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LegalVision to ‘aggressively’ grow following private equity investment
In conversation with Lawyers Weekly, LegalVision’s chief executive discussed the disruptor firm’s growth plans following its partnership with Quadrant Private Equity, why PE arrangements won’t work for every law firm Down Under, and how LegalVision has only scratched the surface of its global expansion.
Jerome Doraisamy
Growth plans
As reported last week, leading disruptor law firm LegalVision has entered a partnership with Quadrant Private Equity, whereby the latter has taken an ownership stake in the fast-growing international practice for an undisclosed sum.
In conversation with Lawyers Weekly, LegalVision founder and chief executive Lachlan McKnight (pictured) said the new partnership will enable the firm to “invest aggressively in our next phase of growth”.
“We will be investing heavily in our team, technology, and service lines over the next couple of years. In particular, we’re focused on growing in the mid-market and enterprise space. We’ve seen a significant increase in demand from general counsel and in-house teams looking for more cost-effective options to address the resourcing of their legal needs,” he said.
“We’re only scratching the surface in terms of what global expansion looks like.”
“The UK market is four times bigger than the Australian market, so there’s significant market share for us to capture there in the short to medium term.”
At this stage, he noted, the firm’s plan is to grow further in Australia, New Zealand, and the UK before it launches in additional jurisdictions.
A trend towards private equity?
The news followed a handful of private equity investments in major Australian law firms in recent years.
Back in mid-2018, alternative legal services provider (ALSP) provider LOD entered a partnership with Bowmark Capital – a five-year investment that was “defined by considerable growth” before LOD was acquired by US-headquartered business Consilio in August 2023. In mid-2022, international law firm Wotton + Kearney entered into a partnership with Straight Bat, which took a 30 per cent stake in the BigLaw practice. In May 2023, national plaintiff firm Slater & Gordon delisted from the ASX following its compulsory acquisition by Allegro Funds, which saw the PE firm acquire over 97 per cent of the firm.
Lawyers Weekly has previously explored whether private equity solutions will become more commonplace for Australian law firms. With economic uncertainty ramping up amid new trade tariffs and a shrinking US economy, such solutions may seem more appealing to firm owners very soon.
When asked if he thinks such PE investments in law firms will become a trend Down Under, McKnight said it will depend on the firm.
A traditional top-tier or mid-tier law firm isn’t really suitable for a PE investment, he suggested, “because the business itself isn’t really investible”.
“Traditional law firms are just a collection of individual practices. If a partner leaves, he or she often takes a significant client base with them. This type of business model isn’t great for creating long-term value,” he said.
If one looks at the types of firms that have attracted PE investment (such as those listed above), they operate with a different business model compared to traditional firms, McKnight said.
“There is, therefore, value in those businesses which is dissociated from the individual lawyers working in the firms. I think that’s the starting point for a PE investor, or any type of investor,” he said.
“There are not many firms in Australia that fit the above-mentioned criteria, so I don’t think we’ll see many PE deals in the legal space over the next few years.”
“Most ‘NewLaw’ firms are just too small to be of interest, and most other firms are traditional partnerships.”
McKnight added, however, that he does predict more PE deals in the legal profession globally.
“Every jurisdiction has a couple of larger, scaled disruptor models. I think it’s likely we’ll see deals in the UK and the US on a regular basis,” he said.
Looking ahead
More than a decade ago, McKnight reflected, LegalVision was founded with a clear mission: to disrupt the traditional law firm model that was failing to serve the small- to medium-sized business market.
“I think we’ve done a good job of that,” he said.
“We’ve fundamentally transformed the way in which legal services are delivered and sold. We’ve set a new standard in terms of client experience, commerciality and innovation. We’ve challenged the billable hour model, creating a unique membership product that is both loved by our clients and envied by the ‘competition’. We’ve also redefined the manner in which a law firm is structured; building a unique company culture that isn’t about corporate hierarchy and timesheets, but about performance in a modern working environment.”
However, he added, there is “so much opportunity for us to keep improving and scaling”.
This is what excites him most – the idea that LegalVision is just at the beginning of its journey.
Jerome Doraisamy
Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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