Ranks of investment houses such as Cazenove, Catalyst, Fleming Family & Partners and Noble have been touted as names roadshowing to firms. However, proposals have moved beyond floating a law firm with investors keen for longer-term investment opportunities.
Firms including Travers Smith, LG, Barlow Lyde & Gilbert, Nabarro, Lovells and Ashurst have been contacted by potential investors with some firms, such as Olswang, actively considering their options.
New proposals taken to some firms include securitising a percentage of future profits in return for a small stake in profits which would create substantial tax savings.
Other firms have been approached about an option which would effectively see investors lending money now, with the loan then turning into a stake in the business when the Legal Services Bill comes fully into effect in 2011 — removing the need for repayments in the short term.
Other opportunities include giving firms access to a ‘war chest’ with which to buy in teams of top people.
One senior partner at a top 10
Olswang managing partner David Stewart said: “We have not closed our mind to any decision. We are looking at it in detail as a management team, and will talk to the partnership when we have decided it is appropriate.”
