Private Equity, MSOs and the Ethics of Law Firm Ownership

Legal Services Transactions Team Leaders Trisha Rich and Joshua Porte joined an episode of the Financially Legal podcast to talk about management service organization (MSO) deals in the legal industry. Combining Trisha's extensive knowledge of lawyer ethics and regulation with Joshua's experience in private equity transactions, the conversation begins with a primer on how MSO structures work and how this business model balances outside capital investment with existing law firm ownership and fee-sharing restrictions. As Trisha explains, when advising law firms and capital providers, Holland & Knight makes sure all aspects of the deal meet regulatory requirements. They then cover the uptick in state regulatory activity in the space, including new bills in Illinois and Colorado targeting MSOs and alternative business structures (ABS) and California's new law limiting private equity's influence on law firm operations. The episode additionally explores why private equity is interested in the legal profession and what questions firm leaders should ask when contemplating the jump into the MSO market. With more outside investment and increased technological adoption throughout the legal industry, Trisha and Joshua's insights offer a beneficial guide to how law firms can pursue growth opportunities and set their teams up for success while protecting lawyer independence and the attorney-client relationship.

Duration: 47:14