John Quinn Sees Big Law Investor Deals as States Ponder Bans

Legal ethics attorney Trisha Rich was quoted in a Bloomberg Law article exploring whether Big Law firms will pursue outside investment as state legislatures weigh restrictions on private equity and hedge fund involvement in the legal industry. The article summarized the publication's podcast episode featuring an interview with a Big Law founder, who talked about potentially using a management services organization (MSO) to sell equity while complying with existing bans on nonlawyer ownership of firms. However, although MSOs and alternative business structures (ABS) have become more prominent throughout the profession – Ms. Rich has advised on dozens of deals involving them – states such as Illinois and California have introduced bills that would limit nonlawyer participation in the business operations of law firms. She said Illinois' proposal is concerning but will likely face challenges on the grounds that the state judiciary, not legislature, regulates attorneys. She also predicted that 2026 will see an MSO deal from one of the top 200 law firms by revenue, noting attorneys can address concerns about "cashing out" by directing funds toward growth strategies.

"When those Big Law firms start to transact, it's just going to be a different thesis than what you're seeing in the personal injury space where founding personal injury attorneys are using these as liquidity events," Ms. Rich said.

READ: John Quinn Sees Big Law Investor Deals as States Ponder Bans