valuing the services business at about $450 million. In September, Los Angeles-based corporate law firm Massumi + Consoli launched an MSO backed by Dallas-based Trive Capital. Forbes also reported in July that newly formed buyout firm Uplift Investors raised $670 million on the back of its Orion Legal MSO, which provides nonlegal services to personal-injury firms. Holland & Knight, which advises investors and legal practices on such transactions, said in September that it had closed 35 legal MSO deals so far in 2026.
WSHB represents a significant bet on insurance defense, a practice area in which lawyers defend companies against claims ranging from personal injury to product liability. The firm has more than 550 lawyers across 43 offices in 23 states and represents insurers, self-insured companies and institutional clients. WSHB says the investment will support expansion into new markets and practice areas, alongside spending on artificial intelligence and data science. Cofounder Daniel Berman will become CEO of the services company, while Stewart Reid will remain the law firm's managing partner.
Under the structure, WSHB's lawyers will remain in charge of legal decisions and client representation. The MSO model has become an increasingly popular workaround for professional ethics rules that generally bar nonlawyers from owning law firms or sharing legal fees. Outside investors can own the business supplying a firm's technology, marketing or other support services and collect fees for that work without owning the legal practice, though the arrangement must still preserve lawyers' professional independence.
The deal follows a growing number of similar transactions. In April, Arizona's Rafi Law Group announced a $125 million investment from an outside investor in its newly formed MSO, valuing the services business at about $450 million. In September, Los Angeles-based corporate law firm Massumi + Consoli launched an MSO backed by Dallas-based Trive Capital. Forbes also reported in July that newly formed buyout firm Uplift Investors raised $670 million on the back of its Orion Legal MSO, which provides nonlegal services to personal-injury firms. Holland & Knight, which advises investors and legal practices on such transactions, said in September that it had closed 35 legal MSO deals so far in 2026.
WSHB represents a significant bet on insurance defense, a practice area in which lawyers defend companies against claims ranging from personal injury to product liability. The firm has more than 550 lawyers across 43 offices in 23 states and represents insurers, self-insured companies and institutional clients. WSHB says the investment will support expansion into new markets and practice areas, alongside spending on artificial intelligence and data science. Cofounder Daniel Berman will become CEO of the services company, while Stewart Reid will remain the law firm's managing partner.
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