Why U.S. Big Law Hit the Pause Button on Private Equity

Legal Services Transactions attorneys Joshua Porte and Trisha Rich were cited in a PitchBook article examining the increasing momentum behind management services organization (MSO) transactions in the legal industry and why much of this activity among U.S. law firms remains out of public view. The article explained that MSOs enable firms to separate business functions such as technology, marketing and administrative services from the practice of law, allowing outside investment while maintaining compliance with professional ethics rules. Although investor interest continues to grow, especially among private equity firms, large law firms have been slower to adopt the model because of challenges that include securing partner approval, evaluating the need for external capital and navigating cultural and regulatory considerations. Even so, Mr. Porte commented, significant deal activity is underway, particularly among smaller or founder-led firms. As evidence of the industry's exploration of these new approaches to growth and outside investment, he and Ms. Rich added that Holland & Knight closed seven MSO deals in 2025 and has finalized close to 20 so far this year, with another 100 in the pipeline.

"The vast majority are not publicly announced," Mr. Porte said. "It's really the tip of the iceberg – then everything else is below the waterline."

READ: Why U.S. Big Law Hit the Pause Button on Private Equity